You may also be in the boat of having never heard of the term before in your life.
If wholesale reverse sourcing isn’t in your Amazon FBA toolkit, you are missing out on a really profitable sourcing strategy for selling on Amazon FBA.
For most of us who sell on Amazon, finding a steady stream of profitable items is what is holding us back from ditching our 9-5 job and fully concentrating on finding deals via wholesale or online arbitrage.
I get it.
It can be a hassle going through each product in different stores and matching the prices to determine whether they are profitable or not.
What if I told you there was a way to crack it and that there are hundreds of products waiting for you to find and sell on Amazon? And you really didn’t have to try too hard.
Sounds like a dream. Right?
Well, reverse sourcing wholesale is all about finding profitable items at Amazon, purchasing them at wholesale prices, and selling them on Amazon with some generous chunks of profit.
It might sound easy, but you have to have the right tools to find wholesale deals. You need a tool or software like Tactical Arbitrage to point to the profitable items for you, so you don’t need to spend countless hours searching and scrolling pages.
With such software, you are in a better position to find regular wholesale suppliers to sustain your wholesale business and sell on Amazon.
Before we dive into the meaty details and find products to sell, let’s define reverse sourcing wholesale for your Amazon business.
What is Reverse Sourcing Wholesale?
Most people start with searching for products and then taking them to Amazon. In reverse sourcing, you do it backwards. You still sell their products, meaning the wholesale ones.
In a reverse sourcing strategy, we begin by finding decent products and working backward. You might find a cheap item that takes years to sell, so you need to be smart in your selection.
You can use Tactical Arbitrage to help you find these products and narrow down your selection.
Once you find a potential wholesale product, you need to make sure the product is of high quality. Typically, you are looking for items with a 3.5 and above star rating and have been sold to more than three people.
Having good reviews for an Amazon wholesale product is also a plus. Make sure to also review the average BSR (Amazon sales rank per month) and the average price point over the last year.
Once you find a potential wholesale product, you have to start the process of finding the brand contact or authorized distributor of the wholesale product. You basically replicate the wholesaling process and build relationships with distributors and manufacturers.
Reverse sourcing wholesale is all about reaching out to wholesale suppliers and finding products that can be sold for a profit on a regular basis.
Let’s look at why it works.
Why The Reverse Sourcing Strategy Works To Find Suppliers
Reverse sourcing for wholesale suppliers seems like it might be too good to be true. You might be wondering how it even works in the first place.
It all comes down to data, tools, and relationships. It is not just about opening up a wholesale account with each company.
Amazon provides sellers with tons of data and you would be silly not to use it to your advantage. You don’t see baseball teams passing on data to make pitching decisions.
Smart business owners use data and Amazon is a data rich environment ripe for the picking.
Amazon tells you what is selling well (through the BSR) and it even tells you who is selling the product. Smart sellers can take this to the bank when they use powerful tools like Tactical Arbitrage.
So. What does that mean for your business?
Some good profits and hopefully a steady supply of products and hopefully many sales using Amazon FBA.
The wholesale formula is pretty easy. You locate a product, brand, company, business or supplier who is selling well on Amazon and you work backward to find where the item is being sourced.
You focus on finding the winner listing instead of testing new items yourself.
You can make money launching a new product, but why take the risk? Reverse sourcing wholesale takes that risk out, but gives you a lower share of the profit margin.
Now let’s look at how you can actually find wholesale suppliers without hassling too hard.
How To Find Wholesale Suppliers Using Tactical Arbitrage
First things first.
If you have never used or heard about Tactical Arbitrage, which is one of the most potent online arbitrage tools in our market today, you really need to consider it before you start the wholesale reverse sourcing thing.
Tactical Arbitrage is a powerful sourcing tool with powerful features such as the ability to run multiple scans simultaneously, save data by simply pressing a button, advanced image matching, and many other useful sourcing data.
This all sounds cool, but what does that mean to me as an Amazon wholesale business owner?
Tactical Arbitrage allows you to speed up the process of searching and finding items to sell on Amazon FBA. The right tools allow you to push the envelope.
They help you to know the historical data of a product with an interactive graph, which shows how the product has been doing in the market.
It also analyzes arbitrage opportunities for you in seconds and gives valuable data to help you make informed decisions regarding the product. It scans over thousands of categories to find you profitable merchandise to sell.
I’m not pushing you to Tactical Arbitrage, but I know a thing or two about a thing or two. It does the job and it does the job better than any other tool on the market.
Now that you understand what Tactical Arbitrage is all about and what it is capable of doing let’s look at how you can use it to make more money.
You don’t need Tactical Arbitrage to do the steps below, but it will make your life a lot easier if you do use it.
Step 1: Start
With hundreds of products posted every day, the process of separating the profitable items from the non-profitable can be time-consuming and overwhelming.
However, you don’t have to do it the bulldozer way of searching for one product at a time.
Here is my personal tip: To make searching less intimidating, have a workable and efficient strategy to help you narrow down your products.
You can start by finding the products that interest you, have bought before, or products you think can sell well any season. This gives you some interest in the search and helps you narrow down a niche.
Your next step is to find profitable products that other sellers are also selling and check the seller’s store to find other products and their brands.
Begin with the seller and move backward until you get to the brand. Tactical Arbitrage makes this step a lot easier (more below).
