There are plenty of people looking to sell their products on Amazon today, but the road to success isn’t always easy.
If you’re an experienced seller, you may be wondering if Amazon Wholesale might be right for you and if it’s better than Private Labeling your own products.
Well, this guide will take you through everything you need to know about both of these opportunities so that you can make the best choice about where to focus your efforts today.
What is Amazon Wholesale
Amazon Wholesale is a program that allows you to sell branded products that you buy in bulk directly from authorized suppliers or distributors.
This will allow you to resell branded products from well-established brands while keeping the same quality.
How Amazon Wholesale Work.
To get started with Amazon Wholesale, you’ll need to set up a seller account and have a valid tax ID number so you can have a resale certificate. Note that most brands will require you a resale certificate before they approve you to open a wholesale account and this process varies depending on the state you live in.
It’s always important you look at the wholesale requirements in the country or state you live in.
Once you’re approved, you can start searching for high-demand products from an authorized supplier or distributor.
Once you’ve found the product you want to sell, list it for sale on the brand’s existing Amazon listing. Finally, manage your inventory to keep track of your stock.
3 Basic Steps How To Become Successful in Amazon Wholesale
It’s not easy to become a successful Amazon wholesaler. But if you follow the right steps and seek the right information, it can be a really fun and profitable venture! Here are the steps you need to take.
1. Find Potential Products To Sell Wholesale
Firstly, you need to figure out what it is that you want to sell. You may want to look for items that are exclusive on Amazon – meaning no one else is selling them yet. Make sure there’s demand for them too!
2. Calculate Profitability
Set up your price and understand all the fees and costs involved to estimate your profit margin per month. Profit analysis can help your business make informed decisions to improve business. Understanding the different components of your business is vital to understanding your overall financial health.
Look for the right supplier that has a good track record and can ship the products on time. They should also have a professional website and be easy to communicate with. It’s important to find the right supplier or distributor for your e-commerce business because having the wrong one can hinder your growth.
How to Find Products for Amazon Wholesale.
Finding products and suppliers is crucial and most time-consuming in Amazon wholesale journey. Here are 3 tips to find products and suppliers for Amazon wholesale journey:
- Google research. Google is the best tool for research because it helps you find all the information about the product you want to sell. You can find suppliers through Google ads, YouTube videos, blogs, forums, and social media pages.
- Trade Shows. Trade shows can be a great resource for finding new suppliers as well—it just takes some extra legwork! Trade shows are a great way to connect with manufacturers and get information about what they’re looking for in a product like yours.
- Cold calls and emails. Cold calls can be intimidating, but they’re also effective when used properly—and if you can’t make a good first impression, that’s never going to happen anyway! You’ll want to start by sending them an email explaining who you are and why you think they might want your product or service—and then follow up with another email after some time has passed so you don’t look desperate or pushy when they answer back!
- Amazon Bestseller. You can use Amazon Bestseller to look up products that are popular and have high demand and satisfaction rates so you can narrow down your searches. You can then try the reverse sourcing strategy wherein you’ll search for the supplier who can provide you with the product you are interested in.
Here are some Wholesale Suppliers for Amazon FBA you can try:
Wholesale vs Private Label
In a nutshell, Amazon wholesale program buys and resells branded products while private Labeling on Amazon means that you sell products under your own brand name rather than sell other companies’ products under their brand name. This way you can control everything from price point to branding and marketing etc.
Here are significant Pros & Cons between the two concepts:
PROS
AMAZON WHOLESALE | PRIVATE LABELING |
You can sell the item with high-quality assurance. | You can customize the product and sell under your brand name |
You can sell items with proven existing demand | You can order or negotiate with suppliers to lower MOQ so starting cost is lower |
More scalable as the product is selling well, you can focus more on your inventory rather than building your brand, marketing, creating engaging listings, etc | You can find a lot of suppliers from tons of B2B platforms online. |
More profitable as you’ll be buying in bulk so the price per item is much lower | You have more control with your inventory in terms of price, supply chain and more. |
If you are a sole seller of a certain product on Amazon, you can set a premium price | If you want to expand your business, you can easily add complementary products |
No need to create a new ASIN or product detail page |
CONS
AMAZON WHOLESALE | PRIVATE LABELING |
Since you’ll be ordering in bulk, you’ll need a bigger budget | Lot of competitors selling the same product |
Time-consuming in terms of finding product research and dealing with supplier | Starting up, no existing customer base so it’s difficult to build up your brand as it’s still not well-known |
It could be difficult to get approved by the brand to resell their products | More lead time in terms of manufacturing and shipping if you are sourcing from overseas |
You need to obtain a wholesale permit to resell | Need to allocate more time on Advertising |
If you are selling a product which already existing on Amazon, it could cause price erosion | If you are not careful in sourcing, you may end up selling low-quality products which will lead to high customer return rates and refund, |
Fierce competition for Buy Box share |
Amazon Wholesale vs Private Label – Which is better?
There is no right answer because it depends on your business strategy and goals.
There are pros and cons to each type of wholesale, so it’s important to know what you are looking for before making a decision.
If your goal is building your own brand, Private labeling is the best option for you. But make sure you have a solid marketing strategy to increase your brand visibility if you want to proceed in this program.
But if you want to enter the Amazon market and don’t want to spend much time on marketing, it might make more sense to sell through the Wholesale process. With this option, you can list your products on Amazon without having to worry about branding and marketing. However, you will have less control over your product and pricing.
Ultimately, the main thing to consider when choosing between the two types of retailing is how much time you want to invest in running your business. You should also think about whether or not you have enough cash flow to handle both sides of the equation.
Final Thoughts
Amazon Wholesale is a great way for entrepreneurs to quickly enter the Amazon ecosystem.
It is a great opportunity for entrepreneurs who are looking to source branded products at a lower per-item price. By buying products in larger quantities from authorized suppliers, you can get a great price break on the items you sell.
This can lead to higher profits for your business. Just be sure to have a larger budget set aside for your inventory, as you will need to purchase items in bulk.
We hope this article was able to provide you with a few ideas that you can use to help you decide which concept is suitable for your Amazon business.
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