5 Useful Seller Tools For Every Amazon FBA Seller

16 - 5 Free Seller Tools that Every Amazon FBA Seller Should Use

Want to optimize your Amazon business and maximize earnings? Check out these 5 useful, free, and easy-to-us tools that every seller should use to grow their Amazon FBA business!

Every person needs their tools. Like athletes needing their equipment or even Batman needing his utility belt, an Amazon seller’s tools are essential to maintaining their business. There are hundreds of different FBA tools, but today, we’ll be focusing on 5 FREE, downloadable, and easy-to-use tools that every Amazon FBA seller should be using.

Some of these tools you may already be very familiar with, but we’re going to be showing you some advanced tips and tricks that will set you above the competition and will help you develop your Amazon business and competitive strategy. By using these tools consistently, any seller can make their business more efficient while also being very cost-effective.

Amazon Shopping App

Everyone knows of Amazon and almost everyone has the Amazon app on their smartphones. If you online shop at all, you probably have the app already installed on your phone. While most people use the Amazon app for online shopping, did you know sellers can also use the shopping app to find potential products to sell? We want to show you two hacks that can help expand your Amazon FBA catalog!

Amazon Frequently Bought Together

When you’re looking at a product page on Amazon, you scroll down and see this section called “Frequently Bought Together”. Sometimes you might look at the other products you can buy together, or sometimes you don’t even bother and scroll right past it. But if you’re an Amazon seller, you should definitely be taking a look. The Frequently Bought Together section provides insight into what customers are already buying together.

If you sell one of those items, you should consider expanding your catalog to include those 2-3 additional products alongside the one you’re already selling. Not only does it lead to higher sales and potential profits, but it also allows sellers to get rid of more stock that has been sitting around or it can be replenished if you want to keep selling these product packages. In some cases, all of the products that are frequently bought together may also come from the same manufacturer. If you already have a relationship with a wholesale manufacturer, make sure to ask about their wholesale catalog and see what items you can order in bulk!

Amazon Keyword Tool and Amazon Search Bar Tricks

Lots of people are unfamiliar or unaware of the search bar tricks on Amazon’s shopping app. Whenever you type in a product on Amazon, you might see that Amazon suggests various phrases or terms similar to what you’re looking for. For example, if you’re shopping for a gaming mouse and search for it on Amazon, they might suggest other related products like “gaming mouse pads” or even specific brands like “gaming mouse SteelSeries.” This isn’t a coincidence! Amazon has tons of data on their customers and they know that people shopping for gaming mouses are frequently looking for gaming pads for their mouses or they want a specific name brand like Steelseries. You can do this for any product! Beauty, home and kitchen, electronics; any item you can think of, Amazon will provide you with additional keywords that are popular and related to that first item.

How can sellers use this trick? If you’re looking to expand your catalog, use Amazon’s search bar to see what people are actively shopping for! By using this trick, you can easily identify popular product categories and strong performing products that will help you expand your business and lead to higher sales and more profit in your pocket!

Amazon Seller App

The most obvious and essential tool that all Amazon sellers should be using is the Amazon Seller app. The Amazon Sellers app is the hub for your Amazon business. The app will allow you to manage and monitor your business such as viewing your sales performance, inventory tracking, and editing product photos. While all of these features are vital for your Amazon business, we want to discuss the underrated but just as important features you can use the Seller app for.

For starters, the Sellers app allows you to look up and identify any product’s ASIN or “Amazon Standard Identification Number”. This feature is essential to sellers at every level who need to find products and their ASIN numbers to manage inventory and expand their catalogs. If you aren’t using this feature yet, check it out as soon as possible and integrate it into your business procedures and strategy.

In addition to the ASIN identification feature, the next underrated feature is the customer support chat feature. The Seller app allows any seller to contact and chat with potential buyers who ask questions about the products you’re selling. While some may not care about this feature, we encourage all sellers to take this seriously. Your company’s brand and image are built by your customers. If you have top-of-the-line customer support, buyers will note that and reward you by becoming loyal customers and buying more of your products. This is how you build your business and brand image; by talking and building those strong relationships with your customers.

FBA Calculator

We’ve talked about the Amazon FBA calculator quite often, and focused on it in our past article on the Profit Calculator, but this tool is so important that we had to bring it up again! The FBA calculator is free to use as a tool that is located in Amazon’s Seller Central. Long story short, the FBA calculator enables sellers to calculate the profitability of any product they want to sell. They do so by allowing sellers to input the cost of an item and the selling price, then incorporate all the potential costs of selling that product such as the shipping price, FBA fees, and sellers fees. Sellers can use the FBA calculator to determine the potential profitability of a product before they even put in an order from the supplier.

This tool is one of the most important because sellers can reduce the risk of poor performing or negative profit products. While the FBA calculator is not perfect by any means, it is the first line of defense for sellers to weed out bad products. We always want to remind sellers that the calculator should only be used for estimation purposes since there might be additional costs that are not included in the calculator such as additional shipping fees, packaging fees, etc. that can impact the profitability of items. So if you’re not sure, make sure to double, triple, or even quadruple check!

