Statistics suggest that every year over a million sellers join Amazon. Now, while everyone is trying to bring unique and high-quality products to the market, not every seller ends up being successful. The problem is, it is never easy to come up with a profitable product idea. There are several things you have to consider, and the most important of them is selecting a product-sourcing strategy.
What is Amazon inventory sourcing?
Before you start selling any product, the first thing you have to do is acquire the product yourself. This task may be simple to understand, but usually proves to be intimidating for sellers. Finding manufacturers, negotiating with them, and handling the shipping part are mostly new for sellers.
Nevertheless, once you finalize a strategy to acquire products, things will get easier, and depending on the strategy your select, there might be no need to deal with manufacturers.
There are many different ways to source products for Amazon. However, here we have discussed the 3 most successful ways of doing so. Let’s see what are they…
- Local and Online Arbitrage
If dealing with manufacturers is not your cup of tea, this method of sourcing products will suit you. All you have to do is go to a local brick-and-mortar store, or any online market and find the products that are being sold at cheaper prices than Amazon. Now, buy these products and resell them on Amazon.
While this may sound a little odd that something is sold at a cheaper rate elsewhere than on amazon, it is possible. There are many reasons for this like:
- A certain product is in excess quantity, and thus the price has dropped.
- There is no demand for a product in a certain area, and thus the retailer is forced to sell it at a cheaper rate to clear the stock.
Well, whatever the case, this is possible and thus you have to spend time finding such products. If you can get a reasonable profit by selling these products, you will be doing good.
- Buy from wholesales
Wholesalers buy products in huge quantities from authorized brand owners. Since they can order in bulk, they can fetch extremely low-per-item prices. Try to source products for Amazon from these wholesalers, and start making a profit right away.
However, remember that wholesalers have certain terms and conditions like – they only sell to businesses (so you need to register), they have a minimum order quantity (you will have to meet this requirement), etc.
- Design your product
For many, designing a product of their own will seem like a dream. While this task will seem impossible to some sellers, it is easier than you can imagine. The only thing is, there will be multiple parties involved, but it is surely doable.
To source products for Amazon using this method, you have to find a reliable manufacturer. China is one such country that is known as a manufacturing hub and thus it can be a good place to start your search. Even if you don’t know how business is handled there, simply hire a sourcing agent, and dealing with suppliers will become easier for you.
Next, find an existing product and try to make improvements to it. Add a few new features and think of a way to fix all the issues that are being faced with the existing design. Once the product is ready, it will be easy to manufacture it in bulk.
Now, that you know all the commonly used strategies, it will be easier for you to source products for Amazon. So, without waiting any longer start your business soon.