What Are the Benefits of Adding Wholesale to Your Amazon FBA Business?
When you talk with FBA business owners, you come to know the reasons why each of the sellers prefers to opt for the sourcing model for their business.
Some entrepreneurs that start the Amazon business, love the hunting process and they use sources like thrift stores and garage sales for that purpose. On the contrary, a few of the sellers focus on retail arbitrage since they enjoy the bigger profits, particularly that they reap during the fourth quarter sale season.
One of the reasons why a lot of these business owners opt for online wholesale or arbitrage is because they live in remote areas and have limited. Still, some are willing to go through the process of developing and marketing a product to start an AMZ private label venture.
Let’s keep the top of this blog post to the method of outsourcing for the Amazon FBA business, helping you better source from wholesale suppliers. Find out the reasons shared below to also consider using wholesale sourcing for your Amazon FBA Business.
Earn More Profits for Your Amazon FBA Business
One of the reasons for starting an Amazon business is to have profits. The Amazon FBA business model involving wholesale offers higher profits, allowing you to significantly increase your ROI (Return on Investment) once you find the right items for resale on Amazon. By buying in bulk, you get a low wholesale price in comparison to your competitors relying on retail sources instead.
More Assortment of Products
When you procure via Amazon wholesale account, you have the opportunity to search through their catalog to find out the most profitable items to introduce in your already profitable product line. For the Amazon fulfillment business, you can buy in bulk. This allows you to gradually increase the number of products you are offering. Also, wholesales can provide you with bulk inventory if you foresee a seasonal increase in sales during any particular season and get the bulk discount as well.
Also, you can place a bulk order for large inventories of products (same or different) when opting for the FBA business model by purchasing from the wholesalers. This allows you to test more of the products for your FBA business on Amazon to consider selling in the future. You can evaluate their sales performance and decide if you need to reorder them or perhaps find some other product to test and sell.
Identifying the Replenishable Items for Reorder
When you do your Amazon FBA business by directly sourcing from wholesalers, you can place reorder of the items that are making you more profits by selling at a reasonable price. Replens can be a great way to add a continuous stream to revenue to give more stability to your cash flows. You just need to repeat the cycle of placing the order, sending it to FBA, ordering, and sending it to FBA. Replens help you save time and you do not need to search to find a new supplier to buy from. You have already placed the order and you need to keep ordering for as long as it keeps selling. It is a lot more profitable and easy to repeat the process for your Amazon FBA business than trying thrifting and garage sailing tactics. You can hire professional Amazon virtual assistant services for managing inventory too.
Less Competition for your Amazon FBA Business
When you start your FBA business, you may struggle to find the item at a competitive price from the retail sources. This approach will help you significantly reduce the competition. When you use a retail source for buying and reselling products for profit, it is only for a time being, and after that more of the sellers will start using that listing to start giving competition. The use of wholesale for sourcing helps you find more unique products that are not easy for competitors to source at a price you are buying.
Stable Business Cash Flows
Once you can locate more than one reliable wholesale source for buying products, that helps you procure at a highly stable price and have more predictable cash flows. However, if you source from other sources, you may struggle to maintain a continuous sales flow, depending on the retailers from which you are sourcing the products. The use of wholesale sourcing will surely provide you with a lot of stability for ordering products to maintain consistent sales throughout the year.
Wholesaler Save You Time for Your Amazon FBA Business
When you find a wholesale source for inventory replenishment, it saves you a lot of time that you would need to keep finding ways to source one-off items for reselling. When starting an Amazon FBA business, one-off items that you are trying to buy and sell may take you an entire day. A wholesaler can source for you such products in a couple of hours and you can just reorder once you have sold the already purchase inventory. The wholesalers also save you time on prepping the inventory. There are no stickers for you to remove when sourcing from the wholesalers and in most cases they are already in poly bags. When sourcing from wholesalers in the Amazon FBA business model, you will also save the time required to list those items. You do not need to list and price 20 items for clearance, you can just list and price one item that has 20 multiples sourced from a wholesaler.
Easy to Scale Up Your Amazon FBA Business
When your FBA business grows, you will also have to find ways to scale your venture. Scaling here is referred to an increase in the total output. Garage selling is not easy and if you want to source via this method, you would have to keep up with the schedule of garage sales taking place each week in your town, or you may need to hire someone when such sales are taking place in other towns, an issue that is solved when you rely upon a wholesaler for sourcing. The same logic applies to the retail arbitrage that you either need to drive yourself hours in the end for sourcing products or hire someone for sourcing your business.
When going for the Amazon fulfillment business, you need to keep things simple. Complexity makes it hard to earn money in any type of commercial activity including the FBA business model. For our FBA business on Amazon, source large quantities of the inventory and process it while avoiding the temptation to hire someone for this task. Instead, use the prep and pack center for getting your inventory processed so that you can grow your business via wholesale.
Take Care of Your Amazon Seller Account
When you are managing your Amazon FBA business seller account, you have to be careful about many things. Amazon account suspension remains to be one of the most dreaded fears. This is one of the main reasons for the anxiety among resellers on AMZ and may happen because of different reasons like for instance a claim by the brand or customer for inauthentic products.
As an update to your Amazon FBA business, you also need to provide retail receipts to prove the authenticity of the source of the inventory that you have purchased. However, just providing retail receipts may not be enough in the future or even the invoices. In such a case, you may need to add the wholesale sources to your AMZ inventory, to get an extra level of protection for your Amazon seller account.
Get Approval as Brand Seller
An important part of running the Amazon FBA business is to know the restrictions imposed by Amazon on the brand, particularly when you want to source inventory from good retailers. So, before you get excited about selling an awesome product, make sure that you are allowed to sell that brand and not restricted. When you choose to source from wholesale, you can potentially work with Amazon and directly with the manufacturer also to become a brand-approved seller.
When you start your Amazon FBA business, you need time and effort for approval. Once you become successful, you can make more profits and have less competition. If you do well, you may be able to get Amazon Exclusive, where sellers like yourself (a chosen few) are the ones that can sell a particular brand or brand ASIN. These are some of the reasons you need to consider adding wholesale to your AMZ FBA business.
AmazinEcommerce.com is a leading Amazon FBA consultant offering its services to clients across the globe. AmazinEcommerce.com is a premium Amazon FBA Private Label & Wholesale Consultancy assisting in managing your AMZ store including private label, micro-private label, listing optimization (SEO), product photography, 3D rendering, videography, EBC / A+ Content, PPC, Packaging, Design (including Store Branding), and reinstatement of suspended AMZ accounts.
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