Wholesale Success on Amazon: How to Sell Wholesale Items for Big Profits
Wholesale Success on Amazon: How to Sell Wholesale Items for Big Profits
Blog Article
Amazon is one of the largest online marketplaces in the world, offering countless opportunities for sellers to make big profits. One of the most profitable business models on Amazon is wholesale selling. By buying wholesale and selling on Amazon, sellers can achieve high margins while leveraging Amazon's massive customer base. This guide will walk you through everything you need to know about selling wholesale items on Amazon, from finding suppliers to scaling your business.
What is Amazon FBA Wholesale?
Amazon FBA Wholesale is a business model where sellers purchase products in bulk from wholesale suppliers and resell them on Amazon for a profit. The advantage of this model is that you can buy products at a lower cost per unit and take advantage of Amazon's Fulfillment by Amazon (FBA) program.
Benefits of Amazon FBA Wholesale
- Lower product costs – Buying in bulk reduces the per-unit price.
- Less competition – Unlike retail arbitrage, wholesale sellers have agreements with suppliers, limiting competition.
- Scalability – Once a profitable product is identified, large orders can be placed to maximize profits.
- Amazon handles fulfillment – With wholesale to Amazon, you don’t need to worry about storage, packing, and shipping.
How to Sell Wholesale on Amazon
Step 1: Research and Choose Profitable Products
The first step in selling wholesale on Amazon is to research and choose wholesale items to sell on Amazon that are in demand. Here’s how you can do it:
- Use Amazon Best Sellers List – Look at the top-selling products in various categories.
- Check Amazon Sales Rank – A lower sales rank means higher demand.
- Analyze Competitor Listings – Find gaps in the market where you can compete.
- Consider Brand Restrictions – Some brands require authorization to resell their products.
Step 2: Find Reliable Wholesale Suppliers for Amazon Sellers
To buy wholesale products, you need to find reputable wholesale suppliers for Amazon sellers. Here are some ways to do that:
- Attend Trade Shows – Events like ASD Market Week and Canton Fair are great for finding suppliers.
- Use Online Directories – Websites like Alibaba, SaleHoo, and Worldwide Brands offer thousands of suppliers.
- Contact Manufacturers – Reach out directly to brands and manufacturers to inquire about bulk pricing.
- Partner with Distributors – Many companies have authorized distributors who can provide wholesale deals.
Step 3: Set Up an Amazon Seller Account
To start selling wholesale items on Amazon, you need to set up an Amazon Seller Central account. Choose between:
- Individual Plan – Suitable for sellers with fewer than 40 sales per month ($0.99 per sale).
- Professional Plan – Ideal for wholesale sellers ($39.99 per month + selling fees).
Step 4: Purchase Inventory and List Your Products
Once you have identified a supplier, place a wholesale order. When your stock arrives, follow these steps to list your products on Amazon:
- Find the Product Listing – If the product is already on Amazon, you can list it under the existing ASIN.
- Create a New Listing (If Required) – If the product is not listed, create a new product page.
- Optimize Your Listing – Use high-quality images, compelling descriptions, and relevant keywords.
Step 5: Use Fulfillment by Amazon (FBA) or Fulfill Orders Yourself
You have two options for order fulfillment:
- Fulfillment by Amazon (FBA): Amazon stores, picks, packs, and ships your products.
- Fulfillment by Merchant (FBM): You handle storage, shipping, and customer service yourself.
For most wholesale sellers, FBA is the better choice because it allows for hands-off logistics and Prime eligibility.
Step 6: Price Your Products Competitively
Pricing is crucial for selling wholesale on Amazon. Consider the following factors:
- Amazon’s fees – Account for referral fees, fulfillment costs, and storage fees.
- Competitor pricing – Stay competitive with other sellers while maintaining profitability.
- Profit margins – Aim for at least a 30-40% margin after fees and shipping.
Step 7: Market and Scale Your Business
To boost sales and grow your business, use the following marketing strategies:
- Amazon PPC Advertising – Run ads to increase product visibility.
- Optimized Listings – Use keywords like "how to sell wholesale on Amazon" in your product descriptions.
- Discounts and Promotions – Offer coupons or limited-time deals to attract buyers.
- Request Reviews – Encourage customers to leave positive reviews to improve rankings.
Challenges of Selling Wholesale on Amazon
While wholesale selling on Amazon is profitable, it comes with challenges:
- High Upfront Investment – Buying in bulk requires a significant initial investment.
- Finding Reliable Suppliers – Some suppliers require business licenses or bulk purchase commitments.
- Amazon Restrictions – Some brands have strict selling policies.
- Competition – The wholesale market can be competitive, requiring strategic pricing and marketing.
Tips for Success in Wholesale to Amazon
- Build Strong Supplier Relationships – This ensures better pricing and exclusive deals.
- Stay Compliant with Amazon Policies – Avoid suspension by following Amazon’s rules.
- Monitor Sales and Adjust Pricing – Use tools like Keepa or Helium 10 to track market trends.
- Expand Your Product Range – Diversify to reduce risk and increase profits.
Conclusion
Buying wholesale and selling on Amazon is a proven way to generate substantial profits. By carefully selecting wholesale items to sell on Amazon, finding the best wholesale suppliers for Amazon sellers, and utilizing Fulfillment by Amazon (FBA), you can build a successful and scalable business.
Now that you know how to sell wholesale on Amazon, it's time to take action. Start researching profitable products, find reliable suppliers, and begin your journey toward Amazon wholesale success!