Where to Buy Things to Sell on Amazon: The Definitive Guide

So, you’re ready to jump into the world of Amazon selling? Excellent choice! But before you start dreaming of bestseller status, you need to answer a crucial question: Where do you actually get the products to sell? The answer, my friends, is multifaceted and depends heavily on your business model, risk tolerance, and long-term goals. In short, the best places to source products to sell on Amazon are: wholesale suppliers, dropshipping companies, online marketplaces, retail arbitrage (and online arbitrage), liquidation sales, manufacturers, and handcrafted sources.

Let’s delve deeper into each of these options.

Unveiling the Sourcing Secrets: A Deep Dive

1. Wholesale Suppliers: The Foundation of Many Amazon Businesses

Wholesale suppliers are the bread and butter of many successful Amazon sellers. You buy products in bulk directly from the manufacturer or a distributor, typically at significantly discounted prices. This allows you to achieve healthy profit margins when reselling on Amazon.

• Pros: Lower per-unit cost, potential for higher profit margins, consistent supply.
• Cons: Requires significant upfront investment, storage space needed, competition can be fierce.
• Finding them: Use online directories like SaleHoo, Worldwide Brands, and ThomasNet. Attend trade shows related to your niche. Network with existing business owners.

Key Considerations: Due diligence is paramount! Verify the supplier’s legitimacy. Request samples before placing large orders. Negotiate payment terms and minimum order quantities.

2. Dropshipping: Selling Without the Storage Hassle

Dropshipping is a sourcing model where you don’t hold any inventory yourself. When a customer places an order on Amazon, you forward that order to a third-party supplier (the dropshipper), who then ships the product directly to the customer.

• Pros: Low startup costs, no need for storage space, wide product selection.
• Cons: Lower profit margins, less control over shipping and quality, higher risk of customer service issues.
• Finding them: Use dropshipping platforms like Oberlo (for Shopify integration), SaleHoo, and Spocket. Research reputable suppliers through online forums and reviews.

Key Considerations: Choose reliable dropshipping suppliers with fast shipping times and excellent customer service. Ensure they offer tracking information. Be prepared to handle customer service inquiries related to shipping and product quality. Watch out for hefty “membership fees” or “product markups” that are not transparently displayed.

3. Online Marketplaces: Tapping into Pre-Existing Inventory

Don’t discount the power of other online marketplaces! You can source products from sites like eBay, AliExpress, Alibaba, and even Facebook Marketplace and resell them on Amazon for a profit. This is often referred to as online arbitrage.

• Pros: Access to a wide variety of products, potential for finding unique items, relatively low startup costs.
• Cons: Requires constant monitoring for profitable deals, shipping times can vary, potential for sourcing counterfeit or misrepresented items.
• Finding them: Use product research tools to identify products that sell for a higher price on Amazon than on other marketplaces. Manually search these marketplaces looking for deals and opportunities.

Key Considerations: Thoroughly research the product before buying. Check the seller’s feedback and ratings. Be aware of potential shipping delays. Ensure the product is accurately described and in good condition.

4. Retail Arbitrage: The Art of Finding Clearance Deals

Retail arbitrage involves buying products at discounted prices from brick-and-mortar retail stores (think clearance sections at Walmart or Target) and reselling them on Amazon.

• Pros: Low startup costs, potential for high profit margins on clearance items, immediate access to products.
• Cons: Time-consuming, requires physical travel, inventory can be unpredictable, potential for stock shortages.
• Finding them: Visit local retail stores regularly. Use apps that scan barcodes and compare prices on Amazon (like the Amazon Seller App).

Key Considerations: Focus on products with significant price differences between the retail store and Amazon. Consider the cost of gas and travel time. Be aware of Amazon’s restrictions on certain products.

5. Liquidation Sales: Snatching Up Bulk Bargains

Liquidation sales offer the opportunity to buy large quantities of products at deeply discounted prices, often from businesses that are closing down or clearing out excess inventory.

• Pros: Extremely low per-unit cost, potential for very high profit margins, opportunity to acquire unique or hard-to-find items.
• Cons: Requires significant upfront investment, inventory can be unpredictable, may require repairs or refurbishment, typically “as is” purchases.
• Finding them: Search online for liquidation companies and auction sites. Network with business owners and industry contacts.

