How To Sell Wholesale On Amazon?

Virginia Miller

October 23, 2024

In this article:

Frequently Asked Questions

If you're a business owner who's been thinking about dipping your toes into the world of online sales, then you've probably already heard about Amazon. It's one of the biggest ecommerce platforms in the world, and it can be a great place to sell your products. But if you're not sure where to start, this guide will give you all the information you need to get started selling wholesale on Amazon.

What is Wholesaling on Amazon and How Does it Work?

Wholesaling is when a business buys products in bulk from a manufacturer at a discounted price to then resell to customers. Wholesalers enable retailers to provide products to customers without having to manufacture them.

Here are the main steps for selling wholesale products on Amazon:

Create an Amazon seller account
Research in-demand products to sell
Contact manufacturers to source products
Optimize Amazon listings for discoverability
Launch and promote products
Manage inventory and grow your business

You may also need to obtain licenses based on your jurisdiction's requirements.

Amazon Fulfillment vs. Self Fulfillment

When selling wholesale on Amazon, you have two fulfillment options:

Fulfillment by Amazon (FBA) - You ship your inventory to Amazon's warehouses and they pick, pack, and ship products when orders come in. This saves time and resources.
Fulfillment by Merchant (FBM) - You handle inventory storage, picking, packing, and shipping products yourself. This offers more control but is more labor intensive.

FBA removes fulfillment operations off your plate while FBM gives you more customization and oversight. Consider costs, labor, and your business needs when choosing.

Wholesale vs. Private Label

There are two main product sourcing models on Amazon:

Wholesale - Buying already manufactured products in bulk from a brand to resell under your own seller name.
Private Label - Creating a branded product manufactured specifically for you to sell under your own brand name.

Wholesale takes less upfront investment and is faster to start. But private label enables branding ownership and higher profit margins long-term.

Pros and Cons of Wholesale

Pros

Sell already popular products
Easy business model to start
Profit faster than private label
Less initial work than building a brand

Cons

High competition on popular products
Large inventory investments
Extensive product research required

FAQs

What products should I wholesale?

Focus on high demand products with steady replenishment needs. Research best selling items in different categories and product margins.

Can I sell wholesale products as my own brand?

Yes, you can list wholesale items under your brand name and set unique pricing. But you cannot modify product branding or packaging.

How much money can I make?

Your profit margin and sales volume depends on factors like product selection, pricing strategies, and more. Many wholesalers earn thousands per month.

What is the best way to find wholesalers?

Search industry directories, visit trade shows, network with other sellers, and directly contact brands. Vet all wholesalers thoroughly first.

Conclusion

Selling wholesale on Amazon opens up a lucrative opportunity with lower barriers to entry than private label. To learn more about launching and scaling an Amazon wholesale business, contact Simpl Fulfillment.

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Recommended: Shopify FBA Vs. Amazon FBA- Which is Best for Your eCommerce Business

Frequently Asked Questions

What is Amazon FBA wholesaling?

Amazon FBA wholesaling involves buying products in bulk from manufacturers at wholesale prices to then resell to consumers on Amazon. It allows selling products without needing to handle fulfillment.

How do I find reputable wholesalers and manufacturers?

Search industry directories, attend trade shows to network, get referrals from other sellers, and directly contact brands. Thoroughly vet all wholesalers before doing business.

What products provide the best profit margins to wholesale?

Focus on high velocity products that sell very frequently across multiple categories. Research best selling items with steady replenishment demand from customers.

Can I sell wholesale products under my own branding?

Yes, you can create your own listings and set unique pricing for wholesale products. However, you cannot modify product packaging or branding without permission.

What costs are involved with FBA wholesaling?

Main costs include inventory purchases, Amazon seller fees per sale, optional PPC ads, and shipping expenses to Amazon fulfillment centers.

Is wholesale or private label more profitable?

Private label has higher profit potential long-term but requires more upfront work and investment. Wholesale enables faster profits but has risks like copycats.

How long does it take to get started with FBA wholesaling?

Most sellers can source their first products in 1-2 months but allow 3-6 months to identify winning listings, solidify logistics, and consistently turn over inventory.