How to get suppliers for your Amazon FBA store with profitable products
Starting an Amazon FBA business can be done in no time, however, getting suppliers and brands to sell on Amazon is really tough. Even more painful is finding the products that sell well and generate profit after all sorts of cost considerations.
From my experience, I can confirm that reliable suppliers with proven profitable products can only create a long-lasting and profitable Amazon FBA business. In order to meet the model requirements a strategy is played by established FBA sellers as instructed below:
First of all, consider going to a few niches that are suitable. Amazon sells in a lot of categories and focusing on a single subject should be fine. It can be any of this:
Once you have the niche, you need the help of some tools. These tools are designed to deliver the best products based on filters like “most reviewed”, “priced between $50-100”, etc. This is a must-have for all FBA sellers. My recommendation is JungleScout since it provides everything required to do Amazon FBA product research; it’s not free though. If you need a free tool, there’s another tool that I also used for a lot of time, known as AMZScout.
List of available tools:
Now, you are left to do the research as follows.
Here is a table of model filters.
|Category||Select the niche on your choice||Any of that|
|Keywords||A word that should be included in the product title||Digital, Organic, etc|
|Price range||Enter the range that the sorted products should have||$30-$80|
|Reviews||Number of reviews the sorted products should have||100-350|
|Rating||What ratings should the sorted products have||4-5|
|Rank||Amazon Best Seller rank||500-50000|
|Sellers number||How many sellers are selling the product as FBA||1-7|
|Seller type||What kind of seller are you||FBA, Merchant|
Now hit enter.
Once your search results appear, you can start analyzing the result as per your requirements. Remember a few things when doing that:
From the result, the first product was listed a few months ago (as of January 2020) and already has over 300 reviews. Which indicates a lot of sales. And by the look of the product, it seems it is from China. So a quick look into Aliexpres or Alibaba will return if that’s available there. It’s better to search using images also search in Google shopping, a lot of useful things come up when searching on google shopping.
Bo-yeah! Alibaba has loads of these cars. Now just browse through the Alibaba results and find the cheapest supplier with a good amount of transactions.
All you have to do now is calculate the profitability of your sales
So you need to contact your supplier and negotiate the best pricing possible also important: Ask them if they can do OEM/Private labeling or Packaging. If they can’t do that you need to that using FBA prep service.
After all sorts of negotiation, for this particular product, I think I can get it for around $16-17/per product including shipping. YOU NEED TO BUY THEIR MINIMUM REQUIREMENT, so don’t just calculate for one product. In this case my total cost of bringing these products to Amazon warehouse will be around $1000.
So the cost for a single product is $17
Amazon charges a fee for storage, referral, and listing fee known as FBA fee. Amazon provided detailed instruction here: https://services.amazon.com/fulfillment-by-amazon/pricing.html
However, FBA fee for any particular product can easily be found in any product research tool.
For our product it is $11.93; $12
As we can see that the product is sold for $42.99 on Amazon, so we can sell at something lower than that, since we are getting a good deal on Alibaba.
So our selling price can be $40.
Product selling price - (Supplier cost+ FBA fee)
40 – (17+12) = $11
We just made a projected $11 profit per sale.
This example is showing a 34% ROI which is great for an FBA product. Running an FBA business model requires a good budget and a precise plan-of-action. You can’t just take chances because there’s a lot of ways things can go south. Proper research and a reliable supplier is needed to run an FBA business.
Hire me for your sourcing projects: Email