What Wholesale Stores for Amazon Ungating
One good thing about Amazon is that sellers can upgrade their games and build huge selling accounts.
This includes moving from selling one product or category to multiple niches or even becoming direct links between brands and consumers.
However, growth comes with extra costs. Besides getting ungated in various categories, such sellers need a reputable online presence through active professional websites and are in good books with specific brands.
With all these requirements in place, anyone can expand their selling portfolio and become an Amazon wholesaler.
The biggest question, though, is how can a seller move from a seasonal retailer to a wholesaler.
This article tries to provide everything sellers should know about Amazon ungating wholesale.
Who Is an Amazon Verified Wholesaler?
First things first, just like any other business, Amazon also has four levels in its supply chain. These include manufacturers or brands, wholesalers, retailers, and consumers. Anyone planning to build their business on this e-commerce platform will always dream of jumping from a retailer to a wholesaler or verified supplier. An Amazon-verified wholesaler or a wholesale supplier, therefore, is a third-party entity or business that buys products from the brand and sells them to retailers in bulk. Verified wholesalers act as brand representatives on Amazon. That is because they buy products directly from the manufacturers; hence, they already have brands’ approval to sell their products on Amazon. Remember, one ungating requirement for most sellers is to show legit invoices from verified wholesalers. Therefore, becoming an Amazon wholesaler puts a seller ahead of its competitors.
What Is the Difference between Amazon Wholesalers and Distributors?
Most new resellers also confuse distributors and wholesalers when setting up their businesses on Amazon. Yes, the two types of Amazon suppliers buy products from brands and sell them to seasonal retailers.
However, they have distinct differences that resellers should know before choosing one of them.
Distributors are third-party sellers who buy products from manufacturers at a low cost and sell them in units for profits.
They work directly with big brands like Nike where they can get high-quality products and resell them to wholesalers and retailers.
One thing to note about distributors is that they do not necessarily need to resell their products in bulk.
Their mission is to make a profit, which is why they can sell their products to both wholesalers and retail stores.
Wholesalers are, on the other hand, also third-party entities that work directly with manufacturers to source their products and sell them to retail stores in bulk.
The only difference is that wholesalers cannot sell to distributors. Instead, they can buy from distributors and sell to retailers at a higher price.
That means resellers who get their inventory from wholesalers need to pay more than what they could pay when sourcing from distributors or manufacturers.
How To Find the Right Amazon Ungating Wholesale
Getting the right Amazon ungating wholesale is among the challenges most new resellers face. To choose the right source of products to use in the ungating process, sellers need to differentiate wholesalers from distributors and retail stores. For instance, most new grocery sellers buy their wholesale food for ungating Amazon from online grocery stores in an attempt to unlock the Grocery and Gourmet Food category. Amazon often declines such requests because it needs legit invoices from verified wholesalers. To get the right Amazon ungating wholesale, sellers can consider following these steps:
Check The Wholesaler’s Location
Amazon often checks the source of the products before approving a seller. That means if a seller wants to get ungated, say in the UK, they should choose UK-based wholesalers. The primary reason for this is that categories or brands have different ungating requirements, some influenced by federal or local laws. Therefore, anyone who wants to utilize the vast UK market should only focus on products that adhere to UK federal laws. This includes buying from wholesalers certified by both Amazon and UK selling guidelines.
Contact Amazon Seller Central Support
After identifying available wholesalers, the next step is to check if they are verified or approved by Amazon. Sellers can do this by contacting the Amazon Seller Central support team. Checking the wholesaler’s status is vital since it eliminates the risk of buying defective products. Remember, Amazon only considers safe and high-quality products for ungating. And sellers can only get these from verified wholesalers.
Go For Wholesalers with A Wide Range of Products
Confirming the wholesaler status is not enough. Sellers also need to check the product range of each wholesaler. Choosing wholesalers with a wide product range allows sellers to get ungated in multiple categories. They can also save on ungating costs and delivery charges, as opposed to buying from different wholesalers.
Creating Accounts with Wholesalers
Creating trade accounts with wholesalers is also a crucial step as Amazon may ask sellers to prove the source of their products. One can set up an account easily online. However, they should be keen on information and ensure the address matches what is already used in the Seller Central Account.
Tips To Find the Right Product for Ungating Amazon
Besides selecting the right Amazon ungating wholesale, sellers also need to choose products wisely and avoid simple mistakes that may kill their businesses.
Here are some simple tips to help sellers choose the right ungating products:
1. Check the market competition
High competition leads to lower profitability, leaving sellers unable to determine the price of their products. On the other, low competitive products mean only a few buyers are interested in them.
2. Avoid oversized, bulk, or fragile products
These products need special treatment, which can lead to losses if not shipped carefully.
3. Select all-season products
Sellers should avoid products that they can only sell on special occasions or seasons such as Christmas and Halloween. Such products cannot create a steady flow of income.
4. Research the market and productDoing research allows sellers to know if the products have a higher demand or not. It also allows sellers to understand federal and local laws regarding product usage before listing it.
5. Understand the risks involved
Sellers need to compare the best- and worst-case scenarios likely to affect the product to estimate their initial startup capital.
What Are Amazon Restricted or Gated Categories
Amazon gated or restricted categories are those with strict selling rules that no seller is allowed to sell freely. These categories, brands, and ASINs have specific approval guidelines, and any seller who meets the standards can enjoy a vast market with less competition. That means Amazon only has the power to draw the rules and open gates for more sellers to access the categories. The good news, however, is that Amazon does not always restrict the entire category, like in the previous gating practices. Instead, it gates subcategories, leaving some products open, even though they might be under gated categories. This explains why there is a short list of gated categories and a long list of restricted products or subcategories. Generally, any seller who wants to sell within a gated category must start with getting the right Amazon ungating wholesale and apply for approval.
