Benefits of Amazon FBA Wholesale Business
Amazon is considered one of the largest e-commerce platforms, with millions of entrepreneurs doing business on it. These sellers work under specific rules that they need to follow. Some starting afresh in the Amazon wholesale business consider these regulations too strict to their liking or comfort. Still, if they follow through, they can also make profits doing wholesale Amazon FBA.
Beginner wholesalers for Amazon FBA must know that the site does not allow sellers to make more than one account. However, if they are interested in doing wholesale on AMZ, they can keep everything under one store online. Initially, you may find it hard to manage bulk quantities of products, but eventually, you will learn to work with it and become profitable.
Doing Wholesale on Amazon
When you are selling on AMZ, specifically when going for Amazon FBA wholesale, you have to know how things work. Many newbies to AMZ confuse wholesaling with retail arbitrage. In both selling models, you are trying to sell products at an affordable price, the price is significantly higher, and the quantities are different.
Retail Arbitrage VS Wholesaling
When going wholesale, you are selling the products at a higher price. This is because the quantities are more than you sell in the retail arbitrage business model. In RA, you are just selling one-off items in lower amounts.
If we compare the investments involved in Amazon FBA wholesale, you will invest a lot more money than RA. The other difference is how you source the products in RA in comparison with Amazon FBA wholesale business model. In the RA business model, you have to order many products from online stores and brick-and-mortar stores. On the contrary, you are primarily selling products sourced from manufacturers or large distributors in the Amazon wholesale business.
The difference in sources for RA & wholesale Amazon FBA also impacts the time required to procure the inventory. Therefore, in RA, you can purchase merchandise a lot faster than wholesalers for Amazon FBA.
Amazon FBA Wholesale VS Private Label
You start the PL & Amazon wholesale business the same way. In both these Amazon business models, you need to source the products from the manufacturers. The following steps differentiate wholesale Amazon FBA from Private Label.
In PL (Private Label), the sellers work directly with the manufacturers to add a label to the products. It is done to add more value to the product, ensure quality and reduce the price. On the other hand, the wholesalers for Amazon FBA are just selling whatever the manufacturers are producing. There is no modification required, and that is why it is different from PL. Therefore, when we compare the prices. There is a difference between the price. The products are sold on a wholesale basis (at a much lower cost) than by private label owners.
Advantages of Amazon FBA Wholesale
A lot of the sellers do not choose to sell an entirely new product. If you do not have a new product to sell, then you are opting for wholesale items. You can try to sell different products to sell on a wholesale basis, including home essentials and apparel. You can reap advantages when buying in bulk from Amazon FBA wholesale suppliers to sell online.
Get to Work with Established Brands One of the critical advantages of Amazon FBA wholesale business model is that you are only working with the brands that have a reputation and customer demand for their products. Therefore, there is no need to put effort into the search for products to label with your private brand. Instead, make sure that your customer is given top-notch experience in wholesale FBA.
In Amazon FBA wholesale, your customers have already expected the product’s quality and price. In wholesale, you need to focus on ensuring timely processing, packing, and shipping of products. It would help if you also handle customers’ complaints. This is a lot similar to what you would do in any Amazon seller business model. However, the level of effort required at the start is a lot less when compared to the initial phase of selling.
More Control of Prices In Amazon FBA wholesale, you are already given a suggested retail price. If you do like to become a successful wholesaler, ensure that you are continuously tracking your inventory. The higher the level of stock you can turnover, the greater the profits you can make.
Amazon FBA wholesale involves scheduling things to ensure more organization. Therefore, you need to be quick with numbers and also keep an eye on the trends. This helps plan future orders from Amazon FBA wholesale suppliers.
Ease of Setting Up
Amazon FBA wholesale business model is easy to set up, and you can scale it up even further if you feel the need. When there is a significant increase in the customers’ demand for products, wholesale FBA lets you contact the manufacturers and order more quantities. You do not have to wait for a lot of time to process your orders.
Reduced Business Risk
Amazon FBA wholesale reduces your risk related to advertising and manufacturing costs. You are already working with an established brand, and a manufacturing plant is churning out products; you do not need to worry about not getting the product on time. In addition, there is no need to allocate resources separately for launching a new product or spend any time or money on research and development.
The wholesale model reduces your business risk. You do not have to worry about the manufacturing or the production costs. There is no need to employ staff for these processes.
Tapping into Already Existing Customer Base
Another benefit of doing Amazon FBA wholesale is that you do not have to search for a new customer base and introduce your product to them. You already have a customer base that has established with a brand you are selling. However, you need to coordinate proficiently with the Amazon FBA wholesale suppliers for processing and shipping.
You will have to spend less money setting up PPC campaigns and advertising. There is no need to worry about launching a new product line since the brand owner will introduce it to a more significant number of customers. You also do not need to have a following as it will develop the brand that you have already established.
How to Find Wholesale Suppliers for Amazon?
Once you have familiarized yourself with the Amazon FBA wholesale business model, the next step is to find the suppliers for wholesale FBA. For this, you will have to rely on many suppliers. Let us have a look at some of the suppliers that you can consider.
There are many bogus suppliers that you need to stay clear of when doing Amazon FBA wholesale. SaleHoo is one such tool that helps you do that with their paid directory service, excluding customers not serious about purchasing a product. You can use it to access genuine suppliers offering products at wholesale prices quickly. You can also become a premium member to get all the helpful information you need, including market data on products and niches.
As the name suggests in Amazon FBA wholesale, you can choose to work on liquidation.com that focuses on companies that are about to close down. These are the companies that filed for bankruptcy or even those selling items they do not require. Liquidation.com is considered one of the biggest suppliers of directories, and there is a wide range of products and product types available for new products and the old ones.
If you are still wondering how to start an Amazon wholesale business? You need first to understand the Amazon wholesale model and find websites like Tuesday Morning that have expertise in backyard sales in neighborhoods. The wholesale for Amazon FBA business owners can use this website to look for toys, luggage, gardening & home, and electronics.
How to start the Amazon FBA Wholesale Business?
The selling as Amazon FBA wholesale is like selling a product on any other platform. You start by finding a product to sell. Then, it would be best if you discovered more about the niche in which you want to sell the product to make the most profits. The performance varies from one category to the other. You can try finding a small market niche and take advantage of it when not many sellers are using it.
Tip: You can also hire AmazinEcommerce.com for getting professional Amazon virtual assistant services.
One of the things that you would find in all how to start an Amazon wholesale guide is the emphasis on ordering your products. Ensure that you do not waste time waiting for product listings and optimize the text before the product reaches the warehouse. This step enables you to become immediately ready for Amazon FBA wholesale business. As soon as the inventory is prepared, you can start selling on Amazon.
We have discussed in great detail how to start an Amazon wholesale business. The Amazon wholesale model has a lot of similarities with the way you sell non-wholesale products. The main difference is dealing with a large quantity of inventory. Wholesale for Amazon’s biggest challenge is when you are starting it. But as time progresses, you begin to know more about it and earn profits from Amazon FBA wholesale venture.
If you are starting into AMZ e-commerce and do not know where to start, consider stating Amazon FBA wholesale. Of course, not every seller will find it the most lucrative way to start their e-commerce venture. But, if you learn it and have the budget for it, you can enjoy the benefits of selling wholesale products.
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.