Does anyone here buy wholesale and sell on Amazon for profit?

GadgetronHQ 2015-11-27 00:25:42 UTC #1

Thats been my main goal, it seems like the only viable option for making a good income with Amazon. I have had some success selling but not enough to have a regular income.

I’ve browsed Aliexpress a lot, and ordered some stuff, but it seems like everything I get there is knock off China brand of an expansive item (I’ve tried Fitbits, and JayBird Headphones).

Any advice for a good place to get reliable items wholesale? Is Aliexpress still a valid option, but I just haven’t been thinking outside the box enough?

Thanks for any advice. Still somewhat new at this, I used to sell on eBay but its a bit tougher getting started on here.

LandscapeToEat 2015-11-27 00:59:39 UTC #2

I cannot speak for any one else, but I am definitely here to sell for profit…

dealkings 2015-11-27 02:39:50 UTC #3

Happy Thanksgiving!

Funny enough, almost every seller on Amazon buy’s wholesale, hopefully all are selling for a profit.

I can see your biggest obstacle right now is trying to find inventory. You might not be able to get much help because of how the 80/20 of a marketplace based ecommerce business works.

It’s best to see amazon as a marketing partner. You don’t have an “amazon” business, but rather a business that sells on amazon. You leverage amazon’s enormous user database and marketing campaigns as a way to sell your items. And in turn, you pay amazon a fee for their service.

However, Amazon is available to anyone to sell on. Making the barrier to entry very low. Since the barrier to entry is low competition is high on the selling side. This means you will need to master the sourcing side to be successful. Mastering sourcing means taking advantage of market inefficiencies, sourcing low barrier to entry products (generic chinese wholesale) at a large volume to play on price, creating exclusive selling agreements with companies/fostering good relationships with large companies so you can get more exclusive products etc.

You also need to create your business model to suit your needs. This could mean selling items with a high volume at a lower margin, or selling higher priced less desireable items at a high margin. This will greatly change the way you source items.

I highly recommend learning more about sourcing and ecommerce in general while you build your store. You can very quickly lose a lot of money if you blindly go into this. There are a lot of great free resources on the web, youtube, and books on the subject which will help you get started.

To the outside many people don’t understand this business is a grind, just as much as any other business. Supply and demand will always regulate any market with enough time, and Amazon is mainstream enough at this point where the supply of sellers makes the available demand of purchases competitive. Be the smartest, craftiest, and take risks and you will survive.

MAV-DAK 2015-11-27 00:34:36 UTC #4

We buy wholesale and direct from manufacturers to sell and make profit on sales. There is no easy, get-quick option. A viable business model requires being a business, having a wholesale license, and marking your buying and selling power to wholesalers/manufacturers.

I will not give my sources as I have enough competition to sell with. However, a good place to begin is to find a local manufacturer that may benefit from selling to you so you can sell on Amazon. You may be lucky to work with them to give you exclusive selling rights so you will minimize competition. This is how we started years ago. After that arrangement we were able to market to other suppliers the value we offer and get more contracts and business. It was a rough and hard few years; trying to make the right decisions and learning from those that weren’t.

MarilynsAttic 2015-11-27 02:16:36 UTC #5

Color me shocked. Aliexpress is not a legitimate wholesale outlet. It’s the king of counterfeits.

>
> Any advice for a good place to get reliable items wholesale? Is Aliexpress still a valid option,

Aliexpress was never a valid option. You get reliable items from a reliable wholesaler. no one is going to hand you a list of wholesalers.

mwv 2015-11-27 02:25:54 UTC #6

At this point you pretty much don’t need aliexpress, there is enough Chinese vendors undercutting themselves to make amazon look like aliexpress. I really wish, and maybe there is already a way to have shipping country preference. I’m tired of removing stuff and re-adding stuff to carts after I realize it’s a Chinese shipping.

Fiesta_fun_inflatabl 2015-11-27 03:08:21 UTC #7

this is good for anybody to read. I was just thinking the other day (when some of my listings had been completely low balled)…I wonder how this seller makes any money at that price? Does he or she not pay the same FBA fee, lol? Of course, that’s not it. Larger sellers get much better prices, and so at first, until I can grow, I realize that my profit margin won’t be what there margin is. I am trying to learn, make smart purchasing decisions,- I have been selling about six months, and I can tell you…it is a learning process.

Where you live can also matter. I don’t have tons of “sources” in my world. I can’t place an order and drive and pick it up. But, I can email shipping labels now that I trust, so that helps. You will learn little tricks…I still have TONS to learn.

this is NOT my full time job. I have one of those, plus another business…

Edited by: Fiesta Fun Inflatables on Nov 26, 2015 7:08 PM

redacted 2015-11-27 13:54:04 UTC #8

aliexpress is fine if you know what you are doing, as is alibaba for larger quantities. just stay away from branded items as they are indeed, probably counterfeit.

i have had great success and made exellent supplier/business connections with good chinese sellers through AliExpress and Alibaba.