Camelcamelcamel

Camelcamelcamel is one of our favorite free-to-use tools for both shoppers and FBA sellers. Camelcamelcamel specializes in two primary data analytics: high-selling popular products and Amazon history price tracking. If you want to find popular products to sell on Amazon or affordable products to stock up your inventory, Camelcamelcamel provides both of these on their website and through their Chrome Extension. For sellers. they should frequently and consistently check up on Camelcamelcamel to see what products are currently trending. If a product is performing very well, it may be worth trying to contact a manufacturer to help expand and build your Amazon business catalog. Camelcamelcamel will include each product’s link, best price, list price, and average price. That should provide you with enough information to decide if a product has the potential to be profitable.

Along with popular products, sellers and buyers can track price history and look for price drops. Price drops can be high-value products that sellers can buy for cheap and then resell for a profit. While this strategy is not the most profitable, it provides a lot of short-term and incremental benefits for smaller sellers who are looking to build experience with Amazon FBA.

Sellgo Chrome Extension

The last FBA tool we want to discuss is Sellgo’s Chrome Extension. The Sellgo Chrome extension is the ultimate tool for any FBA seller. To use the Chrome Extension, just head to the Chrome Web Store and search and install the Sellgo Chrome Extension into your browser. After it finishes installing, it’ll be ready to use right away. Simply search up any product on Amazon then click on the Sellgo logo on the top right of Google Chrome. Then, a window will pop-up on your screen with a list of all the products related to your search. The information is extremely valuable. Next to every product photo and title will include important key performance indicators such as the price, monthly sales, reviews, ratings, and the product’s best-seller ranking!

Why should you care about this tool? Well, it provides you with all of the information you need to find winning, high-selling, and high-profitable products! By using the Chrome Extension with Sellgo’s other tools (Search Management, Profit Finder, Product Tracker), any seller can find products that can help accelerate the growth of their business. You can use these tools instead of the ones we previously mentioned, and the best part: it helps sellers at every stage of the FBA process.

First, sellers can find profitable products and the Search Management tool will help you identify and contact manufacturers. Once you have a wholesale account and sign the contract, you can get a wholesale catalog from your supplier and upload it to Sellgo’s Profit Finder to organize all the potentially profitable products to stock up on. Then after you put in an order and start selling, the Product Tracker will keep track of your stock and inventory to let you know when to restock popular items! From start to finish, Sellgo’s FBA tools will help you run your business!

While the Chrome Extension is free to download, we want to note that Sellgo has a premium subscription service to utilize all of its tools. But don’t worry! If you want to try out Sellgo’s product and services, they have a free 7-day trial for any seller to test out their products! We promise you, once you use these tools, you won’t want to stop!

Building Your Resources with Amazon Seller Tools

The true reality of Amazon FBA is that a seller’s tools can determine how successful and how profitable their business will be. The best FBA sellers are the ones with the best resources and tools and can use their resources to optimize their Amazon business. A seller’s tools empower their business owners to become more efficient, and consistent all while being cost-effective. If you are looking to accelerate the growth of your business or are trying to find profitable products to increase your earnings, we cannot stress how vital tools can be to help you accomplish your goals. Whatever tools you decide to use, be sure to build up those resources and maximize your business with reliable FBA tools!

If you want a jumpstart to find the best tools, visit our website and consider our tools at sellgo.com!

3 Ways to Accelerate Your Amazon FBA Business

15 - 3 Ways to Accelerate Your Amazon FBA Business

Streamline and accelerate your Amazon Business and FBA Business with these three tips! Make your business more efficient, consistent, and cost-friendly!

You’ve started your Amazon FBA or Amazon Wholesale business and started selling items and making decent money. Now you’re wondering, how do I grow or expand my business from here?

If this sounds like your situation, you’re in the right place. Most Amazon sellers can earn anywhere between $12,000 to $50,000 in their first year of selling on Amazon. Experienced sellers that have developed and expanded their businesses and can make upwards of $200,000 per year. Regardless of the earnings, sellers at every level of experience want to be able to grow their business even further. Some may want to quit their regular job and move towards Amazon FBA full-time, others see the earning potential and want to become their boss and set their schedules.

Whatever your reason is, you can follow these 3 easy steps to grow and accelerate your Amazon business.

Hacks to Speed Up Research Products

It’s no surprise that product research takes up a ton of time for every Amazon reseller. Every seller is expected to find a wholesale supplier, look through endless catalogs and then find the needle in the haystack of profitable products to stock up and sell on Amazon. This process requires plenty of resources (time, energy, capital) that could be better used to expand your business. The first way to accelerate your Amazon FBA business is to cut down the product research time. There are different hacks that sellers can use, but we want to focus on two: hiring Amazon Product Researchers or hacking the process with Wholesale Catalogs and Manufacturing Newsletters.

Hiring Amazon Product Researchers

The first hack that can speed up the research products phase is by hiring an Amazon Product Researcher. You might be thinking, “where would I even look to find a researcher?” Honestly, the process is a lot easier and much more streamlined than you think. Researchers are plentiful. both domestic and international. If you want to hire someone quickly, there are plenty of websites that have researchers available for contract hire. This means that you would only need to pay a fee or hourly wage for however long they worked. Hiring a contractor is quick and easy, and more often than not, these contractors will bring tons of experience and insight on finding the best products. The most common places to hire contract workers would be websites like Upwork, Fiverr, and Guru to name a few.

