The Perfect Amazon Product Ideas for Beginners in 2022

I was a part-time entrepreneur that had no clue what they were doing. I made a ton of mistakes and lost a lot of money in the process. But what I’m most proud of is how much I learned in the process and how much I’ve changed for the better since.

Just like there are many ways to skin a cat, there are also many ways to launch an amazing product. What I’m going to teach you depends on several factors, including the amount of money you have allocated for development, how much time you can dedicate to creating your product, etc.

Being a novice, opportunities to make mistakes will be inevitable. However, don’t worry, you will not need to do everything alone. This step-by-step guide will help you out in making your first product selection.

#1 – Price of $20 – $50 on Amazon

As a beginner, your focus is on selling as much of your products, and as fast as possible. Fail early. This way, you’ll know what works and what doesn’t. Imagine trying to sell a $500 product. Perhaps you will make more money with a high price product but you won’t really get any conversion every day. (Thus, you won’t have enough data to review). 

For most consumers, a product priced at $50 or more requires a lot of decision making. Also, at that price point, most customers tend to be more brand-focused. For instance, you would likely not buy a smartwatch from a random brand. Your choices are most likely Apple Vs. Samsung, and then the other smaller smartwatch brands (that relatively speaking, still have a quite big name). In this case, selling a private labeled $150 smartwatch might not be the best idea. This is why I suggest selling products within the $20-$50 price point. The price headroom is enough to make a decent $10-$25 net profit per sale but it’s also reasonable enough that most people can still afford it. A product that requires less decision making – something that you might be buying in a snap – is better for beginners, generally speaking. 

FBA products, on average, tend to give an average of 30%-40% net profit after all the product expenses and fees. So a $30 product will likely provide you a $10-$15 net profit. Sell 5 of those products every day and you are building a part-time income of $1500 per month now.

#2 – The 7x Rule

This rule states that you shouldn’t invest your time on a potential product if you can’t import or produce for 7x less its Amazon price.

In simple terms, if a product on Amazon sells for $35, you should be able to import or produce that for only $5 per item. Why? When it comes to selling on Amazon, there are several fees that you need to pay. In general, those fees will hover around 35% of the total price on average. So if a product on Amazon sells for $35, then you can safely assume that $12.25 will go to the fees. If you produce it for $5 apiece, then your total expense will be: $17.25 $35-$17.25 = $17.75 is your net profit. If you pay for advertisements, then that will add up as well. Plus, remember, shipping fee (from production to Amazon warehouse) may also add up to the price. In reality, your total net profit, in this case, would be at around $10 – $12.5. So to be on the safe side, you should only choose products you can sell for at least 7x its production cost. By following this criteria, you can safely assume that you’ll be getting at least 0% net profit. Which is actually pretty good – especially if you’re doing a lot volume-wise.

Bonus – FREE FBA Profitability calculator

Let me introduce you to our FREE FBA Opportunity Calculator.  It’s probably the most elegant way for you to calculate product profitability with ease – and it’s totally free!

#3 – Lightweight, Relatively Small and Easy to Ship

If you stick to selling light and small products, then you can get your item shipped from a different country to your customer’s doorsteps cheaply. By selling a large number of products, you can get the unit prices very low. It’ll be much easier to scale up because your cost of doing business is much lower.

#4 – High-Potential for Private Labelling as a Beginner

Private label business model will give you the green light to sell your own for as long as you like.  You have to find a product that you can sell even without having a mega-brand. When done right, you definitely can compete with the other private labels or bigger brands. Remember, private labelling is when you hire someone to produce the product for you and then put your own brand in it. Make sure that the product you chose is worthy of being private-labeled.

So how do you find the best-selling products to private label? There are two main ways to do it: market research or just plain old random guesses. You can’t just go on Amazon and type in random keywords and expect results. It is very difficult to market products that are ranking poorly in Amazon’s search results. So it’s important that you look for highly competitive keywords before coming up with product ideas. Checkout our Product Database page to get more information.

#5 – Evergreen

There will always be a time of year when a product has a spike in traffic and sales, but finding a product that sells well all year round is much easier to do. It’s also much more sustainable for your business.

Am I saying that seasonal products won’t sell?  No, of course not.  But I think what it comes down to is choosing something with a less competitive niche for your keyword; something that isn’t super popular.  Or you could make a seasonal product and tweak it to be an evergreen product that will sell day-in and day-out. Something that people use regularly. For example, a baby utensil is something that most new parents would need to look for. Babies are born at any time during the year, their need is not something that families will have to wait for Christmas to buy.

#6 – Room for Improvement

The first thing I notice is that a product that can be improved must be a product that people would love to use, or there is a good Product-Market fit. The good news is every product out there can still be improved. In order to improve a product, you must have the perspective of a detective. Someone who can turn problems into opportunities. For example, a baby utensil can be improved through a – Adding better ergonomic design so babies will love to grab it. b – Find the material that will make it dishwasher safe. c – You can add colors so parents have more choices. The point is that improving a product requires that you put yourself in the position of the consumer. You have to find what they hate and what they love about the product.

#7 – Verify Customer Demands

Customer demand is the most important criteria. If you want to become a successful seller on Amazon.com, understanding product demand is everything. That’s right, I said everything. Find out what customers really want to buy from the total amount of the keywords from the Amazon Search Page. 

To give you a clearer picture, let me give you an example. Let’s say that you are trying to sell a hunting backpack on Amazon. The keyword “baby bibs” has 475,000 monthly searches on Amazon. If the conversion rate is 10%, there are 47,500 sales every month for this kind of product. Check our Chrome Extension to get the products’ Search Volume while you are browsing on Amazon.

We are just starting here …

I’m going to walk you through a couple “Aha!” moments that will help explain why I do things a certain way in the other blog. I’ll also explain why understanding product demand is important, and what it means for your business, and your business only.

6 Hacks to Optimize Your Amazon Listing

It is no surprise that the best Amazon listings end up being Amazon’s best sellers. The listings with great titles, engaging descriptions, crisp photos, and optimal keywords get the most attention from both shoppers and Amazon’s algorithm. To increase your sales, you need to learn how to improve your product pages to get more shoppers looking at your product and more customers for your Amazon business.

