The digital world is expanding for the past few years. We have seen Ecommerce stores boosting their expansion within no time. Moreover, the pandemic in 2020 has made everybody buy online and rely on the digital world more than ever. In the digital market, Amazon has earned its name by providing the availability of Amazon wholesale products online and to almost every place. Besides, its leadership in eCommerce Amazon has offered a great opportunity for people to connect and earn from its platform using its Amazon FBA services.
With the expansion of fast pace digital services for buyers and sellers, the people of the world need more opportunities in E-commerce. This trend has created a pathway for many brands to deliver their products in different parts of the world resulting in ultimate business growth at a global level.
In this blog, we will tell you about Amazon FBA and how you can get amazon wholesale accounts. It doesn’t matter if you are new to this and have no idea how to proceed. This blog is your gateway to get the results you are imagining and earn some really good profits using Amazon FBA.
What is Amazon Wholesale FBA?
If you are an entrepreneur and you are looking to cater to a large number of audiences then Amazon FBA is a great business model to choose in the Ecommerce Business market. This program is a definite source of greater opportunities when it comes to business development.
Amazon FBA stands for Fulfilment by Amazon. It is an ideal eCommerce business solution. In our perspective, you can get benefits from its noteworthy scalability.
It has become one of the most popular ways to earn income these days. More than 2 million people are selling on Amazon worldwide.
You can list any types of items for sale on Amazon. It could be something you have purchased on wholesale, or created on your own, or simply a product you no longer want.
This program offers you warehousing as well as shipping services at the same time for any type of item you would like to sell. Amazon FBA has a unique approach because Amazon is a vast market for popular products. Moreover, these products are also eligible for extra benefits, such as, Free Super Saver Shipping and Amazon Prime. This makes the FBA program more productive for the users.
What Services Amazon FBA Offers?
The Amazon wholesale FBA offers you the following services:
- You send your items or products to Amazon
- They provide a warehouse for storing your items or products
- Whenever a customer will order your product, Amazon picks, packs, ships and tracks the order for you
- It also handles the refunds and returns through good policies
- Amazon charges a fee for storage and fulfillment
- Amazon’s stellar 24/7 customer service is also included
How Amazon FBA Works?
Amazon handles all the tough tasks for you. The process is very convenient and simple.
Following are some steps that Amazon FBA follows:
1. Sending your product to Amazon
Many warehouses are possessed by Amazon, with a size of over a million square feet. You simply tell them the type of your product and they will ask you to send them to the relevant warehouses.
2. Sorting and storing at Amazon
After receiving your product, they will add it to their inventory.
Your products are then stored in the warehouses.
If anything gets damaged Amazon will reimburse you.
3. Customer buys your product
The entire transaction of your product is the responsibility of Amazon.
The payments are accepted and are automatically updated in your inventory.
4. Shipping of your product
The workers or robots at the Amazon warehouse will grab your product from the storage and packs it into the box.
After this, your product is shipped to the customer.
5. Handling of Customer Service
Once your product reaches the customer, the follow up is carried out by Amazon to make sure the customer is satisfied with the shipment.
They will handle the returns as well as questions from the customers.
If you receive any feedback from the customer, it is up to you to respond and take action on it.
6. You get the payment
After all the above-mentioned processes, its time you receive the profits you have earned from Amazon.
Every two weeks, your total sales are summed up, the seller fee is deducted and your profits are directly deposited to your bank account by Amazon.
Benefits You Can Have from Amazon Wholesale FBA
This program is the best choice to upscale your business in no time.
Following are some of the benefits of using the Fulfilment by Amazon:
- Even after paying storage and fulfillment fees you still have greater profitability on your products
- Effortless logistics
- Effortless shipping
- Amazon handles the entire process from warehouse to shipping hence you don’t have to spend time on it
- Discounted rates for shipping
- Options for free shipping are available to customers
- Prime members have higher sales as they get two-day shipping for free on all FBA products
- Customer inquiries, returns and reverse logistics are the responsibility of Amazon
- Excellent customer service
- 24/7 customer support via phone, chat and email
- Unlimited storage space
- No payment for warehouse
- No inventory minimums, that is, you can even send one product for sale
- Many fulfilments centers are owned by Amazon all over the world
- The products are delivered in a couple of days as they have fulfillment centers across all places in the world
- Quickest delivery
- You can automate the process using FBA Shipping App
- You can also sell products to other channels using this program
Types of Accounts Required to Sell on Amazon FBA?
