What is Amazon Wholesale FBA ?

 

What is Amazon Wholesale FBA

1.How wholesale fba is different from dropshipping

In wholesale fba we purchase the products from an authorized seller, distributor,s or suppliers. In dropshipping we never take permission from the seller to sell a specific brand But in wholesale fba we have the permission along with the reseller certificate and invoices.

2. How much investment is needed($2000) minimum

we need an account with a professional Plan which gonna charge us 40$ along with that we use some software to scan supplier sheets this in total would cost us 100$. In addition, we need to buy a good number of pieces of any product as the supplier/distributor won't entertain us for a few items so the desired minimum investment to start is $2000

3.which account type and plan is better?

It is preferred if you make a company account otherwise you will not get good brands however you can still start with an individual account as there is no restriction from amazon. There are 2 plans one is basic and the other is professional. The basic would charge you 0.99$ for every item you sell. however, the professional account will charge you 40$. Thus if you want to sell a more professional plan is better to go with it.

4.Do we need a website?

it is good if you have a professional website, email, and address. sometimes brands don't allow you to sell on amazon so you need to show them a website that would portray that you will sell the specific items on the website.

5.Extensions?

1. helium 10 ( would tell you BSR) always look over 90 days
2. KEEPA ( would tell you sales rank), helium 10 can also show you sales rank
3. amazon quick view extension( tells you how many other sellers selling the product on the face of products.

6.what R0I to expect?

we check through amazon calculator monthly sales, then we see how many sellers are selling we filter that with prime sellers

The fba calculator also shows you ROI if you put product cost but it's better to make your own excel sheet of expenses and calculate the revised ROI. The ideal return should be more than 10%-20% as you are not doing dropshipping and you also need to see how much ROI you are calculating over days as you will be having inventory storage cost. The excel sheet should have the following tabs

• SKU
• PRODUCT NAME
• ASIN
• COST PP
• NO OF PRODUCTS( how much you have to buy for this you need extension titled count stock this will tell you how much quantity your competitor is having
• TOTAL COST
• PREP COST
• AMAZON SHIPMENT
• EXTRA DISCOUNT
• GRAND TOTAL
• FULL FULFILLMENT FEES
• REFERRAL FEES
• VAT(IF UK)
• TOTAL COST
• SELL
• PROFIT/ROI

7.how to find whole sellers, distributors via GOOGLE?

1. For example, search toy distributor on google
2. you will probably see a distributor directory
3. check that specific directory and see how many products that the distributor is dealing with and start contacting them.

8.how to find whole sellers, distributors through reverse sourcing(manually)

1. Search any random product on amazon
2. see how many sellers are doing me too on it
3. pick that seller whose ratings are less or he is a new seller as this would be easy to compete and we gonna check in detail how many brands he is selling
4. by selecting him we will be sure that products can be sold on Amazon, they are not PL and these accounts can be accessed from distributors that's why that seller is doing mee too.
5. on checking that particular store we will scan all the products he is selling that will give us a chance to sell that same stuff
6. now google individually that brand and contact them and try best to get an account from them.

9.Important points to consider despite having good BSR

1. avoid the product if amazon is not going out of stock in it
2. avoid the product if the brand itself is selling as you will not get a competitive edge
3. avoid the product if there are less than 4 sellers in it.
4. in a short ideal situation is if Amazon is going out of stock in that product and there are more than 4 sellers in that particular product

10.What if amazon doesn't allow to sell in a specific category as being a new account? or you need approval?

• you get approval from 2 options: 1 option is the distributor invoice and 2nd is his letter of authorization
• for above you can get a dummy invoice from the distributor as you don't have a sales history. put that invoice on amazon and negate your asin, then go for purchasing that product

NOTE:

• The taxation part I have not covered you can google that further depends whether you want to sell in UK/USA/Germany
• the sourcing can also be done through some tools that I will explain in my next post