Do you have advice for purchasing from U.S. wholesale suppliers and selling products on Amazon?

GeekLad February 2, 2011
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I’m interested in purchasing consumer electronics in bulk from wholesale suppliers and selling them on Amazon. I’d like to start with small, relatively inexpensive products (perhaps USB flash drives), and move up from there. Unfortunately, Amazon requires the products you sell have UPCs, so buying and selling generic products is probably out of the question (or is it?).

Are there any good resources for legitimate wholesale suppliers in the USA that sell name brand consumer electronics in bulk? I’d like to find some that are willing to deal with individuals that are purchasing relatively small quantities (perhaps 1000 pc. lots, with lots costing on the order of a few hundred USD).

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  1. Toktosunov
    February 25, 2011 at 6:33 am

    first of all, as a long-time person sourcig from Alibaba i would advise you to be very careful when ordering specifically electronics items from the site. It is the most fraudulent category. Recently around verified 2000 companies (Gold Suppliers) were purged from the site, mostly companies dealing electronics. (see article for more http://news.yahoo.com/s/ap/20110221/ap_on_hi_te/as_china_alibaba)
    So if you see posts selling brand usb drives at ridiculously low prices, 100% it is a fraud.

    secondly, it will be hard for you to buy "real" brand name electronics in China, because as a rule brand name companies sell directly to few (3 or 5) regional distributors, who then sell to consumers, but can't sell in small batches to other resellers. Either you have to be a big licensed distributor buying in big quantities or contact their regional distributor in your own country.

    Nevertheless, you can order electronics items (like USB drives) in small quantities, but non-brand. So you can customize the look and packaging of the items as you see fit (put your brand etc.)
    Never ever transfer money in advance by wire or Western Union etc., Best would be to use Alibaba's escrow service against possible fraud

  2. GeekLad
    February 9, 2011 at 1:22 pm

    Very good advice Mike. I hadn't even thought of sourcing from overstock or liquidated stock.

  3. Mike
    February 2, 2011 at 9:48 pm

    You first step is to read through the Amazon Plans for selling through their service.
    http://www.amazonservices.com/content/sell-on-amazon.htm?ld=AZFSSOA

    Then I don't recommend looking for distributors when you are brand-new. Most of the time you'll get some second- or third-tier distributer and pay for all prior profit margins.

    You are better of contacting computer manufacturers and larger chain stores for "leftover" stocks (higher quantaties of OEM products they have left).
    You can find some sweet deals there because they'll rather make a nice offer to you than giving this stuff away for free with every system purchase or similar.

    Don't expect any real profit for the first months. A statewide reseller (I happen to know) has a profit of roughly 2,75 USD per 1TB HDD. Considering they are shipping for free they have to sell 4 Hard Drives in order to gain any money from such small sales.

    Considering the fees on Amazon, Amazon as a reseller and all the other resellers on Amazon the only way you may get happy with this idea is to sell import stuff or other things you can rarely find.