Selling on Amazon can be challenging if you are not conversant with the business model. But with time and consistent effort, you can surf to prominence in the business.
From household items to industrial items and many other items, Amazon’s buying and selling are drastically growing in e-commerce. However, Amazon does not sell these items themselves. Instead, Amazon houses so many third-party sellers (intermediaries) who do the selling on Amazon.
There’s so much opportunity in Amazon FBA Wholesale. If you’d like to be a part of it, dive in with this article and discover how you can do Amazon FBA Wholesale.
In this article, you will learn how to:
- Register as an Amazon FBA Seller
- Create a Wholesale Account
- Create an Amazon Listing
- Prepare Your Inventory
- Promote Your Products
- Start Selling
- Know the Costs of Amazon FBA Wholesale
Let’s get into the details.
1. Register as an Amazon FBA Seller
The first step to Amazon FBA wholesale is registering as an Amazon FBA seller. You can either open a basic or a Professional account. A Basic account is free, but you pay a commission for every sale you make. It is mainly for sellers who make smaller sales in a month.
While a professional account costs about $39.99 per month. To create an Amazon seller account:
- Log on to services.amazon.com
- Click on sign up
- Select what account you’d like to create: individual or professional
- Enter your email and select “create new account”
- Select your business location and business type
- Input your personal information
- Enter your billing information
- Add products information
- Verify
2. Create a Wholesale Account
Next, create a wholesale account. The wholesale account allows you to buy products in large quantities from a supplier. While setting up a wholesale account, be sure to do so with a reliable supplier.
Follow these steps to create a wholesale account and place your first wholesale order:
- Choose a product you want to sell
- Contact the company that sells the product you want to sell and communicate with them about being one of their distributors. The best way to secure successful communication with your prospective supplier is to follow the Email < Phone < In-Person format
- Once approved, fill out an account application and business agreements
- Obtain their product catalog and price list
- Carefully go through the price list
- Source for quality products that are high in demand and place an order
To source for products, you will need:
- Amazon seller account
- A sales tax ID number/resale certificate
- Money to buy inventory
3. Create an Amazon Listing
Next, create an Amazon listing. Product listing is like creating your storefront. Your listing title appears when customers search for a product on the internet. A click on your listing title will take the customer to your main product page, where the information on every product is fully described.
Listings provide all of the knowledge that a buyer needs to make a purchase. Hence, you must create a quality Amazon Listing that will optimize your page over other listings.
To create a listing:
- Log into your seller dashboard. Go to “Inventory” and select “Add a Product.”
- Go to the product creation page, and select “Create a new listing.” to create a new product
- Suppose you wish to use an already existing listing. Select an ‘Existing listing” to create a “me too” from the already selling list
- Choose your product categories and subcategories to classify your product
- Fill in detailed information on your product listing
4. Prepare Your Inventory
The next step to do Amazon FBA wholesale, prepare your inventory. After you’ve created your listing, prepare your inventory and send it to a fulfillment centre for Amazon to store.
You will have to pay a fee to Amazon prep service so they can package your inventory for you. This is because Amazon may reject your inventory if you don’t follow the guidelines on proper inventory packaging. Also, the Amazon fee prep are charged on a per-unit basis.
5. Promote Your Products
Once your inventory is ready, promote your products. You have to promote your products to attract customers and your promotion must be compelling enough to attract customers to your page.
This is where you should make use of social media, ads, blogs, Search Engine Optimized content, email marketing, and the likes to promote your store. Amazon Pay-Per-Click can also help you create ads for your product optimization on the Amazon search engine.
6. Start Selling
With promotion comes sales. Well, maybe. But this is what you signed up for—to sell. To do this, you must be determined to stand out from the crowd because there is so much competition selling on Amazon.
Do your homework thoroughly; check on customer product reviews, know what sells well and faster, and maintain stock levels of highly sought products. Find ways to keep your customers coming back to your store.
7. Know the Costs of Amazon FBA Wholesale
There are two types of fees that FBA sellers pay:
- Fulfillment fees
- Storage fees.
Fulfillment Fees
Your fulfillment fees are the fees you incur on every order that Amazon packs and ships on your behalf. Fulfillment fees include picking, packing, shipping, after-sales customer service, and product returns. Fulfillment fees are determined by the size and weight of your item. They are charged per unit basis and deducted from your Amazon account balance.
FBA Inventory Storage Fees
You’ll incur this cost for storing your products in Amazon’s fulfillment centers. It depends on your product size and category.
Storage fees are further classified into:
- Monthly inventory storage fees—how much space your inventory occupies in the Amazon warehouse per month
- Long-term storage fees; how much space your inventory occupies in Amazon warehouse for a long term
Conclusion
To begin your Amazon FBA wholesale journey, register as an Amazon FBA seller. Having a seller account is you first step to begin Amazon FBA. Next, create a wholesale account. This account allows you to purchase goods in large quantities.
Once your wholesale account is ready, prepare product listing and inventory. Then do well to promote your products. Promoting your products help you gain traction that can translate into sales. Finally, keep in mind the cost of Amazon FBA wholesale as Amazon charges you on every order packed and shipped.
