Suppliers: Deciding Who to Buy Your Merchandise From


 

Girl doing product research on computer

Once you have decided to sell Amazon merchandise, you need a supplier to create the products.  There are many companies around the world that make items you can purchase, rebrand, and sell on Amazon.  Here are some things to consider as you decide who to buy your merchandise from.

Start with Product Research

It may seem backwards, but you need to start doing Amazon product research before you even think about suppliers.  There is no point in seeing what a factory can make for you if you don’t even know if the merchandise will sell.  Thorough product research always needs to be your first step.

When looking for a product to sell, don’t just choose something you like or find interesting.  Just because you would like something does not necessarily mean that many customers will.  Instead, do Amazon product research to determine what is selling well and being searched for often.  Choose a product that you can differentiate in a meaningful way.  If you sell the same drawstring bags as your competition, it is up to fate which products will sell.  If, however, you sell a pack of ten bags, each in a different color, you will be able to beat out the competitor that is only selling bags of the same color together.  The products you choose should be popular but different in some way.  

Think about Pricing

Once you have completed your product research, you can start looking for suppliers.  Most likely, you will find multiple sources for the merchandise you want.  It is at this point that price comes into play.  In your Amazon product research, you should have looked up how much products similar to yours are being sold for.  You want a supplier who can get you that Amazon merchandise for a third of the selling price or less.  Here’s why: Amazon FBA businesses run on ROI, or return on investment.  You invest money into your company by buying merchandise, and then get the money back when you sell the product.  In order to grow as a company, you should list your products for no less than 200 percent ROI.  This means that if a supplier charges you five dollars for an item, you need to resell it for no less than $15.  In this system, you get your initial investment back, you have enough to buy an additional piece of merchandise to sell, and you have money to spend on advertising to grow your company. 

Hire a Reliable Supplier

In addition to finding a supplier that will sell you Amazon merchandise at a reasonable price, you also want to find a reliable company.  This comes back to research.  Find reviews from other Amazon FBA sellers of potential suppliers online.  You want a company that delivers on time, every time.  Reliable businesses have no hidden fees and no problems sticking to deadlines.  If a supplier has bad reviews in these categories, don’t buy from them.  Customers expect to receive their packages on time, especially when it comes to Amazon merchandise.  While Amazon FBA provides all the storage and shipping needed to make this possible, they can’t be responsible for a supplier that never gave them the product in the first place.

Amazon merchandise from FBA successes

Kale Abrahamson and Taylor Hoitt, founders and CEOs of Nine University, have tons of experience selling Amazon merchandise.  They are experts at every part of Amazon FBA business, from product research to suppliers to advertising.  They offer free training online and even have their own clothing line.  Check it out at Kt Nine.