Selling physical products on Amazon is very popular right now. In fact, I added this as an income stream in November 2014. There are many ways to source products for your Fulfillment By Amazon or FBA business. Six ways to source products for your Amazon FBA business are:
- Retail Arbitrage
- Online Arbitrage
- Trade Shows
- Private Label
Fulfillment by Amazon – Retail Arbitrage
With retail arbitrage, you go to the stores, find bargains and sell items for a profit on Amazon. I believe this is the first way you need to get started and this is how I started. To find out more about Retail Arbitrage, you can read my blog post FBA Retail Arbitrage – A Weekend Adventure. If you want even more detailed information, then check out Arbitrage: The authoritative guide on how it works, why it works, and how it can work for you by Chris Green. If you are a “newbie” then I recommend Jessica Larrew’s ABC Bootcamp. This course will show you step-by-step how to set up your Amazon Seller Central Account to buying products and shipping them to Amazon to sell.
Fulfillment by Amazon – Online Arbitrage
Online arbitrage is similar to retail arbitrage except you buy the products online instead of visiting stores. This is very attractive for people who don’t like to go shopping or have limited time. I have started to do this more and more since my time is limited right now. There are many tools that you can use to determine if a product will be profitable on Amazon. There is an excellent book by Chris Green called Online Arbitrage: Sourcing Secrets for Buying Products Online to Resell for BIG PROFITS. The ABCs of Online Sourcing is a great course that teaches you how to find profitable products online.
Fulfillment by Amazon – Wholesaling
Once you are comfortable with retail and online arbitrage, you should start with wholesale. With wholesale, you are buying in bulk. You typically have to open an account and submit documents proving you are a business. Wholesale companies do not sell to individuals. For most of the accounts that I have opened, I had to give them a copy of my Sales and Reuse license. The good thing about wholesaling is you don’t have to worry about running out of a product. Several times, I found a great product at the store, bought all that was in stock and then can’t find it anymore. The whole reason I started looking at wholesaling was because I was looking for a product that I found in the store that is no longer available. This is one of the things that I am concentrating on – finding good wholesalers. Proven Wholesale Sourcing is a step-by-step course that teaches you how to wholesale for your Amazon FBA business.
Fulfillment by Amazon – Trade Shows
Did you know that there are hundreds of trade shows every year? They are held all over the United States and even overseas. These tradeshows are not for individuals but if you are a business, you are more than welcome. Many of them are free to attend as well. You get a chance to talk to company representatives as well as actually see the products. A lot of times there are show specials so you can buy products at a reduced price. I am going to my first trade show this month. I am going to the Philadelphia Gift Show. It would be impossible to attend all of the trade shows, but I will let you in on a little secret. You don’t have to. You can sign up and still get access to the vendors. That is what I did with the ASD Trade Show that will be held in Vegas. I am using a technique call Trade Show No Show. You can actually get great trade show products without leaving your home.
Fulfillment by Amazon – Liquidation
Buying liquidation products is not for the faint at heart. You either go to liquidation stores or buy liquidation items online. Liquidation items are usually overstocked items, returns, etc. You are typically buying large quantities. In fact, sometimes you are buying a whole pallet. This is definitely not something for beginners; however, at some point, this can be added to your business. Liquidation Gold is a course by Jessica Larrew that is a good resource if this is something you want to get into.
Fulfillment by Amazon – Private Label
Private label can be the most lucrative but there is a lot of risk associated with it. With private label, you find a manufacturer that will create a product for you that is your own brand. Many people source for their products in China because it is more affordable. If you are going to import from China, Proven China Sourcing will help you avoid the pitfalls. You do not have source in China. There are manufacturers in the United States that will create a private label product for you. You must create a logo, label and packaging for your product. Since the product has not been sold on Amazon before, you must ensure that your listing is optimized. If you need help with creating optimized listings, then you should attend Karon Thackston’s AZ Product Description Bootcamp. Jim Cockrum’s Proven Private Label teaches you how to succeed at selling your own private label products.
As you can see there are many places to source products for a profitable Fulfillment by Amazon business. You need to determine the best one for you. You should start with one or two, and add additional sources as you become more experienced. I use retail arbitrage, online arbitrage, wholesaling, trade shows and private label for my Fulfillment by Amazon business. What sources are you currently using and what ones would you like to add in the future?