Some Amazon sellers prefer to hire a friend or someone they know to become their Amazon Product Researcher. Whether you hire a friend or find a freelance contractor, before you pay them, make sure they understand the FBA process, important Key Performance Indicators (return on investment, profit margins, etc.), how to find winning products, and even how to examine a wholesale catalog.

These are some of the basic and advanced skills any product researcher must know to find winning products.

Wholesale Catalogs and Manufacturing Newsletters

Most experienced sellers know this hack, but every seller at every level of expertise should always refer to available resources like wholesale catalogs and newsletters from suppliers. If you already signed a wholesale contract, the supplier probably gave you access to their wholesale catalog. Most manufacturers produce more than one product, and more often than not, they have all the products they make in a wholesale catalog along with the cost of goods, selling price, and other statistics for sellers. We always recommend sellers carefully look through every possible catalog. Catalogs are rich in information and provide you with a plethora of valuable products that can greatly expand your business and earnings. Winning products are a needle in a haystack, even a single product can make or break your Amazon business.

Alongside catalogs, some wholesalers might even have a monthly or yearly newsletter that discusses new products and discounts they are going to start providing. These new products or discounts can be profitable if you take advantage of the newsletter. Like the catalogs, manufacturing newsletters have tons of information on important updates. With something this important, take your time to examine and analyze every potential product and discount to see if it would be profitable for your business to sell.

If you need more help to source products for your Amazon business, check out our blogs on Super Tracking or Product Analysis!

Amazon FBA Tools

The second way that you can expand and accelerate your Amazon business is through using FBA tools and other seller resources. While some tools are paid and some tools are free, some tools can help sellers at every stage of selling, whether it be finding wholesalers, identifying winning products, or even tracking and managing their inventory. If you want to grow your business, you might want to look into some of these useful tools.

Search Management

One tool that every seller should consider is a Search Management tool. The Search Management tool is the one that cuts down the product research step significantly. If you want to avoid hiring a product researcher or don’t have time to manually look through catalogs and newsletters. the Search Management tool will be your savior. Search Management tools do all the product research for you. Instead of having to hire someone, you can use these tools to upload a wholesale catalog, and the tools will analyze, sort, and organize all of the potential products into a simple and easy-to-read table. Without having to invest time to research products, you can easily identify strong performing products that can help grow your Amazon business.

If you’re in the market for a Search Management tool, Sellgo offers a Search Management tool that provides you with all these benefits. With the Sellgo subscription, you can break down a catalog yourself. The time and resources you would have paid a researcher could be used on this tool instead. It would not only be cheaper than hiring a freelance contractor, but it would also be a lot faster and more efficient.

Profit Finder

The second tool that can help accelerate the growth of your Amazon business is the Profit Finder. The Profit Finder tools will be the ones that identify winning, profitable products. Even if you have a wholesale catalog, you don’t necessarily know if that product will end up being profitable enough to grow or expand your business. Along with the cost of the product, you have to also consider other additional fees like the shipping or packaging costs, sellers fees, storing or holding fees. All of these factors are usually overlooked by sellers or product researchers. By using Profit Finder tools, they analyze the potential profitability of every item and can determine the select few that will be vital to expanding your business.

If you don’t have a Profit Finder tool in mind, we highly recommend the Seller Profit Finder tool. The Sellgo Profit Finder works hand-in-hand with the Search Management tool. After you upload a catalog from a supplier, the Profit Finder will organize the products based on important KPIs like the ones we mentioned above. You can sort all of the potential products based on factors such as the average profit margins, expected return on investments, cost of goods while also taking into account additional fees like shipping costs and sellers fees.

The best part is that both the Search Management tool and Profit Finder tool are included in your Sellgo subscription, so you would only have to pay one price for both of these tools that can help your business grow. Not to mention, it would be cheaper and more efficient than having to pay a freelance contractor or looking into the catalogs yourself. By utilizing both Search Management and Profit Finder tools, it does all of the product research work for you. After using both of these tools, all you need to do is put in an order to the manufacturer and start collecting sales on Amazon!

Before you order any products, make sure to read our article on Profit Calculators and how to calculate the profit margins on potential products that could earn you money!

Inventory Tracking System

Inventory tracking is often overlooked because many sellers tend to underestimate the severe impact of inventory and supply management. We talk about tips on optimizing Amazon Inventory in a past blog, but essentially, managing your inventory will create major blockages if not done properly. If you have too much inventory of a bad product, it takes up space, costs money to store, and prevents you from buying and storing better, higher profitable products. If all sellers can optimize their inventory tracking, it will lead to more efficiency, higher sales, and more money back to your business.

How to Keep Track of Inventory

When keeping track of your inventory, you want to make sure to consistently check inventory levels the number of sales for each item. Your stock should always be maintained to ensure you can fulfill sales and more. Your products should meet 3 main requirements.

