Table of Contents
1. Introduction
2. Understanding Amazon FBA
3. Types of Products to Sell on Amazon
- Arbitrage Products
- Wholesale Products
- Private Label Products
4. The Importance of Product Category
5. Using Product Research Software
6. Analyzing Best Sellers Rank (BSR)
7. Evaluating Sales Volume and Variation
8. Avoiding Seasonal Products
9. Considering Product Weight and Fees
10. Finding Reliable Suppliers
11. Tips for Opening an Account with Wholesalers
12. Conclusion
Introduction
In today's digital age, finding success with Amazon FBA (Fulfillment by Amazon) requires more than just a good product. It demands a strategic approach to product selection, analysis, and sourcing. In this article, we will explore the exact method to find profitable Amazon wholesale products. This method has helped me generate hundreds of thousands of pounds in sales, and I'm excited to share it with you. Whether you're starting from scratch or looking to optimize your existing wholesale product sourcing, this guide will provide you with valuable insights and actionable steps.
Understanding Amazon FBA
Before diving into the specifics of finding profitable wholesale products, let's briefly understand what Amazon FBA is. Amazon FBA is a program offered by Amazon that allows sellers to store their products in Amazon's fulfillment centers. Amazon takes care of inventory storage, packaging, shipping, and customer service, making it easier for sellers to focus on growing their business. By leveraging the power of Amazon's vast customer base and logistics infrastructure, sellers can reach a wider audience and scale their operations efficiently.
Types of Products to Sell on Amazon
When it comes to selling products on Amazon, there are three main types to consider: arbitrage products, wholesale products, and private label products. Each type has its own advantages and considerations.
**Arbitrage Products**: These are products that you can buy from local retailers or supermarkets at a lower price and sell for a higher price on Amazon. For example, you might find a product at a local store for £4 and sell it on Amazon for almost £10. Arbitrage products can be a good starting point for sellers looking to test the waters and gain experience in the Amazon marketplace.
**Wholesale Products**: Wholesale products involve buying products in bulk from wholesalers or directly from brands and reselling them on Amazon for a profit. This approach allows for greater control over the product and potential for higher profit margins. For instance, you might purchase a product from a wholesaler for £8, including VAT, and sell it on Amazon for almost £15.
**Private Label Products**: Private label products involve creating your own product and branding it. Websites like Alibaba provide a platform to connect with manufacturers who can produce your custom-designed products. While private label products require more investment and effort upfront, they offer the potential for higher profit margins and brand recognition in the long run.
The Importance of Product Category
When it comes to wholesale Amazon selling, it's crucial not to limit yourself to a specific product category. While some sellers focus on niche products, the reality is that anything and everything sells on Amazon. By exploring various categories, you open yourself up to a wider range of product opportunities and increase your chances of finding high-sales-volume and profitable products. The goal is to have a diverse product portfolio that maximizes your earning potential.
Using Product Research Software
To find profitable wholesale products efficiently, it's essential to leverage product research software. While there are many software options available, it's important to choose one that allows you to conduct both product research and analysis in a single platform. Unfortunately, there isn't a software specifically tailored for Amazon wholesale research. However, we have developed our own software called Socio, which will be launching on August 1st. Socio provides a comprehensive product database of over 350,000 products, allowing you to filter and analyze products based on your specific requirements.
Analyzing Best Sellers Rank (BSR)
One of the key metrics to consider when evaluating a product's potential is its Best Sellers Rank (BSR). The BSR indicates how well a product is selling compared to other products in its category. Generally, a lower BSR indicates higher sales velocity. When researching products, aim for a BSR below 100,000 for optimal sales potential. By scrolling down on a product listing, you can find the BSR. For example, a BSR of 1,224 indicates a product with good sales performance.
Evaluating Sales Volume and Variation
In addition to BSR, it's crucial to assess the sales volume and variation of a product. Look for products with a minimum of 70 sales per month to ensure a steady stream of revenue. With the Socio software, you can access the Social Extension, which provides estimated sales numbers for products. This information helps you gauge the demand and popularity of a product. Additionally, some products may have multiple variations. Analyzing variation data allows you to identify which variation sells the most, enabling you to focus on the most profitable options.
Avoiding Seasonal Products
When selecting wholesale products, it's important to avoid seasonal items. Seasonal products may experience high demand during specific periods but struggle to sell throughout the year. To determine if a product is seasonal, utilize the price graph feature in Socio. Look for consistent sales rank data over the past 365 days. If the sales rank remains relatively stable, it indicates a non-seasonal product with consistent sales potential. Avoid products with significant spikes in sales during specific months, as this suggests a seasonal pattern.
Considering Product Weight and Fees
Product weight plays a significant role in determining profitability. Heavier products incur higher FBA fees, which can eat into your profit margins. Additionally, shipping costs can be substantial for products weighing more than two pounds. To maximize your profit potential, focus on
