How to choose best suppliers for Amazon's FBA

How to choose
the best
suppliers for
Amazon FBA

Types of Suppliers for Amazon

The popular types of suppliers:

wholesale suppliers, manufacturers, and

droppshipping suppliers.

Wholesale suppliers

Wholesalers provide sellers with the

opportunity to buy a large number of

products at a much lower price.

If you purchase more products, chances

are high that you receive a better

discount for an order. 

Advantages

Low cost – Cost is one of the driving factors

for Amazon sellers. Wholesalers offer huge

discounts and competitive prices.

If you choose to buy in bulk, wholesale

suppliers will lower the per-item cost.

This allows you to offer more competitive

prices on Amazon. Besides, most of the

wholesalers are open to negotiation, so

you can save a few more bucks as well.

Simplicity –

Sourcing from wholesale suppliers is

easy and straightforward. You also get to

explore different products from a single

supplier.

Disadvantages

You’ll require a hefty amount to start

sourcing from a wholesaler as you need

to purchase more items at once. Inventory

management and storage: Since orders

are sent in bulk, you’ll need to look into

Sustainable storage options to manage

your inventory.

You also have to sell your inventory without

building up the costs. If you’re confident

that your product will generate enough

sales, then it shouldn’t be a problem.

On the other hand, if your product is

subjected to seasonality, then you’ll lose

money as the inventory costs

keep growing. 

Best criteria to find suppliers

Here are the criteria to ease the process of

finding the right supplier.

Your sourcing process must be easy and

flexible.

The cost of goods sold (CoGS) must be

low enough to ensure good profit margins.

Your products must have high quality.

They should be tested and reliable.

The manufacturer should be able to scale

if you grow your business.