There are basically only 3 Ways we have discovered to source Amazon FBA products.
Many would be Amazon FBA entrepreneurs are confused with the pricing structure and fees of Amazon. Because of that, they end up letting a lot of profitable items pass them by because they find it hard to calculate their profit margins. If you will remember this rule, and apply it to all products when you are sourcing you will be in good shape.
1) You need to be able to buy the product for 1/3 of the price it is currently selling for on Amazon.
Example: If a product is selling for $30, you can easily invest $10 and expect to double your money. It breaks down like this Your investment $10.00, Approximate Amazon Fees $10.00, Your Profit $10.00.
2) The more reviews the product has the better
3) You want to source products that can sell on Amazon for at least $7.99
The 1st way to source Amazon FBA products is FLIPPING. With FLIPPING, we just buy products wholesale online and turn right around and ship them to Amazon. We have done this with multiple websites including Groupon, Walmart.com, BrownBoxSuppliers.com and other websites.
The 2nd way to source Amazon FBA products is SCOUTING. SCOUTING requires that you have a smart phone with an Amazon Price Checker App on it. You can download the Amazon Price Checker App Free here. There are advanced apps available for a fee, but quite frankly the Amazon Price Checker App is all you really need.
When you are out and about you should get in the habit of checking out the clearance rack everywhere you go. If you do this routinely you will consistently find products that you can sell with the 3 to 1 ratio. We routinely find products on the clearance rack at Toys are Us, Best Buy, Staples, Office Depot, Target and many box stores.
The 3rd way is to private label products. This is a topic that takes a lot more education than we will cover in the article. My only advice is if you are sourcing products anywhere outside the United States, like China do so with caution. There are a lot of regulations and variations when it relates to importing private label products. Do you homework and start slow. With that said, I have friends and associates that are making 10 times their investment, private labeling products and selling their personal brand on Amazon.
All Amazon sourcing is really a variety of the three ways mentioned above. As you start sourcing products, you will run across great deals, but the products are used, or too large to ship to Amazon. In these cases, remember Ebay, Craigslist, and websites like Liquidation.com are still viable ways to sell sourced inventory and make good returns on your investment.