If you read our previous blogs on 5 Ways to Improve Your Amazon Sales Rank, you’ll know some of these hacks! But, in this article, we’ll be going into deeper details on other ways to optimize your Amazon product lists to maximize your sales!

Optimize Your Pricing

The easiest hack and most convenient method of improving your product listing are to optimize the price of your products. This hack is extremely valuable for wholesalers who are competing for the Buy Box and private label sellers who are selling products with a lot of competition.

The reality is: shoppers are always shopping for value. And many times, value equals cost. Therefore the easiest way to improve your Amazon product listings is to simply have competitive pricing. We recommend that you price your products within 15-20% of the lowest price to be competitive.

For wholesalers competing in the Buy Box, this means pricing 15% from the lowest offer in the Buy Box. Why? Because in most cases, Amazon will give every seller within 15% of costs equal time in the Buy Box. As long as you fit within that 15% threshold, you should be able to rack up some sales. You may find that for some products, 15% may be too low that your products no longer become profitable. So make sure to calculate the entire costs (including FBA and shipping costs) before you lower the price of your products. 

We also want to note that some products cannot be sold for too low depending on the Manufacturer’s Suggested Retail Price (MSRP) set by the manufacturer. In this case, you would also need to abide by your supplier’s instructions to ensure you don’t get in trouble.

For private label sellers competing with other white label products, you have a bit more flexibility. We recommend that you price your product within 20% of the competitive price For example if you were to sell a water bottle, identify the price of your competitors. If they sell their products for $20, I would price my water bottle between $16 to $24 to stay within the 20% threshold compared to your competition. Since private label sellers do not share the Buy Box, the pricing strategy for the Buy Box is irrelevant. But, you want to stay close to other sellers and their listings to remain competitive.

With competitive pricing, more customers will be attracted to your listing to get a great deal and buy your products.

Optimize for Search Terms

The next hack is to optimize for Search Terms. If you keep up with our articles, you might be familiar with “keywords,” but search terms are a bit different. Search terms are like keywords, except these words are not used on your product page, they are used in the backend of your products. Search terms cannot be seen by shoppers and are only visible to Amazon’s backend algorithm. Amazon defines search terms as

“generic words that enhance the discoverability of your product. For example, if you’re selling headphones, your search terms can contain synonyms such as “earphones” and “earbuds.”

In essence, Search terms are key phrases that Amazon used behind the scenes to showcase the most relevant products possible. Amazon limits the number of search terms to less than 250 bytes of words. Here are some of Amazon’s key tips when using search terms:

  • do not use product identifiers such as brands, product names, ASINs, UPCs, etc.
  • take out inaccurate or irrelevant search terms (trust us, it won’t leave to more conversions if you use random search terms)
  • do not use excessively long search terms, keep it simple
  • provide search terms from most relevant to least relevant
  • do not use filler words (best, top, new), these words will filter out anyways

These search terms provide Amazon another method of finding our products when shoppers search for similar search terms and bring more attention to our product listings. To learn more about Amazon’s search terms and how to use them effectively, check out Amazon’s article on best search term practices.

Optimize Titles

With search terms in mind, let’s move on to optimize our product titles and content with keywords. Keywords are the common search terms used by users when shopping on Amazon. For example, if I wanted to buy a gaming mouse on Amazon, I will search a general term such as “wireless gaming mouse.” These are the keywords that people most often use when shopping online and are essential to maximizing your product listing’s visibility for Amazon’s algorithm. Note that keywords will be most relevant to our private label sellers, who have different listings and compete with other sellers.

To find the best keywords, we recommend conducting a competitive analysis and scouting the competition. In this example, pretend I am selling a set of cooking utensils and I want to find the best keywords to optimize my listing. The first thing I do is go on Amazon, and search “cooking utensil set” and come across these products. If you look at each product’s title, you can see a lot of repetitive keywords like “kitchen utensil,” “nonstick,” and “heat resistant.”

These are the keywords that your competitors are using! So when we are optimizing our listings, we want to highlight the same competitive keywords and we end up with:

“Kitchen Utensil Set, Nonstick and Heat Resistant Cooking Tool Set.”

We have a strong product title that is optimized for Amazon’s algorithm. If someone searches for cooking utensils and uses one of these keywords, our product is more likely to be shown to customers, thus increasing our sales.

Optimize the Content

Did you know you can add keywords that aren’t just applicable to your product titles but should be used throughout your product page content?

Every product page for every product sold on Amazon has a product title, product description, and product photos. Keywords need to be used for all of these elements, not just your title! We’ve talked about keywords within titles and descriptions in the past. 

If you need help creating the right structure for your product description, I highly recommend you read our blog on Successful Writing Tips for Amazon Product Descriptions

In the article, we emphasize the importance of having short, concise, and engaging product descriptions that utilize bullet points and simple writing structures. But, keywords can be applied to your product photos as well!

You might not know this, but you can optimize your photos for keywords! Before you upload your product’s photos into your product listings, make sure to properly name your photos with optimized keywords. You can change the file names of all your photos. Since Amazon’s algorithm reads the photo’s file name, they are also looking for relevant keywords within the file names! Like we mentioned, you want to maximize all the content on your product listing, not just the title and description! Make sure to optimize your photo files as well, Amazon’s algorithm will appreciate it!

Optimize the Details

The fifth hack to optimize your Amazon product listing is by flushing out the details. This step is not required but is highly recommended by Amazon because the product details give the customer more information about your product. By having more information, customers are more likely to make informed purchases and have more ideal and clear expectations for your product.

Whether it be your product descriptions or your title, you want to include all the essential information within your product listing. This includes:

  • brand name
  • product line (if applicable)
  • material or make of the product
  • color
  • sizing and dimensions
  • packaging and materials

It’s always better for your products to be too specific than too broad. Without all the essential information and additional details, your customers won’t know if your product fits their needs. Or worse, customers will buy your products and realize the product is nothing like their expectations. This often leads to more return requests, lower product ratings, or potentially an increase in negative reviews. Remember, the devil’s in the details. Do yourself a favor, include the details!

