3 Tricks to Optimize Your Amazon Inventory Management

11 - 3 Tricks to Optimize Your Amazon Inventory Management

Learn how to maximize your profits by optimizing your Amazon inventory management! Sit back and watch your profits and Amazon business take off!

Amazon inventory management is an essential skill that all Amazon sellers need to build and hone if they want to maintain a steady flow of profit. Without managing your inventory correctly, it could be drastically detrimental to your cash inflow and your business’ overall health. Depending on your business model (dropshipping, arbitrage, private label, and wholesale), inventory management can be a couple of items a month or hundreds of items a day.

These tricks will help all sellers but will be optimized using the wholesale model. If you’ve chosen the wholesale reseller route for your Amazon Business, you’ve made a good choice. Spearheaded by relationships with brand owners and wholesale suppliers, the wholesale model is low risk, fast, sustainable, and when done correctly, yields a high return on investment. Whatever your model may be, use these tips as a foundation to build your inventory management skills and maximize your profits today!

If you have no idea what I’m talking about and are asking yourself, “what is wholesale,” you can check out our Beginner Guide to Selling Wholesale!

Selling Wholesale Using Replenishable Products

The first question that may come to mind, “what is a replenishable product?” and why should I care? When thinking of replenishable products, the first items that come to mind are consumables such as paper towels or toiletries. But when it comes to Amazon FBA, the business version of replenishable is a bit different.

A replenishable product is simply one that you can purchase from a brand owner or distributor, sell, and purchase more again to replenish your inventory. These products are not just popular or profitable, but ones that you can build a stock of the same products AND have a consistent basis to supply to consumers. As people buy from your stock, you easily order more from your wholesale brands and amazon wholesale distributors.

By focusing on replenishable products versus a one-and-done approach, you develop a business cycle of buy, sell, earn, buy again. This can be extremely difficult with other business models, especially dropshipping or retail arbitrage where inventory supply can be a bit scattered and inconsistent. With wholesale, your stock comes from building strong relationships with manufacturers and suppliers. Therefore replenishable products are significantly more reliable and consistent under the wholesale business model.

High Demand Products and Other Qualities to Look For

There isn’t one set type of replenishable product out there. But there are a few guidelines to help you define what it truly is.

Replenishable products are:

  • In sustained demand/desirable
  • Have predictable sales patterns
  • Able to be purchased in small, medium, or large bulk from brand owners/distributors

Headphones, weighted blankets, toys, undergarments, HEPA air purifiers are some examples. That doesn’t mean you need to run to the nearest distributor and buy out their inventory of these exact items. In fact, we’d encourage you not to! We’re just trying to illustrate what a replenishable product is so you’ll know what to look for when you want to build an inventory for your Amazon reseller business.

Hack the Process with Amazon Inventory Tracker

Finding replenishable products can take up a lot of product research time to pick the perfect products. One way to cut down this process is by using helpful FBA tools and product research tools. Sellgo offers an Amazon inventory tracker through the Product Tracker. The product tracker will collect data on all Amazon products to identify products that are in demand, display their sales patterns, and which suppliers are currently offering that item. The product tracker is your own personal Amazon product manager that leads you directly to high-demand replenishable products.

For more tips and information on how to find and track winning products, we recommend reading these articles on Super Tracking and A Guide to Product Analysis!

Inventory Management and Inventory Variation

Once you’ve landed a profitable replenishable product, it is up to you to manage your inventory. This involves a bit of planning with your supplier and keeping tabs on your inventory levels so as not to sink too low. The last thing you want to do is end up being out of stock of a high-demand product. That will send customers running to the next available seller and lead to massive profit losses.

Unfortunately, people can’t backorder out-of-stock items on Amazon. The customers have to either wait for the product to be in stock or move on. This can cause your Amazon seller listing to lose rank, lose positions in Amazon’s buy box, and may make it more difficult for your products to reach customers in the future. Be sure to keep a steady inventory of your products. You can view your inventory in the Seller Central account under “Manage Inventory.”

