Selling wholesale products on Amazon FBA can take your ecommerce business to the next level. By purchasing inventory directly from manufacturers and distributors at bulk rates, you gain access to discounted pricing and higher profit margins. You can source popular brand name items with high demand and quick sales.
But finding the right wholesale products that will actually sell on Amazon can be a huge challenge. With millions of products to choose from and factors like profitability, competition, demand, and pricing to consider, conducting effective product research is critical.
The good news is there are powerful software tools and data-driven methods that make wholesale product selection for Amazon far easier and more accurate. In this comprehensive guide, I’ll share the top techniques, tools, and strategies I’ve learned from over 10 years of managing successful Amazon wholesale programs.
With the right knowledge, you can consistently source hot-selling, high-profit wholesale products for Amazon FBA and avoid wasting time and money on duds. Let’s dive in!
How the Amazon FBA Wholesale Business Model Works
Selling wholesale on Amazon works like this:
- You source and purchase inventory in bulk directly from manufacturers, distributors, or brokers.
You ship those bulk quantities of products to Amazon‘s fulfillment centers.
Amazon stores the inventory for you and handles picking, packing, and shipping individual units to customers.
When an order comes in, Amazon fulfills it and provides customer service.
You receive payouts for each sale minus Amazon‘s referral and fulfillment fees.
It‘s an extremely scalable model since you don‘t have to hold any inventory or ship products yourself. Amazon takes care of logistics and support so you can focus on sourcing profitable products and driving sales through marketing.
Partnering directly with major brands also lends credibility and trust for your listings. You gain access to high-quality products customers already love and buy regularly.
4 Reasons Selling Wholesale is a Smart Amazon FBA Strategy
Compared to other approaches like private label, wholesale offers some unique advantages:
1. Lower Risk – With unknown private label products, there is always uncertainty about whether your items will actually sell. Wholesale allows you to sell proven bestsellers from top brands that already have high demand on Amazon.
2. Less Work – You skip the steps of designing products, finding manufacturers, and creating listings from scratch. Simply source inventory from suppliers and send to Amazon.
3. Higher Margins – By buying directly from brands and bypassing middlemen, you earn much higher profit margins than retail arbitrage. Markups can range from 20% to 100%.
4. Rapid Scaling – Growth accelerates as you build relationships with more suppliers and expand your inventory. Ordering inventory bulk means you can sell far more volume.
While wholesale does require upfront capital to purchase inventory, the ability to quickly scale a profitable product makes this risk worthwhile.
How to Source High-Margin Wholesale Products for Amazon
The key to success in Amazon wholesale is finding high-quality products in popular niches that will earn maximum profits. Through extensive testing and data analysis on thousands of products, I‘ve identified the most crucial factors that make or break profitability:
Look for Established Brands
Partner with major brands that hold customer loyalty and trust. Search for products with:
- Strong branding and packaging
- High average ratings (4+ stars)
- At least 50+ reviews
- Amazon‘s Choice badge
- Recognized parent company
Established brands convert better because customers know and like the name. They also tend to receive more organic traffic.
Analyze Sales Volume
Sales volume indicates how much demand exists for a product. Prioritize products that sell:
- At least 200+ units monthly
- Over $5,000 in estimated revenue monthly
- At least $25,000 annually
Higher sales volumes drive profitability and also make ranking well much easier.
Check Amazon Category Bestsellers
Look at the most popular products in strong subcategories. Sort categories by “Bestseller” and research items on the first 1-2 pages.
Hot bestsellers like this essential oil diffuser almost guarantee quick sales.
Products with low competition are far easier to rank for. Ideal items have:
- 5 or less FBA sellers ideally
- No dominant seller with over 50% market share
- Low review count (under 50-100)
- Opportunity to differentiate
Checking the Amazon seller listings reveals competition levels.
Target Underserved Niches
Seek out niche products that solve an unmet consumer need. For example:
- Special dietary needs like gluten-free, vegan, etc.
- Hobbies like beekeeping, woodworking, etc.
- Health conditions like sleep apnea, arthritis, etc.
Passionate niche buyers actively seek out products catering specifically to them.
Verify Trends and Seasonality
Choose evergreen products in industries with steady long-term growth. Analyze sales charts to spot seasonal spikes.
