A Beginner’s Guide to Selling Wholesale Products on Amazon: Find “Winning Products”?

05 - A Beginners Guide to Selling Wholesale Products on Amazon Find Winning Products

Want to sell on Amazon but not sure where to start? Check out this guide on everything you need to know before you start selling!

While many industries have suffered the impacts of COVID-19, one industry that has not slowed down is e-commerce and its industry champion, Amazon. Amazon has continued to grow and dominate the e-commerce industry despite the economic impacts of the pandemic. In 2020 alone, Amazon registered over 32,436 new sellers joining Amazon marketplaces, along with their 2.3 million active sellers and 9.4 million total sellers worldwide. On Primeday 2020, Amazon third-party sellers had over $3.5 billion in sales, a 60% increase from 2019. Many are turning to sell on Amazon as an alternative income and opportunity to enter the e-commerce space. This guide will provide you with tips for finding products to sell on Amazon and starting your own Amazon wholesale business.

Before getting into Amazon wholesale, it’s important to understand the four types of sellers on Amazon:


Dropshipping is the first type of Amazon seller and is typically straightforward. Dropship sellers serve as a “middle-man” between consumers and suppliers. A customer will put in an order for a product on Amazon and will pay the dropship seller, who will then take the funds, put in an order, and provide the customer’s information to the supplier or manufacturer who will then ship and complete the transaction. The most fundamental part of this process is that Amazon dropshipping does not require the seller to handle or store inventory.


Arbitrage is the second seller type and entails the process of buying individual items from one business at a discounted price and then reselling the item on Amazon for a profit. Amazon arbitrage can take place in traditional brick-and-mortar stores (retail arbitrage) or on the internet (online arbitrage). This process is extremely fast, taking as little as a week to turn over a product.

While Arbitrage may seem simple, it requires extensive manual product research for sellers to find the right discounted items to stock and sell. After research, arbitrage sellers have to source from retail stores and websites. Consequently, arbitrage selling is extremely manual, requiring sellers to constantly look for new items to resell.

Private Label

Private label selling is the high-risk, high-reward method of selling on Amazon, which requires sellers to buy large quantities of a product from a manufacturer, rebrand the stock as their own private label products, and resell it for a profit on Amazon. This is often done by building relationships with manufacturers, signing production contracts, and shipping the items to the seller who will then hold the inventory and mark up the price to be sold.

Similar to arbitrage, private label selling requires extensive manual product research to find the right product and manufacturer. Most private label sellers buy large quantities from international manufacturers and marketplaces like Alibaba. Unfortunately, this often leads to longer shipping periods and can take up to 3 to 4 months to launch a single product. If not enough research is done, private label sellers risk losing 100% of their investments if they choose the wrong product.

Logistically, private label selling can also be the most challenging and intensive to pursue. Private label selling requires sellers to abide by international and domestic regulations when purchasing merchandise overseas. This includes shipping costs, risk management, and cross-border transactions. Global Trade Management (GTM) provides sellers with tools to oversee the legal, regulatory, and business logistics that come with private label selling.


The last type of seller is through Amazon wholesale. Similarly to private label sellers, selling wholesale requires sellers to contact and establish relationships with manufacturers, purchase large quantities of a product, hold inventory, and resell it for a higher price on Amazon. Compared to the other forms of sellers, wholesale provides logistical and marketing advantages.

For starters, wholesale gives sellers more autonomy to control and manage their inventories compared to dropshipping. Wholesale sellers are no longer middle-men but the businesses fulfilling the orders themselves.

While arbitrage gives sellers a lot of autonomy, they are often limited or capped at their sales. This is due to the fact that they have to purchase individuals items from retailers instead of buying bulk supplies from a manufacturer. As a result, arbitrage sellers tend to have less inventory and cap out once that inventory is sold.