Optimize Your Engagement

Our last hack to optimize your Amazon product listing is by increasing your engagement. This is not a new tip, we always talk about the importance of interacting with your customers! But in case you forgot or didn’t know before, customer engagement is key to keeping customers satisfied and loyal to your brand or product.

These are the most common interactions:

  1. Product Questions
  2. Product Reviews and Ratings
  3. Customer Messages

For product questions, this occurs on your product pages where customers with inquiries can submit a question and have another customer (or the seller in your case) answer anything about the product. The most important benefit is providing more details to the customer. If a customer has a question about your product, it means they are considering purchasing your products but need more information to form a decision. This is a great way to close deals and get more sales for your products! If a customer has a question, answer it as soon as possible. And more often than not, their question is shared by dozens if not hundreds of potential customers who are wondering the same thing!

Next are product reviews and ratings. Reviews and ratings can make or break your products. A couple of bad reviews can potentially destroy your sales. But, you aren’t helpless! If you spot a negative review or rating, reach out to the customer and try to mitigate the issue! If there was a defect, offer the customer a refund or offer a new product that is not defective. For unhappy customers, inquire about their experience with your product and provide them with a solution. The way you resolve these issues can change the course of your products. You might even be able to change a negative review to a positive one and save your products from turmoil. Be proactive, not reactive!

Our last method of customer engagement is through customer messaging. After a customer purchases a product, you can send them a message asking about their experiences, troubleshooting any issues, or simply thank them for their purchase. This is a great method to provide excellent customer service and establish relationships with your customers. And as we know, happy customers lead to more sales and brand loyalty!

In the end, engagement is simply about communication. Whether it be questions about your products, resolving negative reviews, or sending your customer a message, the better you communicate, the more engagement you have with your customers.

Key Takeaways Moving Forward

These 6 hacks to optimize your Amazon listings are just the first step. Remember, optimizing your lists is an ongoing, long-term investment. What works today might not work tomorrow, so it is important to closely monitor your listings and see how to improve them over time. We recommend collecting data on sales performances and trying new product descriptions and search terms every so often. Keep testing your listings, see what your competitors are doing, make small adjustments, and iterate your strategy over time.

For more tips and tricks to increase your sales and grow your Amazon businesses, head over to Sellgo.com !.

Amazon Wholesale vs. Amazon Private Label: 5 Reasons to Sell Wholesale on Amazon in 2021

30 - Amazon Wholesale vs. Amazon Private Label

What Amazon business model should you pick in 2021? Amazon Wholesale and Amazon Private Label are great options, but which is better?

If you’re seriously thinking of getting into Amazon selling, you are most likely considering 2 potential business models: Amazon wholesale or Amazon private label. While both models can be profitable, they have vastly different strategies and logistics to scout, source, and sell their respective products. In this article, we’ll be breaking down the two to see which one would be best suited for your needs and why you should ultimately pick Amazon wholesale over Amazon private label. Before we can compare these two types of Amazon businesses, let’s do a quick rundown of each business model.

Amazon private label is the high-risk, high-reward model for Amazon selling. It starts with a seller finding a white label product, which is usually a generic product without any branding or labeling that can be bought in bulk from a manufacturer. Private label sellers take these unbranded products at low cost, slap their own brand name on them, and then resell the product on Amazon for a higher price. Amazon private label relies heavily on finding high-quality, generic products that can be rebranded and then market their products to be sold. Most private label sellers choose this model because it provides sellers with the most power and control of their products. They get to choose which products to sell, how much to sell products for and control their brand marketing.

Amazon wholesale is a medium-risk, high-reward model for Amazon selling. It starts with a seller finding an established product, which is usually a brand name product and buying these products in bulk from a manufacturer or brand owner. Wholesalers take these branded products and then resell them on Amazon for a higher price. Amazon wholesale relies heavily on finding well-established, branded products with a high return on investment and profit margins. Amazon wholesalers pick this model because it provides safe, consistent, and strong brand-name products that are guaranteed to have strong brand identities and established customers. While sellers have less control, working with brand-name products often leads to more consistent sales and revenue over time.

Now that you have a general understanding of both of these models, let’s start comparing to see why you should use Amazon wholesale.

Wholesale vs. Private Label: Brand Recognition

One of the biggest benefits of Amazon wholesale over Amazon’s private label is the established brand awareness, recognition, and reputation of their products.

Private label sellers gain more agency for their products, but an issue with starting a branded product is that it is simply too new. New products have no existing customer base and therefore have no brand recognition whatsoever. Marketing your brand can be extremely difficult and may require a ton of pay-per-click ads to gain traction for your generic products. In addition to the brand being new, another issue is the overall trust for the brand and product. New brands are essentially unknown, and therefore customers are less likely to purchase your products because they are unfamiliar with their quality and simply do not trust them enough to buy them immediately. If you decide to use private label selling, be sure to have a concrete marketing strategy upon branding your products.

Compared to private label, wholesale has a ton more brand recognition and awareness. Wholesalers can basically resell any existing product or brand on the market. Many brands already have dedicated consumer bases that trust a particular brand or product, meaning there are already customers willing to buy from wholesalers. Brand name products have set expectations in terms of product quality and value. This means wholesale sellers and their products have an inherent advantage over private label products without having to further market their products. With brand-name products, they market themselves.

If you do not plan on marketing your products or do not have any experience in growing a brand from the ground up, we highly suggest the Amazon wholesale model. This will allow new and inexperienced sellers to make a ton of sales and revenue without the need to grow a new brand or market products themselves.

Wholesale vs. Private Label: Buy Box and Pricing

The unfortunate truth about private label selling is that you can choose the selling price for your products, but Amazon will heavily regulate your prices to meet their requirements.

If you shop often on Amazon, you should be very familiar with the Amazon Buy Box. When you shop, your Buy Boxes most likely look like this photo below. The box will include the price and allow you to easily add the item to your cart or even buy the product now.

But once in a while, you may run into a suppressed Buy Box, which will look like this. Suppressed boxes are not a coincidence, these boxes are intentionally suppressed by Amazon.