Avoid fads which crash quickly. Consistent year-round demand results in reliable sales.
8 Must-Have Tools for Wholesale Product Research
Manually scanning Amazon for product opportunities is extremely challenging. Luckily, there are powerful software tools designed specifically for product research.
Based on testing dozens of Amazon product research tools, these 8 are my top recommendations for identifying profitable wholesale products:
1. Jungle Scout
Jungle Scout is likely the most popular software suite for Amazon sellers. It provides detailed sales estimates, trends, and competitor data to gauge product viability. The Chrome extension integrates directly with Amazon to analyze site metrics. Useful tools include:
- Product Tracker: Tracks sales, ratings, and inventory of your items. Provides alerts for changes.
Keyword Scout: Finds high-selling search terms and corresponding ASINs. Lets you evaluate competition per keyword.
Product Database: Analyzes demand, trends, and opportunities across 70+ million Amazon products. Exportable CSV data.
Jungle Scout is a must-have for any serious Amazon seller. Their wealth of data helps identify winning products.
2. Helium 10
Similar to Jungle Scout, Helium 10 analyzes Amazon product opportunities across dozens of metrics. Standout tools consist of:
- Black Box: Product finder that locates profitable niche and wholesale products using smart filters.
Magnet: Finds high-performing search terms and assesses competition levels.
Cerebro: Compiles product and market analytics to quantify potential sales and profits.
Helium 10 breaks down Amazon product analysis into specialized tools with unique algorithms. Their database scales to cover emerging niches.
AMZScout makes it simple to evaluate Amazon products through its web app and Chrome extension. Useful features include:
- Product Finder: Lookup any Amazon product by keyword or ASIN for sales and revenue data.
Profit Miner: Filters and exports profitable product opportunities.
HTML View: Shows the HTML behind any Amazon product page.
Product Tracker: Charts the historic sales and rankings for products.
AMZScout compiles robust metrics in an easy-to-use interface. Their tools integrate seamlessly into your product research workflow.
4. Unicorn Smasher
A free alternative to paid tools, Unicorn Smasher by AMZTracker provides insightful product analytics directly on Amazon product listings. Just click the extension icon on any listing to view metrics like:
- Estimated monthly sales and revenue
- 30/90/180 day sales histories
- Number of reviews
- Bestseller ranking
- Seller and brand information
Unicorn Smasher makes it fast and free to gauge potential. The data snapshot helps quickly identify winners.
5. IO Scout
IO Scout lets you lookup the demand and competitiveness of any product on Amazon in seconds. Their web-based Product Finder reveals:
- Monthly and daily sales estimates
- Historic best seller rankings
- Total review count
- Inventory levels
- 30/90/180 trends
IO Scout also saves your product searches and can export large datasets. The tool integrates seamlessly into your workflow.
6. AMZ Base
AMZBase sources product data from multiple sites beyond just Amazon, including eBay, Walmart, AliExpress, Google Trends, and more. You gain a wider view of product demand. AMZBase tools that help find opportunities include:
- Product Explorer: Lookup any product by URL or keyword for cross-channel analytics.
Reverse ASIN Search: Takes an ASIN and reveals the product name and opportunity.
Product Keyword Finder: Discovers high-performing keywords and low competition ASINs.
Sourcing data from multiple sites gives greater confidence in product viability. AMZBase compiles numbers absent on Amazon alone.
ZonGuru makes wholesale product research easy through its “Niche Finder” tool. Just select an Amazon category and set filters like:
- Minimum Monthly Revenue
- Maximum # of Sellers
- Minimum # of Reviews
ZonGuru returns a list of the most profitable products meeting your criteria. You can filter to remove hazards like restrictions, large/heavy items, and more.
ZonGuru recommends hidden gems across every product niche.
SellerApp offers a full suite of free Amazon seller tools. Useful product research capabilities include:
- Product Finder: Lookup Amazon products by keyword, category, or ASIN for key metrics.
Reverse ASIN Lookup: Enter any ASIN to reveal product details.
Keyword Generator: Discovers high-performing keywords and low competition ASINs.
Sales Estimator: Predicts monthly and yearly sales for any product.
SellerApp provides robust metrics totally free. Their tools easily integrate into daily workflows through extensions.
