📈 How to Transition from Online Arbitrage to Amazon Wholesale: A Step-by-Step Guide
Are you tired of the time-intensive and effort-intensive nature of online arbitrage? Do you want to scale your Amazon business and replace your current income? If so, it may be time to transition to Amazon wholesale. In this article, we’ll provide a step-by-step guide on how to make the transition successfully.
Table of Contents
1. Establish Your Business
2. Start Your Supplier Search
3. Vet Your Suppliers
4. Develop a Contact Strategy
5. Open a Wholesale Account
6. Sign Up for Scanning Software
7. Place Your First Order and Shipping
Step 1: Establish Your Business
Before you can start purchasing inventory from wholesale suppliers, you need to establish your business. This includes getting your LLC, EIN, and seller’s permit (or reseller’s permit, depending on your state). Once you have these in place, you can start looking for wholesale suppliers.
Step 2: Start Your Supplier Search
If you already have a profitable online arbitrage business, you can start by looking at the manufacturers or distributors of the products you’re currently selling. This can give you a lead on potential wholesale suppliers. If you’re starting from scratch, you can use Google to search for distributors or manufacturers in your niche. Be sure to use specific keywords to narrow down your search.
Step 3: Vet Your Suppliers
Once you’ve compiled a list of potential suppliers, it’s time to vet them. You want to make sure they’re legitimate, have a proven sales record, and are authorized to sell the products they offer. You also want to know what kind of inventory they sell (new, used, returns, etc.) and whether they’re in the US or international. This step is crucial to avoid getting scammed or wasting your time with suppliers that don’t meet your criteria.
Step 4: Develop a Contact Strategy
Once you’ve vetted your suppliers, it’s time to start contacting them. You can start with email, but be sure to follow up with a phone call if you don’t get a response. You want to compile a list of 50-150 suppliers and contact them all. This will give you the best chance of finding profitable inventory.
Step 5: Open a Wholesale Account
Once you’ve found a supplier that meets your criteria, you’ll need to open a wholesale account with them. They’ll send you a wholesale application, which you’ll need to fill out with your business details. If you want terms, you’ll need to provide references. You should also ask if they have an inventory list, email list, or any current discounts available.
Step 6: Sign Up for Scanning Software
To make the most of your wholesale inventory, you’ll need scanning software. Scan Unlimited is a popular option that will scrape your supplier’s inventory list and tell you which products are profitable and which are not. Keep in mind that software isn’t perfect, so you’ll also want to manually scan the list for missed opportunities.
Step 7: Place Your First Order and Shipping
Once you’ve identified profitable inventory, it’s time to place your first order. Negotiate for a better price if you can, and decide whether to ship to yourself, a prep center, or directly to Amazon. Shipping directly to Amazon is often the fastest option.
Pros and Cons of Amazon Wholesale
Pros:
– Higher profit margins than online arbitrage
– More efficient use of time and effort
– Ability to scale your business and replace your current income
Cons:
– Requires more capital upfront
– Requires more time and effort to vet suppliers and scan inventory
– Limited to authorized distributors and manufacturers
Highlights
– Transitioning from online arbitrage to Amazon wholesale can be a lucrative move for your business.
– To make the transition successfully, you’ll need to establish your business, vet suppliers, and develop a contact strategy.
– Once you’ve found profitable inventory, negotiate for a better price and decide where to ship it.
– Amazon wholesale has higher profit margins and is more efficient than online arbitrage, but requires more capital and effort upfront.
FAQ
Q: What is the difference between online arbitrage and Amazon wholesale?
A: Online arbitrage involves purchasing products from online retailers and reselling them on Amazon. Amazon wholesale involves purchasing inventory directly from authorized distributors or manufacturers.
Q: How do I find wholesale suppliers?
A: You can start by looking at the manufacturers or distributors of the products you’re currently selling. You can also use Google to search for distributors or manufacturers in your niche.
Q: What should I look for in a wholesale supplier?
A: You want to make sure they’re legitimate, have a proven sales record, and are authorized to sell the products they offer. You also want to know what kind of inventory they sell (new, used, returns, etc.) and whether they’re in the US or international.
Q: How do I negotiate with wholesale suppliers?
A: You can negotiate for a better price by offering to purchase more inventory or by pointing out any flaws or defects in the inventory.
Q: How do I ship my wholesale inventory to Amazon?
A: You can ship directly to Amazon, to yourself, or to a prep center. Shipping directly to Amazon is often the fastest option.
Resources
– [Scan Unlimited](https://www.scanunlimited.com/)
– [Incorporate.com](https://www.incorporate.com/)
– [LegalZoom](https://www.legalzoom.com/)
– [Toy House](https://www.toyhouse.cc/)
– [RDG Wholesale](https://www.rdgwholesale.com/)
– [Top 10 Wholesale](https://www.top10wholesale.com/)