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Top Ways to Source Profitable Products to Sell on Amazon
Michael S.
Sourcing products is a key element of running a successful Amazon business, particularly if you're not making your own items by hand. The way you acquire products impacts your profitability and business strategy, while influencing costs, competitiveness, and more. Many beginners often feel overwhelmed and uncertain about where to begin.
In this article, we'll walk you through the best places to find products, and provide practical tips on how to source products to sell on Amazon efficiently.
Best Places to Source Products to Sell on Amazon
When it comes to sourcing products to sell on Amazon, there are plenty of options available, depending on your specific needs and business model. It’s important to carefully analyze your goals and understand the specifics of each method to avoid making poor investments or unnecessary long-term commitments. Here are the main options:
Wholesale Suppliers/Distributors
Buying in bulk often secures lower prices for products, but it also requires a higher upfront investment since pieces cannot usually be purchased individually. This approach is especially suitable for resellers using FBA (Fulfillment by Amazon) because it’s cost-effective when selling large quantities, as FBA fees are distributed over many items.
Brand Owners
If you want to collaborate directly with brand owners, you’ll typically need to establish a strong presence to gain their trust. This method often involves signing multi-year contracts, which may feel restrictive, but it can also offer significant benefits like exclusive rights or a competitive edge. Building long-term relationships with brands can help to enhance your reputation and customer loyalty.
Dropshipping Suppliers
Dropshipping is a cost-effective option that requires a minimal upfront investment. However, it’s also highly competitive due to the low entry barrier. Additionally, it’s crucial to work with suppliers who are familiar with Amazon’s specific packaging and shipping requirements. Failure to meet these standards can lead to account suspension or even removal.
Online Marketplaces
Platforms like Alibaba, Temu, and AliExpress are among the most popular for sourcing products at low prices. While they offer a vast selection, it’s also important to vet suppliers to avoid scams and ensure good product quality. Start with small test orders to evaluate reliability before scaling up.
Brick-and-Mortar Stores
Retail arbitrage through local stores can be a flexible way to source discounted items for resale. Clearance sales and seasonal promotions present great opportunities for finding products with high profit margins. However, this approach also requires regular effort, as you need to visit physical stores to find new deals and take advantage of in-person discounts.
Auctions and Liquidation Sales
Consider purchasing Amazon return pallets or exploring liquidation sales as a cost-effective sourcing strategy. Platforms like Liquidation.com, B-Stock, and Direct Liquidation offer overstock, clearance items, and returned goods at discounted prices. Some products may even be brand-new. While this method can be profitable, it also requires careful selection to align with your niche, and thorough inspection of the product condition to ensure profitability.
Online Outlets
Online outlets are excellent sources for discounted and often designer items. Platforms like Giglio, Fashionesta, and Premium Outlets frequently offer high-quality products at reduced prices. Success with this method depends on consistently finding new inventory.
Trade Shows
Trade shows provide an opportunity to discover unique products and connect directly with manufacturers or suppliers. You can often purchase samples or small quantities at low prices to test before committing. However, attending trade shows can be costly, as they often require travel and registration fees, and may not always guarantee finding the right products for your business.
Joint Purchases
This method involves teaming up with local buyers to purchase items at wholesale prices. Websites like BigBuy, Tundra, and platforms like Facebook Groups or WhatsApp Communities often organize joint purchases for shared savings. This approach minimizes costs and helps you meet minimum order requirements. However, this option also means you need to depend on others to meet order requirements, which can lead to delays or coordination challenges.
A diverse sourcing strategy can help you manage risks and maintain a steady inventory flow. Now, let’s explore how to efficiently source products to maximize profitability and minimize risks.
How to Source Items to Sell on Amazon
The journey of Amazon product sourcing can look different for everyone, but certain principles remain consistent. Let’s break down three key steps to help you thrive on Amazon.
Step 1: Discover the Right Product
Picture yourself in a massive warehouse filled with countless items—it can be overwhelming to decide where to start. This is the challenge many Amazon sellers face when choosing what to source. Rather than following trends without direction, consider focusing on products that meet these essential criteria:
Demand: Look for items with over 200 sales per month. This isn’t just about profits—it’s about consistency, so your inventory keeps moving.