  1. You want your products to be replenishable. If your inventory or stock is low, it should be very fast and easy to order more. The last thing you want is to not have enough inventory and lose out on potential earnings.
  2. You want your inventory to be mixed with various products. If you invest in only one product or too many products, you either won’t have enough space to store it or your money is going to be tied up to a product that may underperform, Ideally, you want a decent amount of products and a medium amount of stock to reduce risks.
  3. You want to make sure to forecast how many products you’re expecting to sell. If you don’t forecast properly, you might end up with excess inventory or overstocking, or on the other end, you might wind up selling more than expected and risk losing out on sales.

Product Tracker

An easier method of tracking your stock is by using an inventory tracking system or a similar Product Tracker tool. This is another type of FBA tool but primarily focuses on maintaining your inventory so you can maximize both sales potential and inventory organization to restock on high-performing products. With a Product Tracker tool, it will notify you when an item is low on stock so you can reorder. Some Product Trackers even have a sales estimation tool that will forecast the number of products you’ll sell in a certain time period. Depending on how much stock you have, it will inform and recommend a specific quantity of stock so you always have the perfect amount of products that are ready to ship to potential buyers.

Sellgo offers a Product Tracker that does both of these jobs and more. Like we mentioned in the previous sections, these tools will free up a lot of resources that sellers can then use to focus and grow their businesses even further. Better yet, this tool is also included in Sellgo’s subscription price. Essentially, you are gaining a whole Amazon business management tool filled with data and analytics that can help you make the best choices to grow your FBA business.

Streamlining Your Amazon Business and FBA Model

Depending on what you are looking for, these proven hacks and tips can provide you with specialized tools to help accelerate the growth of your Amazon business. Not only will these tips help your business operate more efficiently, consistently, and cost-effectively.

For more free FBA seller tools, check out our new blog on 5 free seller tools every seller should use!

5 Mistakes to Avoid Before Product Sourcing for Your Amazon FBA Business

14 - 5 Mistakes to Avoid Before Product Sourcing for Your Amazon FBA Business

Before you buy products to build your Amazon inventory, read this guide and avoid these 5 critical mistakes that may ruin your Amazon FBA business!

After finding a supplier and signing your wholesale account contracts, the next step is to look through supplier catalogs and handpick which products to sell for your Amazon FBA business and then put in an order for product sourcing. This step is often overlooked and if not done correctly, can negatively impact your business before you even sell your first item. These mistakes are very common, especially among new sellers. In some cases, some sellers might not know about these mistakes until they’ve already experienced the problems first-hand or until it’s too late. Suddenly, sellers are panicking to solve these issues that could have been prevented.

By following this guide, you’ll learn how to avoid these dangers before they come up and know the perfect sourcing tactics that will lead to lower costs and higher profit margins!

Only Sourcing Brand Name Products

The first problem that a lot of new sellers face is solely relying on established brand name products or big-name companies to source all of their products. To be clear, there is nothing wrong with sourcing brand-name products! Brand name products often provide a lot of incentives such as brand cognition, brand loyalty, and quality assurance. The real problem comes when a seller relies too heavily on brand-name products for all of their inventory.

One of the biggest challenges of relying on brand names is trying to land an account and acquire any inventory or stock to sell. Many brand name manufacturers only supply sellers who purchase a minimum order quantity (MOQ). Brand name manufacturers do not sell to smaller sellers because most cannot meet the minimum order due to various logistical factors including shipping issues, storage for bulk inventory, or simply because it’s too much stock to sell. In general, brand name companies are less likely to entrust individual sellers who can’t sell enough stock that would benefit these manufacturers.

Along with trying to stock brand-name products, another challenge is selling your inventory. With big-name products, you’re competing against all the retailers and chain stores around the world. Brand names are great, but popular brands are stocked up at every major retail store or chain store in the world. Along with competing against retailers, Amazon third-party sellers are also competing amongst one another. Even if you can obtain inventory from a brand name company, there are going to be other Amazon FBA sellers who are stocking the same products and will sell them at the same times you are.

Our tip to sellers: diversify your catalog with a good mix of popular brand name products if possible and also sell some less known, but still high-quality brands. It’s also important to note that not all brand-name products will be best sellers or even profitable goods. For smaller sellers, it’s important to prioritize the profitability of products over the brand name or big-name products. Instead of solely relying on specific brands or products, try using different FBA tools that can identify multiple products with high-profit margins to build your Amazon inventory. Tools like Sellgo’s Product Tracker can be extremely helpful in the product research process to help sellers find replenishable, high-quality, and high-profit margin products.

Overspending or Having Amazon Overstock

Another mistake that a lot of new sellers and even some experienced sellers make is buying too much stock and then overspending on inventory. You know the idiom, “your eyes bigger than your stomach”? Well, product sourcing is very similar. It is very easy to overestimate your sales, that you end up buying way too much stock and not enough buyers. Overstocking is a common problem that sellers at every level will experience and is a logistical nightmare to solve. Not only do you overspend on buying too many products, but the inventory also takes up too much space to store and sometimes may even cost you more money if you’re paying for storage fees like a warehouse. The inventory taking up space also prevents sellers from buying new inventory that could help with sales and profit, so you’re essentially losing money because you bought too much of an underperforming product. If you are a smaller seller and you invest some capital in buying stock, it’s vital to get some financial return (profit) for the items you’re selling so you can keep buying and selling. If you overspend and buy too much stock and it doesn’t sell, a small-time seller is going to be stuck with a lot of inventory with no way to get rid of it!

