No way to make profit on Amazon from wholesale products

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It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

Thanks in advance.

Harris
#amazon #make #products #profit #wholesale
  • Profile picture of the author James Foster
    HA! That's funny. My business is nearly all wholesale and I do FBA as well. And I know DOZENS of other people who do the same (and sell even more than I do).
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  • Profile picture of the author James Foster
    ... I take that back... You are absolutely right. There is no money to be made. You should quit trying.
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    • Profile picture of the author HarrisAndrea
      ok now that I know I'm not gonna quit trying

      Thanks James
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    • Profile picture of the author ladyEl
      Originally Posted by James Foster View Post

      ... I take that back... You are absolutely right. There is no money to be made. You should quit trying.
      These "provocative words" are a great tool for our motivation, for me first of all. I am new in business, in country (USA), even my English is not as good as I would like. It's really not simply for me to understand all this professional talk on the forum, but I am trying again, again, and again. The more I think, that I can't find good sources for my shop (children stuff), the more something down inside of me tells me" GO ahead, knock in door and it will be opened for you". Thank you, James! Your words make me "running faster".
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    • Profile picture of the author faith22
      Originally Posted by James Foster View Post

      ... I take that back... You are absolutely right. There is no money to be made. You should quit trying.
      I don't see how your replies can help him.
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  • Profile picture of the author Importexport
    Originally Posted by HarrisAndrea View Post

    It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

    Thanks in advance.

    Harris
    One of the biggest mistakes I see in online marketing of physical products is that people buy wholesale thinking that is the best price they can get.

    Why not buy where the wholesalers buy? I know that is almost impossible if you are dealing with western manufacturers, but it is easy if you choose to buy from manufacturers overseas.

    If you go to the popular B2B sites you will find multitudes of wholesalers masquerading as manufacturers. They will not be able to give you the best prices. You must buy from real manufacturers.

    There are many people who are happy to work on low profit margins, and because they have a high turnover on eBay or Amazon, they think they are doing very well. In terms of total profit, they could do much better if they bought from manufacturers.

    Manufacturers in China and other countries will welcome you with open arms. Don't forget most of the big name brands are manufactured in China. In fact a huge share of the products sold in western countries is made in China.

    You can buy quality if you want it. Don't just think "cheap" when you think of China. I have been in factories where one production line is turning out big brand products and the next production line is turning out generic products of similar quality.
    Signature
    Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
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    • Profile picture of the author justforkicks
      Originally Posted by Importexport View Post

      One of the biggest mistakes I see in online marketing of physical products is that people buy wholesale thinking that is the best price they can get.

      Why not buy where the wholesalers buy? I know that is almost impossible if you are dealing with western manufacturers, but it is easy if you choose to buy from manufacturers overseas.

      If you go to the popular B2B sites you will find multitudes of wholesalers masquerading as manufacturers. They will not be able to give you the best prices. You must buy from real manufacturers.

      There are many people who are happy to work on low profit margins, and because they have a high turnover on eBay or Amazon, they think they are doing very well. In terms of total profit, they could do much better if they bought from manufacturers.

      Manufacturers in China and other countries will welcome you with open arms. Don't forget most of the big name brands are manufactured in China. In fact a huge share of the products sold in western countries is made in China.

      You can buy quality if you want it. Don't just think "cheap" when you think of China. I have been in factories where one production line is turning out big brand products and the next production line is turning out generic products of similar quality.

      @ImportExport,

      Thanks for this, a couple years ago my google search would of not brought me close to anything close to this idea. It must be so normal to you and other vets in the manufacturing/import game that it's common know how.. For me I find it quite generous you shared such a basic strategy. Would you mind helping me with a few question through PM? Thanks in advance!
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      • Profile picture of the author Importexport
        Originally Posted by justforkicks View Post

        @ImportExport,

        Thanks for this, a couple years ago my google search would of not brought me close to anything close to this idea. It must be so normal to you and other vets in the manufacturing/import game that it's common know how.. For me I find it quite generous you shared such a basic strategy. Would you mind helping me with a few question through PM? Thanks in advance!
        I help a lot of people through them sending me questions via PMs.

        The biggest problem there is that my mail box tends to get overloaded, so if your questions are ones that don't involve confidential information, I am happy to answer your questions on the forum.

        Feel free to post your questions and I will help as much as I can.
        Signature
        Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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    • Profile picture of the author planetgourmet
      Banned
      [QUOTE=Importexport;9486302]One of the biggest mistakes I see in online marketing of physical products is that people buy wholesale thinking that is the best price they can get.

      Why not buy where the wholesalers buy?

      *
      @importexport:

      your postings have been extremely helpful.

      re amazon FBA, you mean u can have the manufacturer ship DIRECTLY to amazon for fba ? who does the listings ? i assume you trust the manufacturer as far as delivery/ contion etc.
      I have been following skip McGrath and trying 2 learn. high learning curve ! thx you kindly for your posts.
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      • Profile picture of the author Importexport
        [quote=planetgourmet;9602872]
        Originally Posted by Importexport View Post

        One of the biggest mistakes I see in online marketing of physical products is that people buy wholesale thinking that is the best price they can get.

