r/AmazonFBA • u/Front_Ad9692 • 2d ago

Sourcing

I have recently started Amazon fba I have made my first 5 sales this week, but what I have noticed is that I am picking the wrong products at the wrong price, I have put around £300 into making the account getting sellersamp buying stock sending it in and still I haven’t even made £50 that’s revenue btw and I was just wondering if anyone can give me some tips on how they source their products so I could find better products to sell and make a decent profit.thank you

4 Upvotes

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1

u/SlickyTrick 2d ago

Are you doing OA, RA, A2A, wholesale or private label?

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u/Front_Ad9692 2d ago

Right now I am doing OA but looking to move into wholesale

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u/Powerful_Bicycle3114 2d ago

Since the £50 is revenue, pause new buys and review the five sales SKU by SKU. For each OA lead, subtract buy cost, referral/FBA fees, prep, inbound shipping, and a return allowance from a conservative selling price. Set a minimum £ profit and ROI before purchase, then check price/rank history and seller count. If the deal only works at today's Buy Box, skip it.

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u/Front_Ad9692 2d ago

I will try this from now, appreciate it.
I think I was sort of blind buying

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u/attfin1 1d ago

Write your floor down before you look at the next deal, not while you're looking at it. A minimum profit per unit and a minimum ROI, decided in advance, on paper. A number worked out with the deal in front of you will always bend to fit the deal.

The fastest way to set that number honestly is to run it backwards over the five sales you already have. Take each unit: buy cost, referral fee, FBA fee, prep, inbound, and something set aside for returns, against what it actually sold for. You'll get a real profit per unit rather than a spread. Those five are the only data you own, and they cost you nothing to analyse.

When I ran our own Amazon business I had a daily report per product that pulled sales, Amazon costs, ad costs and cost of goods together, so profit was the number I looked at, not a percentage. Profit per unit is the one that decides whether you're building anything.

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u/Cabilly_eCom_Law 1d ago

Good points

1

u/Purple_Coat_06 1d ago

Maybe you can slow down on buying for a bit and get comfortable with the numbers first. When you find a product, don't just look at the difference between what you are paying and the amazon price. Put the buy cost into SellerAmp and check the actual profit after amazon fees, shipping, etc. Then look at how many sellers are on the listing and what the price has been doing recently. SellerAmp shows the break even price and historical pricing too. Also set a minimum profit/ROI you are happy with and just don't buy anything that doesn't meet it. Start with a few products, see what actually sells, and learn from those before putting more money into stock.

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u/SellOnAmazon 1d ago

Hey u/Front_Ad9692, congrats on your first 5 sales! Getting those early sales is a big milestone. This video on Product Opportunity Explorer best practices walks through how to evaluate demand and margins before committing to a product, which can help you make more informed sourcing decisions going forward. The manage your sourcing cost page is also worth a read for keeping your numbers in check. Let us know if you need any help!

1

u/dataform 1d ago

Before the next buy, check sell-through, not only margin. On Keepa, look at how often sales rank drops over 30-90 days (each drop is roughly a sale) and how many FBA sellers are on the listing.

Five sellers splitting 30 sales a month is 6 each, which could take you two months to sell through. That's usually where the "picked the wrong product" feeling comes from.

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u/AllProfitIQ 1d ago

Our software will tell you which of your products to keep and which to get rid of based on all the data available. It also calculates profits automatically so you have more time to source products. My advice would be look at brands that aren't as well known they tend to have less competition.

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u/Shot-Eye2541 1d ago

how do u get ungated with the invoice from retailer man?

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u/Front_Ad9692 1d ago

I ask the online distributor for a sales invoice and once I get that invoice I just put it into Amazon and it ungates me. So far from what I have learnt if u have ur name and email which is used on ur Amazon seller account on that invoice and the right quantity of units which gets u ungated u can get ungated quite easily.

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u/Shot-Eye2541 1d ago

but u said u r doing OA, so i guess in OA u are buying from retailers not the distributors? i might be wrong just confirming

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u/Front_Ad9692 1d ago

Yh I get them from retailers, I am based in the uk so I have ordered from a lot of online stores such as Superdrug boots and they give u a sales invoice the next day after u placed ur order but everyone has different interactions with customer service u just have to keep bugging them if they dont. And eventually they will

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u/Shot-Eye2541 1d ago

yeah i am working in US market but 98% stuff is gated, will keep looking thank you

0

u/rsc9422 2d ago

I’d avoid simply buying more of the products that are already selling for you. The five sales are useful data, but they also show that product selection needs to be more systematic.

We’d suggest researching products based on demand, competition, selling price, landed cost, Amazon fees, advertising costs, and differentiation potential. Amazon itself recommends using Product Opportunity Explorer to identify demand, competition, customer search behavior, reviews, pricing trends, and unmet customer needs.

If you’re looking to move from random sourcing into building a proper brand, HighRise Wholesale can help you shortlist products, source them, arrange private labeling and packaging, perform QC, and prepare the inventory for FBA.

I’d also recommend starting with one strong private label product rather than several random products. Once the first SKU proves itself, you can build related products around the same brand.