Not sure why people feel the need to bash it…every marketplace has counterfeits.

outwest 2015-11-27 13:05:41 UTC #9

Like already mentioned, Aliexpress and Alibaba aren’t your friend. I’d suggest looking around your area for manufacturers and distributors. You might be surprised as to what you find. For example, I recently discovered that there’s a taillight manufacturer about an hour away from me.

Caan 2015-11-27 16:27:39 UTC #10

I think it’s because some sellers don’t know that there are legitimate sellers there due to the site’s reputation. Also, in order to find good suppliers for legitimate products, you have to know a lot about business.

You have the knowledge and experience to discern between legitimate sellers and counterfeiters on Alibaba. I suspect that most people searching the site don’t have your experience.

epeddler 2015-11-28 02:05:20 UTC #11

A few comments:

Selling Chinese imports is one legitimate business plan. But definitely not for the uninitiated. To be effect at it you need a lot of capital. You have to understand how the Chinese do business, which is very different that Americans. You have to learn the intricacies of the import business, work with a customs broker, and preferrably have an agent in China who works to find you the best quality and price. And you have to be very careful that you don’t import anything which violates patents, trademarks, copyrights, and other intellectual property rights of others … otherwise you could have customs seize an entire shipment (including those items that aren’t counterfeit). I could say more, but I’ll leave it at that.

I almost never (might as well be never) sell anything that Amazon is selling. They usually work on lower margins, and people generally buy from them instead of 3rd party sellers.

The following is far from the only way to do it, but I found it worked well for us. Pick a product line that targets a market segment. It’s easier to find wholesale distributors that supply a variety of inventory to a discrete market. Some example: office supplies; textiles; bicycle repair and maintenance parts; pet supplies, etc. Do your research and find one of the leading distributors, selling at costs that allow you to make a retail profit SELLING ONLINE.

Always consider what it will cost to ship your items. Low cost items that cost a lot to ship are terrible choices. In our case, almost everything we sell is light weight, and ship either First Class Package or Priority Flat Rate Envelope.

Don’t sell things that a buyer could walk into a local store and buy unless you can make money selling it online at seriously cut rate prices. Usually, that won['t happen. Things that are hard to find locally are good candidates for online sales. But you still have to do the rest of your homework.

With each new product, whenever possible, try selling a small sample quantity and see how it does. That way you can find out what will work, while keeping your dead inventory to a minimum.

Fiesta_fun_inflatabl 2015-11-28 03:34:10 UTC #12

thanks everyone. I didn’t start the thread, but am learning and enjoy hearing good advice. Thanks!

lmont 2015-11-28 23:41:01 UTC #13

I would add, don’t be afraid to reinvent inventory with bundles. This leverages the price. I buy my inventory at 16,000 items at a time–cash. Therefore I get the lowest price and first call from my manufacturer as a result I can sell at the lowest price or any platform and still make a profit. My point is once you find the magic bullet don’t be afraid to go all in.

epeddler 2015-11-29 00:07:10 UTC #14

I don’t buy in your volume, but I LOVE to create bundles. Very seldom does anyone jump on my bundles listings, and some of them are my biggest sellers…and biggest profit centers. It’s almost a reflex for me…I ask myself all the time “how can I bundle this?” Great stategy.

the_efac 2015-11-29 00:30:05 UTC #15

I try wholesale.eBay. You need to be invited but deal are great.
Local trustee auctions are good too look up auction flex
Hth, jo

Crane_Capital 2015-11-29 02:06:00 UTC #16

DH Gate

statler_and_waldorf 2015-11-29 05:06:57 UTC #17

That’s in Chapter 9, right?

Tide.

mando 2015-11-29 07:37:50 UTC #18

Yes and why would you risk your account to sell Alibaba junk here?

To open with legit wholesalers, they want something more than a guy selling on Amazon.

liw48 2015-11-29 15:14:54 UTC #19

^^
Not true. There are lot of restrictions unless you are a Pro shop seller or sell through FBA. If you’re a little guy, 3rd party seller there are a lot of restrictions. I used to sell DVDs on AMZ and now have shifted to the Bay and Half because of the restrictions on AMZ to sell.

I even get more sales from Craigs (out of state) than I do AMZ.

GadgetronHQ 2015-11-30 19:12:06 UTC #20

Thanks for all the wonderful replies, guys! I really appreciate it. It seems it’s going to be harder than I at first thought in getting a regular wholesale source to get my inventory from. On top of all that, I don’t even know which niche to go with anymore.

There was a pretty hot item that I was selling on Amazon and I was making a 300 dollar profit from, but that was definitely a temporary feat. I need to find something on the regular. My go to product that brings home the bacon.