        Why not buy where the wholesalers buy?

        *
        @importexport:

        your postings have been extremely helpful.

        re amazon FBA, you mean u can have the manufacturer ship DIRECTLY to amazon for fba ? who does the listings ? i assume you trust the manufacturer as far as delivery/ contion etc.
        I have been following skip McGrath and trying 2 learn. high learning curve ! thx you kindly for your posts.
        Yes, although I have read posts on this forum stating that you cannot ship direct to Amazon FBA, YOU CAN.

        They put you in touch with their preferred customs agent and provided you follow the instructions you will have no trouble. You may find it better to use an FBA prep service that receives, checks, and if necessary packs and labels to suit Amazon.

        I would recommend that if you are in the same country where you will be using FBA, your first small order should go direct to you for checking, labeling, etc. If all goes well you then organize for the next shipment to go direct.

        Provided you have given precise instructions to the manufacturer you will normally be able to rely on them, despite horror stories you might read about poor quality of shipments not matching samples.
        Signature
        Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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    • Profile picture of the author whatjut
      Originally Posted by Importexport View Post

      One of the biggest mistakes I see in online marketing of physical products is that people buy wholesale thinking that is the best price they can get.

      Why not buy where the wholesalers buy? I know that is almost impossible if you are dealing with western manufacturers, but it is easy if you choose to buy from manufacturers overseas.

      If you go to the popular B2B sites you will find multitudes of wholesalers masquerading as manufacturers. They will not be able to give you the best prices. You must buy from real manufacturers.

      There are many people who are happy to work on low profit margins, and because they have a high turnover on eBay or Amazon, they think they are doing very well. In terms of total profit, they could do much better if they bought from manufacturers.

      Manufacturers in China and other countries will welcome you with open arms. Don't forget most of the big name brands are manufactured in China. In fact a huge share of the products sold in western countries is made in China.

      You can buy quality if you want it. Don't just think "cheap" when you think of China. I have been in factories where one production line is turning out big brand products and the next production line is turning out generic products of similar quality.
      Do you have any recommendations of URLs to start me off besides Alibaba or its subsidiaries? I'd be interested in finding out that information. Thanks ahead of time whether you do or not, I appreciate your time.
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      • Profile picture of the author Importexport
        Originally Posted by whatjut View Post

        Do you have any recommendations of URLs to start me off besides Alibaba or its subsidiaries? I'd be interested in finding out that information. Thanks ahead of time whether you do or not, I appreciate your time.
        Sorry but I don't post them online. There are several reasons but the main one is that there is a lot more to safe sourcing than just using safe sites.

        I have have had many people come to me after they have been burnt and if they had known a few simple rules the process would have gone smoothly.

        Of the hundreds of people I have taught to safely source and to import the easy way, only one has ever been scammed. He did everything wrong, breaking 3 of the rules that I mention in my book:
        • He sourced through Alibaba. I say avoid Alibaba.
        • He placed a large order first off. I say place a small order to try both the product and the supplier.
        • He paid via Western Union. WU is the scammers' favorite payment method.
        You might like to have a look at my thread: If your secret B2B portals are so safe why don't you share? You will find a lot of helpful information there, but I can't post 83 pages.
        Signature
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        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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        • Profile picture of the author Shellg
          Originally Posted by Importexport View Post

          Sorry but I don't post them online. There are several reasons but the main one is that there is a lot more to safe sourcing than just using safe sites.

          I have have had many people come to me after they have been burnt and if they had known a few simple rules the process would have gone smoothly.

          Of the hundreds of people I have taught to safely source and to import the easy way, only one has ever been scammed. He did everything wrong, breaking 3 of the rules that I mention in my book:
          • He sourced through Alibaba. I say avoid Alibaba.
          • He placed a large order first off. I say place a small order to try both the product and the supplier.
          • He paid via Western Union. WU is the scammers' favorite payment method.
          You might like to have a look at my thread: If your secret B2B portals are so safe why don't you share? You will find a lot of helpful information there, but I can't post 83 pages.
          After you answered my questions and other peoples in this thread I decided to buy your book, and what you say about big margins from importing is true.

          In fact Im now selling my second small order from China and Im selling at nearly 5 times my cost including frieght.

          I can't understand why anybody would pay nearly $100 for your book and go against what you say like the one who got scammed. Crazy person!
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          • Profile picture of the author Importexport
            Originally Posted by Shellg View Post

            After you answered my questions and other peoples in this thread I decided to buy your book, and what you say about big margins from importing is true.

            In fact Im now selling my second small order from China and Im selling at nearly 5 times my cost including frieght.

            I can't understand why anybody would pay nearly $100 for your book and go against what you say like the one who got scammed. Crazy person!
            A lot of people obviously don't read carefully, but that case was more like it was someone who always knows better.

            I get many questions from people who contact my support team, and often all the answer that is needed is just to refer them to Chapter 3.2 or something like that. Sometimes they need explanations, so that is what they get. Most people find that the book tells them everything they need to know and they understand it without any problem.

            But, I have had book users asking several times for more information. These are exceptional cases where the person is extremely nervous.