When a product gets listed to sell on Amazon, Amazon will compare the listed selling price across the entire web, to see if that product is priced accurately. But, if the price is too high compared to prices on the internet, Amazon will suppress the Buy Box to make it harder for customers to check out your products. For private label sellers, this is a huge issue because you have no control over your selling prices. You may want to sell an item at a premium price, but if you decide to do that, Amazon will intentionally suppress your listing so customers will be deterred from buying your product. What does this mean for private label sellers? Well, it simply means that your products have a maximum selling price, at least on Amazon. If you decide to sell your products for too high, you’ll be penalized with a suppressed Buy Box, and if you sell too low, you’ll lose out on potential profits. While you want to have complete control over your private label products, Amazon makes it essentially impossible to have full control over the price.

Amazon wholesale is a lot simpler. For branded products, most manufacturers will have a minimum advertised price (MAP) that indicates the minimum selling price that all sellers must meet. If a seller goes under the MAP, they may be penalized by the manufacturer and lose access to the products. Amazon also regulates the maximum selling price for branded products but in a different way.

While wholesalers can set a premium price, they won’t suppress your Buy Box unless you are the only seller selling for an extremely high price. If other sellers are selling the same products, Amazon will prioritize sellers with the lowest price in the Buy Box so the customer gets the best deal. What does this mean? It means that wholesale sellers should try to match the lowest price possible if they want to maximize their sales and time in the Buy Box, but, will not penalize the entire listing if you decide to sell your products for a higher price. While private label selling gives more control over pricing, it also increases the risk of being suppressed by Amazon.

Wholesale vs. Private Label: Copycat Products

A problem that you may come across as a private label seller is competing with duplicate or “copycat” goods.

Looking back at the private label model, private label sellers purchase bulk unbranded products from a manufacturer and then add their brand names to those products using logos, labels, and other brand identifiers. But, what is stopping anyone from going to the same manufacturer and buying the same products then adding their brands to compete with your products? The answer is virtually nothing. It is quite impossible to purchase a generic product and expect no other competitors to enter your market, especially if they see your product is selling well.

Essentially, Amazon private label leads to a plethora of similar or identical products with different brand names. This is extremely problematic for any private label seller since there will always be other sellers entering your market segment and there are little to no barriers to entry. What’s worse is that these other sellers do not have to have the same manufacturer as you. They could find a different manufacturer that produces similar products but with poor materials and worse quality. Copycat goods can also reflect poorly on your products, even it is a different brand. If a customer buys a copycat’s product but the product is extremely worse, they may leave bad reviews for your products because they look similar! Bad reviews weigh heavily on Amazon sales, since most potential buyers may be deterred from buying your product due to another copycat good ruining your reputation.

Look at this photo from Amazon. By simply typing in “water bottles” to Amazon’s search bar, the first 4 products that appear are all private label products selling similar or identical products. Each of these products could come from different manufacturers, with some having better quality than others. This is just one example of how competitive the private label market is with copycat products.

In comparison to private label, Amazon wholesale virtually negates this entire issue because all sellers are selling the same product and brand. With wholesale, all the sellers selling the product have to source their products from authorized brand manufacturers. Every time you source a product, the supplier must be approved by the brand owners (or is the brand owner) and they undergo strict quality assurance processes to ensure all their products are of similar, high quality. In addition to quality, all of the same branded products are sold under the same listing and Buy Box on Amazon, which means that the competition is much lower. We cover this topic in detail in our blog on 6 Strategies to Win the Amazon Buy Box, but, if you are selling a brand-name product on Amazon, you just need to match the lowest prices within the Buy Box and Amazon will automatically give your listing sales. In doing so, wholesale sellers never have to worry about copycat goods or other sellers selling the same products.

When deciding your Amazon business model, keep this problem in mind before you start sourcing your products. If you do not want to have to compete with copycats or the risk of low-quality duplicates, we highly recommend using the wholesale model.

Wholesale vs. Private Label: Defect Rates and Product Quality

Like we mentioned in the previous section, a benefit from using Amazon wholesale and selling branded products is that their quality assurance process is usually a lot higher than the standards of private label manufacturers. As a result, branded products have better quality and build, and tend to have lower defect rates for their products.

With private labels, defect rates can be substantially higher. Defect rates can be extremely detrimental to your brand and product. Not only does Amazon penalize sellers with high defect rates, but unsatisfied customers may leave negative seller reviews on your profile or leave poor ratings and reviews on your private label products. Customers with defective products may also request refunds which may incur service fees on your Amazon account and lower inventory levels substantially. All these aspects considered, defective private label products can easily destroy your brand and ruin your sales.

Something that also happens within the private label space is competitors intentionally buying your products to leave bad reviews or claim your products are defective. Other private label sellers who are selling similar items as you may want to take your product down. So, these competitors will buy your products, then claim the product was defective and leave a negative review on the product and your seller account. While this practice may not be common, the potential threat from other private label sellers reveals a weakness within Amazon private label.

To be extra safe, sellers worried about defective products or competing sellers can mitigate this risk with Amazon wholesale. As mentioned, the branded products have a lot less competition and lower defective rates, making this issue is practically non-existent.

Private Label Sabotage Tactics

Fake reviews and ratings are not the only tactics that competitive private label sellers will use to take down your product or hurt your business. There is a multitude of other sabotage tactics they can take that every private label seller or potential seller should know. Here are some of the other harmful methods sellers will use to hurt your Amazon private label business:

  1. Steal your product information: competitors selling duplicate products will try to take your sales by stealing your product information. They would essentially take anything from your listing and copy it for theirs including titles. descriptions, visuals, keywords, and more.
  2. Steal your product photos: this is a common tactic from copycat goods, where they will find your private label listing, and take the product photos and use them for their own listings. This is quite common within Amazon and other e-commerce platforms where your product photos are stolen and used for a competing product.
  3. Report your seller account: competitors may report your account to Amazon to get your account suspended. This happens after they submit a ton of fake defect reports or bad reviews, which leads to Amazon suspending or banning your seller account for selling fake, defective, or counterfeit products.

Amazon Wholesale or Amazon Private Label?

