How to Select Wholesale Products to Sell on Amazon

Wondering how to find wholesale products to sell on Amazon? Check out this guest article by Seller Assistant to learn how to get started.

If you are doing wholesale on Amazon, choosing what products to sell is key to success. This is because wholesale sellers buy products in bulk, and if you source many products that customers will not purchase or that will not be profitable, you will lose a lot of money. Therefore, you must carefully research products before buying them from a supplier.

This guide explores essential factors to selecting wholesale inventory to maximize your success on Amazon.

How to Source Wholesale Products for Amazon

There are many ways to source products to sell on Amazon. However, the most popular method used by wholesale sellers is direct sourcing.

Direct sourcing is when you get a list of products from your supplier, find the match to these products on Amazon, pick out the most popular and profitable ones, and resell them.

This straightforward method is used by many sellers because your supplier typically gives you a good discount and deal conditions. As a rule, you should aim at products you can resell on Amazon with a 15% profit margin or more.

If you don’t have an existing supplier, look for a supplier that appears to have profitable, popular products that could be selling better on Amazon. If it seems like a good fit, approach them to negotiate becoming their wholesale reseller.

What Makes a Good Wholesale Product?

When selecting wholesale products to sell on Amazon, it's crucial to consider several key factors.

Strong Resale Value

To ensure steady sales, the product must have consistent and ongoing demand. Products in demand are more likely to sell quickly, reducing the risk of excess inventory. Identify products with consistent sales to ensure you're turning a profit.

Manageable Competition

While a high-demand product is ideal, it's essential to balance this with the level of competition. Products with too many seller offers can create price dumping and lower your profits. Opt for products with manageable competition for higher sales potential and profit margins.

Competitive Price

The price point of your chosen products should be attractive enough to draw customers but also allow for a reasonable profit margin. Ensure you can offer competitive pricing that attracts customers while turning a profit.

Restrictions and Eligibility

You may not be eligible to sell some products on your account, or you may need Amazon’s approval if the products are restricted. Amazon imposes certain restrictions and requires approvals for selling specific product categories. Check for limitations on your seller account or product restrictions before making any purchases, to avoid getting stuck with inventory you're not approved to sell.

Profitability

The products you select must be profitable. Calculate the potential profit margin by subtracting from the selling price all associated costs, such as Cost of Goods (what you're paying your supplier), shipping, Amazon fees, and any applicable taxes, to guarantee a product generates a good profit.

Software for Choosing Amazon Wholesale Products

Selecting the right products to sell on Amazon is crucial for profitability and avoiding potential issues. You can use an Amazon product-sourcing tool such as Seller Assistant to streamline this process.

Seller Assistant provides robust, professional-level product sourcing capabilities designed specifically for wholesale sellers. It features a suite of user-friendly tools for wholesalers that enable quick identification of high-profit potential products for Amazon.

The browser extension is a vital resource for wholesale sellers. It allows you to rapidly gain insights into products that promise the best profit margins by estimating potential sales and resultant profits.

Beyond its core product sourcing functionalities, the software includes several unique features. The Bulk Restriction Checker allows sellers to efficiently verify selling eligibility for up to 5,000 ASINs simultaneously. The UPC/EAN to ASIN Converter is instrumental in linking manufacturer UPCs and EANs with Amazon ASINs. The advanced IP Alert also helps preemptively address potential Amazon policy violations. These tools equip wholesale sellers with everything needed to succeed on Amazon.

Take a Strategic Approach

In conclusion, selecting the right wholesale products for Amazon involves more than just identifying items that currently sell well. It requires a strategic approach that considers demand, competition, pricing, restrictions, and profitability.

By leveraging the powerful features of Seller Assistant, you can streamline this complex process. With tools like Side Panel View, FBM & FBA Profit Calculator, Quick View, and Restrictions Checker, Seller Assistant equips you with the details needed to make informed decisions. Embrace these capabilities to enhance your product selection strategy, maximize profitability, and position your Amazon wholesale business for success.