            I don't mind that because I would prefer that people ask if they are not sure. They risk losing money if they make mistakes, and the whole purpose of my book is to help people make money out of importing, so it is better to ask than to act without being sure.
            Signature
            Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
            Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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  • Profile picture of the author DWaters
    Originally Posted by HarrisAndrea View Post

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).
    I know from experience that it is not easy to find real wholesalers to obtain product from. Skip McGrath has a web site where he shares (at no cost) some good wholesale resources.
    There are many so-called wholesalers who have prices higher than Amazon! That is not going to work obviously. Be persistent and you will find what you need!
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  • Profile picture of the author justforkicks
    Originally Posted by HarrisAndrea View Post

    It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

    Thanks in advance.

    Harris
    I just started on Amazon after they found me through one of my websites and requested I try out Amazon for the Clothing category. I was very excited, but 1 month later I found what @HarrisAndrea to be true. This is business though and we are working in a competitive sport if not the THE most competitive sport, BUSINESS. Still though, I would like to know if maybe there is a tucked away category of items that will sell and just sell 24/7, are these self published items, manufactured items, self branded and promoted items, etc..? So back to work on uploading the rest of the 100,000 items from my wholesale catalog. If anyone has a solution to help with listing those items, please contact me.I suppose, the more you offer the higher the probability of selling, duh right?
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    • Profile picture of the author serpyre
      Originally Posted by justforkicks View Post

      So back to work on uploading the rest of the 100,000 items from my wholesale catalog. If anyone has a solution to help with listing those items, please contact me.I suppose, the more you offer the higher the probability of selling, duh right?
      We do, designed by specialist architects, but it is so advanced that 99.99% have no idea that they need it - and that's the basic version! Walmart can onboard a new supplier in 30mins which auto-uploads the products with zero code - this does the same.

      For the profit, it depends on how you want to make that profit. Almost all who say it is possible use the 1:1 revenue:effort model, this means for every amount of effort you put in (generally time) you generate one lot of revenue. Now the corporates are 7-10:1. So making 1:1 is actually pretty easy, going above this though it increasingly complex as you get towards the 7-10:1.

      From the way you wrote your comments, we would guess you are looking at the 3-5:1 model than mid size companies use. For that you need advanced technology, yes its possible but highly unlikely - for reference we have acesss to 7-10:1 technology scaled from large enterprise.

      Then you have the next problem, fakes. Finding a wholesaler is stupidly complex if you do any due dilligence (most don't) - you will be surprised the number of fake products in the marketplace being sold on. That's why consumers are starting to move towards department stores - trust. It might cost more - but you are guaranteed the product - go to eBay and who knows - even the OEMs have a hard time knowing if they are fakes or not.

      So it all comes down to perspective - yes it's easy to make enough to survive - but making enough to live with genunie supply chain products - that is one of the hardest things to do - and it needs time, experience and determination to filter out the 99% of rubbish.
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  • Profile picture of the author Silas Hart
    Originally Posted by HarrisAndrea View Post

    It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

    Thanks in advance.

    Harris
    What categories are you currently working in? How are you going about the process of deciding what wholesale companies to look up for purchasing? Are you just browsing items you like and saying "I'll look up bulk pricing for this" ?
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    • Profile picture of the author HarrisAndrea
      Originally Posted by Silas Hart View Post

      What categories are you currently working in? How are you going about the process of deciding what wholesale companies to look up for purchasing? Are you just browsing items you like and saying "I'll look up bulk pricing for this" ?
      Hi and thanks for your reply. Since I'm from Europe and selling in USA, I'm confined with finding suppliers that are willing to work with international sellers and also to send products to FBA on my behalf. So basically I'm selecting wholesalers based on the above criteria and see if their prices can be profitable in Amazon, which is a rare case unfortunately.
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      • Profile picture of the author Importexport
        Originally Posted by HarrisAndrea View Post

        Hi and thanks for your reply. Since I'm from Europe and selling in USA, I'm confined with finding suppliers that are willing to work with international sellers and also to send products to FBA on my behalf. So basically I'm selecting wholesalers based on the above criteria and see if their prices can be profitable in Amazon, which is a rare case unfortunately.
        You can buy direct from manufacturers in China and ship to FBA. This will enable you to buy at prices that will give you huge profit margins, even on small quantities. You can then forget about the small profit margins available from wholesalers.

        The shipping direct to FBA procedure is complicated to begin with but once you learn how to do it, you can reap great rewards. Amazon provide step by step instructions. The manufacturers in China have no problems handling their end of the process. I have a number of students who are doing this already.
        Signature
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        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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      • Profile picture of the author David Snape
        Originally Posted by HarrisAndrea View Post

        Hi and thanks for your reply. Since I'm from Europe and selling in USA, I'm confined with finding suppliers that are willing to work with international sellers and also to send products to FBA on my behalf. So basically I'm selecting wholesalers based on the above criteria and see if their prices can be profitable in Amazon, which is a rare case unfortunately.
        Amazon Germany grosses more than Amazon UK. if you are in Germany, try that.
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  • Profile picture of the author LABEShops
    It really depends on what products you are selling and what margin you are wanting to make. Ebay is very hard to make a high margin on as most shoppers on ebay are looking for a bargain, but if you are okay making a small profit per item, it can be done. Amazon you can make a decent profit on depending on the product - it takes some research and testing until you find the right price point though, and I find a lot of sellers assume like you do that it's impossible and give up.
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    • Profile picture of the author DWaters
      Originally Posted by LABEShops View Post

