Master Amazon Wholesale with Step-by-Step Tutorial

Table of Contents

1. Introduction
2. Brian's Background and Success
3. The Process of Finding Winning Wholesale Products
4. Using a Product Research Tool
5. Choosing Specific Categories and Filters
6. Narrowing Down Product Options
7. Selecting Standard Size and FBA/FBM Filters
8. Setting Minimum Sellers and Minimum Number of Sales
9. Identifying Wholesale or Arbitrage Opportunities
10. Considering Listing Quality Score
11. Selecting Minimum and Maximum Listing Quality Scores
12. Setting Price Points and Profitability
13. Evaluating Revenue, Monthly Sales, and Number of Sellers
14. Looking for Small and Medium-Sized Businesses
15. Checking Buy Box Ownership
16. Researching Competitor Listings
17. Optimizing Product Images
18. Adding Video Content
19. Enhancing Title, Bullets, and Description
20. Using Keywords to Optimize Product Listing
21. Contacting Brands and Requirements for Wholesale Accounts
22. Reseller's Permit and Professional Email Address
23. Showcasing Business with a Simple Website
24. Finding Brand's Contact Information
25. Sending the Initial Email and Follow-Up
26. Offering Listing Optimization Services
27. Requesting Pricing Sheet and Evaluating Profitability
28. Consider Additional Products Offered by Brand
29. Buying Inventory and Negotiating Minimum Order Quantity
30. Manage Inventory and Reordering Process
31. Scaling the Wholesale Model
32. Exploring Private Label Model for Higher Profit Margins
33. Conclusion

Brian's step-by-step process to Wholesale Success

In 2018, Brian started a successful side business wholesaling products on Amazon. Since then, he's made a ton of money doing it. But how does he do it? Even in the most competitive niches? In this article, we will walk you through Brian's step-by-step process of finding winning wholesale products on Amazon.

Introduction

Wholesaling products on Amazon can be a highly lucrative business venture if you have the right strategy and tools at your disposal. In this article, we will explore Brian's journey to wholesale success and uncover his step-by-step process for identifying profitable wholesale products. We'll discuss how to use product research tools effectively, how to narrow down product options, and how to evaluate the profitability of a potential wholesale account. Whether you're a beginner or an experienced seller, this article will provide valuable insights to help you succeed in the wholesale business on Amazon.

Brian's Background and Success

Brian's journey to wholesale success began in 2018 when he started a side business on Amazon. Since then, he has been able to generate significant income through wholesale product sales. Brian's expertise in the field has made him a trusted source of advice and guidance for aspiring wholesale sellers. In this article, we will delve into Brian's tried and tested strategies for finding winning wholesale products on Amazon.

The Process of Finding Winning Wholesale Products

Finding profitable wholesale products on Amazon requires a systematic and informed approach. Brian has developed a step-by-step process that involves using a product research tool, setting specific categories and filters, and evaluating various factors such as revenue, monthly sales, and number of sellers. In the following sections, we will dissect each step of Brian's process, highlighting key tips and insights to help you identify winning wholesale products.

Using a Product Research Tool

The first step in Brian's process is to utilize a product research tool. He recommends using Jungle Scout's product database tool, which allows you to choose specific categories and filters to narrow down your search. By using this tool, you can save time and effort by focusing only on the products and price points you're interested in.

Choosing Specific Categories and Filters

Once you access the product database tool, you can select specific categories and filters that align with your business goals. Brian suggests starting with standard size products as they are easier to ship and have lower storage fees. Additionally, he recommends using the FBA and FBM filters to avoid competing with products directly sold by Amazon.

Narrowing Down Product Options

To effectively scan through products in the database, Brian suggests selecting a minimum number of sellers (typically three) as this indicates a wholesale or arbitrage opportunity. However, he advises leaving the maximum number of sellers open to capture any potential profitable products with multiple sellers. Furthermore, setting a minimum number of monthly sales (e.g., 300 units) helps you identify products with a high sales volume.

