Introduction
The Amazon marketplace presents a massive opportunity for sellers looking to build a profitable wholesale business. Unlike private labeling, wholesale selling allows you to purchase products in bulk from manufacturers or distributors and resell them under existing brands. This model is perfect for those who want a stable, scalable business with high-profit margins.
In this guide, we will explore the best strategies for sourcing wholesale products, setting up an Amazon wholesale business, and scaling for success. Whether you are a beginner or an experienced seller, this comprehensive guide will provide you with all the insights you need.
Why Choose Amazon Wholesale?
Amazon wholesale selling is a proven business model with several advantages:
✅ Lower Risk – Selling well-known brands reduces the risk of product failure.
✅ Faster Growth – Established products already have demand, making sales easier.
✅ Higher Profit Margins – Buying in bulk lowers costs, increasing profitability.
✅ Scalability – A wholesale business can expand quickly with the right sourcing strategies.
Now, let’s explore how to build a successful Amazon wholesale business from scratch.
Step 1: Understanding Amazon Wholesale
Before you start, it’s crucial to understand the basics of wholesale selling on Amazon. Unlike retail arbitrage or dropshipping, wholesale selling involves purchasing large quantities of products directly from manufacturers or authorized distributors and reselling them on Amazon.
To succeed in this business model, you need:
✔ A professional Amazon seller account
✔ A business license and tax ID (EIN in the USA)
✔ Reliable wholesale suppliers
✔ Knowledge of Amazon’s FBA (Fulfillment by Amazon) program
Step 2: Setting Up Your Amazon Wholesale Business
1. Create an Amazon Seller Account
To sell wholesale on Amazon, you need a Professional Seller Account, which costs $39.99 per month. This account allows you to sell in bulk and access advanced selling features.
2. Get a Business License & Tax ID
Most wholesalers and distributors require a resale certificate or sales tax permit to buy products tax-free. You can obtain these from your state’s business registration office.
3. Apply for an Amazon Wholesale Account
Some brands and distributors require sellers to have a wholesale account to purchase products. You will need to provide your business details, including your EIN and sales tax permit.
Step 3: Finding the Best Wholesale Suppliers
Finding reliable wholesale suppliers is the key to success. Here’s where you can source products:
🔹 Manufacturer Direct – Buying directly from manufacturers offers the best prices.
🔹 Authorized Distributors – These companies have direct relationships with manufacturers and sell wholesale.
🔹 Wholesale Marketplaces – Platforms like Alibaba, SaleHoo, and ThomasNet can help you connect with suppliers.
🔹 Trade Shows – Events like ASD Market Week and Canton Fair allow you to meet suppliers face-to-face.
How to Identify the Best Suppliers
✅ Look for Authorized Distributors – Ensure they have agreements with manufacturers.
✅ Check Minimum Order Quantities (MOQs) – Some suppliers have high order requirements.
✅ Verify Product Authenticity – Amazon requires invoices from authorized wholesalers to avoid account suspension.
✅ Negotiate Pricing & Terms – Always ask for bulk discounts to increase your profit margins.
Step 4: Choosing Profitable Wholesale Products
What Makes a Product Profitable?
To find the best wholesale products for Amazon, look for:
✔ High Demand – Use Amazon’s Best Sellers List and Jungle Scout to find trending products.
✔ Low Competition – Avoid oversaturated niches to maximize profits.
✔ Good Profit Margins – Aim for at least a 30% margin after Amazon fees.
✔ Brand Authorization – Selling authorized products ensures you avoid IP violations.
Tools for Product Research
🔹 Jungle Scout & Helium 10 – Analyze sales trends and competition.
🔹 Keepa & CamelCamelCamel – Track price changes and demand history.
🔹 Amazon Seller Central – Use Amazon’s free tools to check sales volume and fees.
Step 5: Listing & Optimizing Your Wholesale Products on Amazon
Once you have sourced profitable products, it’s time to list them on Amazon.
1. Listing Your Product
✅ Find the Product’s ASIN – Search for the existing listing in Amazon’s catalog.
✅ Apply for Brand Approval (if needed) – Some brands require approval before selling their products.
✅ Use High-Quality Images & Descriptions – Optimize listings for better conversions.
2. Enrolling in Amazon FBA
FBA (Fulfillment by Amazon) allows you to store products in Amazon warehouses, and Amazon handles shipping, returns, and customer service.
✅ Advantages of Amazon FBA:
✔ Faster shipping with Prime eligibility
✔ Amazon handles customer service & returns
✔ Higher Buy Box placement compared to FBM (Fulfilled by Merchant)
Step 6: Scaling Your Wholesale Business
1. Build Strong Supplier Relationships
Negotiating better pricing and terms with suppliers can increase your profit margins over time.
2. Expand Your Product Line
Once you establish a profitable niche, expand your inventory with similar high-demand products.
3. Use Amazon PPC Advertising
Running Amazon PPC (Pay-Per-Click) ads can help boost visibility and increase sales.
4. Monitor & Optimize Your Business
Regularly check:
✔ Inventory Levels – Avoid stockouts to maintain sales flow.
✔ Profit Margins – Adjust pricing to stay competitive.
✔ Customer Reviews – High ratings improve product rankings.
Conclusion
Starting an Amazon wholesale business is a profitable and scalable way to generate income. By sourcing high-demand wholesale products, optimizing your Amazon FBA listings, and building strong supplier relationships, you can create a thriving business.
🔹 Key Takeaways:
✅ Find authorized wholesale suppliers
✅ Choose high-demand, low-competition products
✅ Enroll in Amazon FBA for streamlined fulfillment
✅ Scale by expanding inventory and optimizing ads
With the right strategies, Amazon wholesale selling can be a highly rewarding business. Start today and maximize your profits!