Selling on Amazon wholesale is quite reasonable.
There are two types of seller accounts offered by this program, that is, individual seller account and professional seller account.
The individual seller account is free but it has a higher sales fee. Whereas the professional seller account has a monthly subscription of $39.95 with a lower sales fee.
If you want to sell more than 40 products or items per month then you should choose the professional seller account.
How Much Fee Does Amazon Charges?
Following are the services for which Amazon charges from its sellers:
- It takes 15 percent referral fee on all sales for many groupings
- They charge very less fee for shipping and handling
- Keeping your inventory at fulfillment centers for too long can result in long term storage fees
- Depending on the type of item your inventory cost might vary
Note that the fee is very less as compared to the costs if you will work on all the things by yourself.
5 Ways To Find Profitable FBA Wholesale Accounts for Amazon FBA
Many people think that finding a wholesale account is very hard. But it is not the case. In this blog, you will learn that how you can find wholesale accounts for Amazon FBA in lesser time and with a very good strategy.
If you will try to focus on building relationships with bigger brands like Apple, Nike, Adidas, etc. then it is impossible for you as a normal Amazon seller. We would suggest that you should go for the smaller brands or lesser-known brands to start a wholesale relationship as it is comparatively easier and they are already seeking people to grow their businesses.
If you are planning to add a wholesale account to your business then it’s a very good idea. Adding wholesale means that you will be able to add a wider selection of sourcing your products in the business model.
Following are the best five ways you can use to find profitable wholesale accounts for Amazon FBA
These are some of the best and easiest five ways that we will recommend you, please read below:
- Trade show websites
- Trade shows
- Search for a wholesale directory
- Product Packaging
- Amazon Bestsellers
1. Trade Show Websites
- If you want to know about exhibitors and save your time you can simply visit trade show websites
- You can access the lists of vendors and their contact information from the website directly
- You can use this information to reach out to the vendors via email, phone calls or Whats App
- Making connections with vendors and asking good connections that lead to mutual benefits is important
- Once the connection is made, you can open a wholesale account (after having a resale certificate)
2. Trade Shows
- Trade shows are carried out in all niches of products in almost every country. Do not limit yourself geographically.
- Think of trade shows for bridal products, kitchen items, baby items, toys, gadgets, garden, home and arts, etc.
- You can also find trade shows that have products of all categories presented in one show
- If you live in big cities then there are many chances of good trade shows and markets happening throughout the year
- You can make a google search to find out trade shows near you
- Most trade shows are free to enter
- You can walk around the shows and communicate with exhibitors and learn about the types of products they have
- There are two types of exhibitors in trade shows, that is, distributors and manufacturers
- If you deal with a manufacturer, you will have to make larger purchases and price per unit will be affordable and you can make greater profits
- If you deal with a distributor, you will be dealing with a middle man. You can make small purchases but the unit cost will be comparatively higher
3. Search for a Wholesale Directory
- You can search a wholesale directory like Worldwide Brands
- If you use this the right way it will be worth the one-time cost
- This service comes with the upfront cost so that you would use it properly
- They have kept a cost because they have provided a link to all the wholesalers and vendors from all over the world
- They only provide Amazon seller approved wholesalers and it will save your time to link you with the correct people
- You will still need to find the wholesale companies for profitable items after connecting with the wholesalers through Worldwide Brands
4. Product Packaging
- This is the simplest approach you can use to find wholesalers for wholesale accounts
- Almost every product in the market has the name of the manufacturer and its contact details printed on the packaging
- You can use google to verify that information and find their relevant website or social media link
- You can look for local products of your area (for which your area is popular)
- Food products can be profitable if it is a local favorite and people don’t find it any other part of the country
- Find local products and find the contact details of manufacturers from its packaging, start connecting with them
- You can buy from them in bulk quantities and open a wholesale account for their products resulting in good profits
5. Amazon Bestsellers
- It is again not as complicated as we assume
- You can easily search top 100 sellers in your favorite categories and link with the manufacturers online
- To make it easier for you, you can go on to the Amazon bestsellers page
- If you find the product that interests you, simply go on the product page, you will see the manufacturer details below the title of that product
- Taking help of google you can find the contact information and start the process to open a wholesale account
Summary
The major thing to get these wholesale accounts is to make accurate contacts. Get a door open for yourself by simplifying the strategy and start a conversation, request for a catalog, and seek the details you require to open an account or how can you apply for it.