      Ebay is very hard to make a high margin on as most shoppers on ebay are looking for a bargain, but if you are okay making a small profit per item, it can be done. Amazon you can make a decent profit on depending on the product - .
      This is why I often buy on ebay and sell them on Amazon for a good margin. It is usually just for a single item but I sometimes find several items to purchase at once.
      Actually the FedEx truck just delivered an ebay item I paid about $25 for a few days ago. It will sell on Amazon for $98.50 within ten days.
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      • Profile picture of the author Importexport
        I think the OP is looking for a steady supply chain rather than the hit and miss of ebay/amazon arbitrage.

        He is also looking for better profit margins than he can get by buying from wholesalers in the US.

        The answer to both is to buy direct from reliable and genuine manufacturers in China or one of the many other overseas countries where you can get extremely low prices for good quality products. The result is: Regular supply combined with very high profit margins.
        Signature
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        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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        • Profile picture of the author glomart
          Originally Posted by Importexport View Post

          I think the OP is looking for a steady supply chain rather than the hit and miss of ebay/amazon arbitrage.

          He is also looking for better profit margins than he can get by buying from wholesalers in the US.

          The answer to both is to buy direct from reliable and genuine manufacturers in China or one of the many other overseas countries where you can get extremely low prices for good quality products. The result is: Regular supply combined with very high profit margins.
          how can i get direct to manufacturers in china or korea that i can buy directly from them
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          • Profile picture of the author Importexport
            Originally Posted by glomart View Post

            how can i get direct to manufacturers in china or korea that i can buy directly from them
            I teach how to safely locate manufacturers in China, Korea, and many other countries, but you need to know a lot more than simply where to find them.

            It is very difficult and potentially risky to use the popular B2B sourcing sites that are usually recommended on the forum. I recommend a few safe sourcing sites but I don't publish them on the forum, for very good reasons.

            To read those reasons, together with a lot of helpful information on importing for newbies, you might like to see the thread If your secret B2B portals are so safe why don't you share?
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            • Profile picture of the author AbbyIbrahim
              @ Importexport: In one of the post above you said
              "You can buy direct from manufacturers in China and
              ship to FBA."

              Could you explain a little bit more on how to go
              about doing this?

              Thanks
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              • Profile picture of the author Importexport
                Originally Posted by AbbyIbrahim View Post

                @ Importexport: In one of the post above you said
                "You can buy direct from manufacturers in China and
                ship to FBA."

                Could you explain a little bit more on how to go
                about doing this?

                Thanks
                Suppliers in China will ship to any address you choose. You can get them to ship direct to Amazon or you can ship to an Amazon prep company that will receive the goods for you, inspect them, repack to suit Amazon of necessary and then ship them to Amazon for you.

                Alternatively you could use one of the many other smaller fulfillment companies who will do all that Amazon does except give you the sales benefit that working through Amazon FBA gives.
                Signature
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                • Profile picture of the author Ryan David
                  Originally Posted by Importexport View Post

                  Suppliers in China will ship to any address you choose. You cna get them to ship direct to Amazon or you can ship to an Amazon prep company that will receive the goods for you, inspect them, repack to suit Amazon of necessary and then ship them to Amazon for you.

                  Alternatively you could use one of the many other smaller fulfillment companies who will do all that Amazon does except give you the sales benefit that working through Amazon FBA gives.
                  You make it sound so easy! Doing this without extensive knowledge of FBA and all the companies you are using will almost guaranteed be a gigantic mess.

                  I repeat, do NOT do this.
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            • Profile picture of the author Ryan Mc
              Your link in your signature is broken. Can you send me a working link? I'd like to take a look. Thanks for the info.
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              • Profile picture of the author Importexport
                Originally Posted by Ryan Mc View Post

                Your link in your signature is broken. Can you send me a working link? I'd like to take a look. Thanks for the info.
                I tried my link a moment ago and it worked, but just in case I have PM'd you with a live link.
                Signature
                Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
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  • Profile picture of the author James Foster
    So why don't you sell in Amazon UK instead? Save yourself the extra hassle.
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    • Profile picture of the author Jacomara
      Originally Posted by James Foster View Post

      So why don't you sell in Amazon UK instead? Save yourself the extra hassle.
      Problem solved! Hopefully this thread will end now
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      • Profile picture of the author Importexport
        Originally Posted by Jacomara View Post

        Problem solved! Hopefully this thread will end now
        That post was made on Sept 2nd. The OP did not take up the suggestion because he is located in a country other than the UK and would have similar problems to deal with, but without the big potential of the US market. He was not even looking for information on how to sell in the US.

        His big problem as stated in his original post was how to find wholesale suppliers that would sell at prices that would make it possible to sell on Amazon at a profit.

