COMPLETE BASIC GUIDELINES TO FBA WHOLESALE (US & UK)

 

 

 

1)      Requirements for to begin Wholesale FBA US & UK:

For US, following are the essential requirements given below:

A formation of a LLC.

An Individual Taxpayer Identification Number (ITIN) from the State.

A Seller’s Permit from your desired state.

Resale Certificate from your Brand/Distributor/s.

Skype/ Google Voice, Amazon Seller Central, Professional website, Email domain.

Payoneer for fund transfer from foreign account to local PKR account.

A USD account to make payments to distributors.

A VPN/VPS in case if you are from Pakistan to access your Seller Central.

For UK, the details are:

A formation of a LTD.

VAT registration (20% registration is preferable due to claim of Output against Input).

Skype/Vyke, Amazon Seller Central, Professional website & email domain.

Payoneer for fund transfer from foreign account to local PKR account.

A GBP account/ transferwise to make local payments to distributors.

A VPN/ VPS in case if you are from Pakistan to access your Seller Central.

2)      Get Started with Brand/ Distributors Hunting (Way: 01):

Start hunting your brand/ distributor after deciding your specific niche you want to go with by taking your data from Helium 10, Blackbox. Select your country, set your filters to below given data for reference. These data are preferable to get better brands/ distributors for better reach.

3)      List of Distributors:

After downloading the list from Helium 10, contact details of distributors/ brands including emails & contact numbers need to be updated to establish contact with them once their products are found profitable on Amazon and their itself as a brand/ distributors existence shows on Amazon then we’ll contact them for brand account.

4)    Search for brands/ Distributors existence on Amazon & Profitable products research:

Through your list, try search those distributors on Amazon to see their existence. Once you’ve found any then second thing would be to see their’s account list where you will get to see their already listed items to check their profitability via their BSR check on fbatoolkit.com to see their daily sales.

5)  Contact distributors after confirmation (Way: 01 Helium 10):

If the distributor satisfies point : 04 above then start pounding them with email followed by calling them for account grant. Contact many as much as you can to get enhanced chance for wholesale account.

6)   Get Started with Brand/ Distributors Hunting (Way: 02):

The second way of hunting feasible brands/ distributors or may be the best way is to search through Keepa. It is known as the ‘Bible of Wholesale’ as I’ve heard it from a client so it’s better to get your hands polished on it. Starting with wide range through Data tab. By selecting your filters, the same way that applied on Helium 10 with some more additional filters if you wish to go with. You can get numbers of products according to your filter which are going to be profitable if you pursue them one by one for wholesale account.

7)    Get Started with Brand/ Distributors Hunting (Way: 03):

Third way is through also from Data tab of Keepa, but this time its “Product Best Sellers”

In this way we can get our desired products with applied filters according to your requirement in Best Seller’s category. You can untick Amazon if you don’t want to be in it, you can change 90 days avg OOS of Amazon from 10% to 80%, you select list price according to your needs, rating according to your needs, you can select New offer count like 4 and greater than 4 etc. Through these applied filters you can get the maximum number of products with have no Amazon history in it, and bestselling products.

8)  fbaoolkit.com (For US WS) / Helium 10 X-Ray (For UK):

If you want to find daily average sales for any specific profitable product which you have find through Keepa or H10 is by going through fbatoolkit.com for US and put their BSR in the specific niche to find out their daily average sales.

For Ex; This product of Sports & Outdoors has average 27-daily sales being sold on Amazon.

9)  Contact distributors after confirmation (Way: 02 Keepa Product Viewer/Best Seller):

The above contact to distributors/ brands was when you’ve searched profitable products of distributors/ brands through Helium 10. But this way of contacting brands/ distributors is when you have found a profitable product through Keepa’s Product Viewer tab or Products Best Seller’s tab.

Contact distributors/ brands through email. Once you’ve email them then follow-up after 2 or 3 days via call to get the wholesale account.

10) Process after account grant for wholesale:

Once you’ve been granted account for wholesale they will share their list of products with you in which they will have the innumerous products from 100’s to 1000s of them. Out of these list of products what you have to do is to pick the profitable listings out of these numbers for your account on Amazon to get start with. To find profitable product is to scan these list through a software called Scan Unlimited and other softwares are also available for this task.

11) Product Found ! Now its time to source’em:

Once you’ve found your desired number of products from your distributor who has given you wholesale account now make a minimum test order of 10-15 max 20 units first to check their sales velocity once you’ve listed that item. Make sure after calculating profit margin through your calculator sheet it should be giving 10% or higher margins as we don’t work on that product which doesn’t offers PM <10%.

12) Set price competitive to other FBA Competitive sellers:

Creating your list competitive to get Buybox is a necessary strategy to follow to get the most of the chances to get maximum buy box from Amazon. If an FBA seller having the most of the BB percentages through Keepa stats chart and if you have set the price as competitive as his’s price, then you still will get lesser BB then him in the start but you’ll get BB at least better than those FBA sellers who have set higher prices than the most competitive one.

13) Stay Patient for at-least 3 months or more:

It takes time to get maximum number of BB chances when your listing is a newborn. Stay committed, positive. List your units and sell them for some time on break-even or even on loss as well to get your Sales Velocity which is very very important because once you’ll start having sales then amazon algorithm start to recognize your list and will start to award you BB slowly and gradually but definitely.

14) Sell your initial units on Break-even or even on loss:

As guided above, it is very necessary to stay patient for atleast 3 months and kept selling your units on either break-even or loss for at-least 4 to 6 turnovers (No. of lots of units e.g 20 units purchased X 6 times). In order to get your Sales Velocity which will be the primary objective to get the recognition and Buy Box chances from Amazon. Afterall, we all are hustling for BuyBox aren’t we ?

15) Documents can be asked for listing in Gated category:

Baby products, Beauty, Automotive, Toys & Games etc these are gated categories to enter them as a newborn seller it requires Authenticated Invoice from your Distributor in order to Ungate it. All you have to do is purchase few products from the selected product of one of these niches and upload that invoice to Amazon so that they will get it ungated for you. Once it gets ungated then start selling your product.

16) In case of Price war apply repricer:

If we face a situation in which our competitor lowers his price than ours in this situation we set re-pricer which automatically sets price lower than our competitor whenever he changes his price repricer observes it and changes the price to lower than his instantly to lower the chance of risk of not getting buy box.

17) Use JungleScout for Product Research:

We also use Jungle Scout for our product research as well. Jungle Scout is also an important tool which is considered important for Wholesale business.

18) Competitive Sellers only new:

We will only consider New titled metoos in a listing for competitive sellers list and not used ones.

*As I have mentioned complete details regarding Wholesale FBA with basic guidelines for a brief overview regarding this business. Is there any other necessary point/s if I am missing it by mistake for that Invite our senior resource to do let me know so that I can add that point too.*

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