3 Sourcing Mistakes Amazon FBA Sellers Make

Production and shipping are the most expensive parts of an Amazon FBA business, but there is a lot you can do to reduce these costs. If you make all three mistakes below, your cost per unit will increase drastically without increasing sales!

The “amazon fba mistakes” is a blog post about 3 common sourcing mistakes that Amazon FBA sellers make. The author of the blog post, has done extensive research on these mistakes and offers tips for avoiding them.

3 Sourcing Mistakes Amazon FBA Sellers Make

Tom Wang Micd Up

If you want to move a lot of things, Tom Wang believes the sourcing process is one of the most crucial phases to get right, regardless of whether you’re an Amazon rookie or an expert seller. He notices three prevalent errors among his FBA students on a regular basis. The largest of the three, according to the ecommerce entrepreneur from Vancouver, BC, is not contacting enough manufacturers. People go to Alibaba with a specific product in mind and contact the first three vendors that appear.

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“There are a few of reasons why this isn’t a good idea,” Tom explains. “How can you be sure you’re getting the best price if you’re just calling three to five manufacturers?” If you contact five manufacturers, you can bet that half of them won’t respond because they’re too busy or didn’t get your email. So now you’re dealing with just two manufacturers, and there aren’t enough alternatives to pick from. “I advise my pupils to call forty, fifty, or sixty vendors,” I say.

“That way,” he says, “you’ll really learn more about the product itself, you’ll learn more about the producers themselves, and, most importantly, you’ll get to see what’s cheap, what’s medium, and what’s pricey on a scale when they respond to you.” And what I mean is that once you call a bunch of manufacturers and they start giving you quotes, it’s quite clear who’s giving you the greatest deal, who’s in the middle, and who’s simply ripping you.”

The second sourcing blunder is working with a trade firm rather than a manufacturer. Trading businesses serve as intermediaries. Isn’t it preferable to go directly to the source and save the additional margin? So, how do you tell the two apart? Take a look at their Alibaba photographs. Do you see any tools or machinery? Then they’re most likely a producer. If they don’t, or if they just display an office or a contact center, you can bet it’s a trading firm. Of course, if everything else fails, you can always ask them.

Tom Wang Get Rich

Not that trading businesses don’t have their advantages. They frequently have lower order minimums, which is convenient. Their communication is usually more effective. Even yet, you must battle for every bit of potential profit in the early stages of your Amazon FBA company. The third error is not understanding how the product is manufactured. Tom understands. You may not give a damn. You just want to earn money. However, he believes that knowing the facts is crucial since it might lead to the discovery of a marketing edge.

What are the materials they’re working with? What effect does this have on the quality? Does it, for example, make it stronger and more durable? If that’s the case, what intriguing bullet point might you include in your listing? What effect does it have on weight? What does this mean for shipping costs? etc., etc., etc., etc., etc., etc., etc., Once you’ve been educated, you may utilize that knowledge to your advantage. You’re also less likely to be conned. In the end, shrugging your shoulders, saying you don’t know, and hoping for the best isn’t enough.

“So those are the three sourcing blunders I see individuals doing on their Amazon FBA company all the time,” Tom explains. “I have a course called FBA Masterclass that you can check out if you’re interested in learning more about Amazon FBA.” Whether you want to discover if Amazon FBA is a realistic business choice for you, simply subscribe to my YouTube channel.” Sdara Skincare, Tom Wang’s first FBA business, was sold for multiple seven figures. He’s now working on his next business venture.

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3-Sourcing-Mistakes-Amazon-FBA-Sellers-Make Katie Smith: Watch this brief video if you want someone who will tell it like it is, respect your time, and show you a company that could really work for you.

The “amazon mistakes” is a blog post by Amazon Seller Central on the common mistakes that sellers make when sourcing products for their inventory. The article has three suggestions to avoid these mistakes.