How to Find Amazon FBA Wholesale Suppliers

Many Amazon sellers who want to grow their online arbitrage or mini-wholesale business to large-scale operations have difficulties finding suppliers for profitable products. This is because many brands they want to work with may already have an established distributor network and are reluctant to work with Amazon sellers who don't have physical stores.

This post will guide you through various methods for finding reputable Amazon FBA wholesale suppliers. From finding local brands to competitor research, we'll explore a range of strategies to help you choose the best suppliers.

How Does Amazon Wholesale Work?

In the Amazon wholesale business model, sellers purchase products in bulk from brands or distributors at a low wholesale price and then resell them at a higher retail price on Amazon, keeping the profit margin.

Your main tasks in this business model are to find a reliable supplier (either a brand or distributor) and select their most popular and profitable products to sell on Amazon. This approach is known as direct sourcing.

With direct sourcing, you start by obtaining a list of products from the supplier. Next, you identify these products on Amazon, selecting those that have good sales volumes and high-profit margins. Finally, you list and sell these products, making a profit from the difference between your purchase price and the selling price.

Steps to Amazon wholesale

Step 1. Get a reseller’s permit

Before you can start your wholesale business on Amazon, you need to obtain a reseller’s permit. This permit allows you to purchase products in bulk without paying sales tax, which you will collect from customers when you resell the items.

Step 2. Choose your niche

Select a specific category and subcategories of products to focus on. Consider your interests, market research, and potential for profit. A well-defined niche helps you focus your efforts. Consider factors like demand, competition, and profitability when choosing your niche.

Step 3. Choose a potential supplier

Identify potential suppliers who offer the products within your chosen niche. Suppliers can be brands or distributors. Look for suppliers with a good reputation and a broad range of products.

Step 4. Vet the suppliers

Thoroughly verify your potential suppliers to ensure they are reliable and offer quality products. Check their reviews, request references, and verify their business credentials to avoid any future issues.

Step 5. Contact the supplier

Reach out to your chosen suppliers through phone, email, or their website. Introduce yourself and your business, and express your interest in opening a wholesale account with them.

Step 6. Send an application

Complete and submit the supplier’s application form typically available on their website. This usually requires providing business information, such as your reseller’s permit, business license, and contact details. Shortly describe who you are and what you want.

Step 7. Get approval and open wholesale account

Once your application is approved, you can open a wholesale account with the supplier. This account allows you to purchase products at wholesale prices.

Step 8. Get inventory list with prices

Request an inventory list from your supplier that includes product details and wholesale prices. This list is essential to find out the products that will be in demand on Amazon and will be profitable.

Step 9. Research products 

Since you have many products on the list, use the best product sourcing tool, Seller Assistant, to simplify product research. Find the match on Amazon with Seller Assistant’s UPC/EAN to ASIN converter. Do quick product research with Quick View, and pick out the products with high demand and moderate competition levels. Ensure you can sell them on your Amazon seller account with Bulk Restrictions Checker. Do extended product research to see if the products are in demand and profitable.

Step 10. Negotiate with the supplier

Engage in negotiations with your supplier to get the best possible prices. Aim for mutually beneficial terms, build a long-term relationship for better deals. Order in larger quantities to secure bigger discounts. Commit to recurring orders for more significant savings. Maintain consistent orders and build strong relationships for ongoing discounts.

Step 11. Pay for your order

Once you have negotiated the terms, pay for your order. Most suppliers accept various payment methods, including the ACH (Automated Clearing House) transfers, wire transfers, and credit cards.

Step 12. Prep and ship inventory

Use Fulfillment by Amazon (FBA) where Amazon takes care of fulfillment and customer service for a fee or Fulfillment by Merchant (FBM) where the same is handled by a third-party logistics partner, depending on what is cheaper. If using FBA, prepare your inventory according to Amazon’s requirements and ship it to Amazon’s fulfillment centers. Ensure your products are properly labeled and packaged to avoid any issues during the fulfillment process.

Related: Amazon Wholesale: All You Need To Know

How to Negotiate Prices With Amazon FBA Wholesale Suppliers

What Amazon Wholesale Suppliers to Buy from?

As a wholesaler, you must select a supplier depending on your budget and their Minimum Order Quantities (MOQ). For example, if you are just starting out and have $5,000 to 10,000 to spend on inventory, approaching huge brands like Apple or Adidas will be a waste of time. Below we discuss the criteria for choosing a supplier. 

Types of Wholesale Suppliers

Big Brands / Manufacturers

Big brands and manufacturers are suppliers who produce goods on a large scale and often have well-established reputations and brand recognition.

• Good for
  • Established sellers who already have a solid business foundation and can meet high minimum order quantities;
  • Sellers with larger budgets to invest in bulk purchases and the ability to manage higher upfront costs.
• Advantages
  • Products from big brands often come with built-in customer trust and recognition;
  • You don’t need to invest much in advertising; popular brands typically promote their product themselves.
• Challenges
  • Brands often require High Minimum Order Quantities, which can be a barrier for smaller or newer sellers;
  • More rigid policies and less flexibility in terms of negotiations and custom orders.