        I gave answers in my posts #5 and #14 that solved the problem.
        Signature
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        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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        • Profile picture of the author HarrisAndrea
          Originally Posted by Importexport View Post

          That post was made on Sept 2nd. The OP did not take up the suggestion because he is located in a country other than the UK and would have similar problems to deal with, but without the big potential of the US market. He was not even looking for information on how to sell in the US.

          His big problem as stated in his original post was how to find wholesale suppliers that would sell at prices that would make it possible to sell on Amazon at a profit.

          I gave answers in my posts #5 and #14 that solved the problem.
          That's right, I just wanted to source from within USA to sell in amazon.com but as I've said wholesale suppliers might not be a good idea. Walter do you offer email support in importing for people outside US if I buy your book?
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          • Profile picture of the author Importexport
            Originally Posted by HarrisAndrea View Post

            That's right, I just wanted to source from within USA to sell in amazon.com but as I've said wholesale suppliers might not be a good idea. Walter do you offer email support in importing for people outside US if I buy your book?
            I have people from 35 countries using my book and they all get full support as needed.

            Walter
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  • Profile picture of the author BKenn01
    You might try asking to become a distributor. Many people who sell on ebay manage to make it because they have negotiated distributor pricing which is typically another 15% or so off wholesale. There are plenty of things you can buy and resell on ebay. I cant comment on Amazon because I have never sold there. Price is not everything and you have build good feedback. If you do that you can demand higher prices. You have to be patient and the key is to list a lot of merchandise.
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  • Profile picture of the author Emir Hayric
    Originally Posted by HarrisAndrea View Post

    It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

    Thanks in advance.

    Harris
    Are you using one of those bogus "drop shipping" sites that seems to be popping up all over the place? Those same companies I guarantee are selling the same items on the marketplace but don't have the markup to deal with that you do when you buy from them.
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    • Profile picture of the author Legit SEO
      To go along with what ImportExport said, I've bought stuff from manufacturers here in the states that were much worse quality than the same types of items bought from China factories. I love buying from China.
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      • Profile picture of the author Importexport
        Originally Posted by Legit SEO View Post

        To go along with what ImportExport said, I've bought stuff from manufacturers here in the states that were much worse quality than the same types of items bought from China factories. I love buying from China.
        People tend to think cheap and nasty when they think of China, but that is only the case if, like some of the big chains, you haggle down to the bone.

        When I began importing in 1987 I did so because my local manufacturer was always late with delivery, couldn't care less about service, and quality was way below what I wanted.

        My manufacturers in China gave me superior quality, faster than local delivery, and exceptionally good service. Oh - yes, they also gave me prices that had me laughing all the way to the bank. Each order was only small until the business grew, and I did not haggle to get those low prices.
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  • Profile picture of the author AnamikaSharma
    I have no idea about it. I also getting knowledge from you all.
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    • Profile picture of the author Emir Hayric
      Originally Posted by AnamikaSharma View Post

      I have no idea about it. I also getting knowledge from you all.
      Well that was a very productive comment lol
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  • Profile picture of the author muddawg
    True wholesale is 40% off retail in most product categories.

    Assuming that you're lucky enough to find a product that you can sell on eBay and Amazon at full retail and still be competitive, you only have a 40% mark up.

    You then must pay at least 15% in fees when the item sells, then you have shipping costs (these days in most categories you cannot be priced at full retail plus shipping and have skin the market), you are going to have to offer free shipping.

    After fees and shipping alone, you're looking at all, if not most, if your 40% markup now gone. Not to mention if the customer chooses to return the item...or claims the item is defective...you're now in the red.

    The best way to make money now days is to source overstock and closeout product from liquidators, and purchasing product from clearance racks at your local retailer. You will often find product for 25 to 30 cents on the retail dollar, (way less than the 60 cent on the dollar you pay for wholesale), leaving you more room for profit..

    Remember, you must buy your profit, not sell your profit.
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    • Profile picture of the author HarrisAndrea
      Originally Posted by muddawg View Post

      True wholesale is 40% off retail in most product categories.

      Assuming that you're lucky enough to find a product that you can sell on eBay and Amazon at full retail and still be competitive, you only have a 40% mark up.

      You then must pay at least 15% in fees when the item sells, then you have shipping costs (these days in most categories you cannot be priced at full retail plus shipping and have skin the market), you are going to have to offer free shipping.

      After fees and shipping alone, you're looking at all, if not most, if your 40% markup now gone. Not to mention if the customer chooses to return the item...or claims the item is defective...you're now in the red.

      The best way to make money now days is to source overstock and closeout product from liquidators, and purchasing product from clearance racks at your local retailer. You will often find product for 25 to 30 cents on the retail dollar, (way less than the 60 cent on the dollar you pay for wholesale), leaving you more room for profit..

      Remember, you must buy your profit, not sell your profit.
      You have some great points. Another way to make money with wholesale products is if you sell them on your own ecommerce store instead of Amazon, so that you avoid their fees.

      Fortunately by being persistent I have found a couple of wholesale sources in which some of their products (with the help of a UPC research software) can leave me a profit on Amazon, so I started selling those for now. Let's see how it goes.

