How to Source Products for eBay and Amazon
Wondering how to source products on Amazon and eBay? Here are some of the most tried and proven ways you can do it:
Go directly to the source.
The most straightforward way on how to source products on Amazon is to approach the source. This is called wholesaling. It is the act of buying directly from a manufacturer or supplier at a price that is lower than your intended retailer price.
There are several benefits you get from buying direct:
- You get the best price. Due to the absence of profit margins from resellers, you get the lowest possible price. Even if you buy from a wholesaler or a supplier linked to the manufacturer, it is still significantly lower than if you buy from stores.
- There are no stock issues. Retailers and sometimes even wholesalers who source from the manufacturer usually have limited storage capacity. They can only stock up on so much of a certain product. If you go straight to the source, you won’t have to deal with this limitation.
- Product expertise is available. The makers of the product are more likely to know the most about it. You can better educate yourself about your products through them to become a more reliable retailer towards your customers.
- You have access to the latest and widest selection. Any product updates or new variants that come out are readily available to you through the manufacturer.
Find products on clearance aisles.
As much as it’s most profitable to buy from the manufacturer, it’s sometimes not the most accessible. Maybe they’re located a few states away. That’s a lot of miles to go just to fill up your inventory.
Another way on how to source products to sell on Amazon and eBay is to rummage through clearance aisles. This method is so straightforward and simple that even the most inexperienced online seller can do it.
How it works is that you find products on a deep discount and resell them for an even profit. Your scanning app can come in handy for this method. It’s also an inexpensive way to “‘learn from experience.” Even if your first few products don’t sell out on Amazon, at least it only cost you cents instead of a couple of hundred dollars.
Visit surplus stores or liquidation.
Sometimes, certain products become discontinued to make way for a new version—a new formula or new packaging. Sometimes, manufacturers just stop making it because it is no longer profitable for the company. That does not necessarily mean that people no longer want it.
Under several instances, people develop product loyalty and preference for products that have already been discontinued. If you stock up on the last of these products while they are on liquidation or surplus status, you now become the primary source for these products when they’re no longer available on the aisles.
The cool thing about sourcing surplus and liquidated products is that the longer the time passes, the more valuable they become.
If you hold on to them a bit longer, you can sell them for more profit as they become a lot scarcer.
Not everybody has the luxury of access to wholesalers and stores. If you live in a rural area learning how to source products on Amazon physically may not be ideal for you. You might end up spending more on gas than the actual product.
In instances like this, you’re lucky to have the internet on your side. There are so many stores that could serve as online sourcing options for Amazon retailers. These stores cover several product categories, such as health and beauty, toys, sports, and home items.
Distance may not be the only thing that can hinder you from sourcing your products in person. This method is much preferred by online sellers who care for little children or other family members so they cannot get out of the house.
Additionally, it is a great way to source products for people who work full-time jobs while maintaining an online store on the side. It eliminates the need for time and effort that entails retail sourcing.
Participate in BOLOs
BOLO means, “Be On the Lookout.” When someone posts a BOLO, they are basically sharing knowledge of a product that they found, such as where it was spotted and how well it is selling on Amazon.
There are several BOLO groups you can take part in. All you have to do is search for them online. You can do it with just a handful of friends, but you get a much larger selection if you join an entire online community.
In BOLO groups, there’s usually a requirement to contribute to the community by sharing a number of profitable finds regularly, like once or twice a month. This keeps the BOLO community thriving and beneficial for everyone in it.
Produce your own
If you are a crafter, why source products when you can make them yourself? This method of how to source products on Amazon may be the most labor-intensive but is the most within your control. It has several perks, such as:
- You can control the production depending on the demand or how much you intend to sell at a given period.
- The quality is assured to be at par with your standards, so you can be assured that you are giving the best quality of the item that you can to your buyers.
- You can guarantee the authenticity and quality of your product to your customers since you make them yourself.
- As the acting manufacturer, you have the option to customize, depending on the customer’s needs.
- You can quickly make changes to the product if you figure out what products or qualities make it more saleable and more profitable.
Being an online seller can be challenging but rewarding if you do it right. Sourcing your products well ensures that you sell the best items with the most profit, thus benefiting you and your customers too.
To learn more about product sourcing for selling on Amazon and eBay, check out these courses to help you with product sourcing from Skill Success: