Best Practices in Wholesaling

If you do decide to try out Amazon’s wholesale business, here are a few best practices to help you get started.

Locate the Correct Products

There are a few options for selecting things that will function effectively in an Amazon wholesale strategy. Here are a few pointers to help you get started:

Tip #1 for Product Sourcing: Attend Trade Shows

Trade exhibitions allow you to have a lot of face-to-face talks with brand owners while also looking for new products that might sell well on Amazon. You may also learn a lot about what these brands care about, their previous experiences selling on Amazon, any pain areas, and what you can bring to the table as a third-party seller.

You may also use trade events to share your elevator pitch with brand owners, explaining why they should consider making you an exclusive Amazon seller for their product. If the company sells its goods on Amazon through several vendors, they are likely to have experienced concerns with multiple sellers driving down the selling price on Amazon. This can cause a major snafu for the company, devaluing their product and enraging brick-and-mortar stores that can’t compete. However, as an Amazon exclusive third-party seller, you may focus on improving the listing, experimenting with pay-per-click advertising, increasing product reviews, and so on.

You may also market Amazon as an additional sales channel to brands that aren’t presently selling on Amazon during trade events. You might be able to set yourself up as the exclusive seller if you can market yourself as a skilled Amazon seller and provide these businesses with an easy way to sell and get their products up and running on Amazon. Because you’ll be generating the listing from scratch in these circumstances, there will be a little more work up front, but the payoff might be tremendous if everything goes well.

Finally, trade shows allow you to learn more about the brands you want to market and meet with a large number of key people at these firms right away.

 

Product Sourcing Tip #2: Use Brand Websites and Product Packaging to Conduct Research

If a product isn’t yet sold on Amazon, you can use your fingers to track out contact information from the brand’s website and/or product packaging to begin a conversation about selling their products on Amazon. Although this strategy may not yield results as soon as face-to-face talks at a trade show, it can be effective if you have a compelling and thoughtful sales proposal.

 

Product Sourcing Tip#3: Look at Amazon’s Best-Selling Products

The nice news about selling best-selling products on Amazon is that you’ll know there’s a lot of interest. To make money on best-selling products, you simply need to win the buy box a small fraction of the time. Avoid products where pricing wars are widespread among vendors when studying these products because this will eat into your revenues. Also, stay away from Amazon-sold products; Amazon will almost always be able to negotiate a better price from the manufacturer than you can, and you’ll struggle to compete as a result.

 

Carefully manage your inventory

One of the most significant dangers of selling wholesale on Amazon is the risk of carrying excessive amounts of inventory. This is especially tough when you first begin selling a product on Amazon because you have no idea how soon the item will sell. Avoiding hefty storage costs from products sitting in Amazon’s warehouse will require smart inventory management procedures.

 

If you’re an exclusive seller, make sure your listings are optimized

You want to make sure the product listing is optimized in any situation when you are the sole seller of a product. This entails meticulously drafting the product description, employing high-quality product photos, and amassing a large number of product reviews.

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