In order to succeed on Amazon you need a legitimate wholesale source that will sell to you at a low enough price to compete with other Amazon sellers. If you don’t have a TRUE source for a continuous supply of products then chances are you won’t be able to make enough sales to stay in business.
The BEST sources are those that ask you for a business license, tax id, and resale number. These sources usually sell popular products that have a REAL retail value with a minimum resale requirement which prevents any “price wars” between desperate resellers. If you don’t have those requirements then the ONLY wholesale sources you’ll be able to deal with are sources that sell directly to the public.
While some sources that sell directly to the public may have low wholesale prices, there’s a good chance they’re selling goods that don’t have a fixed retail value. Many of the products these wholesalers sell have been devalued by unscrupulous resellers in an attempt to make a sale.
Don’t be surprised if you find somebody selling single products for a lesser price than you can buy in quantity. A lot of the products they’re selling usually come from China and are sometimes of poor quality. Most of their products aren’t backed by a real “name brand” therefore they don’t have a REAL retail value.
So basically, if you want to find a wholesale source that will help you succeed on Amazon sourcing you MUST get the legal business requirements. These requirements also exempt you from having to pay sales tax if you buy products from within your area.
Applying for the legal business requirements is usually very affordable and shouldn’t cost more than $200. If you don’t know where to apply simply call up the information desk for the city you live in and they should point you in the right direction.