Every year lots of people join Amazon. In reality, over a million new sellers.

As of January 2021, we already have over 150,000 people – and counting.

But here is the thing – less than 10% of these guys that want to sell can make it to $100,000 per year.

What about guys that make $1 million in sales? They are roughly about 1%.

So what separates those who are successful and those who fail?

One of the ways to transform your journey in Amazon is called wholesale liquidation. We’re about to share how you can profit from it and source inventory effectively.

But there are also other categories to consider, like:

• Sourcing methods
• Choosing products based on your business and what works
• Types of wholesalers

We are about to unravel these as you read along.

Ready? Let’s dive right into it.

• Manufacturers & distributors

First off, we’ll explain two significant categories of sellers and what to expect from them.

1. Let’s begin with the manufacturers. A manufacturer is either a person or a business that produces goods. Everything from the initial process (implementation) to operational (the production system) is needed in creating the product.

For example, huge brands like Samsung have their own stores to sell directly to the end customer. But you can see their brand in other marketplaces.

1. Now, here comes the part with the distributors. Let’s retake our previous example – Samsung. This manufacturer uses different distribution channels. Through them, they can reach more end customers, along with other territories across the globe.

Not only that, but there are different kinds of distributors. Overall, they work with specific product categories and quantities, besides brands.

• Big Wholesale companies

These companies sell a vast amount of products in bulk but at a low price. If you want to play in that game, you’d need significant capital, meaning you’d need to invest a lot to buy a substantial number of products.

You can also buy one product, but you’d need to group it in a wholesale lot.

• Remember: wholesalers do not sell to the end-user, and they do not act as a retailer. When you order from a wholesaler in bulk, you get a discount.

As a prime example for a large wholesale company in the USA, we can point to Electro USA.

For Europe, you can check out Eurotronics. 

• Own production 

‘Own production’ essentially means – any work created as a result of hand-made, craftwork, artistic, or literary efforts.

A creative person can take advantage of this in the upcoming decade. These products are becoming more and more popular, especially if you have a personal brand. You can sell them on various platforms, too, like – Instagram, Facebook, or Etsy – a specialized store for hand-crafted items.

• Wholesale liquidation companies

People are becoming more and more aware of the wholesale liquidation companies.

But what are they?

In general, these companies sell liquidated goods. You can usually find them at low prices with top quality. But it would be best if you do your research and compare the prices of other companies, etc. Sometimes, you can find wholesale liquidation merchandise at a price you can’t find anywhere.

When it comes to liquidation sale, you have several options:

• you can go through the web and look for liquidation websites
• another opportunity is to look for liquidation sale in your area near you
• you can also buy liquidation pallets at wholesale prices
• compare prices and terms, and always make sure to get the better side of the deal (solely make negotiations)

One of the leading B2B wholesale liquidation companies in the USA is 888lots.

They provide a couple of useful built-in tools on their platform:

1. 1. MSRP Manufacturer’s Suggested Retail Price. What is that? Well, here is an example: imagine you see an ad for your favorite beer. Next, you hear  – ‘The suggested retail price is $4 for an 11.2 oz bottle.’ So, that’s about it – then it’s up to you to set the price by looking at the competition, your investment, etc.
   2. Estimated Az (Amazon) Buy Box. This is a neat feature that shows you at what price you can sell the product. There’s also a link that leads you to Amazon, where you can see it. Make sure to click it and check the actual price, as it may vary at all times.

• Amazon FBB Profit calculator. With this built-in tool, you can roughly estimate what’s your overall profit. It’s a combination of your items (quantities), Amazon fees, Az Buy Box, and Fulfilment cost (FBA only).

These features are provided both for individual items and wholesale liquidation lots.

888lots offers a first order discount, too, that will help to ramp-up your sales. And it doesn’t matter if you are a newcomer or a business owner.

Before you start selling: you’d need a resale certificate.

What is a resale certificate? This is a record demonstrating that you simply are a legitimate retailer or buyer. Secondly, you are buying items to either exchange or utilize as component parts of items you arrange to exchange or resell.

For everyone else outside the states, you’d need a business registration.

About the Author: 

Bobby Ilchov is a gym-goer. Someone who thoroughly enjoys reading and has lots of love for knowledge. He believes that the trick is in what one emphasizes. We either make ourselves miserable, or we make ourselves strong. The amount of work is the same.