In this post we will explain how to find and buy wholesale products and sell them on Amazon with the assistance of your VA, who will essentially do all the work for you!
Finding potential suppliers is the first and one of the most challenging parts of wholesale sourcing. Finding and securing a relationship with a manufacturer, brand owner or distributor usually takes the majority of your time. We’ll show you how to rely on your VA to do all that and more for your business.
If you’re interested in the potential benefits that an Amazon wholesale business can offer you, but you have limited funds and limited time, this post will help you figure out which wholesale products to sell on Amazon and how to find wholesale suppliers, all with the help of a VA trained assistant.
Let’s get started….
How Does Amazon Wholesale work? ➔ Selling wholesale on Amazon involves buying bulk products directly from the manufacturer or supplier of the product at a discount, then selling them as a reseller on Amazon for retail prices. ➔ This model allows you to sell products from established brands with existing demand. Before you can place a wholesale order for most brands, your VA will open what is known as a “wholesale account” and be responsible to negotiate with wholesale suppliers for lower prices than you may get otherwise.
An example of a wholesale order would be buying a bulk lot of mixers directly from KitchenAid (or one of their distributors) for a discount and then listing those mixers on Amazon for the regular retail price (or whatever a reasonable price is, based on what other sellers are asking). After purchasing the products from the manufacturer or distributor, the products can then be sold via your online retail distribution channels. In this post, we’ll be focusing on selling these items on Amazon.
The basic steps your VA will be taking to set up an Amazon Wholesale Account. She will:
Set up a seller account
Find a high-demand product to sell
Source the product from a manufacturer
Do all the research in order to create a product listing or work together with a professional Copywriter.
THE FIVE MAJOR ADVANTAGES TO WHOLESALE:
You can sell the same items over and over again.
You can buy as much product from your suppliers as you can afford.
You’re dealing with existing brands with a proven track record (and sales data).
You will be able to build relationships with manufacturers, brand owners, and distributors.
Your VA can do all the work. The 1st major advantage is that once you set up a relationship with a supplier, you can keep selling that item as long as there are buyers. When you start running low on inventory, you simply order more. If you have ever sourced a product via retail arbitrage or online arbitrage, you may be familiar with how frustrating it is when you can’t get any more units of a profitable product that sells quickly. With wholesale, in most cases, your VA will send your supplier an order and get more products on the way immediately. The 2nd advantage is directly related to the first. When your VA creates a relationship with a supplier, she can get them to sell a small number of products at a reduced price in order for you to check the product out. While at a later stage that same relationship can be used to approve orders of hundreds of units. In some cases, you can buy hundreds or thousands of a single item at one time. This is another big advantage compared to the arbitrage methods because you can make your supply levels match the demand for the product. The 3rd advantage, unlike the first 2, is one shared with the arbitrage methods – you are dealing with products and brands that already exist, which means you have data indicating exactly how well the item has sold in the past. That’s a great start and now you can use your VA to check profitability using tools such as Keepa or Amazon Fee Calculator in order to ensure that this is still a viable deal after deducting all the expenses. This is a major role for your VA and we train them to do this extremely well. The 4th major advantage involves the relationships you and your VA will build, which can impact your business positively in many ways: ● Referrals to other suppliers ● Free financing of your inventory purchases through payment terms. ● Ability to negotiate better pricing for the items you are purchasing ● Ability to be the exclusive seller for some or all of the products a supplier sells. This provides a big competitive advantage! You will dramatically increase your odds of success and greatly boost the image you convey and the odds people will work with you. WHAT CAN YOUR VA DO FOR YOU SO YOU CAN START WHOLESALE SOURCING? Some of the “moves” your VA will be making to find wholesale suppliers: ● Cold call or email ● Locating products on Amazon that are selling well, and reaching out to the company ● Doing research via Google on products you want to sell and finding their local distributors Sourcing Items That Have Proven Demand on Amazon Your VA will search for a brand or product name that you are interested in selling on Amazon. Then she will look through the search results and see if there are products there that look like they have potential and if possible set up an account with the supplier. Your VA will do all the research for you and using the tools available to her will check the potential profitability of the product and your chances of winning the Buybox. If the product fits the criteria, then she’ll get in contact with the company to see if you can get an account setup. How to Set Up an Account with a Wholesale Supplier with a limited budget and limited time… Get your VA to do it! After your VA has found a product that you want to purchase wholesale to sell on Amazon, it’s time to get things in place to be able to begin ordering. Now your VA will take the following steps to setting up your account with a manufacturer or distributor and placing your first wholesale order:
Find a product you want to sell
Locate the contact information for the company who sells the product
Reach out to the individual who makes decisions about their wholesale distribution
Convince them that you should be one of their distributors (or you take over with this part)
Fill out an account application
Fill out any eCommerce agreements (if applicable)
Obtain the product catalog and price list
Evaluate the price list
Place an opening order So if you would like to start selling wholesale on Amazon and your time and budget are limited - you simply get your VA to: ● Check the products ● Do the sourcing ● Check the profitability ● Communicate and negotiate with the manufacturer ● Make the order for you with your approval of the products and the quantities. Selling wholesale is a really good substitute for selling on Amazon if you really don’t want all the hassle of selling your own private label. In addition it can make you a profit in a much shorter time frame then selling your own private label products. So whatcha waiting for?