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An Introduction To Amazon FBA Wholesale Business

Amazon Basics / July 20, 2021

Amazon FBA wholesale business is an attractive e-commerce model for investing your money. However, when you follow the steps involved in the correct order, you increase your chances of making money from it. For you to become a profitable reseller within the AMZ marketplace, find out how you can become an excellent wholesale seller within the Amazon FBA domain and expertly fulfill orders.

The first challenge of starting this business model is finding reliable Amazon FBA wholesale suppliers. There are many suppliers out there, but you would have to be extra careful when shortlisting one for your business.

This blog post will share tips to help you find suitable wholesale suppliers. You will come to know about the how-to and the information to get your Amazon FBA wholesale business off the ground.

Let us first look at the working of the Amazon FBA model.

Introduction to Amazon FBA 

Sellers can use two options for fulfillment on Amazon, FBA, or FBM. FBA stands for Fulfillment by Amazon, and FBM stands for Fulfilment by Merchant. The most convenient and obvious choice should be FBA. Outsourcing tasks allow you to focus on core business planning and marketing while Amazon takes care of picking, packing, and shipping the products. It also offers customer service and product returns.

For creating an account and getting started, wholesalers for Amazon FBA need to follow these steps.

Step 1: Create an account for selling on Amazon.

Step 2: Login into the AMZ Seller Central and set up FBA (Fulfillment by Amazon).

Step 3: Create the product listing.

Step 4: Select the listing to FBA inventory from the Manage Inventory page.

Step 5: Prepare the products to ship to the Amazon fulfillment center.

Step 6: The last step, ship the products to Amazon.

In Amazon FBA wholesale, you do not need to worry about fulfillment issues. Instead, it would help if you focused on the following.

  • Search for the product keywords.
  • Create and SEO optimize your product listings or ASINs.
  • Follow the product ranking tips so that it reaches a maximum number of customers.
  • Answer any questions asked and review details of the product to update any missing information pointed out by customers.
  • Replenish your inventory.

Make sure that you manage inventory on a proactive basis. You can also utilize Amazon warehouses or fulfillment centers to keep your stock replenished.

Replenishment of Inventory 

For replenishment of inventory, you can either choose retail arbitrage or wholesale.

Retail Arbitrage 

Buy products at low cost from a brick-and-mortar retailer and resell them on Amazon by adding your profit margin. The downside is that you limit the number of units you can buy, depending on availability.

Amazon FBA Wholesale 

In the Amazon FBA wholesale business model, you can purchase products in bulk at a discounted price from a manufacturer and resell them on Amazon. When you choose a manufacturer, you can ask for a catalog to add more profitable products to your inventory and get more discounts.

Since you are buying from a manufacturer, you can order as much quantity of a product in demand and quickly replenish your inventory. Doing wholesale via Amazon FBA can make you handsome profits provided you can find reliable wholesale suppliers.

Finding the Right Supplier for Wholesale Amazon FBA 

Let us look at some of the characteristics of reliable Amazon wholesale suppliers to maximize business success.

Amazon FBA Wholesale

Here are the two qualities you need to keep in mind when finding a supplier for your Amazon FBA wholesale business.

  • They are open to feedback and take responsibility for correcting issues at their end.
  • They focus on producing quality products at an affordable price for the resellers and customers alike.
  • You can easily reach them via email or phone to discuss matters regarding their products.
  • They are open to third-party inspections.
  • Top Amazon FBA wholesale suppliers have a strong work ethic and follow the rules and regulations strictly.

What is the process of finding Amazon FBA wholesale suppliers? 

There are many ways of finding suppliers. However, in Amazon FBA wholesale vs. private label, the common theme is finding the right wholesale supplier.

Let us look at some of the ways you can use to find suppliers.

Use Google 

You can use Google to find suppliers. Once you know the right keywords, you can find dozens of options in a matter of minutes. Make sure that you know the right combination of words to use. The intelligent use of quotation marks can save you a lot of time.

Examples of search queries include wholesale “inventory” “xls”, wholesale “data feed” “xlsx”, and wholesale “inventory” “csv”. You can also add to these queries “[location]” if you want to look for suppliers in a particular area.

Trade Shows 

Trade shows can also help you explore different opportunities, reaching out to like-minded business individuals, and network. In tradeshows, buyers and sellers gather from various industries in one place. You may also be able to locate big brands and suppliers. You can also try finding out wholesalers’ exhibitions or stalls.

A tradeshow is a walk-in opportunity and lets you make connections that you can easily reach in the future. You have a chance for face-to-face meetings or may even get an opportunity to get in touch with the key contact person of a company for sourcing to negate any false notions that you have for a company or its products.

Trade Industry Publications 

You can also use Google to find industry trade publications. Then, subscribe to the magazines where you can find your target industry wholesalers and distributors. Also, look for the publication’s website to subscribe to their online newsletter and blog.