Our tip to sellers: Start small and build up your inventory over time. Don’t overspend and overstock items you have no experience in selling. Like we mentioned above, a lot of suppliers only sell to sellers who meet the minimum order quantity, so before you put in an order for inventory, make sure the amount is not too much to handle. If you start small, you can test a small supply of various products and see which ones perform the best. Once you feel comfortable and have more capital to invest in larger quantities, then feel free to spend a bit more for larger quantities. Until then, play it safe and build your business over time.

Selling Time-sensitive Products (Perishable Products + Seasonal Products)

When it comes to time-sensitive products, you want to be very wary before you build your inventory. Time-sensitive products include two main categories: seasonal products and perishable products. When it comes to seasonal products, always remember that their sales records can fluctuate rapidly. Some months these items will fly off your shelves and some months they’ll sit and take up space. If you overspend and overstock on seasonal products, the likelihood of having remaining inventory after the season has ended is very high and can lead to problems we mentioned in the section above.

Other than seasonal products, we also encourage new sellers to stay away from perishable goods and products. Perishable goods have an expiration date, and using or consuming a product past its date can lead to illness or injury. If you’re ordering seasonal products or perishable products from overseas or international manufacturers, this may also take some time to ship to you or Amazon if you use Fulfillment by Amazon. The products may take too long to ship and may be out of season or expired by the time it arrives for you to sell.

Our tip to sellers: stay away from both seasonal and perishable products in general. It is always better to build an inventory around stock that is popular all year round and can last the shipping period and more. Selling time-sensitive products will always be a struggle because there are too many factors that can negatively impact the profitability of these products. Relying too heavily on these products can lead to devasting results and may even ruin your Amazon business. It’s best to stay away from these products, at least until you have some experience in optimizing the process to ensure profitability.

Forgetting Contract Negotiations or Not Negotiating

Whether you’re trying to land a wholesale contract or make a deal with another supplier, it is important to remember to negotiate. The skill of negotiation always seems a bit scary, especially if you have no prior experience negotiating. But we’re here to tell you, negotiating can make or break your business. When it comes to getting a good deal for product sourcing, it is vital to negotiate everything. Even if the negotiation is over a small amount of money, remember that these small amounts can build up and impact the profitability and sustainability of your business. You never want to overspend because it will always limit your available capital that could have been spent making more money. Also, note that not all sellers will have the leverage to negotiate. If you’re buying the minimum amount of stock from a manufacturer or a new/inexperienced seller, your negotiating power may be a bit lower. But as you grow your business and buy more amounts inventory, take the opportunity to negotiate product pricing, shipping or storing fees, and any other cost that comes down the line.

Our tip to sellers: negotiate, negotiate, negotiate! Especially if you hold a lot of value and leverage as a seller, make sure to gatekeep your business and prevent any waste of resources.

Accounting for Hidden Fees

Hidden fees are the expenses a lot of sellers are unaware of and it causes a ton of headaches if it goes unknown. One of the most common occurrences of hidden fees is shipping costs. Specifically, with international or overseas suppliers, the price tag for shipping inventory can be high. Sometimes you can negotiate with the suppliers, but oftentimes the sellers will have to pay for shipping costs. In addition to shipping costs, there may also be other fees such as storage fees if using Amazon FBA. Another common fee comes when you realize you’re buying products from a distributor, not a manufacturer. Distributors will buy wholesale products and then resell them for a profit to third-party sellers like Amazon FBA sellers. In some cases, you may be buying from a distributor who is charging you additional costs that you wouldn’t have to pay if you bought the products directly from the manufacturer instead. The last hidden fee that you want to look out for is packaging fees. Some products will need to be packaged individually after being sent from a wholesaler. If that’s the case, sellers want to take in the cost of paying for packaging material when calculating the cost of goods.

Our tip to sellers: due diligence is KEY. If you don’t know, ask questions and be curious about all potential costs before sourcing your products. These expenses can turn the most profitability into duds or even negative-profit items. Sellers who overlook hidden fees will most likely be hurting their business more than they are helping it. Be very careful about the products before you buy them and ensure that you’re calculating all potential costs.

Being Proactive Before Mistakes Hurt Your Amazon Business

If you’re reading this blog, it either means you’re about to start selling on Amazon or you’ve already started but run into some of these problems. We hope you are the former, and that you can use these tips to be proactive when sourcing products. Regardless of why you’re here, we encourage all sellers to be proactive sellers so that you can prevent these mistakes before they happen and hurt your Amazon business.

If you’re starting to sell on Amazon, be sure to check out the rest of our blogs and our FBA tools to find winning, profitable products and increase your return on investments.

For more help in product sourcing, feel free to check out our blog on Product Analysis and Product Sourcing.

