HomeAmazon FBA Finding Wholesale Suppliers and Distributors for Amazon FBA in 2020
Finding Wholesale Suppliers and Distributors for Amazon FBA in 2020
Many Amazon sellers are turning to wholesale suppliers and distributors for their stock now Retail Arbitrage is getting so competitive. If you are serious about making money online and selling on the Amazon FBA Marketplace you should consider wholesale sourcing. Selling wholesale on Amazon will open up more product opportunities and diversify your supply chain. Let’s look at how to get started.
Do you want to find wholesale products to sell on Amazon? The first step is to identify good quality wholesalers and distributors for Amazon sellers. The best way to do this is to write down a list of the brands you are interested in and then visit their website. The manufacturers will normally have a list of their authorized wholesalers and distributors on the website. If they don’t then contact them directly and tell them you want to sell their products and need a list of their best suppliers.
If you are targeting a particular category of products then find some popular brands which best represent that category. For example, if you are interested in selling in the electronics category search for printers or cameras. You can then find the wholesalers for those brands who will probably have a wide selection of similar products.
Another good option is to visit trade shows. Wholesalers will be really trying to push their products so you can often negotiate better pricing. There is also the opportunity to spot new wholesale products to sell on Amazon.
How to Get Wholesale Accounts for Amazon and eBay
Some of the smaller wholesalers may let anyone walk in off the street and buy from them. This is normally a bad sign as their pricing is probably not that competitive. The serious wholesalers and distributors will require you to be a registered company and there will be an application process to complete.
Before applying it is worth buying a domain name and building a simple professional looking website. Try to have an email address that matches your domain and company name. You can also set up a LinkedIn account and a LinkedIn page for your business and include them in your email signature. It all helps to make you look like a serious prospect and therefore they are more likely to open an account for you.
The wholesaler or distributor will probably take a quick look at your website. You just need it to look professional and have the correct address and company details on it. You do not need to create a full-blown e-commerce site so just keep it simple.
4 Simple steps to set up a professional website
1. Firstly you need to buy a domain and site hosting. We use Siteground for all our sites as they offer great support and have always resolved any issues quickly. Visit Siteground to get started.
2. Then you need to install WordPress. Luckily on Siteground, this is incredibly simple and also free. You just click a button and fill in some information and its done.
3. WordPress comes with some preinstalled themes which look okay. For a more professional and customisable website, we like to install our own themes and plugins and we use MyThemeShop for these. You can have unlimited access to all their products for a monthly fee or just choose the one you want. For this website, we used the Onepage theme. Visit MyThemeShop now.
4. You now just need to add a contact form, logo and your company details to your WordPress site. You can then put the site live and you are done.
Top Tip – This is a great opportunity to take your online selling to the next level. You will feel more focused and professional once you have a Limited company or LLC in place and a professional website and email. Not only will the suppliers take you more seriously but also Amazon and your future customers.
How to Open Wholesale Accounts and Place Your First Order
Some suppliers may require an initial order to open the account. If they have unique brands and stock then this might be worth doing. It will mean there is a barrier in place and not many other sellers will have access to their products. This, in turn, means there will be less competition when reselling them on Amazon. You need to see it as if you are paying a fee for this unique access.
Suppliers are generally happy to open accounts for new customers if you look professional. They may be wary because each dormant account costs them money and time. If the suppliers are quite strict and make you jump through more hoops then see this as a good sign. The more barriers there are then the harder it will be for your competition to open accounts.
Will the Wholesaler or Distributor Care If I Sell on Amazon or eBay?
We often get asked if you should tell the supplier you will be selling on Amazon. Things have changed a lot in the last few years and most wholesale suppliers are now fully aware that people will be reselling on eBay and Amazon. Some of them are even doing it themselves under a different company name. We have wholesalers who actively encourage us to resell on Amazon. They will even email opportunities they have spotted where we can buy their product and make a profit.