If you decide to pursue Amazon selling, keep these advantages in mind. We want to note that we have nothing against Amazon private label. It provides a ton of agency for sellers to control their products and the direction of their brand that is unmatched. But, it is very important that account for the potential risks that come with private label selling. If you are a new seller or inexperienced at building a brand, we highly recommend the Amazon wholesale model because it mitigates all the risk that comes with private label selling. Amazon wholesale provides high profitability without any of the issues that come with private label selling. At this point, we think the choice is pretty obvious.

The next step is to pick your model and start selling, and we can help! For starters, check out our Beginner’s Guide to Selling Wholesale Products on Amazon and our blog on 7 Steps to Activate Your Amazon Seller Account. After you get set up, we can help your business off the ground with our FBA tools to help you scout, source, and sell wholesale products that will grow your inventory and increase your sales. What are you waiting for? We’ll see you on Sellgo.com!

2021 Guide to Reverse Sourcing: Find Products and Amazon Wholesale Suppliers

29 - How to Reverse Source

Understand the reverse sourcing strategy to find winning profitable products and wholesale suppliers to expand your Amazon catalog!

In this article, we’ll be covering a new product scouting strategy called “reverse sourcing.” Whether you are a new seller or an experienced seller, reverse sourcing can be an awesome method to find reliable suppliers who produce winning products.

If you haven’t already, I highly suggest you read our previous blog on How to Source Your Amazon Business with Leaf Sourcing before you learn about reverse sourcing. Essentially, leaf sourcing is a scouting method that uses one product as a starting point to finding similar products that have high profitability and sales performances. While both leaf sourcing and reverse sourcing are great individually, they work best when used together.

By the end of this article, you will have the knowledge to execute both reverse sourcing and leaf sourcing! Then, you can combine these two methods and develop an optimized product sourcing strategy to find winning products to grow your FBM or FBA business.

What is Reverse Sourcing Wholesale?

To understand reverse sourcing, you need to understand how traditional sourcing works.

In the old methods, sellers would source products by contacting suppliers, manufacturers, or brand owners. After establishing a business partnership, sellers would get access to the supplier’s product catalogs where they can select which products they like, and then stock their stores full of these products. Although it seems simple enough, the traditional sourcing process has one major flaw: sellers never knew which products would sell or which products would have a good return on investment. Essentially, the traditional process was extremely risky, like throwing a dart in the dark and hoping it would hit something. The status quo often led to sellers purchasing random products that seem like good investments, but down the line, these products performed very poorly leading to negative profits and excess inventory.

The new method, reverse sourcing, negates a lot of the risk by adding a crucial step. Instead of starting with the supplier, reverse sourcing starts in the opposite direction: with the product first. Instead of going directly to a supplier, sellers using the reverse sourcing method identify one profitable, sustainable, and replenishable product. Once a seller identifies a single product, you take the product and identify the supplier that produces that single product. From there, you can ask that particular supplier about their catalogs and source other profitable products that they produce to add to your store.

Reverse sourcing guarantees that the single product is profitable and every additional product will add more guaranteed profits. From one single product, reverse sourcing allows sellers to identify a reliable supplier and access a ton of other profitable products. As a result, reverse sourcing takes away all of the risks from the traditional sourcing process and supplies sellers with profitable, sustainable, and replenishable products to sell on Amazon or any other e-commerce platform.

Why You Should Use Reverse Sourcing for Amazon FBA

While we’ll go into further details about how exactly reverse sourcing works, here are some of the clear benefits you gain by using reverse sourcing.

  • Benefit #1: Easy access to suppliers. Finding quality suppliers may be one of the most difficult parts of sourcing products for your store. By using reverse sourcing, you can easily identify suppliers who are guaranteed to produce your product. This cuts down the product research time significantly and allows you to contact suppliers as soon as possible.
  • Benefit #2: Reduce the risk of DOA products. DOA or “dead on arrival” products are products that do not sell well. We discussed this a bit in the previous section, but in traditional sourcing methods, sellers essentially guessed on products and hoped that they would sell. This often led to sellers buying a ton of products that never sold or sold poorly, lost capital, excess inventory, and poor return on investments. By reverse sourcing, you guarantee that at least one product sells well and can center your business around a guaranteed winner.
  • Benefit #3: Access to supplier catalogs. While you could get access to a supplier catalog with traditional sourcing, reverse sourcing helps you find multiple profitable products more efficiently. Once you reach out to a supplier of your initial product, you can request access to the supplier’s entire catalog and then hand-pick winning products to stock your inventory.
  • Benefit #4: Cut out the middleman. In traditional sourcing, products are often provided by distributors, not manufacturers. Distributors are essentially middlemen who purchase bulk products from manufacturers and then resell them to sellers at a higher price. Meaning sellers had to pay extra for the cost of goods because they had to go through distributors. With reverse sourcing, you go directly to the manufacturer and can negotiate for the lowest price possible. With the lower cost of goods, your profit margins may increase significantly, and products that were not profitable before are suddenly gold mines.
  • Benefit #5: Build more personal relationships with manufacturers. We discuss this topic heavily in our blog about 5 Rules to Maximize Supplier Relationship Management. In summary, reverse sourcing empowers sellers to work directly with manufacturers. By collaborating and working collectively with your supplier, it leads to more personal relationships and trust. This may ultimately provide additional perks such as reduced prices on goods, reduced shipping costs and fees, and exclusive rights to specialty products.

With the benefits in mind, let’s jump right into how to reverse source for products.

Step 1: Picking Your Initial Product

The first step to reverse sourcing is finding your initial product. When finding your initial product, you should use 3 core criteria:

  1. The product is NOT sold and shipped by Amazon. If the product is sold and shipped by Amazon, dump it and find a different product that isn’t.
  2. The product should have 3 or more sellers. If the product has less than 3, it probably is a private label product that you won’t be able to source.
  3. The product’s selling price is at least $20 or more. Products sold for less than $20 usually don’t provide enough profits after you pay for the cost of goods, FBA fees, service fees, etc.

*Note that these are the same 3 criteria you should use with leaf sourcing. This is a hint at how you can use leaf sourcing and reverse sourcing at the same time!

