Amazon Product Sourcing Options
Amazon product sourcing option is the process of sourcing products through different means and lists on Amazon to sell at profit.
Following are different Amazon product sourcing options:
Retail arbitrage is buying products at a very discounted price from liquidation stores, or large brick-and-mortar retailers, listing the products on Amazon and then selling at higher prices. Profits are earned by selling the products at higher prices on Amazon. One drawback of retail arbitrage is that sometimes it can be a little difficult to scale as you have to constantly find good products with low prices to list on Amazon and get good profit.
Online arbitrage is very similar to retail arbitrage but the difference is that here you are going to source products from online retail stores at low prices.
Auctions and liquidation sales:
There are some local and online auctions from where you can bid on products and buy them at reasonable prices which you can sell at higher prices on Amazon to make a significant amount of profit. One thing to remember is to list the products on Amazon using the word “used”.
One option for sourcing products is to buy them in bulk from wholesalers at a discounted rate. This is one of the traditional ways of sourcing products but selling them on Amazon. You can find plenty of wholesalers or suppliers domestic or international.
You can either manufacture your own products or find a generic product, buy it from the manufacturer, put your label on it, and then sell on Amazon.
If you are into making handmade products then you can list your handmade products under the handmade category. You can register yourself as an “artisan” and sell your handcrafted products there.
Tips To Win Amazon Buy Box
Amazon buy box is the white box that appears on the right side of the product details. Using the Amazon buy box customers can add items to cart and purchase.
Why is Amazon’s buy box important?
Buy box increases the sale volume for every seller. According to a report, almost 83% of sales on Amazon happen through the Amazon buy box.
The buy box is the quick call to action provided by Amazon which is very easy for customers to buy the product directly or add to the cart.
If you get eligible for the Amazon buy box you can create PPC ads for your products. Amazon PPC is pay per click ads where you will only get paid when a customer clicks your sponsored product ad.
Here are some pro tips to win Amazon Buy Box:
- Third-party sellers who sell new products but not used or old, have higher chances to win the Buy Box.
- Offer competitive prices to your customers. If you list your product’s price within 5% of the current Buy Box price then you will have a high chance.
- If you are a prime seller then Amazon will surely give you priority. But that doesn’t mean as a nonprime seller you are not eligible, you can still win the Amazon buy box.
- Offer great customer service by always keeping your inventory updated. Amazon highly appreciates if the customers get their products on time and have no complaints from you.
Best Tips To Leverage Amazon FBA
- Competition Research: Research thoroughly about your competitors before entering and even while you are selling good numbers. Always keep an eye on best sellers and check what strategy they are implementing, how and what keywords they are using, etc.
- Sales Rank: Products with a high ranking on Amazon sell faster. If you are searching for the right product then try to consider the sales rank. Yes, low ranking products have less competition but also the demand for such products is usually very low.
- Starting Small: To get started, buy and send a few products to the Amazon warehouse. You do not need to buy hundreds of products at the beginning itself. Once you start making a profit you can scale your business and grow.
- Build a Brand: To stand out from the competition you have to create a unique brand for your business. How to do that? In short, you have to understand deeply who your target audience is and then create everything for your business based on it. Create unique packaging, style product packaging, and product description that speaks your brand and your customers relate to.
- SEO: To become a successful Amazon third party seller, you have to optimize your product for Amazon SEO. Just like Google, Amazon also uses its own algorithm to rank products on its search results.