4 Successful Tips to Land Wholesale Contracts

13 - 4 Successful Tips to Land Wholesale Contracts

Learn 4 successful tips to help land your first Amazon wholesale contract! Find products to grow your Amazon business connecting with wholesale manufacturers!

After setting up your Amazon FBA business and seller account, the next obstacle is identifying wholesale manufacturers and contacting different suppliers to build your catalog and stockpile.

This may seem like a daunting task, but it is simple if you know the procedures. Something to note before you read these tips, be ready and be okay with hearing the word “no.” This is nothing against you or your business, but you have to realize that some manufacturers are extremely picky. The best way to prepare is to learn to accept rejection and stay motivated to contact more suppliers despite rejection.

If you’re trying to find ways to increase your hit rates, you’re at the right place! These 4 successful tips will help you get more acceptances from wholesale manufacturers and make sure that you land those accounts! Let’s get started!

How to Contact Wholesale Suppliers

The first tip is to contact wholesale suppliers. You might be wondering, where do I even find wholesale manufacturers to contact? If you’re not sure where to start, the first thing you can do is determine where and how you want to get your products. Some sellers stick strictly with American or domestic suppliers while others don’t mind working with international suppliers such as Asia or Europe. Depending on your preferences, you can use various online resources and websites. Some sellers who use international suppliers can find products on websites like Alibaba, Wish, or even eBay. If you want a general list of suppliers, a common site used to find suppliers is WorldWide Brands, which has an online database of suppliers.

The biggest risk of randomly contacting suppliers is that you can’t guarantee any success with these products. If you want to reduce this risk, we recommend using tailored Amazon FBA tools. Sellgo offers a couple of these tools to identify manufacturers such as the Profit Finder. Using the Profit Finder shows the top-performing products and the exact manufacturers who make the products. Simply take their names and in a quick Google Search, you’ll find the contact information to get into contact with these manufacturers. The Profit Finder also provides sales estimations and profit margins to ensure that the products and manufacturers you pick will lead to profits! Then comes the next step, making the first point of contact!

Be an Amazon Professional Seller

Before you send that first email, there’s a couple of notes to take into consideration. Like we mentioned previously, suppliers can be very picky. Before sending an email or making a phone call, always convey levels of professionalism. If someone asks you, are you a professional seller? ALWAYS SAY YES! If you ever apply for a job, you always want to show that you are competent and can handle the responsibilities. Suppliers are not going to trust unprofessional, inexperienced, or unproven sellers. From a business standpoint, it makes sense. Would you ever trust a new and unproven seller with your inventory? Unproven sellers are risks suppliers do not like to take!

Before you send that email, ask yourself, do I sound like a professional Amazon seller? If the answer is no, then you need to take the time to build your professional brand and business profile. Build that trust and experience so that your resume speaks for itself! This can also be done by building your brand and Amazon business like simply making a business email, creating a website, applying for a business entity structure such as an LLC or C-Corp, or applying for a business bank account.

If you need more help building your professional portfolio, you can read this article, “3 Steps Before You Can Start Selling Amazon Wholesale” for tips!

Determine Your Unique Value Proposition

The next step to take into consideration before you make the first point of contact is to determine and convey your unique value proposition. Simply put,

What benefits and advantages do you provide to the manufacturer?

If you become one of their select sellers, how will you help the supplier?

You want to show them that you can provide a symbiotic relationship where the seller will get access to the supplies and the suppliers will get a mutual benefit. Everyone usually says the same thing, promising a “good sales record” and “return on investment” if the wholesalers can supply the product. While this may work sometimes, there is no added value that puts you over another seller.

So the real question is, how do I determine my unique value proposition? The best way to determine this is by simply asking yourself, what makes me different from other sellers? You may have a unique history selling a certain product or category of products, you may have some previous relationships with suppliers or customers. These are the key points that may make you different. Our tips are different, break the mold, and change the game.

If you can build your professional brand and develop a clear unique value proposition, your hit rates will reflect this growth and suppliers will line up for you to sell their products!

Request a Probation Period

Once you make that first touchpoint with potential suppliers, it’s a waiting game. In the end, they can either yes or no.

If they agree to become your wholesale supplier, then you can start looking through their product catalog and choose which products you’d like to sell.

If no, then don’t be discouraged! Rejection is never a final ruling. When facing rejection, you have two options on how to move forward.

If you aren’t a perfect match with a supplier, then it may be best to move on and contact other suppliers that are more compatible with your business.

If your bid is rejected and you still want to stick with this specific supplier, you can try to salvage the relationship. Sometimes a wholesaler will be hesitant to give you an account contract if you seem inexperienced or unproven. One way to solve this issue is by requesting a probation period. The probation period is usually set between 30 days to 90 days. Within this period, the supplier will provide a small, limited amount of products. Think of this as a trial run. They’re going to test your bandwidth and check if you have the drive to meet their quotas. If you can prove your skills and sell their product, they may offer you a wholesale account as a reward for proving yourself.

Nonetheless, remember that each of these steps will be vital for you to build strong relationships with these brands. As you become a better seller, you’ll see that manufacturers value that experience. Next, you want to make sure to maintain these relationships.

