How to Find Cheap Wholesale Products for Resale
How to Find Cheap Wholesale Products for Resale
Buying wholesale is the process of acquiring goods in bulk from a manufacturer or distributor and then selling those items through your own or third-party marketplace.
Reselling wholesale products gives great flexibility when choosing your assortment as you do not need to worry about going through the process of developing each item that you sell. You also don’t have to worry as much about building your own brand and promotional messaging, simply finding the best sales opportunities.
Table of contents
- How to Choose Wholesale Products for Resale
- Where to Buy Wholesale Products for Resale
- 10 Wholesale Products Ideas
- Tips for Finding Wholesale Products
In this post, we will examine how to choose wholesale products for resale and where you can go to find them.
How to Choose Wholesale Products for Resale
When looking for wholesale goods to buy and resell, there are several import product criteria you must evaluate to ensure you can sell the item for a profit.
Below are some of the important traits you should look for in a wholesale product to resell:
Margin: Your margins are how much profit you earn for each sale. This will be determined by how much you can sell the item for and all the costs associated with sourcing and selling the product.
Size and weight: A product’s physical dimensions will determine how much you need to pay to ship the item to customers. Larger, heavier items have higher fulfillment fees.
Target selling price: Products within a specific range to work best on Amazon. You want prices that are high enough to generate good profit but not too high as too to discourage impulse purchases.
Seasonality: This measures how demand for an item changes throughout the year. The best wholesale products have steady demand throughout the year.
Competition: The number of other sellers for a product as well as other brands in the market will impact how many sales you are ultimately able to get.
Analyzing Your Products: What To Look For
Different factors impact how easy it is to resell the product. Below are two cases where resale could be more challenging:
Private Label Products are usually sold by only one merchant with a brand registry. Typically, you cannot source these product types.
Hazmat or gated products require additional certificates or approvals from Amazon, requiring extra costs or more effort.
Product Research Tools
If you want an efficient way to find wholesale items that meet your desired criteria, you can use AMZScout’s Online Arbitrage and Dropshipping extension to analyze different items to find those most likely to work. Once you download the extension you can view performance metrics for products right on the Amazon marketplace.
Here is how to use the extension:
Step 1: Install the Online Arbitrage and Dropshipping extension. You can install the plugin from the Chrome Extension Store.
Step 2: Start your free trial. You do not need to enter payment details.
Step 3: Browse Amazon to get product ideas. Go to Amazon.com to search for a niche. It can include any of the following:
Products from wholesale suppliers
Niches you want to get into
Trending products (from either offline or online marketplaces)
Step 4: Narrow your product ideas. Scroll through the Amazon search results and pay attention to the data underneath each product. The Online Arbitrage and Dropshipping will show this data:
Margins (focus on margins above 50%)
Amazon fees are necessary for selling the product (or while being an FBA seller)
Seller types (Focus on products that have FBA and FBM sellers. When Amazon sells the product, you will face high competition. )
The tips above will help you identify the best products to look at more closely.
Step 5: Check the best products from your list. Each Amazon product page will have important information within a built-in window. Check for ungated, hazmat, or private label products. Read our section above for more details on these categories.
Step 6: Check the product’s historical data. After narrowing down your list of products and checking your product criteria in the app, check Buy Box and Price History. This helps you determine the best repricing strategy.
Step 7: Find out your potential profit. The available calculator lets you to enter your costs. Your costs vary on your business model and may include:
Shipping costs (Found through your shipping provider or supplier)
Advertising costs (Includes Amazon PPC bid costs and off-site advertising costs)
Other (analytical tools, monthly subscriptions, etc.)
The app calculates your sales margins using this information. New numbers will appear in, ROI Profit Margin, and Minimum Net. Use these numbers to find out how much you can make.
How to Wholesale Successfully on Amazon
Analyzing profitability, viewing sales data, and checking sales trends will help you find better wholesale products. AMZScout's tools help you get the most important data to make the best decisions.
- Use five handy tools to analyze products
- Understand niche demand through keyword research
- Use masterclasses to get expert insights
- Receive trending product reports each week with an annual license
Find the best products for wholesale by using this all-in-one software.
After opening your AMZScout account, you can use multiple tools. The Product Database is the next tool in this review.
The Product Database lets you filter through millions of products based on sales, reviews, margins, and more.
Step 1: Visit the AMZScout Product Database.
Step 2: Start your free trial. Put in your email (no payment details necessary)
Step 3: Use the search filters based on your criteria. Find products based on seller type, prices, margins, and many more. You can focus on higher sales (300 or more monthly), fewer sellers (from two to 20), and the seller type (FBA or FBM).