Inventory management is not just stocking up on new products (looking forward), but also performing due diligence on old products (looking backward). Another key to increasing your profits is ensuring that you’re not wasting resources on poor-performing products. One of the risks of wholesale products is that they can lose momentum very quickly. If you have a huge amount of stock of a product that is losing momentum, make sure to sell any excess inventory. Inventory that doesn’t get sold takes up space and resources that could be used on better, more profitable products. So sellers need to look backward and sell overstock inventory as soon as possible. This will also enable sellers to find better-performing items that increase profitability and will also help with inventory variation.

Inventory Forecasting with Amazon Seller Software

The last trick every seller needs to know is the lead time and inventory forecasting.

Lead time is the amount of time it takes for your inventory to arrive once it is ordered. When stocking up on a new product, you’ll want to make sure you factor in enough time to prevent your current stock from running out before your new stock arrives.

Inventory forecasting is the concept of understanding sales trends and the impact of seasonality. By factoring in how quickly your items are selling, inventory forecasting can alert you when it is time to restock your product. As a result, sellers can estimate when they should restock and what seasons to prepare for. If you didn’t know already, Amazon sale events like Prime Day and Black Friday, seasonal sales trends, and holidays can lead to sales spikes! This isn’t anything new! Sales spikes happen all the time in brick-and-mortar stores as well! That’s why malls are always packed around the holiday seasons and Black Friday sales are so popular every year!

If you stay up to date on sales trends, this is an excellent way to accelerate the growth of your Amazon Reseller Business and unlock your profitability to new heights. You also can use third-party applications or software solutions to manage your inventory and predict upcoming sales trends. Of course, you’ll want data you can trust that takes out the guesswork. We recommend using both Sellgo’s Amazon Product Tracker and Profit Finder! These two tools will empower any seller to become a pro at inventory forecasting by using Amazon seller software. Sellers will be able to identify Amazon sales forecasting and can then order seasonal products to sell for their Amazon business.

Make Your Seller Central Account and Start Building Your Inventory!

After reading this blog, you know the best tricks to optimize your Amazon inventory management! Remember to focus on reselling replenishable products, keep your inventory stocked, and prepare for those sales spikes by forecasting!

After you create your free Amazon seller account and follow our tips, sit back and watch your bank account and Amazon business take off!

If you haven’t started your Amazon reseller business yet, check out the step-by-step tutorial on 7 Steps to Activate Your Amazon Central Account in 2021!

3 Hacks to Beat Amazon Top Sellers and Join the Best Sellers Rank

10 - 3 Hacks to Beat Amazon Top Sellers and Join the Best Sellers Rank

Beat Amazon’s top sellers with these 3 hacks and become the next bestseller. Develop your business strategy, win the buy box, and boost your sales on Amazon.

Beat Amazon's top sellers with these 3 hacks and become the next best seller. Develop your business strategy, win the buy box, and boost your sales on Amazon.

As with anything in business, it is guaranteed to have competition for product sales, suppliers, products, and of course, customers. Amazon business and Fulfillment by Amazon (FBA) businesses are no different. Amazon sellers continuously struggle amongst one another to boost sales, find the best Amazon suppliers, acquire profitable products, and increase daily shoppers. Amazon is a highly competitive space, but with the right hacks and tricks, you can stay ahead of the Amazon seller competition and bring in exceptional profits.

Hack #1: Hit the Books! Conducting Amazon Product Research

The first thing you need to do is to study your desired Amazon products. There are two types of products sold on Amazon that you should be familiar with: products sold by Amazon and private label products. These products are what we call no man’s land territory. These are the products you can’t touch and should actively stay away from.

These restrictions are based on various issues ranging from the brand registry, pricing issues, competitiveness, etc. When you’re scouting for products, you’ll first need to identify who is selling the product.