Prioritize Transparent Communication

Landing wholesale accounts are great but are only half the battle. Don’t forget that there is a whole other battle that revolves around maintaining strong, consistent relationships.

Relationships are always a two-way street. To sustain positive and symbiotic relationships, there is a level of mutual respect that both parties have to agree to. Remember, sellers can’t operate without wholesale suppliers and vice versa. We always want to encourage sellers to maintain clarity and transparency with their suppliers. Holding information (unless it’s private/confidential) can often lead to miscommunication or misinformation that can potentially turn any healthy relationship extremely sour. Some manufacturers refuse to supply Amazon sellers, regardless of their history, and may revoke contracts if they don’t like the seller or their business. This is just one example of how the lack of communication can negatively impact your Amazon FBA business.

Our tips to maintain healthy relationships follow the three C’s of communication: clearly, concisely, and consistently. By following these guidelines, it’ll not only build trust but may lead to additional benefits or opportunities you might not even know or about.

Step Up Your Wholesale Game with Exclusive Products

Now, this last tip is very dependent on the previous three and the level of execution of each step. If you can build strong relationships with suppliers and increase the level of trust, you may hit the goldmine of products: Amazon Exclusive products.

While this may not seem like a big deal, let me clarify why you should always look towards exclusive products; Exclusive products are only given to the top sellers or sellers that have built those strong relationships with manufacturers. They don’t just give these privileges to just anyone, so reaching this point is its accomplishment for top Amazon sellers. Simply put, exclusive products are limited in competition and may have high earning potential.

Because these products are only given to a limited number of sellers, the competition to sell this product is much lower than the rest of the manufacturer’s catalog. As a result, the likelihood of making more sales and market share significantly increases with exclusive items. In addition to market share, many exclusive products have higher earning potentials because they can be provided at a low wholesale price from the suppliers and sold for high-profit margins on Amazon.

Imagine it like a pie, where every seller selling a certain product gets a slice. This is how it is when selling any product from a wholesale catalog. With exclusive products, that slice gets a whole lot bigger! In rare cases, if suppliers like you enough, you may even become the sole seller for that exclusive product. Instead of taking a slice of the pie, you take the whole thing! This is the ultimate goal when creating relationships with wholesalers. If you put in the work to build relationships and establish a high level of trust, you can reach the pinnacle of Amazon wholesale with exclusive products.

Land Your First Wholesale Account

By following these simple steps, you can expect to see a much higher success rate landing these important wholesale contracts. Always remember that landing the accounts is only half the battle. Maintaining and sustaining these accounts will be the true key to growing your Amazon business.

Soon, you’ll start seeing manufacturers lining up to get you to become one of their sellers or better yet, the sole seller for an exclusive product. This can’t happen unless you know the procedures and get to work. The first step is always the hardest, but we can help you get there. For more advice on jumpstarting your Amazon wholesale business, visit us at sellgo.com and start finding suppliers now!

3 Steps Before You Can Start Selling Amazon Wholesale

12 - 3 Steps Before You Can Start Selling Amazon Wholesale

Want to start an Amazon business but not sure where to start? Here are 3 steps you should take before you start your Amazon Wholesale business!

Before you can start selling Amazon wholesale, there are a couple of legalities that you should consider. This guide is going to provide you with three key steps including applying for a business entity structure, an Employee Identification Number (EIN), and most importantly, a States Tax Exemption Certificate or “Resale” Certificate. By utilizing this guide, not only will you know the legal logistics behind selling on Amazon FBA, but you’ll save more money and have a lot more potential to grow and expand your wholesale business.

Choosing a Business Structure

First things first, wholesalers should consider filing for a business entity. This step might not be for everyone, but if you plan on taking Amazon FBA seriously and if you want to create an actual business, we highly recommend filing for a business entity. There are a ton of benefits in applying for a business entity. Here are some of the biggest benefits:

  1. Protection: Business entities separate owners from their businesses. If your business takes on debt or has legal issues, it separates the liability of the owner from the business itself.
  2. Taxes: Some business entities provide some tax breaks that could save you money! If applicable, you might want to look into filing for a business entity!
  3. Professionalism: Customers generally accept and trust businesses over people, especially businesses that are licensed and legitimate. If you want to grow a business or even an empire, you have to start building that professional image now!
  4. Capital: If you need more capital, whether it be to add more inventory, hire employees, or just want to grow your business, filing for a business entity enables you to apply for a business bank account! With a business entity, banks are more willing to provide loans that can help you fuel your business.

Moving on, there are 3 main types of business entities that new or experienced sellers can apply for, LLCs, S-Corps, and C-Corps. Each has individual requirements, policies, and benefits. As with any business, make sure to do your research or get into contact with a CPA or lawyer if you’re unsure. The last thing you want is to file something incorrectly or make the wrong business decision. If you don’t know, ASK ASK ASK!

What is an LLC?

LLCs or “Limited Liability Company” is one of the more inexpensive and easiest business entities to apply for. Not every Amazon seller needs to file for an LLC, but it provides a lot of the benefits we discussed above such as providing more protection for business owners and an avenue to obtain capital such as bank loans.