For our example, we found this product:

Portable Blender, Personal Size Blender Smoothies and Shakes, Mini Blender 4000mAh USB Rechargeable with Six Blades, Handheld Blender Sports, Travel, Gym (Blue)

As you can see from the photo, this product meets all of our core criteria for an initial product. The product is shipped by Amazon but sold by another company, Aoozi. The product has more than 3 sellers. Lastly, the product is sold for $29.99, which meets our selling price threshold.

Step 2: Contacting the Wholesale Supplier or Brand Owner

The second step is quite easy: find the supplier or brand owner. In this case, the brand owner is “Aoozi.” To find their contact information, simply type the brand name into a search engine like Google or Bing. We instantly found Aoozi’s website where they sell their portable blender and even include different web pages for their other products including webcams and LED lights.

While we could look into their product catalog now, what we want is at the bottom of their webpage where it allows you to “Contact Us,” or Aoozi in this scenario.

After clicking Contact Us, you will be directed to a contact form and be given the address, phone number, and email to connect with the brand owner.

At this point, you can choose your communication method depending on your urgency. We recommend either sending them an email to schedule a meeting or a phone call if you are prepared to make a deal immediately. Whichever method you decide, remember that your goal is to move towards action whether it be asking for a catalog, landing a contract, or putting in an order.

Step 3: Requesting a Product Catalog

Before you land a wholesale contract and start sourcing immediately, we highly recommend step 3, which is to request a product catalog from the supplier. The product catalog is a list of all of the products the supplier produces and is available to purchase for sellers.

The supplier should also provide a pricing sheet that explicitly states the product, ASINs, cost of a single unit, the minimum order quantity (MOQ), and the selling price or minimum advertised price (MAP). As a seller, this is a huge resource because you can see all the different products you could potentially order to supply your inventory.

Step 4: Conducting Product Analysis

Once you receive a product catalog, move to Step 4 to conduct proper product analysis. We cover product analysis in our blog A Guide to Product Analysis, but you typically have two options: manual product analysis or automated product analysis with an FBA tool.

For manual research, you should calculate the profitability of the product by accounting for the cost of the good, the selling price, FBA fees, service fees, shipping costs, and storage costs. We recommend using Amazon’s FBA revenue calculator to help speed up this process. For the FBA calculator, simply enter the ASIN or product identifier (UPC, ISBN, EAN) and the calculator will allow you to compare all the potential costs. Afterward, you should receive a net profitability figure that provides the expected return. Sellers need to take their time analyzing entire catalogs. Miscalculating a single product can have huge implications on your revenue and profit margins as well as the overall health and sustainability of your business.

The second option, and the one we highly recommend, is using an FBA tool to automate all of these bulk calculations for you. Manual product analysis can take days if not longer depending on the size of the catalog. Some catalogs are in the thousands, so automated product analysis is essential for picking the best products with the best profit margins and return on investments (ROI).

If you do not already have a tool, check out Sellgo’s FBA tools. Within the Search Management tool, you can easily upload the product catalog from the supplier and the Profit Finder will conduct bulk automated calculations for you. After, you will get an organized table of all the products that you can filter and sort based on profit margins, ROI, and more. Instead of wasting hours doing manual work, you can just use FBA tools to get the best products instantly.

Step 5: Source Winning Products and Sell, Sell, Sell!

By Step 5, you should have finished product analysis on your supplier’s catalog and have a list of products you expect to bring in tons of revenue and profit.

Looking back on the reverse sourcing process, you started with a single product. From there, you got into contact with brand owners, collected catalogs, analyzed the products, and now you have a list of products that you know will be profitable. Not only were you able to increase your inventory with reverse sourcing, but you hacked the system, lowering the risk of DOA products and can ensure secured revenue and reliable sales!

The last step is to start selling! You can contact your supplier again and put in an order to begin sourcing and selling products on Amazon.

Combining with Leaf Sourcing

Now that you understand reverse sourcing and leaf sourcing, let’s think about how you can use these strategies together to maximize your product scouting process! Leaf sourcing and reverse sourcing begin at the same place: the initial product. Once you identify your first product that meets the 3 core criteria, you can then implement leaf sourcing and reverse sourcing cohesively.

Leaf sourcing will enable you to find new products that are similar in price and profits to your initial product. In comparison, reverse sourcing focuses on identifying reliable brand owners and suppliers. When you identify new products with leaf sourcing, simply use reverse sourcing to find the supplier for the new products and contact them about their product catalogs or landing a wholesale contract. As you find more and more products with leaf sourcing, you can use reverse sourcing right after to find more and more suppliers! These two strategies together provide the perfect storm for any seller trying to expand their catalogs with new products or meet new suppliers.

In the end, your product scouting process will lead to amazing products that will grow your sales and suppliers who will support your business and accelerate your growth!

Revamp Your Amazon FBA Inventory with Product Sourcing Strategies

Congratulations! You’ve successfully learned how to use leaf sourcing and reverse sourcing strategies that will drive your Amazon business! The next thing to do is start implementing these strategies now and start finding new products to sell.

Although these strategies may require a ton of work, you can automate a lot of the bulk work by using useful FBA tools including Sellgo’s Search Management, Profit Finder, and Product Tracker tools! Check out these tools at Sellgo.com to quickly source products and begin selling today!

Amazon FBA or Amazon FBM? Choosing Your Shipping Model in 2021

17 - FBA vs FBM

Choosing your Amazon shipping model is one of the first decisions you have to make that can determine the success, profitability, and foundation of your business.

Selling on Amazon provides two different shipping methods: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). While both of these models provide similar benefits, each has distinct logistics and procedures that play a major role in how many products you can have in your inventory and the number of sales you should expect. In some cases, you may want to do a hybrid approach where you use both FBA AND FBM if it matches the needs of your business.

This blog is going to provide an in-depth breakdown of both the FBA and FBM models and the pros and cons of each model depending on your Amazon business. After reading, you should be able to determine which shipping model would be best suited for your business needs and the next steps you should take to build your Amazon business!

FBA

The first shipping model you can use is the Fulfillment by Amazon method or simply “FBA”. Amazon’s Fulfillment by Amazon is a shipping model that allows sellers to purchase products (whether it be wholesale, private label, or arbitrage) and then send them directly to Amazon’s Fulfillment Centers located across the globe. These centers will accept the products and store them at their warehouses for the sellers. If a customer buys a product from a third-party seller, Amazon will locate the inventory, package it, and then send it directly to the buyer.

