What Is Amazon FBA Wholesale? Unlocking the Secrets of Bulk Selling
What Is Amazon FBA Wholesale? Unlocking the Secrets of Bulk Selling
Blog Article
Amazon FBA (Fulfillment by Amazon) Wholesale is one of the most profitable business models for online sellers. It allows entrepreneurs to buy products in bulk from wholesale suppliers and resell them on Amazon for a profit. Unlike private labeling, where sellers create their own branded products, Amazon FBA wholesale focuses on purchasing well-known branded items at wholesale prices and selling them through Amazon’s FBA program.
This guide will help you understand the fundamentals of buying wholesale and selling on Amazon, the benefits, challenges, and how you can start your own wholesale to Amazon business successfully.
Understanding Amazon FBA Wholesale
What Is Amazon FBA?
Amazon FBA is a fulfillment service that allows sellers to store their inventory in Amazon’s warehouses. When a customer places an order, Amazon handles storage, packaging, shipping, customer service, and returns. This model allows sellers to focus on sourcing and growing their business instead of managing logistics.
What Is Amazon FBA Wholesale?
Amazon FBA Wholesale refers to buying products in bulk from authorized wholesale suppliers for Amazon sellers and reselling them on Amazon under established brand names. Unlike retail arbitrage, where sellers buy discounted items from retail stores, wholesale involves direct purchasing from distributors or manufacturers at lower costs.
Why Choose Wholesale Selling on Amazon?
Selling wholesale on Amazon offers several advantages over other business models:
- Less Competition – Since wholesale sellers focus on existing branded products, they avoid direct competition with private-label sellers.
- Higher Profit Margins – Buying in bulk allows sellers to benefit from lower per-unit costs, leading to higher margins.
- Steady Sales – Established brands already have strong demand, reducing the risk of slow-moving inventory.
- Fewer Risks Compared to Private Labeling – No need to create new products or spend time on branding and marketing.
- Scalability – Once you secure a reliable wholesale supplier, you can scale your business by expanding to different products or categories.
How to Start Selling Wholesale on Amazon
Step 1: Set Up an Amazon Seller Account
To start selling wholesale items on Amazon, you need to create an Amazon Seller Central account. There are two types:
- Individual Seller Account – Suitable for those selling fewer than 40 items per month.
- Professional Seller Account – Recommended for wholesale sellers as it provides access to Amazon’s wholesale tools, reports, and advertising features.
Step 2: Find Reliable Wholesale Suppliers
The success of your wholesale to Amazon business depends on sourcing from trusted wholesale suppliers for Amazon sellers. Here’s how to find them:
- Online Wholesale Directories – Websites like SaleHoo, Worldwide Brands, and Wholesale Central list verified suppliers.
- Manufacturer & Distributor Websites – Reach out to brands directly or their authorized distributors.
- Trade Shows – Events like ASD Market Week and the Canton Fair are great places to connect with suppliers.
- B2B Marketplaces – Alibaba and ThomasNet offer bulk purchasing options.
- Networking & Industry Forums – Join groups and forums like the Wholesale & Amazon FBA Facebook groups.
Step 3: Get Approval to Sell Branded Products
Some brands require authorization before you can resell their products on Amazon. To get brand approval, follow these steps:
- Contact the Brand or Distributor – Request permission to sell their products.
- Provide Business Documentation – You may need an EIN, resale certificate, and invoices.
- Request Amazon’s Approval – Submit your invoices through Seller Central.
Step 4: Select Profitable Wholesale Items to Sell on Amazon
Not all products are ideal for selling wholesale on Amazon. Consider these factors when selecting wholesale items to sell on Amazon:
- High Demand & Low Competition – Use Amazon’s Best Sellers Rank (BSR) to find trending products.
- Profit Margins – Aim for a 30-50% margin after Amazon fees.
- Brand Reputation – Stick to well-known brands with positive customer feedback.
- FBA Fees & Shipping Costs – Ensure that FBA fulfillment costs don’t eat into profits.
Step 5: Purchase Inventory & Ship to Amazon FBA
Once you have selected your products, buy them in bulk from your supplier. Then, create a shipping plan in Amazon Seller Central and send your inventory to an Amazon fulfillment center. Amazon will handle storage, order processing, and delivery to customers.
Step 6: Optimize Product Listings for Maximum Sales
To succeed in selling wholesale items on Amazon, optimize your product listings:
- Use High-Quality Images – Ensure clear, professional photos.
- Write Compelling Product Titles – Include relevant keywords.
- Detailed Bullet Points & Descriptions – Highlight features and benefits.
- Leverage Amazon Advertising – Sponsored ads can boost visibility.
Step 7: Monitor Sales & Scale Your Business
Track your sales, customer reviews, and inventory levels regularly. Use tools like Jungle Scout, Helium 10, or Keepa to analyze trends and find new opportunities to expand your wholesale to Amazon business.
Common Challenges & How to Overcome Them
1. Finding Reliable Wholesale Suppliers
Solution: Build relationships with trusted distributors, attend trade shows, and verify supplier credibility.
2. Amazon Restrictions & Brand Approvals
Solution: Apply for brand approval early and keep valid invoices.
3. High Competition on Amazon
Solution: Focus on unique product categories with lower competition.
4. Managing Cash Flow for Bulk Purchases
Solution: Start with smaller orders and reinvest profits to scale.
5. FBA Storage Fees & Amazon Policy Changes
Solution: Regularly monitor inventory levels and stay updated with Amazon’s policies.
Conclusion
Amazon FBA wholesale is a powerful way to build a profitable online business. By buying wholesale and selling on Amazon, you leverage established brands, enjoy lower competition, and benefit from Amazon’s fulfillment services. While challenges exist, strategic supplier selection, brand approvals, and continuous market research will set you up for long-term success.
If you're serious about selling wholesale on Amazon, start by finding reputable wholesale suppliers for Amazon sellers, choosing the right products, and optimizing your listings. With persistence and the right approach, your Amazon wholesale business can thrive! Report this page