So you have decided to start a business and sell on Amazon FBA, what now? I’m betting you already know what kind of products you are going to sell in the said online marketplace. But have you decided how you are going to source products for FBA? You may have been prepared for that part, but we are here to give you additional channels to find your sources.
With more than 300 million paying customers and more than 100 million Prime subscribers, Amazon is considered the world’s biggest retailer. More and more sellers are interested in venturing out on the online selling platform. Why not? It is much convenient for both sellers and buyers.
Amazon offers its sellers different ways to grow their business; however, their FBA scheme is much more popular for its Prime subscribers.
Fulfillment by Amazon (FBA) is fulfillment network offered by Amazon to provide their sellers convenience while giving them the chance to grow their business. With this option, you will send them your products while they store, pick, pack, ship, and track the orders made. Amazon is also in charge of handling returns and refunds of your products.
So why do sellers love FBA? Well, FBA is popular to Prime subscribers as your items are eligible for Amazon’s free two-day shipping, free shipping offers, and other benefits. Amazon handles the customer service for your items, so buyers develop more trust in your shop.
Basically, they do everything for you while you source your products and monitor your stock inventory!
So how do you make sure your items are well-stocked and you have a constant source of your products? Here are some proven platforms to make sure your inventory is well-packed.
Manufactured items give you the freedom to personalize them according to your brand. Manufacturers also offer a lower charge per item as they are direct suppliers of your items. If your product in mind is unique, then you should opt for getting them from a manufacturer.
This method follows the buy-and-sell of low-priced products from other online selling platforms out there like eBay, Alibaba, Craigslist, and more. During online sales, take advantage of the discounted products, buy in bulk to save more, and mark up the prices when selling them. This lets you generate more income at lesser investment costs.
The downside of this technique, though, is that once you run out of stocks, you may have no store to return to as sales only last for a specific period of time. So you either stock up an ample amount of stocks, or you find other sources that offer the same amount to sustain your product availability.
Same technique with its online counterpart but on a different platform, retail arbitrage lets you source merchandise from retail stores on sale. Malls often hold sales, so watch out for those dates to score good deals. This is also a good time to get limited edition items that are not found anywhere else.
Like online arbitrage, this lessens your chance of finding the constant source as sales end after a few days. Regardless, it is a good way of finding sources as long as you stock up a good amount of merchandise.
Dropshipping gives you the opportunity to purchase online and have it sent straight to Amazon warehouse. Basically, dropshipping suppliers have their own source of your items and every time an order is made in your shop, they will be the one to send it to Amazon. You act as a middleman for your supplier and Amazon FBA.
Although this is a good source of merchandise, you cannot assure the quality of the product sent to Amazon as you have not checked them yourself. Also, stock inventory is quite tricky as you do not have a close monitor to the store inventory. Some of the popular dropshipping sites you can try are Wholesale2b, Wonify, Doba, and more.
An effective way of generating income while having a solid source of products is buying wholesale from suppliers or distributors. You can buy from manufacturers/distributors in bulk and build a strong business relationship to increase the discounts you acquire from them. Buying in large quantities make it easier for you to generate more income as you will get them at low costs.
However, you should be cautious in buying too much merchandise as they may end up dead stock and give you none in return. Be mindful of the demands of the products you are selling, so you know how much is the appropriate amount to get.
Thrift stores and clearance outlets are good sources of quality products at a low price. These stores sell rare-to-find pieces, last stocks, and heavily discounted items that are good for your store. The only takeaway here is that you have to check the quality of the items you got so your shop’s reputation will not be compromised. Plus, the stocks are pretty limited, so you only get smaller quantities as opposed to other sources.
Are your items self-made and from your startup business? Then you have the total control of your own stocks as you do everything from scratch. Just like the concept of selling on Etsy, you are crafting your own, so you can quality check your own products and sustain the stocks.
If you won’t be able to handle the tasks of sourcing products, hiring a virtual assistant will help you with that. They will be in charge of doing the various methods of sourcing your merchandise through thorough research of good deals and direct suppliers.
You see, Amazon helps you grow your business with its utmost offerings to sellers like you. All you have to do to make sure your business flourishes, is you have enough knowledge of sourcing products for your shop. Once you have established a good source of your items, you can start generating income without having to worry about out-of-stock situations.
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