Amazon FBA is not only the easiest model for Amazon sellers, but it is also the most common. Out of the top 10,000 sellers on Amazon, roughly 2/3rds or 66% of them use the FBA model. The popularity of FBA isn’t surprising at all considering the amount of work and management Amazon has invested into building their Fulfillment Center network. The FBA model enables sellers to quickly ship their products to Amazon without having to directly handle any merchandise.

By using this model, third-party sellers can order products, sit back, and collect earnings from Amazon, all without having to worry about the logistics or management of purchases. In addition to having to do less work, sellers can take the time and resources they saved using the FBA model to invest in growing their businesses instead.

Pros of FBA Business

The benefits of using FBA seem endless for third-party sellers.

First, FBA sellers get the best benefit of saving time and energy. Fulfilling orders is often the most grueling part of selling on Amazon. Having to pay for shipping costs, shipping items to buyers, or even picking a shipping company can be a long and strenuous process, especially if you’re selling a lot of products at the same time. An advantage of the FBA model is that you don’t worry about fulfilling any order since the FBA covers all of those responsibilities.

The second is saving storing or inventory management costs. Holding a physical inventory in a room or warehouse takes up space and money to rent out storage. Some sellers might even need employees or a management system to handle all of the physical stock products. Using FBA means that you don’t need to store anything because all of your products are being sent to Fulfillment Centers instead.

The third benefit is productivity. With Amazon FBA, shipping and fulfillment productivity and efficiency are optimized to the highest degree. Amazon hires hundreds of employees at each Fulfillment Center and has implemented procedures and protocols to optimize shipping times. You can rest easy knowing Amazon is shipping your items on time and is a lot more productive than if you were shipping products yourself. Not only is it more productive, but if you’re selling a ton of products, it’ll also be cheaper using FBA than individually shipping one item at a time!

Fourth, is access to Amazon’s Prime shipping. Prime shipping provides customers and buyers with access to same-day, 1-day, or 2-day shipping. As a seller, these added benefits don’t mean much, but a buyer might enjoy these added benefits and may buy more products because of the quick shipping times. Since your products are at the fulfillment centers, your products will most likely be eligible for Prime shipping.

Last but not least, the fifth pro of using FBA is managing returns from buyers. If a buyer has a problem with a product, Amazon FBA will handle all returns for you and even ship the buyer a different unit.

Cons of FBA Business

With any advantages, there will have to be some disadvantages to using Amazon FBA too. Here are some of the problems that you may run into using FBA:

One disadvantage is that using the FBA model isn’t free, and Amazon will charge you fees to use their services. We cover this a bit in our blog about 7 Steps to Activate Your Amazon Seller Central Account, but in short, sellers can decide between an individual plan or a professional plan. For individual plans, sellers have to pay $0.99 per unit sold, or they can opt for the professional plan of $39.99 per month. For some sellers and some products, these fees can take up your profit margins, leaving you with little to no profits off of selling on Amazon.

Another disadvantage of the FBA model is that the products are out of your control. Because sellers do not have to handle any merchandise, they can’t identify any problems or issues with the quality of the products unless a buyer returns a defective product. This could lead to potentially bad reviews about your business or your stock could be entirely defective without your knowledge.

The third problem with Amazon FBA is that managing your inventory can be a bit more challenging. Since you do not have any direct interactions with stock, it’ll be harder to forecast the perfect number of inventory to buy for your business. Some seasons your products will fly off the shelves and other times they’ll collect dust. It can be tricky to find the perfect order volume, especially since the products aren’t physically there for you to check and count.

The fourth con of using the FBA model is that Amazon has very strict guidelines to ship to their Fulfillment Centers. They have instructions for all suppliers and sellers when shipping products to one of the warehouses such as packaging, labeling, and identification codes. While this doesn’t seem like a big deal, not following these instructions can lead to a logistical nightmare trying to hunt down your shipments.

FBM

The other commonly used model for shipping products for your Amazon business is through the FBM or “Fulfillment by Merchant” model. The FBM model also refers to self-shipping, in which sellers will have complete control over their inventory and fulfilling shipments. This may include ordering and storing inventory, utilizing a warehouse, packaging and shipping individual items to sellers, and handling returns for defective products.

Pros of Self Shipping

Although this method is less common than its FBA counterpart and may require more work for individual sellers, it also provides a lot of benefits that are lost with the FBA model.

For starters, self shipping enables sellers to have complete control over the buying and shipping process. Unlike FBA, sellers can perform quality assurance on their inventory, leading to fewer returns or the likelihood of shipping out defective products, This is also safer in terms of protecting your Amazon business because you can prevent bad products from reaching the customers thus protecting your brand and personal reputation. FBM sellers also can check inventory levels and order better quantities of their stock since they can forecast sales with complete awareness.

Secondly, FBM means sellers don’t have to pay the upfront costs that would hurt profitability like FBA. With FBM, sellers are not subjected to FBA fees, thus they might see higher profit margins for the items they do sell.

Third, is the customer service benefits that come along with FBM. We touched on this topic a bit already, but with more power comes more responsibility. Since FBM sellers handle all of the returns, they can directly communicate with the customer. This means the transparency between sellers and buyers becomes a lot stronger, allowing for more trust and communication between two parties.

Cons of Self Shipping

Of course, with any benefits of using FBM, there are also associated disadvantages as well.

For FBM, self shipping will often be more expensive since sellers will need to ship items individually. It also becomes a logistical challenge to find the right delivery service and pay for their fees as well. This also means taking on shipping challenges such as delayed shipments, missing packages, or even stolen merchandise,

Secondly, we come back to more agency and responsibility of FBM. Because you handle merchandise directly, it also means higher quantities of work and challenges of managing large amounts of inventory. For some FBM sellers, they have to invest in large warehouses that have rental costs as well as hiring staff or employees to help manage the load of work. Although you do not have to pay the FBA fees, there are a ton of other costs that may be involved in FBM.