Why Does Amazon Gate Its Categories?
Most multi-million investments are built on trust, customer satisfaction, and a healthy working environment, and Amazon is no exception.
Being a huge marketplace with millions of users globally, Amazon strives to maintain a good relationship with both buyers and sellers by ensuring only high-quality products are in circulation.
It achieves this by gating some categories, brands, and ASINs.
Therefore, among others, here are the main reasons for Amazon restrictions and why sellers need Amazon ungating wholesale:
- To Monitor Product Standards
- To Protect A Brand’s Reputation – Sellers who want to sell specific brands on Amazon should think about brand ungating before moving to Amazon ungating wholesale.
- To Enhance Customer Satisfaction
- Adherence to FDA Regulations
Categories And Products That Require Amazon Approval
As stated earlier, Amazon has a long list of gated products and a short list of restricted categories. That is because one category can have more subcategories, which can add up to tens of products. Therefore, when applying for approval, sellers need to consider three ungating levels; category, brand, and product ungating. They should also differentiate between category and product unlocking, and choose the right Amazon ungating wholesale to access as many categories as possible.
General Guidelines to Get the Perfect Amazon Ungating Wholesale
Whether you are a new reseller or an established FBA seller, getting the best Amazon ungating wholesale is a possiblity. Amazon’s mission is to see its users grow, and thus, increase sales and profitability. And this does not matter if you are listing your products in a locked or unrestricted category. As a result, if you want to expand your selling portfolio by accessing restricted categories, here are the general guidelines to get ungated on Amazon:
Sign Up for A Professional Amazon Seller Account
Professional Amazon Seller Account is the backbone of any seller as it records all the activities conducted by the seller on the platform. It is through this account that Amazon can tell your business position and determine whether you meet all the quality standards or not.
Analyze And Verify Your Account Health
Creating a professional Seller Account is not enough. You still need to maintain its health to maximize your chances of getting approved. Maintaining a healthy account includes meeting your customers’ expectations and adhering to Amazon’s business code.
That means you should have a timely shipping record, good customer relations, competitive pricing, and avoid violating Amazon’s policies.
To check your account health, go to the Account Health section on the Seller Central Account and click on the Performance menu.
Check Specific Category Ungating Guidelines
Each category has specific ungating instructions, and you need to check them before requesting approval. Some categories are complicated, while others have simple instructions that even new sellers can unlock easily. For example, some categories require sellers to have at least three years of selling experience and running websites. Others such as Grocery and Gourmet Food require sellers to buy wholesale food for ungating Amazon.
Choose A Reputable Supplier
Getting a reliable supplier is also a vital step, especially as your demand curve grows. Amazon will also ask you to provide legitimate invoices from a trusted Amazon ungating wholesale whose products fall under gated categories. After choosing a supplier, you need to place at least three orders, with each order having at least ten pieces of the restricted product. Retailers are not considered suppliers. You cannot go down to your local store and purchase a bunch of items for resale. The products need to come from verified Amazon ungating wholesale and distributors. Be sure to do your research before sourcing and paying for any potential sales items.
Prepare Your Documents
Before submitting your approval request, you need to prepare your documents, which include recent purchase invoices from reputable Amazon ungating wholesale. These scanned copies of individual invoices should have all the ASINs written next to the product name. Price and other confidential information should be locked for wholesaler privacy.
You may also be required to send information about your status or business trading information.
Request Ungating Approval
With all the documents and other requirements ready, you can request ungating approval using the following steps:
- Getting a Pro-Merchant Status.
- Search for the item you want to list
- Go to the Listing Limitations Apply
- From the new menu, click on the Apply to Sale button
- Lastly, click on the Request Approval button
Guidelines To Ungate Specific Categories on Amazon
Getting the best Amazon ungating wholesale and selling specific categories goes a long way in understanding what each category entails and how to ungate it on Amazon. For instance, the Grocery and Gourmet Food category requires sellers to have authorization from regulatory bodies like Food and Drug Administration and buy wholesale food for ungating Amazon. On the other hand, some categories require sellers to have more years of selling experience and a good online presence. Therefore, besides having a verified Amazon ungating wholesale, you need to consider the following best tips to maximize your chances of getting ungated:
- Getting a Pro-Merchant Status. It becomes easier if you already have a Professional Seller Account and a trace account with Amazon ungating wholesale.
- Maintaining your order defect rate below 1%. Since it is challenging to tell how fast some products can go bad, it is crucial to ensure your orders move as fast as possible to minimize cases of selling defective products.
- Maintaining your pre-fulfillment cancel rate below 2.5%. A higher pre-fulfillment cancel rate can impact your account health negatively. Thus, you need to lower your order cancelation to maximize your apparel brand ungating approval chances.
- Lowering your late shipment rate to below 4%. Timely delivery is one way to get customer trust; hence, you should try as much as possible to avoid late shipment.
- Acquiring child product certificate. A Child Product Certificate is a must-have requirement if you want to sell in children’s categories such as Toys and Games. It also proves that you adhere to both local and federal product safety laws.
Final Thoughts on Amazon Ungating Wholesale
It is time to establish your business on Amazon and enjoy access to millions of buyers looking for all sorts of products.
With your Amazon ungating wholesale in place, you are guaranteed to get high-quality products in bulk and sell them at a profit.
However, before solving this puzzle, there are a few more things to know about Amazon and wholesalers.
First, Amazon cares more about product quality, selling strategy, manufacturing factors, fulfillment method, and commitment.
That means you should have a long history of good selling practices before applying for approval.
You should also consider the price of the products and their sources.