Amazon Wholesale for FBA and FBM Sellers: How the Wholesale Business Works
Selling wholesale products on Amazon offers a lucrative opportunity to gain a foothold in e-commerce. You purchase products in large quantities from manufacturers or wholesalers and then resell them on Amazon with a profit margin. Unlike other approaches such as the private label business, Amazon Wholesale focuses on the resale of already established branded products, eliminating the challenges of product development and branding. This makes it particularly attractive for newcomers and experienced sellers alike who want to scale quickly and benefit from proven market strategies.
However, success in wholesale depends on a smart product selection, the right price calculation and efficient logistics. Topics such as using Fulfillment by Amazon (FBA), understanding market trends and negotiating with suppliers play a crucial role. In this article, we look at how you get started with Amazon Wholesale, what steps are necessary and how to avoid the most common mistakes to make your business profitable in the long term.
What is Amazon Wholesale?
Companies and individuals that are active in wholesale purchase large quantities of a product directly from the manufacturer or another large intermediary, store them in their own warehouse and then sell them in smaller quantities to the end consumer.
So if you want to run an Amazon Wholesale business, you buy goods directly from the manufacturer and resell them as individual items on Amazon at a higher price. To do this, it is usually necessary to have a corresponding sales license from the brand owner. This is also known as “authorization for distribution”. Brand owners or official distributors issue these licenses to ensure that their products are only offered by trustworthy and reputable sellers. To obtain such a license, you either contact the brand owner or obtain it automatically by purchasing the products from official wholesalers.
Amazon Wholesale vs. Private Label
Selling wholesale, i.e. products from well-known and major brands, was the original business model with which many retailers started on Amazon. However, most professional sellers now also have a second type of product in their range: Private Label. Here, retailers develop their own branded products – with the advantage that they can design and influence all aspects themselves.
At the same time, this also involves other tasks, such as design, marketing and legal issues. As this product does not yet exist on Amazon, sellers must also create a new listing, design the product detail page and take care of product images, A+ content etc. – to just name some examples. The extensive scope for design therefore also comes with greater responsibility. This is why newcomers usually only gradually add private label products to their portfolio at a later stage.
Advantages and Drawbacks of Wholesale Goods on Amazon
The sale of wholesale products on Amazon has both advantages and disadvantages. Let’s take a look at both sides.
Advantages
Disadvantages
Product research for Amazon Wholesale
Finding suppliers is not rocket science, but finding the right products is a challenge. How do you recognize those wholesale products on Amazon that are still worth getting started with, and where can sellers do their research? There are several options for selecting products. Below we have put together some tips to help you get started:
Tip #1: Visit trade fairs.
Trade fairs allow you to find out more about the brands you want to sell. At the same time, you will easily come into contact with many important people. You will have numerous personal conversations with company owners and at the same time look for new products that could sell well on Amazon. You will also read a lot about what these companies value, what experiences they have already had with selling on Amazon, what problems there are and what you as a third-party seller can contribute to a smooth process. Trade fairs therefore play an important role when it comes to Amazon Wholesale.
Tip #2: Use brand websites and product packaging for research.
For products that are not yet available on Amazon, check the brand’s website and/or product packaging for contact information so you can start a conversation about selling on Amazon.
Tip #3: Take a look at the bestsellers.
Amazon continuously publishes the current best-selling products. These are currently in high demand, which means they already fulfill one aspect of a worthwhile product idea. However, bear in mind that demand alone is not enough and that the Amazon Best Seller Rank (BSR) is influenced by many external factors such as seasonality.
Tip #4: Use wholesaler websites and other marketplaces.
Websites such as Alibaba, Faire, Ankorstore or Abound offer insights into popular brands and products that you can buy wholesale. Search specifically for products that perform well on Amazon and check whether you can order them from an official distributor or directly from the manufacturer.
Tip #5: Analyze the competition’s product range.
Research products that are sold on Amazon by other wholesale retailers. Check their listings and analyze which items are successful. Use special tools such as Keepa to check price and sales data to find out whether a product is profitable in the long term.
Communication With Manufacturers
As soon as brands have reached a certain size and popularity, they begin to select who is allowed to sell their products and who is not. It is therefore particularly important to be reputable and professional when dealing with brands and suppliers. You should definitely present yourself as a company, including a business e-mail address, website and marketing plan.
If possible, actively present yourself and your experience. What added value can you offer? What marketing measures have you planned and what testimonials from other brands that you successfully sell on Amazon can you provide? Also go into the metrics of your Amazon account (on-time delivery rate, positive customer reviews, etc.) to illustrate your reliability.
Find out in advance which purchase prices and purchase quantities are currently standard on the market. Nevertheless, you can still negotiate or purchase more goods, provided the discount is increasing as well. The wholesaler may also be able to send the products directly to an Amazon logistics center, saving you a lot of work and costs.
Also keep the image of your own business in mind. You also want to offer your customers something and not sell junk or be constantly out of stock because the distributor plans the delivery date of your repeat order. Therefore, start with a small test order instead of going straight into full swing.
Final Thoughts
Selling wholesale products on Amazon offers a promising opportunity to start or expand an existing business in e-commerce. By using established branded products, there is no need to develop your own brand, which saves time and resources. At the same time, retailers benefit from the stable demand and brand loyalty of well-known products. For newcomers in particular, this represents a calculable entry point, while experienced sellers can continue to expand their business through efficient scaling.
Nevertheless, the wholesale model also poses challenges – for example, high initial investment, intense competition and dependence on brands and suppliers. Well thought-out product research, careful negotiations and choosing the right logistics solutions are crucial for success. Those who face up to these challenges and rely on professional communication and sound market analyses can build a profitable and sustainable business model with Amazon Wholesale.
Frequently Asked Questions
Companies that are active in wholesale on Amazon purchase large quantities of a product directly from the manufacturer or another large intermediary, store them in their own warehouse and then sell them in smaller quantities to the end consumer, i.e. the Amazon customer.
An Amazon seller’s earnings can vary greatly and depend on factors such as business model (e.g. private label, wholesale, arbitrage), products sold, margin, fees and competition. Some sellers earn only a few hundred euros a month, while others earn six figures or more per year. According to estimates, around 50% of third-party sellers on Amazon earn between €1,000 and €25,000 per month, while top sellers achieve significantly higher sales.
Yes, it is possible to buy products in bulk on Amazon. Amazon also offers a special marketplace called “Amazon Business”, which is aimed at companies and enables volume discounts. There are also sellers on Amazon that are specifically aimed at B2B customers and offer larger quantities or cardboard packaging at reduced prices.
Yes, anyone can sell on Amazon, both private individuals and companies. To become active as a seller, you need to register for an Amazon seller account. There are two types of accounts: the individual seller account (suitable for occasional sales) and the professional account (for regular sales and larger volumes). However, sellers must meet certain requirements, such as compliance with Amazon’s policies and, in some cases, proof of business registration and tax information.
Amazon Warehouse is a special area on the Amazon platform where refurbished, returned or slightly damaged products are sold at reduced prices. These items often come from customer returns, overstocks or packaging damage, but are checked by Amazon and classified as functional.
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