Industry Associations 

Industry associations follow a more formal structure, give you a chance to get in touch with particular industry experts directly. They may also refer you to the wholesale suppliers.

Seasoned sellers also use Google to find such industry associations by adding to the query “[industry name],” “[industry association],” and “[location].”

LinkedIn

LinkedIn is the world’s leading social network platform for professionals with a lot of wholesale manufacturers. You can use the search box (once logged in) to find wholesale manufacturers. Examples include [name of the industry] supplier, [name of the industry] manufacturing, and [name of the industry] wholesaler.

Before you contact a distributor on LinkedIn, always scrutinize their profile for authenticity before hitting the “follow” button. Then, send the wholesaler a message and introduce them while mentioning the purpose of communicating with them.

Private Label Manufacturers 

You can also consider third-party manufacturers for Amazon FBA wholesale specializing in private labels. They act like outsourcing companies, but they are not actual wholesalers and directly produce and sell products.

Use Jungle Scout 

Jungle Scout has a feature called “Supplier Database” that you can locate under the “Find Suppliers” menu. You can use it for searching suppliers using the product name, ASIN, industry keywords, or even company name. Beginners can use it to search for suppliers quickly. The database only contains validated data of trusted suppliers.

Wholesale Directories 

One way of tracking reliable suppliers is the use of wholesale directories. Two of the well-known directories include SaleHoo and Worldwide Brands.

These websites feature millions of products with suppliers’ contact details from industries in different parts of the world.

Worldwide Brands update their list every week, and you need to pay a one-time fee. The added feature of “scam protection” lets you stay clear of the fraudsters.

SaleHoo can also be a source for finding Amazon FBA wholesale suppliers, featuring close to 3 million products. It has over 8,000 trusted wholesale suppliers and a strict supplier review system. There is no requirement for minimum order quantity. SaleHoo lets you choose from annual fee payment or lifetime fee to start sourcing.

Other examples include Price Master, The Wholesaler, The Wholesale Forums, and Tuesday Morning.

Join Facebook Groups 

Facebook has evolved into a networking place with a lot to do with business besides connecting with family and friends. Search for FB groups to target suppliers and manufacturers. You can use a different set of keyword combinations using words like retail, group, wholesale, distributors with the name of your industry.

You can also add a location to the search keyword. Consider joining groups with valid membership of a few hundreds or thousands of individuals.

B2B Wholesale Websites 

B2B websites can also assist in finding Amazon FBA wholesale suppliers. These websites mainly cater to wholesale resellers and retailers who buy in bulk. They have an online presence, and you can directly contact the suppliers. Examples of such B2B wholesale marketplaces include DHgate, Alibaba, eWorldTrade, and Global Sources.

Product Packaging 

You can also use product packaging to find wholesale suppliers. It means using the product’s packaging and looking for a “manufactured by” label. Often, you will find the contact information on the print with the manufacturer’s name. It may not always be the case, but it is still worth the effort.

The Right Way to Contact and Negotiate 

The first step is to contact a supplier that you have shortlisted for your Amazon wholesale business. Next, you need to negotiate with them. Go prepared for the negotiations to show how your business can add value for the supplier.

The person on the other side may be a sales representative, brand representative, brand manager, or even a territory representative. Ensure that you have learned everything about the supplier and their brand representative before starting the negotiation process. For information, you can check out their LinkedIn, Facebook, and official website.

Sending the introductory email 

In your first email, you need to mention the following information.

  • Introduce yourself as a professional Amazon FBA wholesale seller.
  • Showcase the authenticity of your Amazon FBA wholesale business.
  • Reflect on your knowledge of the trade.
  • Commit making payment on a timely basis.
  • Lastly, envision a long-term partnership that is mutually rewarding.

Always try to customize and tweak each email a bit for every supplier to differentiate it. Then, you can apply some email marketing tactics to it to try and win their business.

Amazon FBA wholesale suppliers may not always reply to your email as they receive such requests regularly. If that happens to you, follow them up via phone or online call. When you give them a call, be courteous and professional. Plan your call and note down the most pertinent questions that you won’t ask.

You may ask for information about the following.

  1. The principal office address
  2. Exact product name
  3. Specifications of the product (color, weight size) and any variations
  4. Product catalog
  5. Discounts on quantity
  6. The production lead time
  7. Any extra fee for fast-tracked orders
  8. Method and schedule of payment
  9. Opportunities to launch your brand (private label)
  10. Shipping options

Conclusion

The selection of the right supplier plays a critical part in Amazon FBA wholesale business success. A reliable supplier for FBA wholesale ensures timely delivery of products for replenishment of inventory. The supplier also provides high-quality products consistently to let you scale your business. This reliability creates automation, allowing you to save time and money while focusing on expanding your business.

Other Helpful Articles:

How To Sell Wholesale On Amazon

What To Sell On Amazon FBA – Building An Amazon FBA Business: Part 1

How to Start an Amazon Wholesale Business with Greg Borsuk

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