What is an S-Corp?

S-Corps are another type of business entity. Similar to the LLC, S-Corps provide similar protections for businesses and their owners. The main difference between the two is that S-Corps are a bit harder to apply for and have more requirements. S-Corps are usually used for companies with less than 100 shareholders and have more tax benefits than both LLCs and C-Corps. While both are sustainable for Amazon FBA sellers, we encourage new and inexperienced sellers to go towards an LLC structure as it is easier to apply for and provides the same key benefits.

What is a C-Corp?

C-Corps are like S-Corps but do not have the same restrictions. C-Corps allow businesses to have more than the 100 shareholder maximum that restricts S-Corps. Besides, C-Corps have different tax codes and policies than the two previous entities. For businesses that are growing exponentially or have a lot of various shareholders, C-Corps may be the most helpful for growth. As always, there will always be more policies and restrictions per each entity structure. Be sure to research the different structures or contact a CPA or small business lawyer before filing any forms. Regardless of whichever business structure you choose, the business entity will be really handy down the line!

Employee Identification Number (EIN)

If you decided to apply for a business entity, the next step should be to apply for an “EIN” or Employee Identification Number. As defined by the IRS,

“An employer identification number (EIN) is a nine-digit number assigned by the IRS. It’s used to identify the tax accounts of employers and certain others who have no employees. The IRS uses the number to identify taxpayers who are required to file various business tax returns.”

The EIN is utilized by the IRS to ensure small businesses with no employees submit and pay their federal taxes. Some sellers may opt to use their social security numbers instead of filing for an EIN, but we highly discourage this. The main reason is that this identification number gets sent and is used by wholesale manufacturers and suppliers. If you opt to use your SSN, this increases the risk of your information being leaked or potentially stolen. To be safe, file for an EIN to protect your personal information and keep it separate from your business. The EIN will also provide some monetary benefits that we’ll get into below!

If you’re unsure if you should file for an EIN, please refer to the IRS website or get in contact with your CPA or small business lawyers if possible.

Now you may be wondering, how do I file for an EIN? Well, there are a couple of ways:

Small business lawyers and certified public accountants (CPA)

The first method is through asking an expert. If you have access to a small business lawyer or certified public accountant (CPA), this is not only the easiest method but also the safest. Small business lawyers and CPAs know the exact legal procedures and forms needed to establish and obtain an EIN. That way, all you need to do is pay for the service and the fees for the IRS application! This not only saves you a lot of time and energy but saves a lot of headaches and prevents any mistakes!

File EIN online

Hiring a CPA or small business lawyer may not be accessible for everyone for a lot of reasons! Don’t worry, we have you covered! If you can’t get in touch with a CPA or lawyer for any reason, you can also apply for an EIN by yourself or through an online service. If you choose this method, we have a couple of websites we trust and refer FBA sellers to. If you don’t mind talking with the IRS, you can file for an EIN directly. They have a web page dedicated to submitting the correct forms and can be found here.

If you want to file it yourself but don’t want to bother interacting with the IRS, you can also use various legal tools that can assist you in filing for an EIN. We recommend some of the bigger platforms that are commonly used such as LegalZoom, Rocket Lawyer, or Incfile. While you may have to pay for these services, it saves you a ton of time and prevents any mistakes that could hurt your business down the road!

How much does it cost to get an EIN?

The great thing about EINs is that applying for one is technically FREE. What we mean by technically is, the IRS doesn’t charge for applying for an EIN! If you wanted to directly apply for a business identification number now, you could apply for one without spending a dime on the IRS website.

But, some services (like the ones we listed above) or experts (CPAs and lawyers) may charge a service fee to help you apply for an EIN. Make sure to consider this if you plan on applying for an EIN in the coming weeks or months!

Sales tax exemption certificate and resale certificate

The last step every Amazon FBA seller should look into is the Sales Tax Exemption Certificate, also known as the “Resale Certificate.” Each state in the US has its own Sales Tax Exemption Certificate, so you will need to look into your specific state and its policies. You may be wondering, why should I even care about this certificate? In short, this certificate will SAVE YOU MONEY. This certificate states that as an Amazon Reseller (buying wholesale and reselling it through Amazon FBA), you do not have to pay sales tax for the wholesale products you buy. Instead, this certificate states that the Amazon Customer, the one who will end up buying your products, will be responsible to pay for the sales tax when they purchase the item. As the “middleman” or Amazon wholesaler, you are exempt from paying these fees.

It is important to remember, each state varies in sales tax and this has a huge impact on your profitability if you don’t file for the Resale Certificate. If you have any questions regarding this certificate and if you are eligible, get in contact with a CPA or small business lawyer who can provide you with more information and if you qualify for this exemption.

Making Your Amazon Small Business

Starting your Amazon small business is always going to be the biggest hurdle, but if you can get past the first hurdle, the rest will fall down the line! The hardest step will always be the first! With these steps, hopefully, you have enough information to start your Amazon business.

After you get started, Sellgo can help make the next steps easier with our FBA tools including inventory management, product research, and sales estimation. Check us out at Sellgo.com! See you and your Amazon business soon!