Finding high-margin, low-risk products to elevate your online business revenue
As a wholesale seller, selecting profitable and low-risk products to sell is crucial. This is because you purchase products in bulk and could potentially incur significant losses if something goes awry. In this post, we'll explain how wholesale works and how to identify high-margin, low-risk products.
How Does Wholesale Work?
Wholesale sets itself apart from other business models by redistributing products in bulk. The primary objective for wholesale sellers is to secure the most competitive prices for popular products and advantageous purchase terms. This is because they aim to resell these items on Amazon and optimize profit margins per unit. To secure the best pricing, wholesale sellers need to engage with the brand, manufacturer, or prominent distributor who can offer favorable purchase terms.
Wholesale functions differently from other business models, and there are key considerations to bear in mind:
Product Research is Vital
Wholesale sellers engage in bulk purchases, requiring substantial upfront investment. It's essential to ensure that the products you procure offer profitability and strong market demand. Additionally, you must verify that these products do not pose issues during sales (such as IP complaints, restrictions, or product flags) to prevent financial losses.
Entry Challenges into Supplier Networks
When seeking the best product prices, direct sourcing from the brand or manufacturer is preferred. However, popular brands typically have established sales distribution networks and may be hesitant to alter them. Consequently, wholesale sellers must persuade brands to include them as an additional distribution channel.
Supplier Preferences on Channels
Suppliers may exhibit reluctance to collaborate with Amazon sellers as they often favor multipronged channel approaches. Introducing more sellers may be perceived as heightening competition. Nevertheless, if you observe other Amazon sellers retailing a brand's products, you can leverage this information to encourage collaboration.
Minimum Order Quantity (MOQ)
Major brands and manufacturers commonly impose high MOQ figures, stipulating the minimum product quantity required for an order. These amounts can be substantial depending on the brand, necessitating significant upfront investment.
Cultivating Supplier Confidence
Establishing a strong rapport with a supplier requires time and adept negotiation skills to illustrate that you are a prime candidate for increasing their sales. Demonstrating your proficiency in Amazon sales and capacity to generate significant volumes is essential. Once you establish rapport, you can negotiate discounts and improved terms.
Reduced Advertising Expenses
When selling a renowned brand already present on Amazon, your marketing and advertising outlays can be minimized. This is due to the brand's existing promotional efforts, alleviating the need for substantial marketing investments.
Wholesale sellers are required to conduct comprehensive product research on all items they intend to sell. This is essential due to the large quantities - ranging from hundreds to thousands of units per product - that wholesale sellers purchase. In cases where a product is non-compliant or fails to generate sales, substantial financial losses can be incurred.
7 Tips for Buying Wholesale Products to Sell on Amazon
When purchasing products in bulk to sell on Amazon, it is crucial to remember these useful tips.
1. Research Products Before Making a Purchase
Before buying products in bulk, conduct thorough research. Understand the demand, costs, potential profits, and any possible issues.
2. Don't Give Up in the Face of Supplier Rejection
If a supplier rejects your offer initially, stay persistent. Maintain open communication, address their concerns, and nurture the relationship for potential future collaborations.
3. Demonstrate Added Value to Suppliers
Illustrate to suppliers the benefits of working with you. This may involve committing to purchase certain volumes or offering faster inventory turnover. Show your dedication with a reseller certificate.
4. Consider All Costs
Factor in all expenses related to wholesale purchases, Amazon fees, shipping, and other charges to ensure accurate and profitable pricing.
5. Verify Suppliers' Legitimacy
Ensure supplier credibility to avoid scams. Verify their presence on business directories, check their website details, social media activity, and customer feedback on search engines or platforms like LinkedIn.
6. Plan Fulfillment and Shipping
Decide whether you will manage shipping or utilize Amazon's FBA service. Coordinate shipping arrangements with your supplier, especially if opting for FBA.
7. Establish Competitive Prices and Monitor Competitors
Price your products competitively while maintaining profitability. Stay informed about market trends and adjust prices to remain appealing to customers.
How to Research Amazon Wholesale Products?
Wholesale sellers need to conduct thorough product research for all items they intend to sell. This is crucial because they purchase large quantities, ranging from hundreds to thousands of units per product, and any non-compliance or lack of sales could result in significant financial loss.
In order to efficiently research and validate wholesale products, sellers utilize product sourcing tools. One widely popular tool among wholesale sellers is Seller Assistant. This comprehensive tool for product sourcing excels in its ability to identify high-performing items that can be effectively marketed on Amazon.
Seller Assistant proves to be an invaluable asset for product research and validation. Integrated into Amazon's search, product, and inventory pages, the tool conveniently consolidates all essential product information in one location, aiding in swift determinations on the suitability of an item for sale.
Powerful Seller Assistant’s tools for Amazon wholesale business
Thankfully there are software tools such as Seller Assistant that can help you with these crucial tasks. Here are some of their features and how they can impact your business.
Price List Analyzer
Price List Analyzer by Seller Assistant is a bulk Amazon product analyzer tool that finds profitable deals. Its primary function is to automate research of supplier price lists and efficiently identify the most profitable products to sell on Amazon.
The tool is designed specifically for Amazon wholesale to simplify the process of evaluating the profitability of products, and helps make informed decisions quickly and efficiently.
Processes up to 50,000 supplier UPCs/EANs in one click
Shows accurate profit and ROI
Calculates all fees
Provides BSR and current Buy Box price
Brand Analyzer
Brand Analyzer by Seller Assistant is an Amazon brand research tool that helps identify profitable brands. Its primary function is to automate brand research and help efficiently identify if the brand meets your revenue targets and other selling criteria and whether it’s worth reselling on Amazon.
All you need to do is type brand name, and get all necessary data about the brand to understand if it’s resale-friendly. You can also download a report with all brand’s products and their detailed metrics.
Brand Analyzer allows to estimate how big the brand is and how many products it offers, how much money you can potentially make if you sell this brand, how intense is the competition from Amazon and other sellers, average Buy Box price per product, and review and rating quality.
Seller Spy
Seller Spy by Seller Assistant is a competitor analysis tool designed to simplify how you monitor your competition on Amazon. It automates the process of monitoring competitor activity, giving you valuable insights without the manual effort.
Seller Spy automatically tracks your competitors and allows you to estimate what new brands and products they started or stopped selling, and how they price each product. You can use this data to add the same or similar products to your portfolio and adjust prices if necessary.
Bulk Restrictions Checker
The Bulk Restrictions Checker feature determines whether a product is restricted or ineligible for sale on your Amazon account. Through Seller Assistant's customized Bulk Restrictions Checker, sellers can assess restrictions for up to 5000 ASINs simultaneously and receive a comprehensive report of the findings.
Advanced IP Alert
An intellectual property (IP) complaint may arise when a brand lodges a complaint with Amazon concerning the unauthorized resale of its products. Seller Assistant's advanced IP Alert feature alerts you to any IP claims or Amazon policy violations linked to a product you plan to sell. The IP Alert utilizes a proprietary Amazon policy violation database updated daily to furnish information on the nature and date of the policy breach.
With Seller Assistant, wholesale sellers engage in extensive product research to ensure the products are saleable, profitable, and free of risks. This process helps them confirm that they will not incur losses on the resale of these products.
In conclusion
Although sourcing Amazon suppliers is a critical aspect of wholesale, conducting thorough research on products is equally vital to ensure profitability. Therefore, utilizing comprehensive product-sourcing tools is crucial for achieving success.
One widely used tool for this purpose is Seller Assistant. It serves as an exceptional product-sourcing extension that aids in identifying lucrative products.
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