How to Source Products to Sell on Amazon

How to Source Products to Sell on Amazon

Selling products on Amazon has become a lucrative venture for many entrepreneurs and businesses worldwide. However, in order to succeed in this highly competitive marketplace, one must master the art of sourcing products effectively. Whether you're an experienced Amazon seller or just starting out, understanding how to find the right products to sell can make all the difference.

This article serves as a comprehensive guide, providing valuable insights and practical tips on how to source products to sell on Amazon. From researching profitable product ideas to negotiating with suppliers, we'll explore the essential steps to help you navigate this dynamic e-commerce landscape and achieve success in your Amazon business. So, let's dive in and discover the secrets of successful product sourcing on Amazon.


  1. Getting Started
  2. Step 1: Decide on Your Business Type
  3. Step 2: Researching Profitable Product Ideas
  4. Step 3: Finding Reliable Suppliers
  5. Step 4: Negotiating with Suppliers
  6. Step 5: Preparing Your Products
  7. Step 6: Managing Inventory and Logistics
  8. Conclusion

Getting Started

Amazon sourcing refers to the process of finding, selecting, and obtaining products to sell on the Amazon marketplace. It usually involves:

  1. Decide on Your Business Type

  2. Researching Profitable Product Ideas

  3. Finding Reliable Suppliers

  4. Negotiating with Suppliers

  5. Preparing Your Products

  6. Managing Inventory and Logistics

By sourcing the right products, sellers can maximize their chances of success and capitalize on the vast e-commerce opportunities provided by Amazon's global platform.

Step 1: Decide on Your Business Type

First, you need to determine your business type. This decision will shape your sourcing strategy and overall approach. Here are the main business models for selling on Amazon:

  • Private Label: Create your own brand and source products from manufacturers. Ideal for building a unique brand and differentiating yourself in the market.

  • Wholesale: Purchase products in bulk from manufacturers or authorized distributors at discounted prices. This business model is suitable for sellers who prefer established products without extensive customization.

  • Dropshipping: List products from suppliers on your Amazon store, and they handle fulfillment and shipping. Perfect for a low-cost, hands-off approach.

  • Online Arbitrage: Source products at a lower price from online retailers and resell them on Amazon. Requires careful research and offers the potential for quick profits.

Choose the business type that aligns with your goals, resources, and preferences. Consider your strengths and desired level of involvement to make the best choice for your Amazon business.

Step 2: Researching Profitable Product Ideas

Once you decide on how you will sell on Amazon, the next step is conducting thorough research to identify profitable product ideas. Here are key steps for effective product research:

  1. Identify your target market and understand their preferences and needs.

  2. Explore the Amazon Best Sellers lists to gain insights into which products outperform others and the reasons behind their success.

  3. Utilize Amazon's product research tools for valuable data and analytics.

  4. Analyze customer reviews to gain insights into experiences and preferences.

  5. Stay updated with industry trends through news, blogs, and social media.

  6. Evaluate competition to identify gaps and unique selling propositions.

  7. Consider profitability by analyzing pricing, profit margins, and fulfillment costs.

This way, you can find the ideal product for your business that has the potential to generate profits.

Step 3: Finding Reliable Suppliers

After you have selected a product idea, the next step is to find reliable suppliers who can provide you with the products you need. The type of supplier you choose will depend on your specific business model. Here are the main types of suppliers based on different business models:

  • Private Label Suppliers: For private label products, you will need to find manufacturers or wholesalers who can produce and customize products according to your specifications. Look for suppliers that offer flexible MOQs (Minimum Order Quantities) and have a proven track record of producing high-quality goods.

  • Wholesale Suppliers: If you are following the wholesale business model, you will need to establish relationships with authorized distributors or manufacturers who offer bulk quantities at discounted prices. Look for suppliers that provide competitive pricing, reliable delivery, and a wide range of products to meet your customers' demands.

  • Dropshipping Suppliers: With dropshipping, you don't hold inventory and rely on suppliers to fulfill orders directly to your customers. It's crucial to partner with reputable dropshipping suppliers who can consistently deliver products on time and provide efficient order fulfillment services. Research and choose suppliers with a good reputation, reliable inventory management systems, and competitive pricing.

  • Online Arbitrage Sources: When engaging in online arbitrage, you source products from various online retailers or marketplaces. Look for trusted online retailers with competitive prices, favorable return policies, and a wide selection of products. Online arbitrage relies on finding price disparities and profitable deals, so it's essential to have reliable sources to identify these opportunities.