How to Find Products Sold By Amazon

Products sold by Amazon are described in the name. These products are products sold and shipped by Amazon and can range from ordinary retail goods to Amazon business services. It is essential for new and experienced sellers to know how to filter products sold and shipped by Amazon. Products sold by Amazon can easily be identified and should be labeled on the product page under Seller Information.” Some products will have specific sellers while other products will be marked with,” Ships from and sold by Amazon.com”

Why are these products considered off-limits to Amazon FBA Sellers? That answer is simple: Amazon is impossible to complete with. It is almost like trying to sell an iPhone against Apple. Not only will it be difficult to sell, but it is nearly impossible to gain marketing, price, or buy box advantage over Amazon. Instead, sellers should find the products that are not sold by Amazon and use those products to sell.

What is a Private Label Product?

Private label products are when the company buys non-branded products from the manufacturer and slaps their own brand on it to sell on Amazon. Like products sold by Amazon, private label products can range drastically from small, inexpensive goods to large, premium goods. Some of the most popular private label product examples are natural hair products and cosmetics to pet products and goods. Products sold under a private label are a little trickier to identify. The best indicator for private label products is how many sellers are currently selling that product. Ideally, if there are two or fewer sellers for the product, it is most likely a private label product.

The most obvious reason that sellers should beware of this product category is that private label products aren’t kind to resellers. Companies that use non-branded products and slap on their private label do not want more competitors in their space. Private sellers also face a multitude of challenges such as marketing their “new” products, finding a solid customer base, and competition amongst other private label sellers who sell the same products from the same manufacturer. For new and inexperienced sellers, private label selling and products should remain in the untouchable category.

If you have more questions regarding private label selling and the other categories of sellers on Amazon, check out our article on A Beginner’s Guide to Selling Wholesale Products on Amazon!

Optimize with Product Research Tools

The best hack that sellers can use to find products to sell is through using FBA tools and product research tools. Finding profitable products can be extremely challenging, especially if you are a new seller.

Sellgo offers very simple and easy-to-use tools called Product Tracker and Profit Finder. These tools help users track winning products that have good stories and are profitable. Sellers can super track historical data on popular products to sell online and pick which product best fits their catalog and resources. It also helps identify which products Amazon offers and which products are sold by private labels. As a result, sellers filter out poor products and get a profit treadmill of winning products that will give them an advantage over Amazon, private label sellers, and other top sellers.

If you need product ideas to sell, check out our previous blog post on Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers.

Hack #2: Using the Amazon Buy Box for An Amazon Competitive Advantage

The first question to answer is: what is buy box? You see this all the time as an online shopper on Amazon. Every time you visit a product page, the buy box is the right box that shows the product price, shipping estimates, add to cart, and buy now. Over 80% of Amazon purchases are made through the buy box. To any Amazon customer, you often overlook this feature, but to Amazon sellers, this is the holy grail. The real magic of Amazon selling comes from the little line that states where the product Ships From and who the product is Sold By.

The buy box is an Amazon sellers playground for the VIPs, the top competitive sellers of any product. The buy box is full of competitive sellers that sell the most products and collect the biggest checks. They get a lot more time in the buy box than non-competitive sellers. But, there are factors that can help you pinpoint and beat competitive sellers.

The first is about the Fulfillment Method, or the way products are processed and sent to the consumer. There are several different fulfillment methods offered by Amazon:

  • Fulfilled by Amazon (FBA)
  • Fulfilled By Merchant (FBM),
  • Merchant-Fulfilled Prime Offer

Remember how Amazon product descriptions will say “Ships from and Sold By Amazon,” well an FBA offer will say “Sold by Company X and fulfilled by Amazon.” Now, a Merchant-Fulfilled Prime Offer would say “Ships from and sold by Company X.”

Why is this important? If you want to be profitable, it is vital to understand the fulfillment methods, develop an Amazon buy box strategy, and start collecting buy box wins.

