A common question from newer FBA sellers: should you source through verified distributors rather than direct brand outreach? This post covers the key criteria for evaluating distributor partnerships, the role of invoices in category ungating, and how to think about supplier selection for account safety and consistent margins.
Why Distributors Matter for New Sellers
Many new FBA sellers prefer working with established distributors over cold-emailing brands because it streamlines logistics and reduces friction. The distributor handles:
- Direct-to-Amazon warehouse shipping with proper FBA-compliant packaging and labeling
- Faster order fulfillment cycles
- Pre-vetted product quality (reducing counterfeits and defects that could threaten account health)
Invoice Requirements & Ungating
A critical insight: the brand and invoice matter more for ungating than the distributor itself. Key points:
- Not all distributors provide invoices that Amazon accepts for ungating purposes
- You should verify before buying in volume that a distributor’s invoices will satisfy Amazon’s ungating requirements for your target categories
- Some distributors allow you to ungate first using their invoices before committing to large purchase orders — this is a major workflow advantage
- The brand credibility and invoice format (showing proper wholesale pricing, terms, etc.) are what Amazon scrutinizes, not the distributor’s name
Vetting Distributor Partners
When evaluating a distributor, confirm:
- They ship directly to Amazon warehouses with correct FBA prep
- Their turnaround time fits your cash flow needs
- They have a track record of zero/near-zero counterfeits and defect rates
- Their invoices are Amazon-recognized for ungating and category approval
- They’re transparent about which brands and categories they stock
Category & Brand Selection for New Accounts
While this post doesn’t detail specific categories, the underlying principle is: start with gated categories that have healthy margins but lower competition pressure on new accounts. Work with your distributor to understand which brands in your target space have:
- Established wholesaler networks (making invoices easier to obtain)
- Lower ungating friction historically
- Adequate margin after distributor markup, Amazon fees, and logistics
How Squatio helps
When evaluating which categories and brands to pursue through your distributor, use Cortex (AI niche & category analysis) to understand category gating rules, margin trends, and competitive density. Then leverage Prospect (Product Database) to identify which brands and SKUs within those categories are performing well on Amazon — this helps you align your distributor sourcing strategy with real demand signals, so you’re not just buying what’s easy to ungate, but what will actually sell.
What’s your experience been with distributor partnerships — have you found certain invoice types or brand partnerships that Amazon consistently accepts for ungating, or do you still prefer direct brand relationships?
Source: Reddit