      Thank you all for all the valuable feedback.
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      • Profile picture of the author DWaters
        [QUOTE=HarrisAndrea;9557645] Another way to make money with wholesale products is if you sell them on your own ecommerce store instead of Amazon, so that you avoid their fees.
        [QUOTE]

        The only problem with this is that Amazon has by far way more buyer traffic then your own ecommerce store will ever have. Not using Amazon to "avoid their fees" make absolutely no sense IMO.

        I would rather sell 100 units with a modest profit margin than 10 units with a larger profit margin.
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        • Profile picture of the author feral
          Originally Posted by DWaters View Post


          The only problem with this is that Amazon has by far way more buyer traffic then your own ecommerce store will ever have. Not using Amazon to "avoid their fees" make absolutely no sense IMO.

          I would rather sell 100 units with a modest profit margin than 10 units with a larger profit margin.
          Just letting you know your link in your signature isn't working (the one about amazon business) it throws up a database error. Have you got an alternative link?
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    • Profile picture of the author Importexport
      Originally Posted by muddawg View Post

      True wholesale is 40% off retail in most product categories.

      Assuming that you're lucky enough to find a product that you can sell on eBay and Amazon at full retail and still be competitive, you only have a 40% mark up.

      You then must pay at least 15% in fees when the item sells, then you have shipping costs (these days in most categories you cannot be priced at full retail plus shipping and have skin the market), you are going to have to offer free shipping.

      After fees and shipping alone, you're looking at all, if not most, if your 40% markup now gone. Not to mention if the customer chooses to return the item...or claims the item is defective...you're now in the red.

      The best way to make money now days is to source overstock and closeout product from liquidators, and purchasing product from clearance racks at your local retailer. You will often find product for 25 to 30 cents on the retail dollar, (way less than the 60 cent on the dollar you pay for wholesale), leaving you more room for profit..

      Remember, you must buy your profit, not sell your profit.
      You can make consistently higher profits with a reliable and regular supply chain by buying direct from manufacturers in China and other countries.

      Profit margins will amaze you.
      Signature
      Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
      Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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      • Profile picture of the author Shellg
        Originally Posted by Importexport View Post

        You can make consistently higher profits with a reliable and regular supply chain by buying direct from manufacturers in China and other countries.

        Profit margins will amaze you.
        You think 40% is not good! You just say consistently higher. What sort of profit margins are you talking about?
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        • Profile picture of the author Importexport
          Originally Posted by Shellg View Post

          You think 40% is not good! You just say consistently higher. What sort of profit margins are you talking about?
          As I have said elsewhere in this thread, wholesalers buy from manufacturers and add their large margins before selling to you.

          I ran an importing business for 22 years and it was so successful that I franchised it in 4 countries. Without very high profit margins my franchisees would have rebelled. I guaranteed them that they could sell for at least total cost X 250%. It was not unusual for them to do a lot better than that.

          One wrote to me saying: " It was nice to make the occasional $50,000 for half a days work." Letter on file to show to FTC if necessary.

          More recently one of my book buyers sent an email about his delight at the high margin he is making after starting off very small: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a "sample order" for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks." Email on file to show to FTC if necessary.


          So you ask what sort of profit margin am I talking about?Another warrior using my book has posted about buying items at $1, spending another dollar on packaging and selling at $25.

          You will never make margins like that by buying from wholesalers.

          Signature
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          • Profile picture of the author Shellg
            Originally Posted by Importexport View Post

            As I have said elsewhere in this thread, wholesalers buy from manufacturers and add their large margins before selling to you.

            I ran an importing business for 22 years and it was so successful that I franchised it in 4 countries. Without very high profit margins my franchisees would have rebelled. I guaranteed them that they could sell for at least total cost X 250%. It was not unusual for them to do a lot better than that.

            One wrote to me saying: " It was nice to make the occasional $50,000 for half a days work." Letter on file to show to FTC if necessary.

            More recently one of my book buyers sent an email about his delight at the high margin he is making after starting off very small: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a "sample order" for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks." Email on file to show to FTC if necessary.


            So you ask what sort of profit margin am I talking about?Another warrior using my book has posted about buying items at $1, spending another dollar on packaging and selling at $25.

            You will never make margins like that by buying from wholesalers.

            The person you quoted made 300%! Is that usual or did he do something special?

            Also he said he only bought $300 worth, but everywhere I look there are really huge minimums stated so where do I find places like where he found such an amazing deal? I'm only new so I need help.
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            • Profile picture of the author Importexport
              Originally Posted by Shellg View Post

              The person you quoted made 300%! Is that usual or did he do something special?

              Also he said he only bought $300 worth, but everywhere I look there are really huge minimums stated so where do I find places like where he found such an amazing deal? I'm only new so I need help.
              A margin of 300% is not surprising to those who understand how to properly source from the real manufacturers. I am not talking about buying from the traders and wholesalers who have flooded onto Alibaba and other major B2B sites, pretending to be manufacturers.

              No he did not do anything special, he just searched carefully in the right places, using the right safe sourcing procedures.

              One of the great myths about importing is that you have to buy huge quantities to buy direct from manufacturers. That is not true. I have taught hundreds how buy small quantities at genuine factory prices.