In some cases, the brand owner may insist the wholesaler does not supply Amazon sellers as it devalues their products. We, therefore, recommend you focus on mentioning other sales channels when initially setting up the account and try to avoid explicitly mentioning Amazon. For example, you could tell them you are supplying schools or businesses directly.
Retail vs Wholesale Sourcing: How Does Pricing Compare?
Do not presume that the wholesaler’s prices will be significantly below the current retail prices you are paying. In fact, the opposite is often true. This is normally because larger retailers like Amazon have so much buying power they can get huge discounts arranged with the manufacturer. Retailers will still buy from the same distributors as you but with their own special pricing.
Retailers will also often have loss-leading sales and promotions to entice customers. The selling price can, therefore, be below what most people are paying at the wholesalers. Even if you do get accounts with wholesalers you should always check retail pricing before you purchase. You might open accounts at several wholesalers and find you use them for only 20% of your stock. You may still buy most of your stock from retailers when they have sales and promotions on. There are other advantages to having wholesale accounts though.
What Are the Advantages of Using Amazon Wholesale Suppliers for FBA?
Here are the 5 main advantages of using wholesalers and distributors for Amazon;
1. You can backorder popular products that are in short supply. This means you might be the only seller on Amazon for a particular product so you can make good margins.
2. They may offer credit which can be anything from $1000 to $25,000 and more. This can be a huge help with cash flow. The wholesaler will do credit checks first and you may find the more you spend the more they increase your credit limit.
3. Wholesale suppliers run their own unique promotions and discounts which are often better than retail deals. Some sellers make a full-time income from just buying deals and promos from distributors. If you buy these promotions you can easily undercut your competition.
4. A lot of wholesalers and distributors will drop ship direct to your customers. This means you never touch the product. It is not as relevant for FBA sellers but if you are also selling on eBay or a website it can be a great advantage. Some suppliers may also ship stock directly to the Amazon FBA warehouse for you. I would be slightly wary of the smaller wholesalers doing this as it may give them ideas to sell themselves on Amazon.
5. You can use the invoices from authorised wholesalers and distributors to get ungated in Amazonrestricted categories and also particular gated brands. This is a huge advantage and we recommend you do this as soon as possible. You will also find you have more protection against Copyright or Intellectual Property Policy Warnings and infringement claims. You can reach out to your account manager and they can help get in touch with the manufacturer to get any complaints removed.
Top Tip – Remember, once you have accounts with wholesalers you can still buy from retailers if you spot a good deal. You should use both.
List of Amazon Wholesale Suppliers in the US and UK
US Wholesalers and Directories
Here are some US Wholesale Suppliers for Amazon FBA you can try;
The Next Steps You Should Take to Start Selling Wholesale
Our advice would be to start setting up wholesale accounts and testing the water. When we originally started selling we only sourced from distributors but then prices were undercut by people doing retail and online arbitrage. As brand owners and Amazon clamp down on arbitrage and restrict more products it means the opportunities to buy from distributors and make a profit are increasing again. We always recommend diversifying, opening up more opportunities and also giving your business more solid foundations and long-term prospects.
Take an Amazon Wholesale Course…
If you are still finding selling wholesale on Amazon overwhelming then it might be time to look at taking a course. This will jump-start the process and remove a lot of the guesswork meaning you are more likely to be successful.
We recommend you take a look at The Wholesale Formula. They only open to new students once a year so if they are closed you can simply enter your email and they will keep you posted. Click here to see what they offer – The Wholesale Formula.
We also recommend Proven Amazon Course which covers all types of Amazon selling and includes ‘Proven Wholesale Sourcing’. This is very affordable training and will certainly be a big help getting started. Click here to see what’s included – Proven Amazon Course.
Use Tools to Help Find Profitable Wholesale Products…
We use Tactical Arbitrage for analysing the product stock and pricing files we get from our distributors. Most wholesalers and distributors will be able to provide these files. You can quickly upload the files into Tactical Arbitrage and it will pick out profitable products to sell on Amazon. Tactical Arbitrage offer a free trial and it is very effective software saving hours of your time trawling through data.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.