Doing a business has always been a dream for every 3rd person in a row. In an online era, Amazon FBA Private Label is a golden egg for business dreamers. After hunting for a competent product, there comes Amazon product sourcing which is as important as the first one.
So, without beating around the bush, let’s get started.
1. What does “Amazon Product Sourcing” mean?
“From where the product will come?” is a question that pops up in every seller’s mind.
Product sourcing is the answer to this question. Every person who’s involved in E-business doesn’t manufacture the products. As a result, sellers on Amazon find the sources that may provide them with the products they wish.
They come in contact with whole-sellers or manufacturers, have an eye on their products and after the deal is done, they source the products in bulk. Many steps and ways are shaping this process, are going to be explained in this article.
2. Before sourcing a product:
Preliminary to sourcing, we must have a decent product. It is not easy at all to find a product worth investing in. There is a complete process that includes hunting for a product. Here is the cream of the Product Hunting process:
Your product must have:
- High demand
- Low competition
- A considerable search volume
- A proper number of reviews
- Be simple, less weight, and small
- Be durable
To learn more about searching for a market-cracker product read “Amazon Product Hunting”.
3. Major ways of Product Sourcing
Retail and online arbitrage
The best way to source a product for you. In this method, purchase a product from the market which is being sold at a price, lower than Amazon. Source it and sell it online via Amazon.
- Better for newbies
- Low-profit margins
- No room for customization of products
Wholesale suppliers are worth considering in terms of sourcing. They buy products in a vast amount from manufacturers leading to very low prices.
This is why they are a better option than retailers. You will have to buy products in bulk to secure a reasonable profit. Usually, they deal with businesses so you’ll have to register a business before being in contact with them.
- More profitable
- More options to select
- Not much work to do
- Need high budget
- Products are not customizable
Private label products from manufacturers
In this category, a seller directly connects with the manufacturer, and tells him his requirements and dimensions for the product. You can have a product with customized features and dimensions.
Sellers who are interested in Amazon Private FBA Label prefer this kind of sourcing due to more control over customization. It is like manufacturing your product without even having a factory. The best place for this purpose But like any other method, this one has cons as well.
- More profitable
- Room for customization
- Less work to do
- High budget
- Shipping expenditures
DIY ( Home-made) products
Home-made supplies like crafts, Paintings, and customizable decorative items are included in this category. Websites like Etsy are providing services to online creative sellers to sell their masterpieces.
In this kind of sourcing, a supplier or manufacturer manufactures, stores, picks, packs, and ships your product to the customer. As a profit, you pay him for all these after getting an order. In other words, you will have to do marketing of the products and get orders.
4. Tips for Amazon Product Sourcing
Now you are well aware of methods of sourcing products. It is not always beneficial to indulge in any method without any preparation. Keep in mind the following tips while sourcing the products.
- Look for your product on Alibaba.com
- Get the samples for confirmation
- Negotiate on prices
- Choose your shipping method wisely
- Estimated your sum of fees
Concluding in a nutshell, it is clear that after hunting for an appropriate product, sourcing is not a big deal. The only job you have to do is be attentive while Amazon product sourcing. Keep your eyes open, negotiate with the suppliers carefully and keep the prices balanced.
Choosing an appropriate method with all tips can help you a lot in sourcing your product. The next step is Amazon product listing. I hope it will help you a million for next.