How to Source a Product to Sell on Amazon (Step-by-Step Guide)
Source a Product is a crucial step if you’re considering launching an Amazon business. Even the best branding or marketing won’t help your business succeed if you don’t have the right product.
Even if you’re a total beginner, we’ll explain in this blog how to find a product to sell on Amazon. This detailed guide will provide you with the clarity and guidance you require, regardless of your preference for dropshipping, wholesale, or private labeling.
Source a Product: what is it?
The process of locating reliable manufacturers or suppliers to create or supply goods that you can sell on Amazon is known as Source a Product. Finding affordable, high-quality products is the aim in order to turn a healthy profit after advertising, shipping, and Amazon fees.
- Products can be sourced via:
- foreign vendors (such as Alibaba and IndiaMart)
- Domestic distributors
- Platforms for dropshipping
- Local or handmade vendors (for small-scale sellers)
Select the Proper Good to Offer
You must first decide what you want to source.
A successful Amazon product usually looks like this:
- $20 to $50 is the ideal price range for impulsive purchases.
- high demand (more than 300 sales per month)
- Competition is low to medium.
- Small and lightweight (lower shipping costs)
- Year-round sales; not seasonal
- Absence of significant brand competition
- Easily branded or improved
For inspiration, consult resources such as Amazon Best Sellers, Jungle Scout, or Helium 10.
Verify Your Product Concept
After you have a product idea, you must use actual data to validate it.
Pose the following queries:
- Are people using Amazon to look for it?
- Do current listings have poor optimization (poor photos, low ratings)?
- Can I provide better packaging, branding, or quality?
- Are there already too many sellers?
To validate your choice, consult Helium 10 Cerebro’s keyword research, customer reviews, and Amazon’s Best Seller Rank (BSR).
Find Reliable Suppliers
The product must now be sourced. Alibaba is the most popular platform.
Here’s how to apply it:
- Visit Alibaba.com.
- Enter the name of your product in the search bar.
- Sort by “Trade Assurance” and “Verified Suppliers.”
- Compare the prices, delivery times, and MOQs (Minimum Order Quantity) of five to ten suppliers.
- Send them a message with inquiries:
- What is your minimum order quantity?
- Are samples available?
- Do you provide custom packaging or private labeling?
- How long is your lead time?
More platforms for Source a Product:
- Worldwide Sources
- 1688 (based in China; less expensive, but more difficult for foreign vendors)
- ThomasNet (suppliers based in the USA)
Purchase Samples
Always order product samples from two or three suppliers before making a large purchase.
Once the samples arrive, make sure to:
- Product longevity and quality
- Packing
- Possibility of branding
- Any flaws in manufacturing
Make notes, test it out yourself, or get input from friends and family.
Advice: Pick the supplier who provides the best value in terms of cost, quality, and communication.
Calculate Profit Margins
You must ensure the product is profitable after all expenses.
Let’s break it down:
| Cost Type | Example Amount |
|---|---|
| Product Cost | $3.00 |
| Shipping to Amazon | $1.50 |
| Amazon FBA Fee | $4.00 |
| Amazon Referral Fee | $3.00 |
| Total Cost | $11.50 |
| Selling Price | $24.99 |
| Net Profit | $13.49 |
Use the Amazon FBA Calculator (available for free online) to check your profit margins. Aim for at least 30% profit margin per unit.
Make a Small Purchase
Place a small trial order of 100 to 300 units once you’re comfortable with it. Wait until you are certain that the product will sell before placing a large order.
When putting the order in:
- Verify the total cost per unit.
- Add the necessary packaging.
- Request that product barcodes (FNSKU) be labeled or printed.
- Establish precise delivery dates.
- To protect payments, use Trade Assurance.
Another option is to employ a third-party inspection business (such as AsiaInspection or QIMA) to verify the quality prior to shipping.
Introduce and Enhance Your Product
Now that your product is operational, concentrate on:
- Making a listing that is professional (titles, bullets, A+ Content)
- Using Amazon PPC advertisements to increase traffic
- Asking friends or using apps like Vine to obtain preliminary reviews
- Using Sellerboard or Helium 10 to monitor performance
Keep an eye on inventory, reviews, ad spend, and profit during the crucial first few weeks.
Advice for Long-term Success
- Introduce related goods to establish a brand.
- Make improvements to your product based on consumer input.
- Provide variations or bundles (colors, sizes).
- As your volume increases, bargain for lower prices.
- Prevent stockouts by automating reordering.
In conclusion
Finding a product to sell on Amazon can be daunting, but it’s much simpler if you follow a methodical plan. Research should come first, followed by product validation, contacting several suppliers, quality testing, profit calculation, and a planned launch.
You can start with just one successful product, just like many six-figure sellers did.
FAQs
Alibaba is the simplest way to locate a verified supplier for your product. Before placing a large order, you can get in touch with them directly and ask for samples.
Yes, but make sure the product has the right packaging, barcodes, and satisfies Amazon's quality standards.
Yes, Alibaba is generally safe if you use Trade Assurance and work with verified suppliers. Always place your sample order first.
Depending on your product and order size, you can begin with as little as $1,000 to $2,500.
Yes, but dropshipping is subject to stringent Amazon regulations. For long-term FBA success, it is not advised. With private labeling, you have more control and make more money.
To source a product, start with market research, then find a reliable supplier on platforms like Alibaba. Always compare prices and ask for samples before you source a product. Make sure your supplier meets Amazon FBA requirements before you source a product in bulk. A smart way to grow your business is to carefully source a product that fits your niche.
Success on Amazon FBA depends on knowing how to source a product properly in the cutthroat eCommerce industry of today. Before sourcing a product, always take the time to investigate and confirm your suppliers, regardless of whether you’re launching your first item or growing your catalog. Source a Product directly from manufacturers is now simpler than ever thanks to websites like GlobalSources and Alibaba. Your Amazon journey may succeed or fail based on your ability to source a product with high demand and healthy profit margins. Remain focused, adhere to the proper procedure, and confidently Source a Product that aligns with your brand’s vision.