Distributors

Distributors are intermediaries that purchase products in bulk from various manufacturers and brands and resell them to retailers. They offer a wide range of products from multiple sources.

• Good for
  • Small to medium sellers who operate on a smaller scale as they often have lower minimum order requirements;
  • Sellers who want to offer a diverse product range without sourcing from multiple manufacturers.
• Advantages
  • Access to a broad range of products from multiple brands and manufacturers;
  • Typically lower Minimum Order Quantities compared to buying directly from manufacturers.
• Challenges
  • Prices can be higher compared to purchasing directly from manufacturers due to the distributor’s markup;
  • Distributor requirements and policies.

Local Brands

Local brands are smaller, regionally-based companies that produce goods on a smaller scale compared to big manufacturers. These brands often emphasize quality and uniqueness.

• Good for
  • New sellers who are just starting, and want to stand out with unique products;
  • Sellers focusing on niche markets. local or specialized niches where consumers value the story and origin of the products.
• Advantages
  • Offer unique products that are not widely available, helping sellers differentiate themselves;
  • More flexibility and willingness to negotiate and adapt to the seller’s needs.
• Challenges
  • Limited production runs can lead to stock shortages;
  • May require more effort to build brand recognition, customer trust and awareness.

How to Choose a Supplier for Amazon?

When you choose a brand to sell, you must make sure it's a resale-friendly brand that meets a number of criteria described below. If you buy a brand's products from a reseller, you still need to verify if a brand meets most of these criteria to ensure you can sell it without problems.

Criteria for brand research

Eligibility and restrictions

First, you must check that you can sell the brand on your Amazon seller account and the brand and its products are not restricted on Amazon. You can check that with Seller Assistant’s Bulk Restrictions Checker. It shows if products are restricted or you can’t sell them for other reasons. If you see a green open lock icon, you can sell them. If you see a red closed lock, you can’t sell products without Amazon’s approval and they are restricted. If the tool shows a red closed lock with an exclamation mark, you are not eligible to sell products on your account.

US supplier priority

Look for brands that have a U.S. zip code. U.S.-based suppliers ensure faster delivery times, guarantee the authenticity of products, and provide necessary invoices. These invoices are important as Amazon may request them to verify your inventory.

Minimum listing number

Choose brands that have at least 200 products listed on Amazon. This is crucial because typically, more than half of a brand’s products may not meet your resale criteria. For instance, products that already dominate the BuyBox over 50% of the time may not be suitable for reselling.

Brand shouldn’t sell on Amazon

Ensure that the brand itself does not sell directly on Amazon. Brands selling their own products on Amazon generally do not welcome competition and might restrict you from reselling their items. Additionally, avoid brands that have an exclusive distributor on Amazon, as they typically won't allow other resellers.

No intellectual property alerts

Avoid brands with intellectual property (IP) alerts. Brands with IP issues may be selling trademarked products under a private label, which you cannot resell, or they might frequently file IP complaints against other sellers, indicating they do not welcome resellers. Use Seller Assistant’s IP Alert extension to check for IP complaints, their nature, and date.

Amazon shouldn’t sell the brand

Steer clear of brands sold by Amazon. Competing directly with Amazon is challenging, and if Amazon sells more than 30% of a brand’s products, it’s better to find another brand to avoid stiff competition. Seller Assistant marks such products with the red “A” icon.

9 Strategies to Find Amazon FBA Wholesale Suppliers

Finding a good wholesale supplier can be challenging and requires time and effort. On average, it takes a couple of months. Also, the success rate with a brand is typically around 20-30%, and of those 25-30% work in terms of product popularity and profitability. Therefore, you must be patient and give it time.

Below you can find some practical strategies that will help you find a supplier for your wholesale business.

Strategy 1. Approach a brand directly

Contact the brand directly and express your interest in buying their products. Discuss your pricing needs and inquire about the Minimum Order Quantity required to get the price you want. 

This strategy is best suited for sellers with multiple distribution channels and significant capital, as it often requires an investment of tens of thousands of dollars. As your business grows, you could even become an exclusive or semi-exclusive distributor for the brand.

Strategy 2. Contact brand’s authorized distributors 

Visit the brand’s website and look for a list of their authorized distributors. Contact these distributors to discuss becoming a reseller and meet any minimum requirements they may have. 

This approach can help you gain access to authentic products without needing to deal directly with the brand and meet the high MOQ requirements.

Strategy 3. Use existing suppliers to find new ones

Suppliers often distribute products for multiple brands. Once you establish a relationship with a supplier, ask them about other brands they distribute or look at the list of brands on their website. This can lead to new opportunities and a diverse product range.

Strategy 4. Leverage supplier relationships to find higher-quality suppliers

Building a good relationship with a supplier can lead to introductions to other high-quality suppliers. Trusted suppliers are more likely to recommend reputable counterparts, ensuring you maintain high standards in your inventory.

Strategy 5. Focus on a niche market

Select a specific, narrow product niche that you are familiar with and that has market potential. Use Google to search for distributors within this niche. By concentrating on a niche, you can become an expert and offer products that cater to specific customer needs.

