How to Source Wholesale Products for Amazon FBA
FAQs
What is FBA?
FBA stands for Fulfillment by Amazon. It's an Amazon service where sellers send products to Amazon's warehouses and Amazon handles storage, shipping, and customer service.
How do I choose products to sell?
Use Amazon's Best Sellers ranks to identify popular categories. Analyze competition with tools like Jungle Scout. Calculate potential profit margins. Choose products with steady demand and good growth potential.
Where do I find suppliers?
Thoroughly vet each supplier before ordering inventory. Check reviews, inspect operations if possible, start with small test orders. Build positive long-term relationships with suppliers.
How should I manage FBA inventory?
Use inventory management software to precisely track levels. Review sales reports frequently to inform replenishment orders. Take advantage of Amazon's inventory performance tools.
How much money can I make with FBA?
Profit margins vary greatly depending on your product selection and sales volume. Many sellers make between 15-45% profit on each item. With good product research and marketing, six figures in revenue is achievable.
What fees does Amazon charge?
Amazon charges referral fees on each sale ranging from 8-15%, along with variable closing fees. They also charge FBA fulfillment fees for storage space and shipping. Factor these fees into your product cost analysis.
Do I need to register a business?
You can start selling as an individual. But registering an LLC or corporation provides liability protection and tax advantages as your business grows. Consider your state's specific business registration requirements.