Although wholesale and private label sellers are similar, wholesale sellers have one huge advantage. Unlike private labels, Amazon wholesale businesses take advantage of purchasing established-name brand items instead of rebranding to a private label. As a result, wholesalers do not have to market their own brand and can utilize an established brands’ reputation to market to consumers. Wholesalers can source from U.S. based brands and distributors with proven products. This can shorten the launch period from 3 to 4 months from private labels to 2 to 3 weeks for wholesale.

Product Research: Using Data to Find “Winning Products

Now that you have a better understanding of the types of sellers, the next question is, how do sellers know what items to sell? Amazon is one of the world’s largest online marketplace. According to Big Commerce, Amazon sells more than 12 million products and more than 350 million products across all marketplace and sellers. How do individual sellers find products to sell on Amazon? Should sellers target the “best selling products on Amazon” or should they try to find “niche products” for unmet demands? This is where product research becomes essential for Amazon sellers.

Amazon product research and product research tools allow sellers to delegate product research to a virtual assistant. By using these tools, they will sort through the millions of items sold on Amazon and determine what are “winning products.” Winning products are not always the “top-selling products” or the most “niche products.” Winning products are the items that are the most profitable products to sell online or that carry a ton of potential. Profitable products can include categories that you might not even think of, so it’s vital to utilize product finder apps and product databases that can help optimize profit.

If you are unsure of where to start and which tools to use, you can use check out Sellgo’s Profit Finder and Chrome Extension. The Profit Finder will scan, sort, and categorize all the items sold by a multitude of manufacturers and rank the profit, margin, and return on investment (ROI) potential. In doing so, sellers can immediately determine winning products to invest in. On top of identifying profitable products, sellers can then track the potential of other products, historical sales data, and inventory trends.

Product Sourcing: How and Where to Find Wholesale Products

The next challenge after identifying winning products is where to buy products and where to source products. To buy wholesale merchandise, sellers must contact manufacturers and begin building relationships and rapport. The Product Tracker is a great tool to identify manufacturers. Next to every product categorized, manufacturers will be listed under Source. Once you find a winning product and identify the manufacturer, all you need to do is find their contact information and try to work out a contract.

Manufacturers do not sell to anyone. Manufacturers want sellers who know the product, know how to sell, and can produce results! Remember that wholesale sellers are not just selling but building a business and relationships. By providing your own value proposition, manufacturers and suppliers are more likely to trust and value your relationship. Sellers also have the autonomy to choose which manufacturers they would like to work with. Whether it be international or domestic suppliers, wholesale sellers can pick the manufacturer that best aligns with their best interests.

Bulk Products: What is the product cost?

Here are some key terms to note when contacting manufacturers:

What is the Minimum Advertised Price (MAP) Policy?

MAP policies are a price minimum that is set by suppliers that wholesalers must abide by. These price points are usually agreed upon by both parties and will have huge implications on profit margins and return on investments.

Is there a Minimum Order Quantity (MOQ)?

MOQs refers to the minimum number of units the seller must buy for the manufacturer to agree to supply. Manufacturers very rarely sell items individually and more often than not require sellers to buy items in bulk. Higher quantities may lead to lower product cost per unit. The MOQ can also greatly impact inventory numbers, selling prices, profit margins, and more.

Start Your Own Amazon Wholesale Business!

Amazon wholesale provides new and experienced sellers with the opportunity to build and develop a business in the e-commerce space. While there are various methods of selling, wholesale provides the perfect mix of autonomy, marketability, and profitability.

If you would like to start earning with Amazon wholesale, check out Sellgo’s tools to find products to sell and start your Amazon wholesale business.

5 Things to Know About Amazon Best Sellers Rank

04 - 5 Things to Know About Amazon Best Sellers Rank

What is Amazon’s Best Seller Rank and why does it matter? The Best Sellers Rank is a key to product sourcing and product sales!

The Amazon Marketplace arena can be a very competitive place, but with the right approach and tools, you can edge out the competition and unlock your profitability today. One key element you’ll want to be familiar with as you search for profitable products is the Amazon Best Sellers Rank.