Strategy 6. Find and partner with local brands

Reach out to small, local brands or distributors, especially if you already resell products from brands in the same area. Start with smaller, family-owned brands, often referred to as "mom-and-pop" brands, as they may be more open to partnerships with new sellers.

Strategy 7. Follow the supplier’s distribution route

Use your connections to find suppliers you are already familiar with. These suppliers might be part of a distribution network you know through previous business dealings or personal connections. Leveraging these relationships can lead to reliable supply channels.

Strategy 8. Research competitors

Analyze what brands and products your successful competitors are selling. Tools like Seller Assistant’s Seller Spy can help you identify these profitable products and brands. Emulate their strategies to find similar success.

Seller Spy by Seller Assistant is a competitor analysis tool designed to simplify how you monitor your competition on Amazon. It automates the process of monitoring competitor activity, giving you valuable insights without the manual effort.

Seller Spy automatically tracks your competitors and allows you to estimate what new brands and products they started or stopped selling, and how they price each product. You can use this data to add the same or similar products to your portfolio and adjust prices if necessary.

Strategy 9. Explore wholesale directories

Consult wholesale directories that list a variety of worldwide brands and suppliers. Examples include SaleHoo, Worldwide Brands, and Wholesale Central. These directories can provide a broad range of suppliers across different product categories.

How to Vet Amazon FBA Wholesale Suppliers?

When you find a suitable supplier, it’s crucial to verify this supplier is legitimate and their brands align with your business goals. Below you can find some criteria to understand if a supplier is a good or bad fit.

How to know if a supplier is a good choice?

Below you can find several ways to verify supplier legitimacy and check the legitimacy of their website.

LinkedIn

Check if the supplier has a presence on LinkedIn. Look for employee profiles, company updates, and any endorsements. A well-maintained LinkedIn profile indicates a legitimate business.

Whois

Use Whois lookup tools to find out who owns the domain name and how long it has been registered. This information can help verify the supplier's authenticity.

ScamAdviser

Visit ScamAdviser to see if the supplier’s website has any reports of suspicious activity. This platform can provide a trust score based on various risk factors.

About Us website section

Read the ‘About Us’ section on the supplier’s website. A detailed and professional section should include the company’s history, and say if a company is a wholesale reseller or a retailer. Retailer companies are typically not suitable for wholesale.

Contact information and verifiable address

Look for comprehensive contact information, including a phone number, email address, and physical address. Verify the address using Google Maps or other mapping services to ensure it is a real location.

Active social media

Check the supplier’s activity on social media platforms like Facebook, Twitter, and Instagram. Active and regularly updated social media profiles indicate a legitimate and engaged business.

Reviews on Google and review sites

Search for reviews of the supplier on Google and specialized review sites like Trustpilot or the Better Business Bureau. Positive reviews and high ratings suggest a trustworthy supplier.

How to know if a supplier is a bad choice?

Lack of desired brands

Ensure the supplier carries the brands you want to source. If they do not stock the specific brands or types of products you’re interested in, they won’t be a good fit for your business.

Avoiding Fake Suppliers

Supplier doesn't fit your business model 

If the supplier’s offerings or brand portfolio do not align with your business model, they may not be the right fit for you. For example, you can’t resell private label brands because they are trademarked, or the supplier may have too high MOQs. Then, it’s best to look elsewhere.

Non-US based suppliers for US market

If you sell primarily in the US, it’s beneficial to work with suppliers based in the US. Non-US suppliers may lead to longer shipping times and higher import duties, complicating your logistics and customer service.

Watch out for red flags

Fake suppliers may have websites that look professional at first glance but lack detailed contact information, have suspiciously low prices, or require upfront payments through unsecured methods. Make sure you carefully review all these data to avoid losing money.

FAQ

Which country is best for FBA wholesale?

The United States is often considered the best country for FBA wholesale due to its large consumer market, efficient logistics, and strong supplier networks. Additionally, sourcing from US-based suppliers can reduce shipping times and import duties for sellers targeting the US market.

How do I find the wholesaler of a product?

To find the wholesaler of a product, start by contacting the product's brand and requesting a list of authorized distributors. Additionally, you can search for wholesale directories, partner with local brands, or research your competitors with Seller Assistant’s Seller Spy. 

Can you buy directly from a wholesaler?

Yes, you can buy directly from a wholesaler, which often allows you to purchase products at lower prices compared to retail. To do this, you typically need a reseller's permit and may have to meet the wholesaler's minimum order requirements.

Is Amazon FBA wholesale easy?

Amazon FBA wholesale can be challenging due to the need to find reliable suppliers, manage inventory, and navigate Amazon's regulations and competition. However, with thorough research and effective strategies, it can be a profitable business model.

Final Thoughts

Finding Amazon FBA wholesale suppliers who sell these products for lower price to resell them on Amazon with maximum profit is one of the most challenging tasks of wholesale sellers. You must thoroughly research products to ensure they will generate the expected profit, as you are investing a significant amount of money in them.

The best product sourcing tool to help you with that is Seller Assistant. This all-in-one product research software helps ensure you choose the most profitable wholesale products. It offers all the features vital for product research. It combines a Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, IP Alert, Restrictions Checker.