When selecting suppliers, consider factors such as product quality, reliability, pricing, shipping options, and customer service. Reach out to potential suppliers, ask for samples, and establish clear communication channels to ensure a strong and trustworthy partnership.

Step 4: Negotiating with Suppliers

Once you have identified potential suppliers for your Amazon business, the next step is to negotiate favorable terms and conditions with them. Effective negotiation skills can help you secure better pricing, favorable payment terms, and build long-term partnerships. Here are some tips for successful negotiations with suppliers:

  1. Clearly Define Your Requirements: Clearly communicate your product specifications, quality standards, and desired quantities. This ensures that both parties have a clear understanding of the expectations.

  2. Quantity and Volume Discounts: Inquire about volume-based pricing or quantity discounts. Suppliers may offer better prices for larger order quantities, allowing you to maximize your profit margins.

  3. Payment Terms: Negotiate favorable payment terms such as extended payment periods, deposit requirements, or installment options. Consider your cash flow and financial capabilities when discussing payment terms.

  4. Shipping and Delivery: Discuss shipping methods, delivery timelines, and any associated costs. Ensure that the supplier can meet your desired delivery schedule and provide reliable shipping options.

  5. Build a Relationship: Establish a positive and professional relationship with your suppliers. Good relationships can lead to preferential treatment, better deals, and improved customer service.

  6. Be Flexible: Be open to compromise and flexible in your negotiations. Finding a win-win solution can lead to better long-term partnerships and mutually beneficial outcomes.

Remember, negotiation is a collaborative process, and maintaining a respectful and open line of communication is key. Strive for a fair and mutually beneficial agreement that supports the growth and success of both your business and your supplier.

Step 5: Preparing Your Products

Once you have finalized your product selection and established partnerships with suppliers, it's time to prepare your products for selling on Amazon. Proper product preparation ensures compliance with Amazon's requirements and enhances the overall customer experience. Here are key considerations for preparing your products:

  1. Product Labeling: Internationally

  2. Barcodes: Amazon requires products to have a unique identifier, typically in the form of a barcode. You can either use manufacturer barcodes (UPC, EAN, or ISBN) or apply for Amazon's Fulfillment by Amazon (FBA) barcode (FNSKU). Ensure that the barcode is properly applied and easily scannable to facilitate inventory management and fulfillment.

  3. Product Packaging: Optimize your product packaging for shipping and presentation. Consider protective packaging materials to prevent damage during transit. Well-designed packaging that reflects your brand can also enhance the perceived value of your products and attract customers.

  4. Product Quality Control: Implement quality control measures to ensure that the products meet your desired standards. This includes inspecting for defects, verifying product functionality, and conducting sample tests. Consistently providing high-quality products helps build customer trust and positive reviews.

  5. Compliance with Legal and Safety Regulations: Ensure that your products comply with applicable legal and safety regulations in the regions where you plan to sell. This may involve certifications, safety testing, and compliance with specific product standards.

By thoroughly preparing your products, you can meet Amazon's requirements, provide a positive customer experience, and position your products for success on the platform. Always stay updated with Amazon's guidelines and policies regarding product preparation to maintain compliance and optimize your selling potential.

Step 6: Managing Inventory and Logistics

The final step in the sourcing products process is effectively managing your inventory and logistics. Here are some key choices to consider:

  • Self-Storage and Shipping: You can handle the storage of your products on your own premises and take care of the packaging and shipping process when fulfilling customer orders.

  • Third-Party Warehousing: Partnering with a third-party logistics (3PL) provider allows you to outsource the storage of your products. They will manage the inventory, packaging, and shipping logistics on your behalf.

  • Fulfillment by Amazon (FBA): Amazon's FBA service is a popular option where Amazon handles the storage, packaging, and shipping of your products. This enables faster delivery, access to Prime customers, and customer service support.

By assessing your business requirements and evaluating these storage and shipping options, you can choose the approach that aligns best with your resources, scalability, and overall logistics strategy for managing your Amazon inventory.


In conclusion, sourcing products to sell on Amazon requires careful research, strategic decision-making, and effective execution. By following the steps outlined in this article, you can navigate the process with confidence and increase your chances of success. By implementing these strategies and staying informed about Amazon's guidelines, you can navigate the Amazon marketplace and unlock opportunities for growth and profitability in your e-commerce business.