Once you know what products you want to sell and what you can make, you need to find the best source. These are the top 7 sourcing methods for Amazon Products.
1. Retail Arbitrage
Buy discounted products in retail stores and then resell them on Amazon to make a profit.
Retail arbitrage sellers often shop in the clearance sections of big-box stores such as Walmart, Target, and Big Lots.
Because everything is often heavily discounted, sometimes even 75%, surplus and liquidation stores are common inventory-shopping destinations.
This method of sourcing your inventory can be tedious, but it doesn’t usually require a large upfront capital investment because you aren’t likely to buy in bulk.
Before you make any purchases with your credit card, be sure to understand the pros and cons associated with using business credit cards for financing your inventory.
2. Online Arbitrage
Buy discounted products online, and then resell them on Amazon to make a profit.
Online arbitrage works the same as retail arbitrage except that you shop online for your inventory and not in person.
3. Dropshipping
After you have made an Amazon sale, buy products from a wholesaler or retailer and have the items shipped directly to your customer.
Dropshipping is a great option if you don’t want to manage inventory. This fulfillment method allows online sellers to sell products but not own the inventory.
To ship your products to customers, you can rely on a third-party supplier such as a wholesaler.
Dropshipping has the advantage that you don’t need to purchase inventory upfront.
Dropshipping is a way to make sales and only pay for the inventory you use. It is a low-risk fulfillment option for new sellers.
4. Wholesale
You can buy large quantities of products directly from the brand owner/manufacturer and then sell them on Amazon.
Wholesale buying is a proven method to sell on Amazon. This is a great way to sell on Amazon because it has low barriers to entry and easy scaling.
Working with established manufacturers will ensure that you don’t have any need to create new ASINS. Wholesale items are usually already in high demand or have a sales rank.
Once you have a good business relationship with the manufacturer, most sellers will be able to negotiate better future deals or get better terms for purchasing inventory.
Alibaba.com is the best place to wholesale products if you are looking to sell wholesale. It offers 10 million+ buyers in 190+ countries, making it one of the largest B2B marketplaces.
This guide will show you how to sell on Amazon and buy from Alibaba.
The most popular categories are food and drink, health and medicine, beauty and personal, agriculture, home, garden, sports and entertainment, and electronics. There are many others.
5. Private Label
You can buy generic products directly from their manufacturer and add your labels to sell under your brand.
Although private label sellers still source products directly from manufacturers, unlike wholesale, they have more control over product design and can use their brand.
You have complete control over the product’s quality, packaging, and labeling.
6. B2B Marketplaces
Purchase in bulk and receive a discount on orders placed through B2B marketplaces located overseas.
Amazon sellers often source their products through B2B marketplaces. They can search for a wide range of manufacturers, apply for bulk orders, and get quantity discounts.
7. Make Your Products
You can fully control the manufacturing process of any item. Create your brand and products if you want total control. You could, for example, create your own cosmetics line.
If you have your formulation for foundations, mascaras, or lipsticks, find a manufacturer who will package them for you and then make them available on Amazon.
Although this can be more costly and take longer than a private or wholesale label, you would still have complete control.
Recommended: Amazon Product Listing Guide.