Selling on Amazon is highly unique. There are tons of ways to operate on the site, and as one of the largest marketplaces in the world (with over 12 million products), sellers all make their livings in different ways. Fulfillment by Amazon (FBA) offers a convenient way to sell, but how do you source the best products?
As resellers, we all dream of tracking down that special Amazon product, the one that will transform us into a 7-figure online arbitrage master. However, what's the best way to search for the golden goose?
There are tons of methods. With FBA, Amazon handles all the packing and shipping for you, so you can focus on sourcing the best products. With more time to spend on this activity, you need to know where to focus your energy.
Here are ten of the best places to source FBA products.
10 Places to Find Products to Sell
Depending on your business strategy, you can source products in a number of different ways. The best strategy depends on your business, where you are in your journey and more. We'll discuss choosing the optimal strategy later. For now, here are the best places to find products.
1. Manufacturers
If you want control over the supply chain, then it's a good idea to work directly with manufacturers. You can find items for a lower cost this way, and often you have greater control over the quality.
Manufacturers produce the products themselves, so they will be able to answer any questions you may have.
You can find manufacturers by searching for lists online. Or, check out marketplaces like:
- Alibaba
- Kompass
- ThomasNet
- MFG
- MakersRow
Then, it's up to you to negotiate the best deal.
Source: alibaba.com
2. Wholesalers
Selling wholesale products has tons of advantages. First of all, it secures the safety of your inventory. There's nothing more disappointing than an item you want on Amazon being out of stock; it's a surefire way to disappoint your customers!
By negotiating with wholesale suppliers, you can guarantee a large chunk of stock. Plus, wholesalers usually sell at discounted prices, and there may even be reductions in shipping costs.
There are lists of wholesalers available online. Check out the following sources:
- AMZ Scout Wholesale Suppliers List
- DollarDays
- SourceLow
3. Online Arbitrage Software
Everything is automated these days, online arbitrage included. With online arbitrage software, there's an easier way to do things. All you need to do is sign up, download the software, and install it; it will source products in your niche and deliver them right to your computer.
OA software has pros and cons. On the plus side, it saves you a lot of time. On the other hand, it can be expensive depending on the software and plan you use. Furthermore, you still need to verify the data it provides.
The leads from software come with plenty of info, including sales history, competitive prices, and more. Look for items with high demand and low competition if you want your business to benefit the most.
Source: tacticalarbitrage.com
4. Lead Lists
Similar to software is lead lists. The two methods are similar because you are essentially outsourcing the task of finding products. However, lead lists provide a more human touch that can prove exceptionally helpful.
With lead lists, expert Amazon sellers source products for you. They may utilize software and other methods to track down the most profitable products, collating an exclusive list delivered right to your inbox.
Lead lists can help you save time and also open the doors to a network of expert resellers who can provide a helping hand throughout your journey to becoming a 7-figure reseller.
5. Trade Shows
Depending on your industry, there is probably a nearby trade show you can attend. Trade shows are another great way to meet other resellers, manufacturers, wholesalers, and more.
Some trade shows and conferences cater specifically to FBA resellers, such as ASGTG. Others include marketers in general, but are still incredibly useful for resellers, like Funnel Hacking Live.
6. Local Retailers
Back in the day, retail arbitrage was the main way of doing things. This refers to buying products in person and then selling them for profit. You can visit thrift shops, garage sales, or other local retailers to find products within your niche.
Admittedly, this method has one of the lowest barriers to entry; you can get started almost instantly. However, it's also a less profitable method. 62% of retail arbitrage resellers earn less than $5000 per month. 25% make less than $500. In contrast, 42% of online arbitrage resellers make over $10,000 per month.
7. Private Labelling
Private labelling refers to selling products from your own brand, rather than reselling from others. Some online arbitrage sellers incorporate private labeling into their strategy, but it takes some more investment and planning to get started.
If you are a naturally creative person, you can incorporate this into your selling strategy with Amazon Handmade.
Source: amazon.com
Alternatively, collaborate with Amazon Handmade sellers to discuss reselling their items.
8. Thrift Stores
Thrift stores are another great place to hunt for bargains. If you know how to scour the sales, you can find discontinued, one-of-a-kind, or hard-to-find items. These products may sell for higher prices on Amazon, increasing your profit margins.
However, keep in mind that this method takes time. You won't encounter Aladdin's lamp every time you walk into a Goodwill. Instead, be prepared to put some time in to identify profitable opportunities.
Check out thrift stores such as:
- 99 Cents Only
- Dollar Tree
- Dollar General
9. Returns & Liquidations
You can also source from liquidation sales. Often, you can find out where these are happening through social media sites like Reddit and Facebook, with OA sellers groups alerting everyone about liquidations.
Meanwhile, when customers return Amazon products, the seller can choose to:
- Dispose of the item
- Have it returned back to them/the fulfillment center
- Liquidate it
Thanks to Amazon's lenient return policy, customers often return items that are still in new or good condition. Many sellers liquidate these products.
Amazon sells liquidated items on Amazon Return Pallets. Keep an eye on these to snag fantastic deals.
10. FBA or Dropshipping Suppliers
Instead of wholesale suppliers, it's possible to get in touch with other third-party suppliers selling products. Researching product suppliers is simple, and it shouldn't take up too much of your valuable time. However, if you can establish strong relationships with FBA suppliers, you're in a great position.
Take a look at online B2B marketplaces to find suppliers in your industry.
Figuring out Your Strategy
Finding the right products to sell is crucial for your business. However, the best strategy depends on your unique business model, the type of product you sell, and more.
For instance, it's easier to find rare, valuable second-hand books in a thrift store than it is to find profitable tech and gadgets. So, a seller with a tech store can utilize software to their heart's content, while a bookseller can leverage retail arbitrage more effectively.
Understanding the product categories is key to your success, but it's far from the only factor you should consider.
- Profit margins: Not all products you encounter online or at trade fairs will be profitable. Take a look at similar items, past sales history, and more to determine if an item is worth it.
- Quality: Similarly, the quality of items can vary. Depending on your niche, you may not be able to sell second-hand or used items, so check out Amazon's terms of service. Either way, you should ensure top-notch quality or you risk disappointing your customers.
- Shipping: Amazon FBA charges different fees based on size and weight of the item. Plus, shipping costs can vary. Consider this when sourcing products, as larger items may not be profitable for your business.
- Competition: With thousands of online sellers, competition on Amazon is hot. You need to find products with high demand, but relatively low competition. Otherwise, as a new seller, you risk being overshadowed.
Start Growing Your OA Business Today
If you're ready to take your online arbitrage business to the next level, OA Cheddar is here to help. Whether you've been selling products on Amazon for a while or are relatively new to this industry, we can set you on the path to becoming a 7-figure reseller.
Our lead lists are hand-picked by expert Amazon resellers, with limited seats on each list to reduce product competition. Plus, with OA Cheddar, you get access to bi-weekly webinars with expert resellers. Find out how to maximize your OA business and take it to the next level with incredible advice.
Ready to get started? Sign up today!