Are you looking to build your e-commerce venture? Or, maybe you need an extra bit of side income to start your hustle and make some money. Whatever you desire to accomplish, you may already have heard about selling wholesale products on Amazon to make money as a side income.

Before we proceed further, this no gets rich quick scheme that makes people millionaires overnight. Although with patience and persistence, you can indeed move the ladder and start making some money. However, if you are not careful enough, you may also lose money on wholesale.

The selection of the product makes all the difference between succeeding and failing at wholesale. Find profitable, high-quality products from a reliable supplier at prices lower than a competition to become successful.

So what’s the process of selecting the right products to sell on Amazon? 

The easy answer is to do market research, as that is an excellent business plan. For a detailed answer, go through the details shared below.

Selling via Amazon Business Models

There are two ways you can sell products on Amazon; private label and the reseller model. There are some similarities between the two, but there are many differences to be aware of.

1. Reseller Model 

When you buy products from a brand at wholesale discounts and sell them by listing on Amazon, that is the reseller business model. This model is a lot similar to how brick-and-mortar brands sell by buying from big brands. However, they have to build a physical space or rent one to do it. Amazon resellers do not need a physical store to sell products.

You can opt for the reseller model when you want to create your own e-commerce business for some side-hustle or income. Regardless of your earning goals, selling wholesale products on Amazon is an excellent way to make some side income.

Reselling is different from dropshipping, in which the seller does not have an inventory in hand. The seller relies on suppliers for shipping products to the customers. Resellers do not have to manage their inventories. This model offers greater flexibility, and you do not need to worry about paying for overheads or equity. The sellers can turn product selling trends into profits.

Individuals and small business owners can use this model to turn profits into long-term business potential. You need to buy products at competitive prices to have a chance of winning the Buy Box. Resellers have to be careful in selecting the correct product categories and suppliers to make profits.

2. Private Label 

Private label is launching your product to sell on Amazon under your company’s brand name. In private labels, you buy generic products and repackage them under your company’s brand name to sell. The product sells under your brand, which means if the customer is not happy with what you are offering to them, it will bring a bad reputation to your company name.

Private label products are not fake, but they are not considered genuine or original products either. You source the private label products from a wholesaler or manufacturer. Usually, the sourcing is done from companies already selling the same products to other private label owners. Thus, you must identify the right product that has a lot of potential and considerably less competition.

The barriers to entry are high, and you need to build a brand identity from scratch on a private label. You need a clever approach when launching a private label so you do not start competing against well-known private label brands.

The selection of the products for selling on Amazon is similar for private label and wholesale business models. The competition significantly varies between both these business models.

Proper Way of Selecting Products to Sell Wholesale on Amazon

The selection of the “best wholesale products” is not easy. You need to monitor demand trends and see if selecting a product will increase your turnover, or your money will get stuck in unsold inventory.

There is no simple answer to this question, but still, there are tips that you can follow to select better products for wholesale.

1. Select High in Demand Products

Select a product that you can quickly sell. Find a reliable supplier that can offer the product at discounts. However, if you land yourself on a product that doesn’t have demand, you will only lose money. Try browsing the supplier catalog to get more product ideas. Here are some tips to keep in mind.

  • Go for the Best-Selling Category Products 

Categories with high-demand products include books, games, toys, jewelry, shoes, clothing, and even electronics. These categories have higher profit potential and a high inventory turnover ratio.

  • Amazon Bestselling Products

Please browse through the top-selling products, make a list and update it regularly. When selecting a product from the bestselling, always look for buyers’ insight.

  • Similar Products to Products You Are Selling 

If you are already selling a product in a category, you can find a product in the same niche. Sometimes, a category has many similar product options, and you need to check their demand. See the BSR (Best Sellers Rank) and the number of customer ratings to verify product demand.

Use many different paid tools to find product demand for researching on Amazon. There are free tools available as well that you can use to find high-demand products. These Amazon keyword search tools provide you complete insights on the development, including its total sellers, BSR, estimated monthly sales, and revenue.

Once you shortlist the product ideas, the next step is to analyze the competition.

2. Select a Product with Less Competition

Resellers want to sell high-in-demand products. Still, besides high demand, you need to find products that have fewer sellers. It is tough to beat the increased competition.

Let us find ways to gauge competition for products.

  • Check Sellers Advertising for a Product 

If you see many organic results for sellers, find an Amazon advertising strategy that sets you apart from competitors to leverage sponsored products. Search for different keywords to get product ideas and also to check competitors’ advertising. Use Reverse ASIN Tools to view the competitors’ keywords and CPC (cost-per-click).

  • See if the Listing Already Has Many Resellers

If too many sellers are selling the same product, you will have to compete for the Buy Box. The competition analysis tools will let you know of the existing sellers for a given product.

  • Competition with Private Label Sellers 

Do not discount competition from the private label sellers. Check their product listing to see its SEO optimization. See if they are using the right images? Also, have a detailed look at their images, videos, reviews, and seller rank.

The knowledge of the competition will surely help you make better decisions and choose the right products to sell wholesale on Amazon.

