Are you hesitating on invest in Amazon FBA wholesale business?
Key points for investing in Amazon wholesale FBA business
Wholesale is a business of selling products in bulk. This sale can be direct or indirect. Wholesaler can be manufacturer, producer or just a middleman. Amazon FBA business allows you to sell your products on Amazon through Retail arbitrage, online arbitrage or through wholesale. Every method has its own benefits and pitfalls but as an e-commerce business consulting agency we are advising you to prefer wholesale for you Amazon business.
You might be confused about the Amazon wholesale business, Right? The reason can be its confusing process or lack of basic information. Manisofts provides you all the relevant information regarding Amazon wholesale business. We being the best business consultant agency provide you not just information for your Amazon wholesale business but a complete walk through the process.
Key points for Amazon wholesale business:
Wholesale is preferred to get higher profits. To get these profits a wholesaler must keep in mind the following key points.
Setting prices:
There is a simple rule in wholesale business, sell more and earn more. Price adjustment is very crucial for wholesale business. Try to set profit margins lower at the beginning due to presence of competitors in the market. Give incentives to induce more customers. Setting lower profit margins at first will attract more customers and will give an opportunity to increase your profits.
Final price of a product can be analyzed through
- Production costs
- Marketing costs
- Transportation costs
- Storing costs
After analyzing all these expenses you can easily set prices for your products. Minimum order can also be set to save time. Volume based price adjustment is also beneficial e.g. for baying 100 units the price of a product would be $8 and for 200 units the price of same product would $7.
Market research:
Market research is the backbone of wholesale business. Market research tells you about
- Potential customers and their main purchases
- Competitor policies
- purchasing power of customers
Market research can be done through several ways
- Surveys of pricing of products, purchasing power of consumers and customer satisfaction surveys
- Surveys about the familiarity and popularity of the brand
- Through interviews and observational research
Payment method:
Amazon wholesaler has to deal with different kinds of customers from different parts of world or within the country. That’s why a wholesaler must have diversity and flexibility in payment methods. As a wholesaler your main target is to provide convenience to your customers and customer will be choosing you over your competitor who is providing the same package.
Marketing to retailers and buyer:
Amazon wholesaler gets the profit when surely there is a consumption of products at consumer level. A wholesaler if he owns the brand needs to invest in marketing on consumer and retailer level. This marketing will increase the popularity of product and more products will be sold.
Beat your competitors:
Every business has competitor so has the Amazon wholesale. You have to beat your competitor in order to stand out as a trustworthy wholesale agency. This can be done through
- Positive Customer testimonials and reviews
- Customer supportive website and with customer service
- Offer low pricing, free shipping and customer friendly connection as compared to your competitor
- Provide value to your customers and take their feedbacks
- Be honest ,only sell what you have
Analyze the rejection from the customer:
There is no shortcut of success. You have to thrive to improve your wholesale business. Customer rejection analysis is really important. Analyze the mistake and avoid it next time. Customer rejection can be due to following reasons.
- Some new wholesaler has provided him with better deal
- There may be communicating issues and technical errors
- Customer can be sometimes overstocked
Improve your Amazon Wholesale business with Manisofts:
Amazon wholesale business is not the bed of roses instead you are playing in a crazy zone. Novice seller can’t deal with all the complexities in the Amazon wholesale business. Amazon wholesale seller account has strict terms and conditions. You have to careful about the counterfeit products which can make your account suspended. You must have an idea about online market and complexities of Amazon wholesale selling. Can you do this all alone? Everyone can’t do this because of shortage of time. Can’t they sell on Amazon? Why not! They can sell on Amazon by hiring consultants for all these activities. Consultants provide you all the relevant information about Amazon wholesale business. They know the complexities of Amazon wholesale terms and conditions and will be guiding you about the categories of products which are perfect for your business. Thus you should seek an Amazon consultant from Manisofts if you want to earn from Amazon even with zero knowledge of the process and complexities. Manisofts provides you experts in Amazon technical services who provide you the guidance and complete walk through the process if you are stuck at any stage. Hire consultants from Manisofts for your Amazon wholesale and we assure you Manisofts will be your first choice as a Business consulting services agency.