Identifying Wholesale or Arbitrage Opportunities

When you come across a product listing with only one or two sellers, it typically indicates a private label product or a brand selling directly on Amazon. By setting a minimum number of sellers at three, you can identify wholesale or arbitrage opportunities where multiple sellers are equally sharing the buy box. This can indicate a potential profitable product to add to your inventory.

Considering Listing Quality Score

Listing quality plays a crucial role in generating sales on Amazon. Brian suggests looking for products with poor listing quality as it presents an opportunity for you to offer listing optimization services and showcase your value to brands. By identifying products with subpar listings, you can demonstrate your expertise in improving product images, titles, bullet points, and overall listing quality.

Selecting Minimum and Maximum Listing Quality Scores

To filter products based on their listing quality, Brian recommends setting a minimum listing quality score of five or six. This ensures that you find products with room for improvement, allowing you to leverage your skills to enhance their listings and drive more sales. However, he suggests adjusting this filter based on your specific needs and the number of results you obtain.

Setting Price Points and Profitability

When evaluating potential wholesale products, it's crucial to consider their price points and profitability. Brian advises setting a minimum price point of at least $20 to $25 as products below this range may not yield profitable results. However, he also emphasizes that profitability can only be determined after receiving a pricing sheet from the brand or wholesaler.

Evaluating Revenue, Monthly Sales, and Number of Sellers

To determine the profitability of a wholesale product, Brian looks at various factors such as revenue, monthly sales, and the number of sellers. He aims for products with a minimum profit margin of 15% to 20% after considering all fees, including Amazon's FBA fees and shipping costs. Evaluating revenue, monthly sales, and the number of sellers helps identify products with high demand and potential sales volume.

Looking for Small and Medium-Sized Businesses

When sourcing wholesale products, Brian prefers working with small and medium-sized businesses rather than big brands like Nike or Apple. These smaller businesses are often more open to establishing wholesale accounts and can offer favorable terms. By identifying products from lesser-known brands, you increase your chances of getting approved for a wholesale account.

Checking Buy Box Ownership

Buy box ownership is another important factor to consider when evaluating wholesale products. Brian recommends looking for products where the brand name and seller name are different. This indicates that the brand is allowing third-party sellers, which presents an opportunity for you to enter the market without direct competition from the brand itself. However, he advises caution and emphasizes the importance of ongoing communication with the brand to ensure long-term collaboration.

Researching Competitor Listings

In addition to evaluating individual product listings, it's crucial to research and analyze competitor listings. Brian suggests comparing your potential wholesale products to similar offerings on Amazon. By examining competitor listings, you can gain insights into their optimization strategies, product images, title keywords, bullet points, and overall listing quality. This research enables you to identify areas of improvement and develop a competitive advantage.

Optimizing Product Images

Product images play a crucial role in attracting potential customers and driving sales. Brian highlights the significance of optimizing product images to enhance their appeal and showcase the product's features and benefits. Drawing inspiration from competitor listings, he advises adding lifestyle images, before-and-after photos, and high-quality graphics to enhance your product listing's visual appeal.

Adding Video Content

Video content is becoming increasingly popular on Amazon as it provides a dynamic and engaging way to showcase products. Brian suggests creating videos that demonstrate the product in use or highlight its unique features. By adding video content, you can stand out from competitors and provide potential customers with a more immersive experience.

Enhancing Title, Bullets, and Description

Optimizing the title, bullets, and description is essential for improving your product's visibility on Amazon. Brian recommends incorporating relevant keywords, highlighting key product features, and using persuasive language that appeals to potential buyers. He also emphasizes the importance of A+ content, particularly for wholesale products with map pricing (Minimum Advertised Price), as it helps establish credibility and increase conversions.

Using Keywords to Optimize Product Listing

Keywords play a crucial role in optimizing your product listing for Amazon's search algorithm. Brian advises conducting extensive keyword research and strategically incorporating relevant keywords into your title, bullets, and description. By aligning your listing with popular search terms, you can increase your product's visibility and attract potential customers.

