How to check my website ranking – 5 Tips on How to Source Products to Sell on Amazon
People are finding ways to earn extra income these days, where the economy is greatly affected by the pandemic. Selling products on Amazon is one of the ways to increase your earning capacities. If you plan to try online selling, the first question that probably comes to your mind is how to find the products to sell on Amazon? It is not mind-boggling as to where you get your products if you know the sourcing options.
Companies have their methods of sourcing their supplies, so goes with e-commerce sellers like you. Consider the cost of the supply chain, which includes transportation and procurement, varies from 50% to 70% of the sales. This percentage is just an example of how businesses spend on their supply procurement, which will give you an idea of how to develop your sourcing option strategy.
Take a look at the following hacks on how to procure your products to sell on Amazon.
What is Product Sourcing on Amazon?
Every e-commerce seller should know how to make Amazon product sourcing. Take note that sellers vary. Some manufacture their products, but others source them from a supplier. There are many sources of products today, such as wholesalers, manufacturers, and drop shippers.
Before you venture into online selling, you should conduct product research to give you some business insights and trends, which help your new journey. You can never go wrong if you decide to sell your products on Amazon, as the company offers tons of products to your heart’s desire.
Why Sell Your Products on Amazon?
Amazon is a stable company. Selling your products on this platform assures you that your items will sell out quickly, given that customers buy high-quality products, and their interface is user-friendly. Amazon is the number two world’s top retailer in 2019 based on its retail revenue. It posted 158.44 billion dollar revenue. Its success lies in the customer’s trust and loyalty to the company. Amazon’s net sales surged to 44 percent to $108.5 billion during the first quarter of compared to its first-quarter revenue of $75.5 billion in 2020, or a 41 percent increase.
How to Source Products to Sell on Amazon
Take Advantage of Retail Arbitrage
Retail arbitrage has helped sellers because of the discounts from buying the product from a retailer. They will earn high profits from reselling the items. The technique is to purchase the products in bulk from retailers. Conduct online research where to find them and compare their price with Amazon hot sellers. Seller fees on Amazon are 13 percent of the selling price. The overall cost for selling on this platform depends on your selling plan. As an individual seller, you will pay $0.99 for every item sold plus closing fees of $0.45 to $1.35. If you are a professional seller, the referral and closing fees could range from 6 percent to 25 percent, 13 percent on average.
Sell POD Products
Print-on-demand products are drop ship products that can help sellers find high-quality products. POD also helps build your image on Amazon. You don’t need to spend a large amount of money to invest in this kind of product. There are numerous suppliers of POD products who will take charge of your needs, such as:
- Product Sourcing
POD product sourcing for Amazon requires two things:
- POD sellers will create unique and customised products. They market them through POS vendors on Amazon. It needs creativity and craftsmanship for POD sellers to come up with new and eye-catching designs printed on souvenir items, such as umbrellas, mugs, tee-shirts, caps, and pillowcases.
- It requires an Amazon-approved POD seller account. You need this account to safeguard your business and money.
Sell Handcrafted Products
Use your talent in creating handcrafted products that you can sell on Amazon. It is about time to show your work of art and apply it to the Amazon Handmade category. Take note that you have to submit some requirements to register your account in this category. Once you are registered, you can now post your products, such as paintings, crochet, pottery, and many more.
Once Amazon approves your account, you can post and sell at least 40 products monthly. You are not required to pay for an Amazon Pro seller account if your sales are not beyond 40. If your sales reach more than 40 items, you are required to pay $39.99 to upgrade your account to Amazon Pro Seller. The advantage of a pro seller is you can sell more than 40 items per month, and you can advertise your products. You will be qualified for top placement on the product detail pages, use advanced selling tools and sell items in restricted categories.
Sell Wholesale Products
These products refer to products manufactured by companies that belong to the wholesale sourcing method. Take advantage of the low prices of reselling wholesale items that you can sell at high prices on Amazon. There are many wholesalers like Chinabrands and Alibaba, where you can resell them. Begin searching the product you want to sell and click “wholesale.” Once you find the item, buy them in bulk from wholesale suppliers.
Private Label Products
Creating your brand does not require you to manufacture the items you want to sell on Amazon. You need to find products from private label suppliers that make the product for you. All you have to do is label the item, add a tag or repackage it using your brand’s name. There are numerous products under this category, such as kitchen tools, personal care products, cosmetics, toiletries, gourmet foods, and pet supplies.
Looking for products to sell on Amazon is easy by following any of the above tips. Amazon is a good platform for newbies in online selling. With the right attitude and a clear understanding of product sourcing, you will likely succeed in your investment. Money is not an issue here as you can always start selling with less money.
For more product sourcing tips, you can also check out this blog 10 Rules for Scaling eCommerce Product Sources.
Do I Need Inventory of the Items I Ordered from Wholesale Suppliers?
An inventory is needed to make sure that you store enough items in stock to fill your orders. Your Amazon seller account has inventory management tools. Some providers offer product scouting tools and sales estimates to help in your product search.
What is the Disadvantage of Retail Arbitrage?
It is difficult to estimate the consumer demand cycle in retail arbitrage. If you lack judgment, you tend to overbuy the products that are not usable in a certain period. School bags are on the decline when classes are over or during a pandemic.
How Much Should I Price the Item?
If you want your product to sell fast on Amazon, choose items that are not too expensive to buy. Customers go to Amazon for a cheap buy. Look for wholesale suppliers that offer low prices and resell them at an average price.