Step 4: Narrow your search. The category filter lets you select categories where your interests are and other sellers succeed. You can also use ready-made set-ups with the Product Selections feature to save time using proven results.
Step 5: Click “Find Products” to display results.
Step 6: Make a list of the most interesting items for you.
The AMZScout Product Database helps you narrow product selection down with relative ease. To find products that meet your needs and reduce research time, the Product Database can help.
You use the Product Database to explore new product ideas and validate them with the AMZScout PRO Extension. The PRO Extension lets you focus on the most profitable products with additional data.
Here are the steps for using the PRO Extension:
Step 1: Install the AMZScout PRO Extension. You can install it from the Chrome Web Store.
Step 2: Look through Amazon. Search for a product or niche on Amazon for analysis. You can start by comparing different branded products (offered by both brand owners or suppliers) or those found in the database.
Step 3: Open the extension. Select the AMZScout icon (top right corner) on your internet browser while on any Amazon product page.
Step 4: Check product sales. You can focus on this information:
Look at average monthly sales (ideally over 300 sales per month) when checking products from your supplier.
Sort the results by highest monthly sales when looking for product ideas. Wholesalers should focus on products that already sell well on Amazon for both products and an entire niche.
Step 5: Pay attention to the number of sellers. Take the product sales and divide them by the number of sellers to see your potential portion. Too many sellers will mean too much competition.
Step 6: Get more data to make the best decisions. Check the product score for data on sales margins, history, and reselling data.
Pay attention to product scores over 7 when checking the product offered by your supplier. Also, focus on high margins (over 50%) and stable historic sales throughout the year.
Compare options meeting the above criteria.
The AMZScout PRO Extension provides you with compelling information. The data found in this tool can make you a successful wholesaler.
Where to Buy Wholesale Products for Resale
Let’s take a look at the best places for purchasing wholesale products to sell:
1. Global Commerce Platforms
First, we have international commerce platforms. The most popular are based out of China. These online wholesale marketplaces feature listings from tons of suppliers. You can search and view their collections as you would with a traditional eCommerce experience.
The main advantage to using this kind of platform is the price. Items sourced from China typically cost less than similar items procured domestically. Another key benefit is the ability to find a wide range of items.
Keep in mind that if you get your goods from Chinese-based suppliers, you will need to deal with much longer delivery times. Ocean freight, which is the most affordable delivery method, can take up to two months even without delays. You can mitigate the effects of long shipping by having your items delivered via an air courier or air freight. This will allow you to get your gets in a few weeks but will cost more.
Below are some of the most popular international platforms to find cheap wholesale products for resale:
Alibaba is a massive online wholesale marketplace where you can find pretty much any type of product. The prices are good and there is a robust interface for placing orders and managing your transactions with suppliers. The only downside to using Alibaba is the lack of major brands.
AliExpress is an online marketplace owned by Alibaba. Whereas the parent site is geared more towards B2B buyers, AliExpress works more like a traditional eCommerce site. There are no minimum order requirements but there also aren’t as extensive features for managing your engagements with suppliers.
Made-in-China is a wholesale marketplace similar to Alibaba. You can find items across a wide range of categories and there are similar features for dealing with suppliers. The items are quoted in bulk pricing and there are verification badges to validate the legitimacy of the supplier.
With the AMZScout PRO Extension, you can use the Local and global suppliers on Alibaba.com button to quickly find quality suppliers on Alibaba. When you click the button, the extension will open a new tab with the top suppliers for that type of product.
2. Domestic Wholesale Suppliers and Distributors
Another way to get wholesale products for your business is to partner with a U.S based wholesale supplier. Or a distributor that works to help brands sell their items wholesale.
Getting your products from a wholesale supplier will significantly cut down the amount of time it takes to receive your goods. This allows you to sell perishable items like food. It also makes it easier to communicate with your supplier as there are no language or geographic barriers. Whatsmore, by partnering with a wholesale supplier, you get access to high-quality products from the most reputable brands and manufacturers.
If you choose to use a wholesale supplier, expect a more formal setup process. When you buy from an overseas site, all you need to do is arrange the details of the transaction and make the purchase order. With wholesale suppliers and distributors, you will need to apply for and open a wholesale/reseller account.
At the very least, this will require you to register your business in your state and get a Federal Employer Identification Number (EIN) from the Internal Revenue Service. You will also need to get a resale certificate in your state for each of the suppliers that you purchase products from.
