What is Reverse Sourcing Wholesale and What’s the Next?

Apr 17, 2024 Chapter 1. Sourcing

What Is Reverse Sourcing Wholesale?

Reverse sourcing wholesale is a unique approach that flips the traditional product sourcing method on its head. Instead of starting with product research and then proceeding to sell them on platforms like Amazon, reverse sourcing involves a distinct reversal.

In this method, you continue to sell products, particularly those obtained through wholesale means. The essence of reverse sourcing wholesale lies in its opposite direction compared to conventional sourcing practices, where you typically begin by identifying successful or high-demand products on Amazon and then seek out the brands or suppliers responsible for these products to incorporate them into your wholesale business.


It’s as straightforward as it sounds. With reverse sourcing, the strategy begins with the identification of promising products and works backward from there. The goal is to unearth cost-effective items that may require more time to sell, necessitating a thoughtful selection process.

To help streamline this procedure, you can utilize tools like Tactical Arbitrage, which aids in the identification and refinement of potential products.




Amazon Reverse Sourcing Wholesale Method




Once a prospective wholesale product is identified, the next step is to ensure the product meets certain quality criteria.

Typically, you seek items with a star rating of 3.5 or higher and a track record of being sold to more than three customers.

Positive reviews on Amazon for the wholesale product are also beneficial.

In addition, it’s crucial to assess the average BSR (Amazon sales rank per month) and the average price point over the past year.

Once you have a promising wholesale product in your sights, the subsequent task is to initiate the process of locating the contact information of the brand or an authorized distributor for that specific product.

Essentially, you replicate the traditional wholesaling process and forge relationships with distributors and manufacturers.

Reverse sourcing wholesale revolves around reaching out to wholesale suppliers and identifying products that can be consistently sold at a profit.

Now, let’s delve into the reasons:



Why the Reverse Sourcing Strategy is Effective in Finding Suppliers?

The concept of reverse sourcing for wholesale suppliers might appear almost too good to be true, and you may be curious about how it operates.

The key lies in leveraging data, utilizing tools, and fostering relationships. It’s not simply a matter of setting up wholesale accounts with various companies.

Amazon offers a wealth of data to sellers, and it would be unwise not to capitalize on this valuable resource.

Just as baseball teams rely on data for pitching decisions, savvy business owners utilize data in the data-rich environment of Amazon.

Amazon provides insights into what is selling well, evident through the Best Sellers Rank (BSR), and even discloses information about who is selling these products. Smart sellers can use this data to their advantage when equipped with potent tools like Tactical Arbitrage.


So, what does this mean for your business? The potential for substantial profits and a steady supply of products, along with the opportunity for robust sales through Amazon FBA.




The Wholesale Formula is Relatively Straightforward:

You identify a product, brand, company, business, or supplier that is performing well on Amazon, and you work backward to identify the source of that item.

The emphasis is on identifying the winning listing rather than experimenting with new products yourself. While launching a new product can be profitable, it comes with inherent risks. Reverse sourcing wholesale mitigates these risks while offering a slightly lower share of the profit margin.




What’s the Next After Revere Sourcing Wholesale?



Supplyia offers a comprehensive service to assist you in reverse sourcing products. They begin by thoroughly understanding your product requirements and specifications. Utilizing their extensive network and expertise in the Chinese market, Supplyia identifies and connects with suitable suppliers who meet your standards.

Once the right suppliers are found, they oversee the development process to ensure the product is manufactured to your exact needs. This includes negotiating terms, managing production timelines, and conducting quality assurance checks.

By providing end-to-end support, Supplyia streamlines the sourcing and development process, making it efficient and reliable for businesses looking to leverage the manufacturing capabilities of China.



How to Find a Manufacturer of A Product? – Free Quote


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