What is the Amazon Best Sellers Rank?

The Amazon Best Sellers Rank is based on sales quantity on Amazon marketplace, and is updated hourly to reflect recent and historical sales of every item sold on Amazon. Consider it a Billboard 100 list of products (though the list goes far beyond 100). The Amazon Best Sellers Rank gives you an idea of how well an item is selling overall. One thing to note, it doesn’t always factor in how well the item is selling compared to similar products, so you’ll want to do a bit of comparison shopping before you settle on the top ranked items.

Where can I Find the Amazon Best Sellers Rank?

There are two ways to locate the Amazon Best Sellers Rank. You can get a bird’s eye view by going to Amazon.com and click on the “Best Sellers” tab on the page navigation bar. Or, you can determine the Best Sellers Rank by product. Simply search for a product and scroll down to the details section of the listing. There you will find the sales rank for the product.

What do the Numbers Mean?

It is a lot like golf, the lower the score, the better. The lower the sales rank, the higher the sales are within the product category. Product categories are things like Home & Kitchen, Toys & Games, and Baby. So a product with a sales rank of say, 200 means it is the 200th best-selling product in that category. It sells more units than a product in the same category with a sales rank of 500. Amazon best sellers rank can help you estimate monthly unit sales when you’re searching for products to resell.

What about subcategories?

Every main category has subcategories, which have sales ranks as well. The good news is that you can pretty much disregard the subcategory sales ranks. There are so many subcategories across Amazon and that kind of weakens the importance of the sales ranks within these. For example, a product can be #30,000 in a main category but #1 in a subcategory. That doesn’t mean the product will be highly profitable.

Amazon Best Sellers Rank Changes Rapidly

Amazon Best Sellers Rank can change daily, and even hourly. Before purchasing your product, find a few products to track and monitor the Amazon Best Sellers Rank changes to get a feel for how much or how little the rankings can change on a day to day basis.

The Quick Amazon Sellers Guide to Black Friday and Cyber Monday

03 - The Quick Amazon Sellers Guide to Black Friday and Cyber Monday

Are you ready for Amazon Black Friday 2020 and Cyber Monday 2020! Here are some quick tips to save you money!

The Quick Amazon Sellers Guide to Black Friday and Cyber Monday

With Amazon Prime Day 2020 behind us, it is now time to get ready for the next biggest online shopping event of the year: Black Friday and Cyber Monday. With COVID-19 hindering traditional shopping experiences and more brick and mortar stores opting to close for Thanksgiving, consumers are turning to online retailers, like Amazon, to find the best deals and get a jump start on holiday shopping. Here’s how to insure you are the Amazon seller consumers choose during the big shopping bonanza.

Prepare. Prepare. Prepare.

Unfortunately, you can’t just wake up on Black Friday and hope consumers are drawn to your products. You have to do a little bit of preparation to maximize your profit ahead of time. The first thing you should do is review your inventory storage limits. To combat the clogging of inventory at Amazon warehouses, the retail giant set inventory limits earlier this summer in preparation for the holiday shopping season.

According to Cnet.com sellers will be able to store over three months of inventory for their items — with limits set on a product by product basis–and can replenish this inventory as items go out the door. If you’re worried about inventory limits, now is a good time to investigate alternatives to Amazon fulfillment and third-party logistics companies (3PLs).

While you want to avoid having a surplus of inventory, you also need to be sure you don’t fall short of your inventory demand and make sure your inventory reaches Amazon FBA on time. Last year, Amazon Seller Central recommended inventory for Black Friday and Cyber Monday should arrive at Amazon fulfillment centers by November 5. Inventory for Christmas shopping should arrive by December 5. You can bet that the dates for 2020 will be around the same time as last year.

