Where Can I Find Sourcing Lists for Amazon FBA as a New Seller?

Starting your Amazon FBA (Fulfillment by Amazon) business can be overwhelming, especially when it comes to finding high-quality products to source. Fortunately, there are several effective strategies and resources available to help you get started.

How to Source Products for Amazon FBA

1. Retail Arbitrage

Retail arbitrage involves purchasing discounted products from retail stores and reselling them on Amazon for a profit. This method involves scanning the clearance aisles at big-box stores like Walmart, Target, Big Lots, and pharmacies such as CVS and Walgreens. Liquidation and surplus stores are also excellent places to look for heavily discounted items, often at a discount of up to 75% off retail prices.

While this method can be time-consuming, it typically requires a smaller upfront investment since you're not buying in bulk. However, it's important to understand the pros and cons of using business credit cards to finance your inventory. Always ensure you keep all your invoices and receipts for record-keeping purposes.

2. Online Arbitrage

Just like retail arbitrage, online arbitrage involves sourcing products online. It's an excellent option for those who prefer to shop from the comfort of their homes. By researching and purchasing products from online marketplaces, you can find a variety of items at discounted prices.

3. Drop Shipping

Drop shipping is a fulfillment method that allows online sellers to sell products without owning the inventory themselves. Here, you purchase products from a retailer or wholesaler after a sale has been made on Amazon. The supplier then ships the items directly to your customer. This method is particularly appealing to new sellers as it requires no investment in inventory and is considered a low-risk option.

However, drop shipping can reduce profit margins, and you may have limited control over the customer experience. If your supplier misses a shipment, you're the one who will receive a poor review, as the supplier remains invisible to the customer.

4. Wholesale

Wholesale involves purchasing products in large quantities directly from manufacturers or brand owners and selling them on Amazon. This method is proven to be successful and has a lower barrier to entry. You can build a brand and leverage existing ASINs, and you may be able to negotiate better terms in the future as you establish a positive business relationship with the manufacturer.

When sourcing wholesale products, make sure you go through the necessary approval channels to resell a particular product or brand. Unauthorized sellers risk getting flagged for copyright infringement and could be suspended from Amazon.

5. Private Label

Private label involves buying generic products directly from manufacturers, adding your own labels, and selling under your brand. This method grants you control over product quality, labeling, packaging, and more. While it's a costly and time-consuming option compared to wholesale or drop shipping, it provides you with complete control over every product you sell.

6. B2B Marketplaces (e.g., Alibaba)

E-commerce sellers often source products from B2B marketplaces like Alibaba, which offer a wide range of manufacturers and allow you to place bulk orders with quantity discounts. This can be a cost-effective way to source large quantities of inventory at a discount.

7. Auctions and Thrift Stores

Retail arbitrage can also be performed in auctions and thrift stores, where you can find high-profit items that may not be available on Amazon. Starting with a directory of local and online auctions can help you identify potential sources for unique and profitable products.

8. eBay

Online arbitrage can also be carried out on eBay, where you can find unique items at discounted prices. Checking completed listings on eBay can also give you an idea of items that aren't yet on Amazon and might sell well in the future.

9. Create Your Own Products

If you want complete control over your products and brand, you can develop your own items, such as cosmetics, and work with manufacturers to produce and package them for sale on Amazon. While this option is more expensive and time-consuming, it allows you to have full control over every product you sell.

10. Virtual Assistants/Outsourcing

For those who prefer not to do any of the work themselves, outsourcing to virtual assistants or employees can be a viable option. These employees can source products for you using any of the methods mentioned above, streamlining the process and allowing you to focus on other aspects of your business.

Utilizing these strategies and resources, you can find the best products to source for your Amazon FBA business. Whether you're looking for wholesale items, private label products, or unique finds at auction, you have a variety of options available. Good luck with your Amazon FBA journey!