Hack #3: Amazon Pricing Strategy: How to Price a Product

Your selling price for the products you sell can be extremely helpful in beating Amazon top sellers but needs to be done very carefully and intentionally. Selling your product at the lowest price imaginable will not yield a massive profit and could be potentially harmful to your business. A product price too high may be a deterrent from potential buyers who value lower prices and want the best price. The goal is to find the perfect price that will boost Amazon sales and welcome new customers.

To pick the best price, it’s important to note that the price is based on more than just the cost of the product. You want to familiarize yourself with the total landed price. Rather than just the product price, sellers should account for all additional costs that come with selling a product. This may include fees like shipping prices, seller fees, and additional service fees. We discuss a bit more about fees in our last article on the 7 Steps To Activate Your Amazon Seller Central Account in 2021.

We have learned that to compete against the top FBA sellers, the ones who dominate the buy box, your price needs to be within 2% of the lowest FBA price to be eligible for the buy box. When sellers account for the total landed price (cost of goods plus additional costs), they need to compare that total landed price with the lowest FBA price. If the lowest FBA price is larger than the total landed price, it ensures that the selling price will offset the total landed price so that the sale will be PROFITABLE.

If you’re outside that range, you can kiss the product, buy box, and profit good-bye! If the price is within the 2% of the lowest FBA price and is still profitable, this is a great indicator that you could rank in the buy box and that this could be a winning product.

Building Your Amazon Business Strategy vs. Amazon Seller Competition

Now, you should have a good idea of what to look for. First, research, research, research. Whether you are using tools or performing manual research, product research will always be the first step if you want to build a successful, profitable online business. Next, identify competitive sellers that utilize Amazon FBA and set them as an example to chase. Lastly, check selling prices within 2% of other Prime offers and compare them to the total cost of a potential product.

Tomorrow’s industry leaders started yesterday. If you want to become one of Amazon’s bestsellers, you need to start developing your business strategy NOW! These hacks will help you get there, but it’s up to you to take the next step and start building your business. Check out more of our guides, tips, and tricks at Sellgo.com and make your name known. Let’s get to work!

7 Steps To Activate Your Amazon Seller Central Account in 2021

09 - 7 Steps To Activate Your Amazon Seller Central Account in 2021

Want to start selling on Amazon? Here are the 7 steps needed to activate your new Amazon Seller Central Account in 2021! Start your Amazon Business Now!

So you’ve heard all about the exciting world of successful Amazon Sellers and now you want to try it out for yourself. Building an Amazon business requires a strong foundation. Once you set the foundation and learn a bit about product sourcing, what products to sell on Amazon, and how to keep inventory, your business will begin to flourish.

But first, you need to set up a free Amazon seller account. Starting an Amazon Business is easy, fun, and an exciting experience but can be challenging if you do not know what to expect. Use this guide as a paved road to help you start your own Amazon seller account.

Step 1: Amazon Sign-up

The first thing you need to do is register a seller account on Amazon. To begin, visit the Amazon Seller Central page. You’ll notice a giant yellow “Sign Up” button. Below the button, Amazon states a monthly cost based on your account type. There will be two options. An individual plan which costs .99 per unit sold or a professional plan that costs $39.99 per month plus Amazon seller fees. This is where you will need to decide how much you want to commit to Amazon FBA.

There are pros and cons of each account if you are starting a new Amazon account. If you want to start at a smaller stage, the individual plan will provide more safety. New Amazon sellers have the opportunity to start small; have a smaller inventory and a smaller catalog. If you want to start as a beginner, the individual plan will empower you to build your business as you gain more experience over time. Because this account type charges fees based on the number of items you sell, if you have no or low sales, the cost will be dramatically lower than the professional plan.

If you’re ready to start big and expect to be selling more than 40 items a month, your best bet is to purchase the professional plan. This plan removes the per unit sold fee and replaces it with a flat seller fee ($39.99 per month). If you sell more than 40 items a month, it would be cheaper than the individual plan cost of $0.99 fee per unit sold. FBA sellers that purchase large quantities of stock and expect high sales would be best suited for the professional plan.