              Many of them have started off with small amounts of cash, just like the man with $300 whose email I quoted.

              If you have any specifc questions about sourcing or importing, you might like to post them on my AMA thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.
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    • Profile picture of the author Emir Hayric
      Originally Posted by muddawg View Post

      True wholesale is 40% off retail in most product categories.

      Assuming that you're lucky enough to find a product that you can sell on eBay and Amazon at full retail and still be competitive, you only have a 40% mark up.

      You then must pay at least 15% in fees when the item sells, then you have shipping costs (these days in most categories you cannot be priced at full retail plus shipping and have skin the market), you are going to have to offer free shipping.
      The final value fees have gotten ridiculous and then PP hits you with their fee as well, talk about double dipping! Take away shipping fees plus insurance and signature confirmation (if you sell high dollar products like I was) and you are not left with much. Then god forbid the customer has even the SLIGHTEST issue and wants to return the item that was once new and is now used! Don't bother fighting because 9/10 time eBay will side with the customer.
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  • Profile picture of the author johnben1444
    You are very right that's why you see a good number of sellers from China, Hong Kong and other asian countries because their cost of production is low and most likely the quality too coupled with the high fees on eBay, U.S players may not be able to break even easily except selling used items.
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    • Profile picture of the author Importexport
      Originally Posted by DreamTFK View Post

      The final value fees have gotten ridiculous and then PP hits you with their fee as well, talk about double dipping! Take away shipping fees plus insurance and signature confirmation (if you sell high dollar products like I was) and you are not left with much. Then god forbid the customer has even the SLIGHTEST issue and wants to return the item that was once new and is now used! Don't bother fighting because 9/10 time eBay will side with the customer.
      Originally Posted by johnben1444 View Post

      You are very right that's why you see a good number of sellers from China, Hong Kong and other asian countries because their cost of production is low and most likely the quality too coupled with the high fees on eBay, U.S players may not be able to break even easily except selling used items.
      The solution is very simple. Buy better!

      If you are working on very high profit margins you can easily carry the costs of selling and still have plenty left over. Those who are stuck in the rut of buying from wholesalers are throwing money away....... Lots of money.

      Please see my post #5 where I wrote about buying from the places where the wholesalers buy. I will be happy to answer questions.
      Signature
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  • Profile picture of the author daileydub
    There are some apps out there you can download and will automatically let you know the rank of the product on amazon as well as the fba expected profit/(or loss) after shipping and fees. I know some can be $60 a month but its a good investment.

    Not all of the merchandise at the "wholesale" places is going to be profitable.
    Dig deep with your searches with keywords liquidation and shelf pull and the name of your closest major city. Take a day to visit a couple that have the products your interested in selling. They will usually make you a much better deal than the prices they may have advertised on their website.
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  • Profile picture of the author Hydraman
    Take your time good wholesalers are available. What I find is that a lot of people give up too quickly when looking for suppliers. What I say to people is that even if it takes you three solid day to find a good product, just think of the long term value of that product to you.
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  • I have been doing dropshipping for 3 months but will not purchase anything from China because what happens if the item is defective?? I doubt my customers are going to pay to ship anything back to China.
    Find a good U.S. supplier, or use a directory like:
    gogodropship.com
    salehoo.com

    Some good vendors I work with :
    techdata.com
    albanydistributing.com

    There are also dropship sites like dropshipdesign.com or doba. Haven't used neither but heard good things and bad things about both.
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    • Profile picture of the author Emir Hayric
      Originally Posted by adamsanderson1989 View Post

      I have been doing dropshipping for 3 months but will not purchase anything from China because what happens if the item is defective?? I doubt my customers are going to pay to ship anything back to China.
      Find a good U.S. supplier, or use a directory like:
      gogodropship.com
      salehoo.com

      Some good vendors I work with :
      techdata.com
      albanydistributing.com

      There are also dropship sites like dropshipdesign.com or doba. Haven't used neither but heard good things and bad things about both.
      Well there is no reward without the risk, you are also going to get the products a lot cheaper from China. Now if you have a vendor who is constantly sending defective items then yeah it's probably time to cut ties.
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      • Profile picture of the author TishTopicsTV
        Buy low, sell high seems to be the going theme. You may need to buy in bulk from the Chinese (overseas manufacturers). What are shipping costs and minimums like for smaller under $20.00 products?

        Anyway, great information here. Thank you
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  • Profile picture of the author Ryan David
    Originally Posted by HarrisAndrea View Post

    It looks like buying products from wholesale sources in the US makes it very hard to make a profit when selling on Amazon (and even worse on eBay). This is my experience with most wholesale sources that I have found.

    I would appreciate any feedback on this issue and also any recommendations about how to find wholesale sources that you can make some profit when selling on Amazon (I'm using FBA by the way).

    Thanks in advance.

    Harris
    You can still find some niches where you can make some money doing this by buying from wholesale sources. I have an e-commerce site that serves this niche, but hadn't really gotten into selling the products on Amazon because I have bigger fish to fry. I just picked a product at random and here's the results:

    Wholesale cost: $16.50
    For Sale on Amazon: $26.50

    It's a small product so the shipping costs each way might break down to .25 each, so my all in costs are $17.00 to get the product/ship to Amazon. If I sell it for $25.99, then I'll clear $19.61 on the sale and make a profit of $2.61.