Scope the Competition

Black Friday and Cyber Monday are going to be highly competitive selling events. You’ll want to pay close attention to your competition, monitoring their inventory and tracking price points and projections. You can do this with a Product Profit Tracker. Keeping tabs on your competitors will give you a sellers advantage to make sure your prices and products are attractive to customers.

Listing Optimization

They say “never judge a book by it’s cover,” but let’s face it, we all judge Amazon products by their images. Right? You will want to maximize the profitability of your listing by optimizing the listing for your customers. This means:

  • Providing a nice, clear, inviting image of the product (or product in action in a lifestyle setting)
  • Keywords are like spotlights for your product. High-volume keywords within your listing will increase your product rank in organic search. To determine the best keywords for your product, imagine you are a consumer. If you were searching for that product, what would you type in the search bar? A few variations of this exercise will yield you your keywords.
  • Your product description should be thorough and tell the product story in an engaging manner. Include highlights and features of the product, frequently asked questions, and anything you think consumers would be interested in knowing. The more questions you answer for the consumer right there in the listing, the more likely they are willing to purchase your product.

Consider Deals and Coupons

Black Friday and Cyber Monday are all about saving money. Customers are on the hunt for the best price, the biggest discount, the most bang for their buck. That doesn’t mean you want to lowball your prices to the point you’re practically giving products away for free. No, instead, you can take advantage of Amazon’s lightning deals and coupons.

To schedule a deal go into your Seller Center Account. Click on Advertising. Click on Deals. Create a new deal. The sooner you can lock in your deals for your products, the better, as the deal space gets very competitive. Note…Amazon’s Black Friday tends to run an entire week instead of a single chunk of hours like a brick and mortar Black Friday. Be prepared to pay a higher fee to run deals during Black Friday and Cyber Monday. This can absolutely be worth it if you have high performing products and plenty of inventory.

Track Your Products Leading Up to the Big Day

To be successful on Black Friday and Cyber Monday, you want to monitor your product’s product story and pinpoint the best time to start selling your product. This will increase efficiency in your fulfillment pipeline. An Amazon Product Tracker allows you to keep tabs of your products over time and visualize the results. You can track reviews to gain real-time insights leading up to the big day.

Bottom Line

Black Friday and Cyber Monday are huge retail events for Amazon sellers and consumers alike. You can unlock your profitability at new heights by planning ahead, optimizing your listings, tracking your products, and using all the tools available to ensure you put your best Amazon seller foot forward. Good luck!

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.

Ready to Quit Your Office Job?

01 - Ready to Quit Your Office Job

Do you want to quit your office job and find a career with high earning potential and work on your own schedule? Amazon selling might be your solution!

A Beginner's Guide to Selling Wholesale Products on Amazon: Find "Winning Products"?

Whether you’re just getting started as an Amazon seller or you’re a veteran entrepreneur, you’re likely at the same place if you’re reading this article. You have a business that’s doing well, but you’re having trouble balancing it all. So, you may be wondering, “Should I quit my office job?”

It takes some courage for people to get to this place. After all, jumping in with both feet can be a little bit scary. We’re here to tell you that you can do it. 

In this post, we’ll talk you through the process of quitting your job and becoming an Amazon seller. As seasoned Amazon developers, we have a few tried and true tips that can make it easier to begin. Ready to get started? 

1. Decide if this is the right step 

Are you questioning whether you can make it work? Is it the right step for you? For most considering this, they realize that the earnings potential is higher as an Amazon seller, and they crave the ability to be their own boss. Even better, it’s inexpensive to start the business as well. For as little as $5 per month, you can launch a business that has the potential to earn you 7 figures. Does your office job currently do that? It’s unlikely. 

A 9 to 5 job is the norm, but it also comes with a variety of costs. You may be commuting, spending on your wardrobe, giving up vacation time, and spending big on childcare. Think about the perks that starting an Amazon business may offer you. You won’t answer to someone else, and you’ll get to create your own schedule. Furthermore, you’ll constantly be challenged and have the opportunity to excel in something you’ve already decided you enjoy since you’ve been an Amazon seller as a side hustle. 