Step 2: Breaking Down Amazon Seller Fees

As with any business, it is hard to escape the world of fees and taxes! Amazon is no different. Amazon charges several fees for your business venture.

Amazon Referral Fees

Amazon referral fees are fees that Amazon charges your business every time you sell a product. Most referral fees are between 8% to 15% but can range greatly based on the product category. For items like computers, the fees may be a little as 6%. For other categories such as Amazon device accessories, these fees can inflate upwards of 40%. Referral fees are crucial when deciding what products you want to sell and how they can impact your profitability.

Fulfillment By Amazon (FBA) Fees

Next, Amazon may charge a fulfillment fee. The Amazon merchant fulfillment fees are the fees that Amazon charges your business if you use Fulfillment by Amazon (FBA) to ship your orders. As stated by Amazon, FBA fees change every year depending on the costs for Amazon to ship, transport and deliver your products. Therefore it will be vital for sellers of all sizes to determine how the cost will impact their business model. These fees will change based on product category, product size/weight, and additional category guidelines. To learn more about FBA fees and how they will impact your profitability, head to Amazon Seller Central Support.

Extra Fees to Think About

There may be other costs associated with your business such as inventory storage fees or promotional fees (when you use an Amazon sale mechanism like “Lightning Deals”). As a general rule of thumb, sellers want to avoid long storage fees, so you’ll want to maintain inventory so it is constantly moving instead of staying stagnant in storage.

Each business will range based on their business model, what products they sell, and how they fulfill their orders. Research is crucial when starting a new Amazon business, so make sure you do your due diligence before you consider it in Amazon FBA!

Step 3: Completing Your Amazon Account on Seller Central

Once you click “Sign Up” you will go through the Amazon seller account registration process. Here you’ll want to create a new Amazon account for your business. As a reminder, all sellers should keep your personal shopping Amazon account separate from your business account to maintain organization and clarity. You will enter your email, password, and then be asked to verify Amazon seller account through your email.

Once verified, you will need your business name and address, which might be your home address if you’re operating your Amazon Seller Business from your home.

Finally, you will need to enter a phone number and verify that number via text message. You will be given a code via text that you will need to enter. Once these steps are completed, you should be able to access your account through the Seller Central login.

Step 4: What is Amazon Marketplace and How to Select Your Online Marketplace

After you register your account, Amazon will allow you to pick your regional marketplace. Amazon Marketplace is different from Amazon. While Amazon is the e-commerce platform as a whole, Amazon Marketplace is the actual online shopping network where Amazon third-party sellers like you can sell your products. This step gives you the option to choose what marketplace you want to sell on before you opt for Amazon seller registration.

Remember that each region has a different culture, perspective, and needs. Some items might overperform in one region over another. Amazon also charges fees differently based on the region. You could pay an extra fee to hit Japan and other global marketplaces and test your luck, but we recommend just selecting North America or whatever region you are living in and moving to the next step.

Step 5: Enter Your Financial Information

The next step is all about the financials. You may be thinking, why is Amazon asking for a credit card? You will need to enter your credit card information to begin your account. If you choose the professional plan, you will be charged $39.99 a month. The plan fee will hit your account right away, so make sure that you are ready to sell when you make your Amazon account. Once you start making sales over $40 a month, Amazon will take the monthly fee out of your profits instead of charging your card.

After inputting your financial information, you will enter your billing address and bank account information (bank name, account number, routing number). This allows Amazon to direct deposit your profits into your bank account every two weeks.

Step 6: Choose An Amazon Store Name and Building Your Personal brand

After inputting your financial information, the next step is picking your account and business brand name. What’s in a name? While you may think your name plays a huge part in your profitability, no one really pays attention to your store name. Amazon allows sellers to change this as often as they like, so don’t put too much time and resources trying to pick the perfect name. Specifically, if you are planning on selling brand name products, the store name will not impact your sales greatly. The brand names on the products you sell will go way farther than your store name!