    So I made money, but you can see pretty quickly that it's not much to get excited about. Remember that this is a product that flies below the radar so the sales aren't stellar. If they were stellar, it'd have more people trying to sell it. So even if I can sell 3 per day, it's only $7-ish in profit.

    So it's not that you can't make a little money, but it's more that time is better spent elsewhere. The products that I import, I can literally clear $13 in profit on a similarly priced product.
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    • Profile picture of the author Importexport
      Originally Posted by Ryan David View Post

      You can still find some niches where you can make some money doing this by buying from wholesale sources. I have an e-commerce site that serves this niche, but hadn't really gotten into selling the products on Amazon because I have bigger fish to fry. I just picked a product at random and here's the results:

      Wholesale cost: $16.50
      For Sale on Amazon: $26.50

      It's a small product so the shipping costs each way might break down to .25 each, so my all in costs are $17.00 to get the product/ship to Amazon. If I sell it for $25.99, then I'll clear $19.61 on the sale and make a profit of $2.61.

      So I made money, but you can see pretty quickly that it's not much to get excited about. Remember that this is a product that flies below the radar so the sales aren't stellar. If they were stellar, it'd have more people trying to sell it. So even if I can sell 3 per day, it's only $7-ish in profit.

      So it's not that you can't make a little money, but it's more that time is better spent elsewhere. The products that I import, I can literally clear $13 in profit on a similarly priced product.
      As you so well explain, buying wholesale is not the answer if someone wants to make serious money.

      Importing direct from manufacturers in China and other countries can give you huge profit margins compared to buying from wholesalers.
      Signature
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  • Profile picture of the author WilliamVillagran
    Well its not too easy to find a good wholesaler that will work with you but once you do you should be set. In the mean time maybe you should start with finding products to sell that are on clearance to resell on amazon. Everything takes time and hard work. Good Luck
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  • Profile picture of the author Abe Archer
    Don't go for the low-hanging fruit. It doesn't exist anymore.

    You need to do some deeper searching if you're going to find a wholesaler that you can make a profit with.
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  • Profile picture of the author Anna Hartzog
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  • Profile picture of the author PaulMeyer
    In order to make more money with wholesale products, I would sell them on my own store
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    • Profile picture of the author Life Naturally
      Originally Posted by PaulMeyer View Post

      In order to make more money with wholesale products, I would sell them on my own store
      I agree I have had the most success with selling my products on my own store. I find with Amazon if you try to sell wholesale products the manufacturer is usually on there and can undercut you. My friends company sells his own product that he developed on Amazon and has seemed to get good traction, especially targeting the "gluten free" market.
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    • Profile picture of the author DWaters
      Thanks for letting me know. I just tested the link and it worked fine.


      Originally Posted by PaulMeyer View Post

      In order to make more money with wholesale products, I would sell them on my own store
      I disagree with this for the simple reason that Amazon will always have more buyer traffic than your site. If you are selling at the correct price you will make more money in most cases.
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    • Profile picture of the author amcg
      Originally Posted by PaulMeyer View Post

      In order to make more money with wholesale products, I would sell them on my own store
      Exactly, own store is a must. But remember, third party marketplaces like Amazon could be excellent as a way of marketing your brand/products too.
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  • Profile picture of the author NewParadigm
    import/export, i got some samples from china for an item and got whacked for a $130 and $140 brokerage fee for small packages. How do you get samples shipped for reasonable price or is that the norm?


    A twist on wholesaling/dropshipping is going to retailers and manufacturers/distributors and ask them about all their discontinued/obsolete inventory. Tell them you'll list it and sell it for them, they ship and you split revenue whatever you negotiate. Sell off their inventory and they'll do the shipping. It's "free" money to them so they are often flexible to work with. You do the leg work of listing the items in appropriate places. Most of them are too lazy to do it but will split with you 50/50 or better if you get them an order. No out of pocket for you or risk of buying a bunch of inventory upfront.
    Signature

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    • Profile picture of the author Importexport
      Originally Posted by NewParadigm View Post

      import/export, i got some samples from china for an item and got whacked for a $130 and $140 brokerage fee for small packages. How do you get samples shipped for reasonable price or is that the norm?
      Someone has taken advantage of you. That sounds way too much, but without knowing more details I can't be sure.

      The usual procedure is to be charged for freight but often the sample will be free if it is a small value item, otherwise you will pay the usual price for the sample also.

      Most genuine manufacturers are quite reasonable about sample costs because they want your business. Where many people get caught is that they start dealing with traders who pretend to be manufacturers.

      There are swarms of such traders listed on the big B2B sites, specially Alibaba, DHGate, Tradekey etc. They can't possibly give you the best deal.
      Signature
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  • Profile picture of the author Lipipaliwal
    Banned
    Well, according to me, you need to think about to create your own store. Then you can go to Amazon for shipping or third party vendor service. I think, it might be good for you.
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