While individual needs vary, these 8 tools form a powerful product research toolkit. Using them in combination lets you thoroughly evaluate opportunities from all angles.
6 Tips for Finding Reliable Wholesale Suppliers on Amazon
Once you’ve identified winning products, the next step is finding a reliable supplier that can provide bulk quantities on an ongoing basis. Here are 6 tips for sourcing great wholesale suppliers:
1. Get Samples to Verify Product Quality
Always request a product sample or small trial order first. Inspect the quality against the original listing to ensure it meets your standards. Beware of knockoffs.
2. Compare Pricing From Multiple Suppliers
Don’t go with the first supplier you find. Price compare between competitors and negotiate to get the best rates. Buying bulk means big savings.
3. Look for Suppliers That Offer Brand Registry Support
Choose suppliers willing to provide invoices and documentation to help you register the brand with Amazon. This secures listing control and enhances branding.
4. Understand Their Production Capabilities
Determine how suppliers source and fulfill orders. Can they reliably provide the quantities you need? What are their lead times?
5. Review Logistics Like Shipping Rates and Times
Factor total landed costs into supplier decisions. Cheaper production price may be offset by higher shipping fees. Compare incoterms.
6. Join Relevant Facebook Groups to Find Supplier Reviews
Groups like Amazon FBA Wholesale Suppliers showcase supplier reviews from fellow sellers. Search for ratings there.
Vetting suppliers thoroughly ensures you choose partners that enable success. Prioritize communication, transparency, and performance.
5 Strategies to Stand Out in Competitive Wholesale Niches
When selling popular wholesale products, you’ll inevitably face competition from other sellers. Here are 5 proven tactics to crush competitors:
1. Offer Multi-Pack Quantities
Bundle groups of 2, 3 or more units at a discounted bulk rate. Multi-packs incentivize larger purchases.
2. Provide Free Value-Added Bonuses
Include free digital downloads, ebooks, quick-start guides or other freebies. Sweeten the deal.
3. Advertise Your Shipping and Return Policy
Promote fast Prime shipping and hassle-free returns to reduce friction.
4. Run Sponsored Ads and Discount Promotions
Temporary price cuts or coupons entice buyers to your listing over others. Advertise them via PPC ads.
5. Focus on Excellent Customer Service
Fast shipping, responsive support, and helpfulness earn you glowing reviews. Be the service leader.
Building a loyal customer base earns consistent sales even against tough competition. Give buyers good reasons to choose you.
Amazon Wholesale Success Checklist
Here is a checklist summarizing the key steps covered in this guide to kickstart your Amazon FBA wholesale business:
- [ ] Source proven bestselling products using Amazon research tools
- [ ] Verify strong demand, trends, and customer ratings
- [ ] Check for low competition in listing
- [ ] Calculate fees to confirm attractive profit margins
- [ ] Request samples from suppliers to inspect product quality
- [ ] Compare bulk pricing between multiple suppliers
- [ ] Evaluate supplier production capacities and lead times
- [ ] Review shipping costs/speeds and total landed costs
- [ ] Negotiate discounts for large bulk orders
- [ ] Register brand with Amazon through supplied invoices
- [ ] Create enhanced listing with promotions, bundling, etc
- [ ] Drive traffic to listing through advertising and marketing
Following this methodology will help you consistently source and sell hot wholesale products profitably on Amazon.
So are you ready to take your Amazon FBA business to the next level?
We Can Help You Succeed in Amazon Wholesale
Selling wholesale on Amazon FBA has the potential to rapidly scale your ecommerce business. But finding the right products and suppliers can be challenging.
The good news is you don‘t have to do it alone.
Here at Seller Interactive, we offer an Amazon FBA Wholesale Program dedicated specifically to helping sellers succeed in Amazon wholesale.
Our team of experts handles sourcing profitable wholesale products, vetting suppliers, securing bulk inventory discounts, creating enhanced listings, and providing ongoing coaching and support.
We want to see your Amazon wholesale business thrive. Schedule a call to discuss how we can help you start and scale your FBA wholesale venture. Our proven methodology has generated millions in sales for hundreds of small businesses.
I‘m confident we can help you find and sell hot wholesale products while avoiding critical pitfalls. Let‘s connect to explore how we can partner and unlock your full potential on Amazon.
All the best,