Sign up with Merchant Web Services (MWS – aka Amazon Seller Central) and connect with Tactical Arbitrage (skip if you have set up your MWS and Tactical Arbitrage accounts). The setup is easy:
Go to your Amazon Marketplace Web Service and click the “sign up for MWS” button. You will log in to your seller central using your Amazon Credentials.
Keep the email and password because you will need them to log into your regular account.
Next, choose Tactical Arbitrage as your preferred application for accessing Amazon seller accounts with MWS.
Fill the form that will appear, such as your name, Application Developer Account Number (ADAN), and click next. The next page will ask you to allow Tactical Arbitrage to access your account.
Don’t worry about personal data; the software only needs to pull other information from Amazon through your accounts via an API. Once you agree to that, you’re all set.
Finally, go to your Tactical Arbitrage account. Copy and paste your MWS and seller ID to the menu button at the top of your screen, and you are all set.
Step 3: Filter Your Search
If you got all the possible items to find for wholesale from Amazon, you would spend years searching and searching for profit items and suppliers.
That’s where filtering comes in…
Tactical Arbitrage lets you take the massive list of results and filter it to a manageable list of high value leads. All you have to do is tell it what you are looking for.
It might take some time to set up the filter, but the results can save you tons of time in the long run.
Check out the video below for a more detailed overview of this step. It does involve some additional setup in Tactical Arbitrage in addition to another complimentary chrome app to level up your sourcing.
Step 4: Find Suppliers
This is the central area of reverse sourcing. Once you have your products, you need to start finding the sellers of those products. Just make sure that the actual brand is not the seller themselves on Amazon.
If they are also selling, they probably won’t allow you to sell.
Check if the seller sounds like they are coming from a business that sells in the same category as the products you have been searching for. This will help you avoid such encounters and prioritize successful suppliers.
It might take a bit of time, but this is one of the most important steps of the process. I wouldn’t waste time analyzing products unless I know I can actually source them for my business.
Step 5: Analyze
Once you have narrowed down your sellers and products, you need to analyze those products and the sellers.
You need to know everything about a product, like how many sales are made every day or week, how much they cost, the seller, their competitors, and many other factors.
Don’t be in a hurry. Patience will pay off in the long run.
I recommend using Tactical Arbitrage to eliminate the guesswork for you. Tactical Arbitrage will help you solve the puzzle of finding out which product is more profitable.
The tool has a feature that helps you know the colors, models, size, or designs that sell the most to make an informed purchasing decision.
Step 6: Contact Brands
To seal the deal, you need to take one last step and contact the brands. You can easily find their contact information on their website as most have pages for opening accounts.
You might get a few rejections, but it happens all the time. You just need to keep in mind that there are hundreds of brands to contact when things go south. Never keep hustling.
Wholesale Search Using Tactical Arbitrage
When it comes to wholesale sourcing on Amazon, time is your enemy. You can spend so much time searching and analyzing different products before you even contact a supplier. And the supplier might tell you to get lost.
The wholesale search is all about digging and digging more information about products and brands.
Since it involves sourcing products from the manufacturers, you also want to focus on the brand’s popularity and sales velocity.
These give you the best picture on what sells on Amazon. There are other considerations to make, such as choosing seasonal products, choosing consumables, and sales history.
Tactical Arbitrage has a feature for wholesalers. The feature allows you to take the UPC and cost information from the wholesale spreadsheet and upload it to determine which products are profitable.
The tool also has tons of filters that you can use to your advantage. If you know how to use them, filters can magically filter your items and leave out those that don’t meet your criteria.
It’s like you have an intern to do your dirty work.
Speaking of Tactical Arbitrage. Here are a few other unique features you can take advantage of when using Tactical Arbitrage for your product sourcing:
The Reverse Search feature on Tactical Arbitrage is one of the popular tools sellers prefer to use when finding profitable products.
The tool is designed to supercharge your sourcing capabilities. It allows you to upload ASINs directly from Amazon. Aka – You take the product and TA finds where you can source it.
The ASINs can be scraped into a CSV file or hand-selected. Tactical Arbitrage can help you find the best places to find these products at a more significant profit (if you don’t mind sourcing from other places).
There is a mismatched room where you can see the products that other sellers searched but failed to match or conduct enough research.
You just need to look at the items that others marked as a mismatch in the Tactical Arbitrage community.
This is an Amazon seller’s dream. You can find items in demand that other sellers pass on. I live in the mismatch room.
Since other people failed to take their time to find matching products on Amazon, you could take the time and do the necessary research.
You might be significantly rewarded for your time. This could be a gold mine if you put in the time and effort. It’s personally my favorite thing in TA.
My final thoughts might be a little different on this post, but bear with me. The advice is golden.
Thought 1: Profits won’t hit overnight. Your business success depends on your strategy, input, patience, and persistence.
Don’t get discouraged right away.
Thought 2: Since wholesale on Amazon is all about the game of numbers, the hustle may feel endless.
This is normal and part of the process.
Thought 3: Most sellers struggle with keeping a healthy cash flow to pay for their inventory, as Amazon sometimes delays payouts for weeks.
This is a challenge since you will need to keep up with your Amazon business inventory to succeed.
These thoughts aren’t meant to scare you, but rather to inform you of the possible speed bumps along the way. If you know what to expect, you can plan for the speed bumps and make sure your suspension is in check.
In short, reverse sourcing for wholesale is a worthwhile process and one I wish I could spend more time doing on a regular basis.
I suggest using Tactical Arbitrage to take over your business and actively guide you on the direction to go while you use your time to focus on things that matter to you most.