Key Considerations: Inspect the products carefully before buying. Negotiate the price. Factor in the cost of repairs, refurbishment, and storage. Be prepared to market and sell the products effectively.

6. Manufacturers: Customizing Your Product Dreams

Working directly with manufacturers gives you the ultimate control over your product, allowing you to customize designs, materials, and branding.

• Pros: Unique product offerings, higher profit margins, strong brand identity.
• Cons: High startup costs, long lead times, requires strong negotiation and communication skills.
• Finding them: Use online directories like Alibaba and Global Sources. Attend industry trade shows. Network with other business owners.

Key Considerations: Conduct thorough due diligence on potential manufacturers. Request samples before placing large orders. Clearly communicate your specifications and expectations. Negotiate payment terms and production timelines.

7. Handcrafted Sources: Unleashing Your Creative Side

If you’re artistically inclined, selling handcrafted items on Amazon can be a rewarding venture. This can involve crafting items yourself or sourcing them from other artisans.

• Pros: Unique product offerings, strong brand identity, potential for high profit margins, personal satisfaction.
• Cons: Time-consuming, requires specialized skills, production can be limited, challenging to scale.
• Finding them: Craft fairs, online marketplaces like Etsy, local artisan communities.

Key Considerations: Ensure your products meet Amazon’s quality standards. Develop a strong brand identity. Market your products effectively. Consider the time and cost involved in producing each item.

Frequently Asked Questions (FAQs)

1. What is the best sourcing method for beginners?

Retail arbitrage and online arbitrage are generally considered good starting points for beginners due to their low startup costs and relatively low risk. You can start small and learn the ropes of Amazon selling without committing to large investments.

2. How can I verify the legitimacy of a wholesale supplier?

Check their business registration and license. Request references from other customers. Verify their physical address. Be wary of suppliers who demand upfront payments or offer suspiciously low prices. Use reputable online directories that vet their suppliers.

3. What are the risks of dropshipping?

The main risks include low profit margins, potential for shipping delays and errors, difficulty controlling product quality, and potential for customer service issues. Thoroughly research your suppliers and choose reputable partners.

4. How do I calculate profit margins when sourcing products?

Consider all costs, including the cost of goods, shipping, Amazon fees, and marketing expenses. Use a profit margin calculator to determine your potential profitability before investing in any inventory.

5. What are Amazon’s product restrictions?

Amazon has restrictions on certain product categories, such as alcohol, tobacco, hazardous materials, and certain types of medical devices. Review Amazon’s Seller Central guidelines for a complete list of restricted products.

6. Do I need a business license to sell on Amazon?

While not always strictly required, having a business license can provide legal protection and credibility. It’s best to consult with a legal professional to determine the specific requirements in your area.

7. How important is product research?

Product research is absolutely crucial! It helps you identify profitable niches, assess competition, and understand customer demand. Use product research tools like Jungle Scout, Helium 10, and Viral Launch to gain valuable insights.

8. What is Private Label?

Private Label involves sourcing a generic product from a manufacturer and selling it under your own brand name. It allows you to differentiate your product, build brand loyalty, and control your pricing.

9. How can I negotiate better prices with suppliers?

Build a strong relationship with the supplier. Order in larger quantities. Pay your invoices on time. Negotiate payment terms. Be polite and respectful.

10. What is the difference between Alibaba and AliExpress?

Alibaba is a B2B (business-to-business) platform primarily for wholesale purchases, while AliExpress is a B2C (business-to-consumer) platform for smaller, individual purchases.

11. What are Amazon’s seller fees?

Amazon charges various fees, including referral fees (a percentage of the selling price), fulfillment fees (if you use Fulfillment by Amazon – FBA), and storage fees. Understand these fees before pricing your products.

12. How can I stay updated on the latest sourcing trends?

Follow industry blogs and forums. Attend trade shows and conferences. Network with other Amazon sellers. Continuously research and analyze the market. Subscribe to relevant newsletters and podcasts.

Sourcing products to sell on Amazon is an ongoing learning process. By understanding the various sourcing options and conducting thorough research, you can increase your chances of success in the competitive world of e-commerce. Good luck, and happy selling!