  • Profit Potential is Vital

There can be products with high demand and low competition but having issues when it comes to making a profit. Thus, you have to make a profitability analysis and determine the costs.

  • Avoid Highly Competitive Products

The competition for the price is intense on Amazon. Never try to compete for a product that already has many sellers. Else, you won’t be able to compete in price and make any profits.

  • Factor in All Costs 

The cost of selling wholesale products is more than just a price tag. Many factors add to the final cost of the product. Always make a detailed profit analysis, including accounting for Amazon fees and fulfillment and shipping costs. Add to these expenses relevant taxes and inventory management costs.

  • Light and small Sized Products 

Select small-sized products with lightweight as they are easy to ship and take less storage space. Storage space costs money and impacts your profits. Smaller products reduce your costs.

Check for each products’ storage costs on the FBA fee schedule.

You can use the Amazon FBA revenue calculator to see the profit potential of different products.

After shortlisting the wholesale products to sell, estimate the costs before you finalize them.

Now you know the criteria for selecting an excellent product to sell for wholesale on Amazon, let’s move on to sourcing these products.

3. Finding Right Products for Wholesale Selling on Amazon

Even after going through the criteria (as discussed above), there are no guarantees for success. Also, it would help if you made an effort in finding suitable suppliers. You need to identify reliable suppliers to get high-quality products at competitive prices.

Tips to Finding Suppliers for Amazon Wholesale 

Here are the things that you need to consider when finding a wholesaler.

Step 1: Decide Type of Supplier You Require

As a reseller, you need to know the correct type of reseller. Resellers need to try and get in touch with manufacturers. Private label sellers can consider generic suppliers for buying products wholesale for building their brand.

  • Avoid Scams

You can check BBB (Better Business Bureau) for information on wholesalers. Contact suppliers in verified networks for new wholesale products.

  • Focus on the Industry 

Do not just lock yourself on to two or three wholesalers. Establish the major brands and manufacturers. Identify the distribution channels and also set your expectations from them accordingly.

After going through these details, it is time for you to focus on learning the right ways to approach suppliers.

Step 2: Learn to Communicate with the Suppliers Properly

To find the right supplier, you need to set the goals of your deal and create a win-win situation. A lot of beginners miss this critical step and don’t do enough research, avoid this pitfall.

  • Become Good at Negotiations 

Always go prepared for communications. Even as an individual seller, try to look for a side hustle to learn the art of negotiating in business.

  • Determine Needs of the Suppliers 

Suppliers want to have consistent sales of their products. If you can ensure stable sales, you can win their business. You can do this using significant deposits and long-term contracts.

  • Know the Competition 

Negotiate with many wholesalers at the same time to get in a strong negotiating position. Enter into conversations with various suppliers to know the maximum you can negotiate.

  • Establish Your Relationship Credentials

Wholesalers need confidence in their business relationships. Therefore, you need to show professionalism and responsiveness. Consider the relationship with your wholesaler as a partnership and do not just give lower price as the only consideration. Suppliers like to have stable relationships with their resellers over the long term.

Step 3: Find Trustworthy Wholesaler Directory or Network 

You can also use wholesaler networks and directories that involve a subscription cost for their service. You will find them worth the money and time you invest in them.

Here are some wholesaler networks you can consider for your search.

1. Wholesale Central

Get access to thousands of verified wholesalers without any membership costs or subscriptions. Start your search and direct contact information from wholesalers without having to overcome any registration or paywall requirements.

2. Worldwide Brands

As the top-rated wholesaler network, you get the resources and member benefits for access to quality-certified suppliers.

3. SaleHoo

Get support for wholesale products with access to a prominent supplier director for helping you find research products. Find supplier information and efficiently manage communications in one place.

4. Alibaba

Alibaba is a platform and meeting place for international buyers and suppliers to find outstanding products. Make sure to stay clear of counterfeit products when buying from suppliers on Alibaba.

Invest in top supplier directories to avoid the unnecessary hassle of finding the best wholesalers. Invest a little money to save yourself frustrations later.

What’s the Process of Selling Wholesale on Amazon?

The above information will surely help you make wiser procurement decisions. Let us give you some quick tips to follow in selling wholesale on Amazon.

  1. Use Fulfillment by Amazon 

Pay a small fulfillment fee to Amazon to overcome the woes of managing everything by yourself. FBA will let your wholesalers directly sell to Amazon.

  1. Make a Plan for Inventory Management

If you want to find an alternative to Fulfillment by Amazon, you can manage your inventory. But, proficiently manage inventory to reap cost benefits without order delays.

  1. Create an Elaborate Plan for Product Promotions

Ready a plan to advertise your products on Amazon to manage the PPC campaigns. This approach will help you avoid getting lower sales and inventory turnover.

The above three tips are just a few points to consider. Consider factoring in inventory, fulfillment, and inventory as the top things to consider.

Invest Time in Wholesale Product Hunting (You Won’t Regret It)

Consider the time spent on hunting wholesale products for Amazon as a way to improve your chances of successfully running your wholesale business. It takes time searching for the right products to sell and the suppliers to source from. Once you reap the benefits, you will find these efforts worth your time.