What To Sell On Amazon FBA: 14 Wholesale & Private Label Ideas

Wholesale vs. Private Label

Long before you even open an Amazon account or make a  purchase, you should have a good idea of how you’re going to source your products. Most sellers opt to sources from two methods: wholesale or private label. 

Wholesale

Wholesale is buying pre-branded goods in large quantities from a distributor. For example, purchasing 1000 Barbie dolls from Mattel (or another company who buys from Mattel) would qualify as a wholesale purchase. 

Private Label

Private Labeling is buying a product directly from the manufacturer and branding it with your own company name. This can be a product that already exists in the market or something new you’ve worked with a manufacturer to create from scratch. Most private label products on Amazon are imported from China.

FBA, FBM & Seller-Fulfilled Prime

Amazon provides a few options when it comes to fulfillment. 

FBM (Fulfillment by Merchant)

FBM (Fulfillment by Merchant): With this method, the merchant ships to the customer from their own warehouse/location. When a customer puts in an order, Amazon tells the merchant how to pack it, ship it, and upload a tracking number to the seller central account. FBM fulfillment fees are typically 10-20% lower than FBA, but we still don’t recommend this method to brand new sellers, unless they have a pre-established warehouse setup. 

FBA (Fulfillment by Amazon)

FBA (Fulfillment by Amazon): With FBA, Amazon takes care of all the packing and shipping of items, and guarantees customers will receive them in two days. All the merchant does is send their product to a few selected Amazon warehouses and Amazon takes care of the rest. With FBA, Amazon also takes care of all customer service issues. Typical FBA fees are around 35% of the sales price of an item, though this can vary depending on weight and dimensions of an item. 

SFP (Seller-Fulfilled Prime)

SFP (Seller-Fulfilled Prime): Seller-Fulfilled Prime is an exclusive program that allows merchants to send products from their own website, while still guaranteeing two-day shipping. New sellers should avoid this program unless they have previous shipping logistics experience. Not only is it expensive, but the metrics Amazon requires can be challenging to maintain. 

---

Now that we’ve covered the basics, let’s dive into some basic Amazon product research that will help you narrow down your profitable product choice.

Don’t Sell: Heavy FBA Items with a low profit margin.

The minimum fulfillment fee Amazon charges for any item is around $5, with extra fees for excessive weight. Once you add in inbound shipping costs with an Amazon partnered carrier, it’s easy to lose money rather than make it.

Do Sell: Small, light items

Any product in new condition that measures 16 x 9 x 4 inches or less, weigh less than 10 oz or less, and is priced at $7 or less is eligible for Amazon’s Small and Light program. This program cuts fees as much as 50%, and is the only profitable way to sell low-priced items on Amazon.

The following product types below are not eligible:

• Restricted products
• FBA Prohibited Products
• Adult products
• Dangerous good (hazmat)
• Temperature-sensitive products (such as chocolates)
• Products with existing FBA offers that use manufacturer barcodes for tracking instead of Amazon barcodes
• Slow-moving products (ASINs offered on Amazon for more than 90 days that have sold fewer than 25 units in the last four weeks)

Don’t sell: Items with lots of similar competitors

When you’re researching a niche on Amazon, type a keyword into the search bar and see how many results come back. If there are a lot of similar products that have the same basic functionality, the niche will be hard to break into.

The exception to this is if you can create a private label product that is better, cheaper, or has a different function than currently exists within the niche.

Do sell: Complementary items

Search for items that don’t exist, but have a function that compliments another popular item. This will help kickstart your listings from the get-go, because Amazon will pair the listings in search results over time.

Don’t sell: Items with high liability

Think about the risks associated with your product choice. Can a customer fall off of it? Does it have moving parts? Could it cause bodily damaged if consumed? Is there a risk of recall? Unless you have a multi-million dollar liability insurance policy, low risk products are the way to go.

Do sell: Kids toys without moving parts or batteries

Not only are these products less risky than electronics, but they are generally cheaper and less likely to be damaged in shipping. They also have a built-in audience: many parents specifically seek out traditional toys over modern ones.

Don’t sell: Gift “bundles” with restricted items

There are thousands of items that are gated or restricted on Amazon. While there is usually an approval process that can remove these barriers, it’s often expensive or time-consuming. Some sellers “bundle” restricted products with allowed products as a way around the rules. This is a quick way to get your Amazon account suspended.

Do sell: Household items in multipacks

In some categories (household and grocery) it can be profitable to bundle exact items in multiples. Not only does it save on fees, but customers are more likely to buy multiples of items they need to replace on a consistent basis. This is especially applicable to private label items -- Amazon generally frowns on bundling wholesale items if they don’t come in a multipack from the manufacturer.

Don’t sell: Items with a high return rate

Clothes, shoes and baby products the highest rate of return on Amazon. When a customer returns an item (even if it’s damaged) Amazon may elect not to reimburse you. Even if they do, you’ll still be out the original selling fees you paid for the item.

Do sell: Ship-proof items

If you sell FBA products, your items will go through many hands: An inbound shipping company, Amazon warehouse employees, robots, and a final shipper (to name a few). Choosing products that aren’t easily damaged will save you time and money. When in doubt, do a drop test. If your product can fall from 10 feet without showing any signs of wear or damage, it’s probably a safe bet.

Don’t sell: One of a kind items

While Amazon does have a collectibles category, it’s not a great long-term business model to sell valuable memorabilia. Take that Peyton Manning-signed jersey to a professional, or at least attempt Ebay before listing it on Amazon.

Do sell: Popular items you can get on a consistent basis

You’re out to build a business, not a thrift store. Spend your hours finding products that can be consistently reordered rather than one-time finds. Think about brands or items your customers use day in and day out.

Don’t sell: Wholesale products with hundreds of other sellers on the listing

Customers buy Amazon products using the buy box, which rotates between sellers who have the lowest price on a given product. When you’re splitting the buy box between 100 (or even 10!) different sellers, you’ll only get a portion of the sales you would if you were the only seller. Even the most popular products can be difficult to sell if the competition is fierce.

Do sell: Items from regional wholesalers

One of your best resources is a quick Google search to find wholesalers in your immediate area. Not only does this save money on shipping costs, but you’re more likely to find products that may not be easily accessible across the rest of the U.S. It’s also easier to arrange face-to-face meetings to guarantee you’re getting the best price possible.

---

With more than 350 million products on Amazon, it’s obvious there’s a profit to be made. However, to be a true player in the e-commerce game you must find products with great margins, minimal competition, and limited risk. ProfitGuru makes this process seamless -- give it a test run today.

Do you have a product in mind? Follow our blog here to learn how to contact wholesalers, put in your first order, and start selling on Amazon today. The money is waiting, all you need to do is take action.

---