Benefits of Starting Amazon FBA Wholesale Business

Starting Amazon FBA Wholesale Benefits

Amazon is the largest e-commerce platform, with millions of entrepreneurs doing business on it. There are specific rules and guidelines that companies need to follow.

Despite these strict rules and regulations, you can still start your Amazon FBA wholesale business on this platform. 

Amazon does not allow sellers to have more than one accounts. So if you intend to start your Amazon FBA wholesale venture, you have to manage it under one online store.

Initially, it will take time managing multiple quantities of bulk products under one store, but gradually you will become an expert at it. 

Selling Wholesale on Amazon 

When you want to sell products on Amazon, particularly wholesale products, you must familiarize yourself with the platform’s working.

The wholesale model works differently from how business is done in retail arbitrage (RA). The main difference between the two business models is the number of products that you sell, which is significantly higher in wholesale. 

Wholesale VS Retail Arbitrage 

When you choose to do wholesale, you sell the products at a higher price but in more significant numbers than RA (retail arbitrage). Retail Arbitrage usually involves making one-off sales of lower quantities. 

When comparing the investments required for each business type, RA requires a more significant amount of investment. Similarly, the sourcing of products also differs. 

In RA, you directly place an order from an online store or brick-and-mortar stores. For wholesaling, you rely on Amazon FBA wholesale suppliers or manufacturers for sourcing the products. 

Since there is a difference in sourcing for Amazon FBA wholesale and RA, acquiring stock also differs in the two business models. 

Wholesale vs. Private Label 

The beginning steps for starting wholesale and private label are the same. In private label or wholesale, you can directly source from the manufacturers.

Additionally, for selling in bulk, you can consider Amazon FBA wholesale suppliers. The difference comes when we proceed further. 

In private label, as a seller, entrepreneurs directly work with manufacturers for adding labels to their products.

This approach helps in value addition. In wholesaling, you are now selling the product manufactured by the manufacturer. Therefore, there is no need to make any modifications when selling wholesale. 

The price of wholesale products is lower because business owners buy inventory in bulk and get more discounts. 

Benefits of Wholesale FBA on Amazon 

In wholesale, sellers do not need to sell a new product. Some examples of products for Amazon FBA wholesale may include home essentials, clothing, and other items. 

Let us have a look at the benefits of starting Amazon FBA wholesale 

Chance to Sell In-Demand Products Entrepreneurs can focus on selling products with an existing demand with its customers.

They do not require research of new products or investment of money into building brand equity. As a businessperson, you need to deliver outstanding customer service when selling an existing product. 

Wholesales for Amazon FBA sell products with customers’ expectations already set for price and quality. As reseller, you have to ensure product processing, packaging and shipping on time.

You also need to handle customers’ complaints courteously. The steps you follow in the wholesaling model for AMZ are pretty much the same without involving the initial effort required in private labels to establish a brand with no market presence. 

  1. More Control Over Prices 

When doing Amazon FBA wholesale, you are trying to sell products with established retail prices. Therefore, you need to take care of the inventory.

In Amazon FBA wholesale business model, higher inventory usually means more significant profit margins. In addition, when you buy in bulk, you can better negotiate prices. 

You have to schedule your time correctly to organize your business better. In addition, you have to be good with numbers and can analyze ongoing market trends to better plan future orders. 

  • Amazon FBA Wholesale is Scalable 

Wholesaling in AMZ is a scalable business model. First, there is an existing customer demand that you need to fulfill.

This demand lets you order bulk product quantities, and the processing of orders is a lot faster.

In addition, an existing customer base allows you to quickly increase the amount of inventory whenever you think there is enough demand for selling extra inventory units. 

  • Reduced Business Risk 

The Amazon FBA wholesale model is a lot less risky. There is no need for upfront investment as you are only dealing in well-known brands.

The manufacturer is already producing the products for multiple sellers. There is no need to allocate extra-human or monetary resources in R&D, marketing, or the launch of new products. 

Thus, you have lower business risks. There is no need to worry about production or manufacturing costs. You also do not need to hire employees to oversee the production processes. 

  • Existing Customer Base 

In wholesale Amazon FBA, there is no worry of introducing your product to a brand new audience.

The demand for the product you are trying to sell already exists. However, as a wholesaler, you need to take care of the shipping and processing. 

There is no need to invest money into PPC campaigns or advertising. You do not have to worry about launching a new product line or establish a brand’s presence online.

There is no need to build a following as you inherent the customers that are already buying the products you intend to sell wholesale. 

Finding Suppliers for Amazon FBA Wholesale

Now that we have looked at a short Amazon FBA wholesale vs. private label comparison, you need to find the wholesale suppliers for sourcing the products. So let us share some examples of places online where you can try finding wholesale suppliers. 

  1. Liquidation.com 

Liquidation.com is a website that concentrates on companies that are about to close down. These are the companies that have usually filed for bankruptcy.

They are selling pieces that they do not require. Liquidation.com is among the most extensive directories of suppliers online. They cover a wide range of products and product types, including new and old ones. 

  • SaleHoo

Bogus suppliers are something that you have to deal with in Amazon wholesale business. The use of SaleHoo lets you get rid of that issue and also removes non-serious customers.

SaleHoo enables you to access genuine suppliers at discounted prices. You can also become a premium member to access more helpful information, including market data related to products and niches. 

  • Tuesday Morning 

Do you want to sell products at wholesale or low prices? Tuesday Morning is more of a backyard sale website for neighborhoods.

Make sure that you keep checking them out for the latest deals. Typically, the items you will find include garden equipment, home, electronics, toys, and luggage sold here.

Those who have a niche from the categories mentioned above can consider browsing the Tuesday Morning website to find products to sell wholesale. 

Getting Started with Amazon FBA Wholesale Business 

Amazon FBA wholesale business model is like any other venture on the AMZ platform. You start by finding a product to sell.

Make sure you have invested enough time in finding a product that would eventually sell. Some niches have more demand on Amazon than others. Always try to cater to a small market with a sizeable order. 

It starts with finding profitable products to sell. Once you have done your product research, you can also look at the product listing to optimize it.

Once you are done optimizing the listing and have the product, you can start selling it on Amazon. 

Amazon FBA wholesale model works similar to how we sell non-wholesale products on this platform. The main difference is that in FBA wholesale, you need to order larger inventory. 

Conclusion 

In Amazon FBA wholesale, you are working with products that customers want to buy. If you have the investment, you can purchase in bulk to enjoy the discounts.

Initially, you may find it a bit challenging to deal with an overwhelming amount of inventory. However, once you get the hang of it, you will start enjoying selling wholesale on Amazon. 

Author Bio: AmazinEcommerce.com is a leading Amazon FBA consultant offering its services to clients across the globe. AmazinEcommerce.com is a premium Amazon FBA Private Label & Wholesale Consultancy assisting in managing your AMZ store including private label, micro-private label, listing optimization (SEO), product photography, 3D rendering, videography, EBC / A+ Content, PPC, Packaging, Design (including Store Branding), and reinstatement of suspended AMZ accounts.

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