Third, with self shipping, you also lose access to Prime shipping. Amazon is currently working to solve this issue with their new Prime program, but for now, FBM sellers do not have many options when it comes to the same-day, 1-day, or 2-day shipping. Missing this bonus may be a dealbreaker for buyers who want their purchases quickly, so FBM may be losing out on potential sales and profits.

Choosing the right Amazon Shipping Business Model

Now that you have a better understanding of the two shipping models for your Amazon business, it leads us to the ultimate questions:

What shipping model should I use for my Amazon business?

The best answer we can provide you is, it depends. To determine the best model for your business, you will need to understand the size, sales estimations, and overall needs of your business.

If you’re leaning towards the FBA model, here are some key criteria:

  1. Expecting high quantities of sales
  2. Limited storage space or access to warehouses
  3. Less stress or involvement
  4. Selling items with high return rates

If you’re leaning towards the FBM model, here are some criteria to look for:

  1. Expecting limited or low amounts of sales
  2. Selling big, heavy, or large items
  3. Have access to storage or warehouses to keep inventory
  4. Selling items with low return rates
  5. Access to employees or management software

Deciding on the shipping model is dependent on what your business needs. If you want less involvement or need more help managing your inventory then FBA may be the best solution. If you want to be more involved in the shipping process and want more control over your inventory then FBM might be a better fit.

Some sellers opt to use a hybrid model of both FBA and FBM. Don’t forget that you can always switch over to a different model if it’s not working for you.

The bottom line is: no one really knows your business except for you.

I picked my Amazon business model, what now?

If you have picked your Amazon business model and know which shipping method you prefer, it’s time to start building your business. Head over to Amazon’s Seller Central and create your account today!

The best time to start your business was yesterday. The second best time to start your business is today.

If you need help jumpstarting your Amazon FBA or Amazon FBM business, head to our blogs and read our 7 Steps to Activate Your Amazon Seller Account in 2021 blog. We’ll see you there!

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!

Attention Amazon Sellers: Are You Ready for Amazon Prime Day 2020?

02 - Attention Amazon Sellers Are You Ready for Amazon Prime Day 2020

Are you ready for Amazon Prime Day 2020? Prime Day is one of the biggest days for Amazon Sellers, read these tips to prepare!

Attention Amazon Sellers: Are You Ready for Amazon Prime Day 2020?

The COVID-19 pandemic has delayed, canceled, and complicated many facets of life, and retail shopping is no exception. Traditionally held in July, Amazon Prime Day is one of the most highly anticipated online shopping events of the year. Finally, after numerous pandemic-related delays, Amazon announced its 2020 Prime Day will take place on October 13-14, just two months before the holiday shopping season.

Amazon’s signature event is a win-win for consumers and sellers alike. According to the most recent data from the Bureau of Economic Analysis (BEA), personal income in the United States decreased 2.7 percent in August, while consumer spending increased 1.0 percent. Simply put, Americans are making less money but are increasing their spending.

Not only that, but consumers have been shopping more frequently on Amazon since the beginning of the COVID-19 pandemic for a variety of reasons:

  • A safe, contact-free shopping and delivery experience
  • Sales and discount prices on highly desired products for consumers trying to save money in tumultuous economic times
  • Limited availability of essential products (cleaning, sanitizing, paper products) in brick and mortar stores
  • Convenience

Amazon Prime is in its Prime

As of December 2019, 65 percent of Amazon online shopping users were also subscribers to the Amazon Prime service. During the same period, there were an estimated 112 million Amazon Prime members in the United States. Even though Amazon increased Prime Subscription prices from $99 to $119/year back in 2018, Emarketer.com forecasts Prime membership will grow 14.9% to 142.5 million US users in 2020, surpassing 50% of the US population for the first time.

The free and quick shipping, Prime video options, and product availability are all key drivers in consumers adopting an Amazon Prime membership. These benefits are especially important for consumers seeking a no-hassle shopping experience with quick delivery during a worldwide pandemic.

Amazon Sellers, Are You Ready?

Whether you are a seasoned seller, or this is your first Amazon Prime rodeo, there are a few things you can do to make sure you have the most profitable Amazon Prime Day yet. Even if you haven’t put a lot of effort into your Amazon Business for Prime Days in the past, you can be sure Amazon Prime Day 2020 is going to be a whole different seller experience, especially since it unofficially kicks off the holiday shopping season.

1. Search. First thing is first, you have to begin your product search. Upload your search files and determine which products are going to get you the most bang for your buck. You can also use a free Chrome Extension to scout and source products on Amazon and export a handy list of products broken down by list price, retail price, seller feedback, and more.

2. Find. Time is money. Especially with Amazon Prime Day 2020 right around the corner. A lightning fast Profit Finder for Sellers can tap into bulk analysis to match products with those in the Amazon catalog, finding golden products instantly. After all, it is hard to make bad wholesale product decisions when you have the most up-to-date data on your side.

3. Track. Every product has a story and a Product Profit Tracker helps you avoid products with bad stories. Monitor product trends and track Amazon buy box price, sales rank, and profit all in one place, keeping you a few steps ahead of the competition. This will guarantee the best ROI for your Amazon Business on Amazon Prime Day 2020.

4. Sell. You’ve searched, researched, tracked, and purchased your ideal products. Now it is time to sell. As a product in the online retail showcase, it is important to note that appearance matter. You will want to make your product listing as attractive as possible to bring consumers to your product. Make sure your listings are up to date. Low prices alone will not do the trick, you need to optimize your listings for best results.

What About Those Prime Day Lightning Deals?

Lightning deals are products that are sold as a discounted price for a specific period of time. These products are limited in quantity and offer a “you-don’t-want-to-miss-this” feel to the Amazon buying experience. The lightning deal model makes Amazon shopping feel competitive to the consumer. However, all third-party sellers must submit an application to become Amazon Deal eligible.

Putting it All Together

By harnessing the power of Amazon Wholesale Software made by and for Amazon Sellers, you can turn Amazon Prime Day 2020 into a profit-boosting success for your Amazon Business. With this, a tiny bit of optimization on your product listings, and a positive attitude, you can hustle smarter, giving you more time to do what you love and more money in your pocket.