In the ever-expanding world of e-commerce, Amazon remains a dominant marketplace offering multiple ways for entrepreneurs to earn income. One of the most scalable and sustainable models is Amazon wholesale. Unlike private labeling or retail arbitrage, wholesale on Amazon involves buying products in bulk directly from established brands or authorized distributors and reselling them on Amazon for a profit.
What Is Amazon Wholesale?
Amazon wholesale is a business model where sellers purchase branded products in large quantities at wholesale prices and resell them on Amazon at a markup. These are usually existing, proven products with consistent demand. The goal isn’t to create a new brand, but to tap into the success of products that already perform well.
Why Choose Amazon Wholesale?
-
Proven Products: You’re not guessing what will sell. You invest in items that already have market demand.
-
Scalability: Once systems are in place, it’s easier to scale your operations and revenue.
-
Brand Power: You leverage the credibility and marketing of well-known brands.
-
Lower Risk: Compared to launching your own private label, wholesale has fewer upfront costs for branding and marketing.
Getting Started: A Step-by-Step Overview
1. Set Up a Professional Amazon Seller Account
To sell wholesale on Amazon, you’ll need a professional seller account, which costs $39.99/month. This allows access to advanced selling tools and inventory management features.
2. Research Profitable Products
Use tools like Jungle Scout, Helium 10, or Keepa to analyze product performance, sales rank, and competition. Look for products with:
-
Consistent sales history
-
Stable or increasing demand
-
Reasonable competition
-
Profitable margins after fees
3. Find Wholesale Suppliers
Sources include:
-
Direct contact with brand manufacturers
-
Authorized distributors
-
Wholesale directories (e.g., Worldwide Brands, SaleHoo)
Tip: Build relationships with suppliers and aim to become an authorized reseller. Some brands restrict who can sell their products on Amazon.
4. Analyze the Numbers
Factor in all costs: product cost, shipping, Amazon FBA fees, referral fees, and storage costs. Tools like Amazon’s FBA calculator can help you predict profitability.
5. Purchase Inventory
Once you identify a profitable product and secure a reliable supplier, place a minimum order to test the waters. Be mindful of lead times and supplier minimum order quantities (MOQs).
6. List and Optimize Products
If you’re competing on an existing listing, ensure you’re using competitive pricing and solid fulfillment strategies (usually FBA). If you create your own listing (which is rare in wholesale), optimize it with relevant keywords, high-quality images, and clear descriptions.
7. Manage Inventory and Replenish Stock
Track inventory levels to avoid running out of stock or overstocking. Inventory management software like RestockPro or SoStocked can help streamline this process.
Pros and Cons of Amazon Wholesale
Pros:
-
Reliable, repeatable income stream
-
Easier to scale than retail arbitrage
-
No need for brand-building or marketing
Cons:
-
High upfront capital requirements
-
Competition from other sellers
-
Gated categories and brand restrictions
-
Requires relationship building with suppliers
Tips for Success
-
Start Small: Test a few products before making large investments.
-
Diversify Suppliers: Don’t rely on one source for all your products.
-
Stay Compliant: Ensure you’re authorized to sell the brands you carry to avoid account suspension.
-
Monitor Pricing: Use repricing tools like BQool or RepricerExpress to stay competitive.
Final Thoughts
The Amazon wholesale business model offers a compelling opportunity for entrepreneurs who want to build a sustainable e-commerce business. While it requires upfront investment and effort to establish supplier relationships, the rewards—scalability, recurring revenue, and access to top-performing products—make it a powerful pathway to Amazon success.
Whether you’re a seasoned seller looking to diversify or a newcomer aiming to get your feet wet in e-commerce, wholesale on Amazon is a strategy worth considering.