Once completed, Amazon will ask you two questions. 1) Do you have universal product codes (UPCs) for all of your products? Click yes. 2) Are you the manufacturer, or brand owner, agent, or representative for the brand? You can click whichever ones if they apply to you, but if you are planning on reselling items on Amazon, choose “no.” If you are not sure what type of seller you want to be, check out our article on A Beginner’s Guide to Selling Whole Products on Amazon.

Step 7: Amazon Verification and Become An Amazon Seller

To prevent Amazon Sellers from running multiple businesses under the same account, there will be an Amazon account verification process that will ask you additional questions to verify your identity. This includes providing documents required to open Amazon seller accounts. You can choose to upload your passport information or driver’s license information. Once you provide these documents and click “submit,” you should receive confirmation within 24-48 hours. For safety, be consistent with all of your addresses and information. Keep everything as simple as possible!

Start Selling on Amazon Today!

Congratulations on making your new Amazon Seller Account! But, the job is not done! Get to work and start your Amazon selling adventure now!

Have questions or concerns about where to go next?

Read our past blogs on Profit Calculator: How to Estimate Amazon Product Margin or Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers!

A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

08 - A Guide to Product Analysis The Secret to Amazon Wholesale and Product Sourcing
A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

Your Amazon Seller Central account is set up. You’ve established a separate bank account for your Amazon Business. You have decided the wholesale route is the business route for you. You’ve completed the mandatory and legal business tasks including acquiring your resellers permit. In this article, you will learn about product research 101, reverse sourcing wholesale, the fundamentals of the Amazon Buy Box, and how to scope out your competition.

First, you need to learn the fundamental methods of product analysis. When identifying potential products to add to your catalog, you need to ask yourself a series of questions. What makes a product have good sales performance? How can you know when a product is going to be profitable? Amazon selling should not be a guessing game. You certainly don’t want to blindly pick products and “hope” you get a return on investment (ROI). Fortunately, there are some seller tools and tactics that you can deploy to find the best, proven products out there and unlock profits.

Become the Ultimate Amazon FBA Seller with Reverse Sourcing Wholesale

First things first, you need to figure out which products have the most successful stories on Amazon. What does that mean? Well, you want to find branded products that are in high demand, are selling quickly, and have excellent product ratings. The key here is “branded products.” Brand name products provide their own marketing. Strong brands have established core values, customer bases, and name recognition. By utilizing brand name products, sellers have a higher chance of selling more products and increasing sales. Once you determine what products are doing well, move onto the next step which is to contact the brand owner of that product directly to set up a wholesale account so you can buy bulk products, build your inventory, and resell on Amazon.

A product with a good story is one that:

  • Sells hundreds or thousands of times each month
  • Has high product reviews (4 stars or more)

This is called reverse sourcing wholesale. Instead of creating a product, bringing it to market (or finding a distributor), and hoping it will sell, you’re finding an already successful existing product. Then you take that product, stock up on the same product, and resell the products individually (with the brand owner/manufacturer’s blessing). Reverse sourcing can be extremely helpful to small-time Amazon sellers to build their business and reputation over time. Small sellers can start with a small inventory and continue to build their catalog until they become a titan of Amazon selling.

As an Amazon wholesale seller, you’re volunteering to be a distributor for the product. That saves the brand owner time (and money). The more you can establish a strong buy/sell relationship with reputable brand owners, the more likely they will sell their products to you in bulk for your Amazon reseller business. And, if you continue to have a proven track record of good sales, the brand owner may even make you their exclusive or limited exclusive reseller! If you would like to learn more about wholesale sourcing and tracking stock from wholesale suppliers, check out our last article on “Super Tracking: Develop Your Own Superpower to Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers.”

Remember, business is all about relationships, so it’s vital to show your value proposition and build these relationships.