2. Focus your business

If you’re leaving your office job, it means you now have 40 hours to throw behind your Amazon business. Get ready to put those 40 hours (and more!) into becoming a top Amazon seller. When you have a full-time office job, it automatically means that you’re splitting your priorities. You’re not able to focus on your online business because you have to go into work each day. Now that you’ve eliminated that distraction, you can refocus your goal. Dedicate your time and effort to your business and watch it thrive – it may not happen overnight, but it will pay off in the end!

3. Learn the basics of Amazon 

You can’t thrive within a system until you understand the system. Amazon is a massive marketplace, and for those sellers who are new to the platform, you’ll want to start by learning about how Amazon works. Here are some basics to take a look at.  

  • Amazon Selling Models: Most sellers will start with retail and/or online arbitrage. This occurs when you purchase a product from an online or retail store and sell it on Amazon for a profit. However, there are other models such as Wholesale and Private Label. Once you get to know the different labels, you’ll be able to select the best one for you. 
  • Product Sourcing Strategies: Do research on how you’ll source the physical products you plan to sell. This is of the utmost importance. On a marketplace like Amazon, buyers have numerous choices and can compare reviews and products to no end. The process will also differ depending on which Amazon selling model you select. 
  • Fulfillment by Amazon: Amazon FBA is a popular way to save time and grow your business. While a product on Amazon may be sold by a third party, it will be packed and shipped in an Amazon fulfillment center. Its goal is to help the seller scale their business and reach more customers. There are fees related to this service ($39.99 a month plus selling fees). Depending on your own abilities, this may be something you’re interested in. 

4. Utilize Amazon tools 

Don’t think you have to become an expert at selling on Amazon all on your own! Entrepreneurs often use technology to help them learn and improve. There are a variety of Amazon tools that help identity high ranking keywords, optimize product listing, spy competitors, calculate product listing information, and so much more. 

Sellgo is one such tool that is a measurable and proven method to achieve better ROI for Amazon sellers. Our profit finder is specifically geared towards helping you find profitable products and investing your money in the right areas. We capture meaningful data points and provide training resources that will help you become more knowledgeable as an entrepreneur. 

5. Know your figures (and use them!) 

Understanding the calculations you make and the data you collect for your company is of the utmost importance. In the beginning, you’ll be reinvesting your profits to make ends meet. Knowing how much profit you’re making and where you can improve is vital. Investing in software that can help you track your data in a meaningful way can help you save time, effort, and money. 

If you’re looking for some estimates on what you may spend and make creating an Amazon store, this information may help.

Start-up costs are low 

When you start a new business, start-up costs are always a concern. Fortunately, you don’t have to sweat funding a new Amazon business. All you need to do is sign up for a webhost, which costs $4.95 per month. After that, you can purchase an optional template for your website. These will range in price, but you can expect to spend roughly $20 to $50 depending on the one you select. 

Expansion is faster 

If you’re not yet sold on an Amazon business as your only path, you may be considering blog writing. It provides many of the same benefits as an Amazon business but doesn’t require you to source a product. Rather, using your own knowledge, you’d create a business and earn money. For this reason, you can see why it appeals to people. 

However, successful eCommerce businesses with blogs have long stated that their online stores were far more successful in a shorter span of time than their blogs. The website MyWifeQuitHerJob.com reported that they made over $100,000 in profit in their first year of business from their online store. In their first year of blogging, they may only $100. Amazon businesses are a fast and effective way to start a business – you don’t have to wait long for the cash to start rolling in!

Final thoughts 

So, what are you waiting for? Quit that office job and get selling! Becoming an Amazon seller is an empowering way to become your own business owner. With these five tips, you’ll be able to grow and develop your brand with confidence. Sellgo is an Amazon software tool here to help you become a top seller. Visit here to learn more.