Contacting Brands and Requirements for Wholesale Accounts

To establish a wholesale account with a brand, certain requirements must be met. Brian advises obtaining a reseller's permit, which can be obtained through your state or with the help of legal services. Additionally, he emphasizes the importance of using a professional email address associated with your domain name to convey professionalism to brands. It is also beneficial to have a simple one-page website showcasing your business and the services you offer.

Finding Brand's Contact Information

Once you have identified a brand you're interested in working with, the next step is to find their contact information. Brian recommends conducting a simple Google search to locate the brand's website. In most cases, you will find a wholesale portal or contact form on their website. If necessary, you can send a polite introductory email expressing your interest in opening a wholesale account and requesting the necessary documents.

Sending the Initial Email and Follow-Up

When reaching out to brands, the first email should introduce yourself, express interest in opening a wholesale account, and inquire about the required documents. Brian also advises offering your services in listing optimization, product photography, or advertising to demonstrate the value you can bring to the brand's business. If you don't receive a response, a follow-up email can be sent to provide more information and reiterate your ability to help improve their sales.

Offering Listing Optimization Services

One way to add value to a brand and establish a relationship is by offering listing optimization services. By identifying products with poor listing quality, you can suggest improvements to the brand's images, titles, bullet points, and descriptions. This showcases your expertise and demonstrates how you can enhance their product listings to increase sales.

Requesting Pricing Sheet and Evaluating Profitability

Once a brand expresses interest in working with you, they may ask for your business documents, such as a reseller's permit. In return, you can request a pricing sheet from the brand to evaluate the profitability of their products. Brian suggests using Amazon's revenue calculator to determine the potential profit margin after considering all fees. This step is crucial in making informed decisions before purchasing inventory from the brand.

Consider Additional Products Offered by Brand

When evaluating a brand for a potential wholesale account, Brian suggests considering other products they offer. If you have the budget and capacity, expanding your product catalog with complementary items from the same brand can diversify your offerings and increase your sales potential. However, starting with one product before scaling can also be a viable strategy for new sellers.

Buying Inventory and Negotiating Minimum Order Quantity

Once you have evaluated the pricing sheet and determined the profitability, the next step is buying inventory. Some brands may have a minimum order quantity requirement that you can negotiate with. It is recommended to start with a quantity that aligns with your budget and demand, considering factors like storage space and potential expiration dates for perishable goods.

Manage Inventory and Reordering Process

As your business grows, it is crucial to manage your inventory effectively. Brian suggests using Jungle Scout's inventory manager tool to keep track of inventory levels and sales performance. This tool sends reminders when it's time to reorder inventory, ensuring you maintain a consistent supply and avoid stockouts. Reordering inventory in a timely manner is essential to meet customer demands and sustain your business's growth.

Scaling the Wholesale Model

Scaling your wholesale business involves continually finding new brands to work with and expanding your product catalog. Brian advises being persistent when reaching out to brands, as not every email will result in a positive response. He also suggests considering hiring a virtual assistant to help with product research, email communications, and spreadsheet management. Scaling your wholesale business requires ongoing effort and a commitment to building relationships with brands.

Exploring Private Label Model for Higher Profit Margins

While the wholesale model can generate significant income, Brian acknowledges that private label is another avenue to consider for higher profit margins. Private label involves creating your brand and listing unique products on Amazon. By owning the product listing, you have full control over pricing, quality, and branding. Brian recommends exploring the private label model once you have gained experience and built a strong foundation in the wholesale business.

Conclusion

Wholesaling products on Amazon can be a profitable business venture if approached strategically. Brian's step-by-step process provides valuable insights for identifying winning wholesale products and securing profitable wholesale accounts. By utilizing product research tools, optimizing product listings, and offering value-added services, you can establish successful wholesale partnerships with brands. Remember, scaling your business requires continuous effort, persistence, and a commitment to providing exceptional service to both brands and customers.