Competition: Steer clear of listings dominated by big-name brands or Amazon. Aim for niches with 2-20 sellers - this is the sweet spot where there’s room to shine.
Quality: Prioritize products with a rating of 4.5 or higher. Happy customers mean fewer returns and more glowing reviews.
Profit margin: A 20% profit margin isn’t just a number—it’s your ticket to reinvesting in your business and scaling up.
While browsing Amazon listings can provide some insights, critical details like monthly sales figures and precise profit margins aren’t readily available. This is where research tools come in handy, but they also take time to master, and even then, interpreting the data can feel like decoding a secret message.
Managing the complexities of product research can be simplified by entrusting this task to experts. Sellerhook’s team specializes in identifying product opportunities tailored to your business goals and finding the best products for you, with minimal effort on your part. Let’s explore how it works below.
Discover Profitable Products with Sellerhook’s Professional Research
Sellerhook is a game-changer for Amazon sellers, leveraging advanced software to analyze up-to-date data and identify high-potential products that align with your criteria and business objectives. This approach significantly boosts your chances of making smart, profitable product investments.
Here’s how to use this service:
1. Place your order. Go to the Sellerhook website and choose the number of tailored product ideas you’d like to receive—one or five. Be sure to specify your business model (Online Arbitrage & Wholesale, or Private Label).
2. Complete a brief questionnaire. Fill out a short form with details about your preferred product category, business model, and any specific preferences. This helps Sellerhook’s experts conduct thorough research to find the best product opportunities for you. 3. Receive your product report. Within 10 business days, you’ll receive a customized report with product ideas based on your criteria, delivered straight to your email.
This streamlined process makes it easy to find profitable products, saving you time and giving you a solid foundation for success.
If you’re planning to build your own brand instead of reselling existing products, you can also ask Sellerhook to find a reliable supplier for you on Alibaba and provide a quote, saving you time on sourcing and negotiations. If this option isn’t right for you, there are additional ways to find a supplier and place an order.
See what your research report would look like.
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Step 2: Choose a Place to Source Your Products and Place an Order
Once you choose the product you want to sell, it's necessary to secure it. Depending on your sourcing method, you’ll need to decide where to get it from. You can speed up the process by Googling or asking for recommendations in specialized Facebook groups, where others often share where to source products.
Placing an order depends on your sourcing method, but here are some key points to consider:
Delivery: If you’re not buying in person, check delivery times, shipping costs, and any customs duties if you’re ordering from abroad.
MOQ (Minimum Order Quantity): Ensure that you can meet the supplier's minimum order requirements (if applicable), which may vary depending on the product.
Quality assurance: Consider requesting samples or inspecting products/certifications to ensure that the product meets your standards.
Payment terms: Be clear on payment methods, deposit requirements, and timelines when full payments are due.
Reliability: Be sure to check reviews, ratings, and feedback from other buyers before placing your order to avoid negative experiences.
Once you have your products, you need to ensure they’re delivered efficiently to your customers. Let’s explore how to manage this process in the next section.
Step 3: Organize Delivery
After placing an order for your products, you’ll need to arrange for delivery to your location, or to an Amazon FBA center if you’re using Amazon’s fulfillment services. If you do not pick up a product yourself or your supplier doesn’t provide logistics solutions, be sure to choose a reliable courier that strikes the right balance between cost and delivery times.
If you’re receiving the products yourself, be sure to inspect them thoroughly upon arrival. Check for any damages or discrepancies with the order and contact your supplier immediately if there are any issues. Timely communication is crucial to resolve problems efficiently.
When shipping to an Amazon FBA center, ensure that your product labels are applied correctly and all necessary paperwork for customs is in order, if applicable. FBA will reject shipments that don’t meet these requirements, so attention to detail is key to keeping your business running smoothly.
Selling on Amazon can be highly profitable if you know what and where to source from, allowing you to optimize your selling strategy. With strategic planning and execution, you can achieve significant profits and establish long-term success.
Conclusion
Regardless of how you decide to source products for Amazon, selecting the right items is crucial to your success on the platform. To make this process easier and find the most promising products, consider using Sellerhook’s professional product research services. This strategy will help you maximize your potential and drive sales growth more effectively.
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