The Amazon Buy Box Unleashed

What is buy box and why does everyone want to win it? When consumers are browsing for products on Amazon, there is a section, add to cart, on the right side of their page that allows customers to place products directly into their shopping cart. If there is more than one seller in the product listing, who will take the market share and win the sales?

Amazon created a merit-based rotation system known as Buy Box. To “win” the Buy Box means the product you are reselling shows you like the default seller in the “add to cart” section, thus prominently placing it for consumers to see it right away and most likely purchase due to convenience.

This is what we call the Buy Box. To “win” the Buy Box means the product you are reselling appears in the Buy Box, thus prominently placing it for consumers to see right away and most likely purchase due to convenience. This is why all Amazon sellers should create an Amazon buy box strategy to try to climb the rankings. It is kind of like when you create a webpage and have all the right performance metrics and keywords for your page. Google’s algorithm bots pick up on your high performing website and when people search for things relevant to you, your page comes up in the top three search results or ranks on the search engine results page (SERP). The higher you rank, the more traffic and traction you are to get in sales.

The Buy Box is a great product research tool and a great place to start for product analysis. There you can see who the competition is for specific products. You can get a sense of seller feedback and buy box rate estimations for in-demand products. Sellers can in turn use this information as a growth estimation and to determine what products you may want to pursue to resell.

Scoping Out Amazon Top Sellers with Rank Tracking Tools

It is okay if there are 5,000 sellers for the same product. But, if there are about 50 competitive Buy Box sellers for that same product, it is an entirely different story. Determining which existing sellers are competitive will change the way you analyze products on Amazon. Once you’ve identified your competition, it is time to return to your personal business goals.

You can also use intelligent software solutions that allow you to track your products and your competitors to gain a profitable edge in the e-commerce marketplace. This should include Amazon market research software, product sourcing tools, and an inventory management system. One tool sellers can use for product analysis is Sellgo’s Profit Finder. The Profit Finder tool will enable new and experienced Amazon wholesalers to super filter winning products with key performance indicators (KPIs) including profit margins, ROIs, and more. After finding proven products with high sales potential, go back to the Buy Box and see how competitive the sellers are. Sellgo also offers the Product Tracker tool provides inventory insight so you know what items to resupply or drop products that are not selling. By using effective FBA tools and strategies to conduct product analysis, sellers can obtain valuable advantages that will help win buy boxes and create profit funnels.

Building Your Amazon Inventory and the Cost of Production

How much money are you willing to spend on your Amazon Business? Your limit will help you determine which kinds of products you should purchase and the quantity of inventory to purchase from the supplier. One aspect to note is that all wholesale manufacturers will be different and offer different price points depending on the quantity of your purchase. This is known as the product cost or the cost of production.

Be sure to factor in the cost of processing each unit so you can include that in your product pricing to ensure a return on investment. Some suppliers will factor in a Minimum Advertised Price Policy (MAP) or a Minimum Order Quantity (MOQ). If you don’t have the capacity or resources to buy the minimum amount from the supplier, this will greatly impact which manufacturers will be willing to source their product and the price per unit.

If you’re wondering how much inventory you should purchase when first starting out, we recommend at least 24-26 days worth of inventory. With that guideline, you’ll need to determine how much money you want to spend on your products from the brand owners. Note that it is perfectly fine and secure to start off with a smaller Amazon inventory and grow it over time. The best part about owning your own Amazon wholesale business is that you’re the boss! Take your time to make well-informed, conscious decisions. We discuss inventory management in more detail in our article on “A Beginner’s Guide to Selling Wholesale Products on Amazon: How to find “Winning Products”?”

Assemble Your Tools and Become an Amazon Business Seller

Remember, every reseller journey is going to be different for everyone. There are some electrifying practices you can emulate in your business strategy for the best results, but at the end of the day, it is up to you to choose the products that best fit your financial goals. The best Amazon third-party sellers take advantage of every tool in their arsenal and use them effectively. You can too. Check out Sellgo to start building your toolkit.