10 Wholesale Products Ideas
Jewelry is a popular category to sell. You can find customers shopping for a variety of items whether it’s earrings, bracelets, or necklaces. Major platforms like Alibaba feature plenty of jewelry suppliers with quality products. Plus, many jewelry brands work with distributors to increase exposure for their products
If you want to sell jewelry on Amazon, there are some restrictions. Note, that you will likely only be able to sell what is categorized as fashion jewelry. Fine jewelry is a restricted category on Amazon and requires approval before you sell these items. The requirements are considerable as you need to have a brick-and-mortar jewelry store that already does a certain volume of sales.
Beauty products have steady demand as people want to stay healthy and look good. Hair and bath and body products, in particular, have a strong demand and are easy to get wholesale. In addition to these, customers are showing a lot of interest in items that are natural and chemical-free.
Home and kitchen products are one of the most popular categories. These items are good for wholesaling as you can buy many smaller size items in the ideal price range. Some examples of good ideas include utensils, tumblers, and dishware.
Clothing is one of the most common products for wholesaling through marketplaces. Casual items, as well as beach clothes, are low-cost with solid margins. On Amazon, you can find major brands as well as lower-cost, less-known brands. This is another wholesale product that is easy to source as there is no shortage of local or international suppliers.
5. Garden and Outdoor
Consumers have increased spending on their outdoor living spaces in recent years. Outdoor lighting, planters, and sculptures are some of the garden products that work well with wholesaling. You can find plenty of boutique items from a local supplier or lower-priced goods from an international wholesaler.
Baby products are always in demand as people look for stuff to get for their new child. And family and friends seek these items to gift at baby showers. This is a category where sticking to products from established brands can be beneficial. New parents are likely to prefer the most trustworthy figure.
7. Pet Goods
Shoppers love buying things for their pets. Toys, beds, clothes, cleaning supplies are all great for getting wholesale to sell. Many of these items have a low price, allowing you to stock up on a diverse selection of goods for your store.
Electronics products have traditionally been one of the highest selling product categories. The demand is likely to stay as technology permeates every area of our lives. The market is dominated by larger brands, so wholesaling these items is the best option if you want to sell in this category. Plus, by selling established electronics items, you do not have to go through the complexity of getting various certifications and ensuring everything works properly.
Toys are popular among consumers with kids. The niche sees extra demand around Christmas when parents are shopping for the holidays. Most toys are small and can be acquired at a low price. These factors lead to better margins.
Items for activities such as fishing, hiking, and exercise are growing in demand. They are good wholesale products as there are plenty of quality suppliers, helping you to get your goods at a competitive price.
Tips for Finding Wholesale Products
Here are some tips to help you find good wholesale products for resale:
1. Calculate Your Margins
When choosing a supplier it is essential to ensure you can get your goods at a price that allows you to hit your desired profit margins. On Amazon you can get an estimate of what you can sell a product for by viewing the current listing and seeing the price of the buy box winner. You can then subtract the cost of selling the product to find your potential margin.
If you are getting your products from a supplier in China, Indiana, or any country other than the USA, you’ll have to take into account all the costs associated with getting the products. Many new sellers overlook expenses such as customs clearance, duties, and freight forwarding when calculating their potential margin. These can add up quickly with the cost of duties often equaling 25% or more of the value of your goods.
With the AMZScout Amazon FBA Calculator, you can get accurate insights into your potential margins on Amazon by calculating the various fees needed to fulfill your orders.
You can also see the net margin for different items on Amazon with the AMZScout PRO Extension.
2. Good Service
You want to get your products from a supplier that provides good service. When evaluating your options, check whether the wholesalers have responsive and helpful customer service. If you can easily reach them it will be easier to do business with them.
It is also important to find a supplier that is trustworthy and reliable. Sites like Alibaba help you check the quality of suppliers through reviews left by previous buyers. Suppliers can also upload their documents to verify the information about their business. You’ll want to check these documents yourself and the supplier’s testimonials before you place an order
4. Order Samples to Verify Products
Regardless of how you source the items that you sell, it is essential to get samples of the products before selling them to customers. You want to ensure that the items are of good quality and that they will meet your customers’ needs.
5. Find Multiple Suppliers
It is generally not a good idea to stick with just one supplier. If they turn out to be ineffective, or their business goes under, you want to ensure you can still operate without interruption. By looking for multiple suppliers, you’ll also ensure that you always get the prices and service.
When you find the right products, getting wholesale items to resell can quickly result in profits for your business. And with the steps in this post, you now know what to look for in a wholesale product. Once you source your goods, it’s up to you to price them competitively in order to win the buy box and start generating sales.