Your supplier is a business partner, and business partners can be either your best ally or your worst fear. Similar to how you would choose a business partner, you must exercise caution while selecting an Amazon FBA Wholesale Supplier to maintain a productive, reliable partnership as your business progresses.
Types of Suppliers for your Amazon FBA Wholesale Store
For this article, we’ll discuss the four most common categories of suppliers for your store: drop shippers, retailers, wholesalers, and liquidators.
- Dropship Suppliers – Dropship suppliers are a common choice for online merchants. They manage your Amazon FBA Wholesale inventory and dispatch supplies on your behalf. Below are their advantages:
- No Inventory Management – Keeping an inventory in-house requires a significant amount of room and the extra work required to manage your distribution operation. One of the primary advantages of working for a dropship supplier is that you avoid having to deal with all of this.
- Low Operating Costs – Rather than purchasing a large number of goods and then feeling compelled to market them, you pay the retailer for products as they are sold. This lowers the overhead expenses and exposes you to less financial pressure.
- Wholesalers – Wholesalers allow shop owners to purchase a vast quantity of goods at a significantly reduced price. The more items an owner orders from a wholesaler, the greater the discount on the order. Advantages of wholesalers are:
- Cost-Effective – Cost is the primary consideration for Amazon FBA Wholesale vendors who want to work with a wholesaler. Purchasing in bulk lowers the per-item costs, allowing you to provide more attractive pricing to your customer.
- Simplicity – To work with a wholesaler is a simple and straightforward task. A single wholesaler will supply a diverse range of goods.
- Liquidators – Additionally, and even more flatteringly, liquidators are referred to as wealth recovery experts. Liquidators acquire vast quantities of overstocks, refunds, closeouts, and related unsold merchandise. After that, the liquidator resells these products on the market in bulk, repackaged bundles in varying sizes. The Main Advantage of a liquidator is:
- Excellent Price Of Item – Since liquidators are in a hurry to make profits, they sell goods at less than a fair market value, which means you get an outstanding per-item profit and a bit more bargaining power.
- Manufacturer – They deliver competitive rates but frequently demand large minimum orders, which means you must pay a significant amount upfront. They are excellent choices for more experienced Amazon FBA Wholesale vendors with access to services but can be difficult for a brand-new shop. Some of their advantages are :
- Low Cost Per Unit – As compared to liquidators and wholesalers, manufacturers may have a firm per-item price, but they are often less amenable to negotiation.
- Customization Possibility – You can make a manufacturer produce a package to your specifications or even personalize it, which can be an excellent selling point for your business.
A scam supplier will cost you a lot of money. Hence, we hope the above blog helps you to identify the right kind of supplier for your Amazon shop.