Wholesale on Amazon: How to Start a Profitable Amazon Wholesale Business

Introduction to the wholesale model

At its core, wholesale on Amazon is all about buying branded products in bulk directly from manufacturers or Amazon Wholesale suppliers, then reselling them on Amazon at a markup. Unlike private label selling, here you are not creating a brand from scratch; in fact, you are leveraging the trust and popularity of existing ones.

How does it differ from retail arbitrage, private label, and drop shipping

• Retail arbitrage is the practice of obtaining discounted goods from nearby retailers to resell online. It’s inexpensive but erratic.
• Private Label: Producing your own branded goods carries a high risk but also high profit margins.
• Dropshipping is the practice of selling without keeping inventory. Reduced control and frequently smaller profit margins.

Why choose Amazon Wholesale Business?

• You’re working with products that have already been proven to be in demand.
• Better margins result from your access to bulk pricing.

Managing several brands under a single seller account will help you grow more quickly.

Benefits of Starting a Wholesale Business on Amazon

Here are the benefits of starting an Amazon Wholesale Business.

Scalability and lower upfront risk

Starting a wholesale business on Amazon gives you a relatively safer entry into e-commerce. Unlike private label selling, where you are launching an entirely new product and testing it in the market, wholesale involves reselling established products that are already in great demand. This drastically eliminates your chances of failure. Since you are leveraging existing product listings with proven sales history, you can even scale faster and invest gradually. Once you identify top-performing items, it is very easy to order in larger quantities and expand your portfolio without reinventing the wheel.

Access to branded products

One of the biggest perks of selling wholesale on Amazon is the ability to stock and resell products that often come with built-in demand, loyal customer bases, and high search volume, meaning that you do not have to spend a lot on marketing or brand awareness. Consumers are more likely to choose familiar names, which can help you get quick conversions and a healthier bottom line. By tapping into that brand equity, your Amazon store will gain credibility almost instantly.

Reliable supplier relationshipsab

Building strong relationships with reliable Amazon wholesale suppliers can be a game-changer for your organisation. Over time, as you prove yourself as a consistent buyer and responsible seller, suppliers may give you benefits like bulk discounts, flexible payment terms, or early access to new or limited stock. You may even negotiate exclusivity deals in certain areas or product lines, reducing your competition on Amazon. These partnerships create a foundation for steady growth and help streamline your inventory management for a long way.

How Does Amazon Wholesale Work?

This is a detailed explanation of how the Amazon wholesale model works:

• Select a profitable product category or niche.
• Find wholesale suppliers and contact them.
• Place your first bulk order after negotiating.
• Ship goods to your own warehouse (FBM) or Amazon (FBA).
• List items under the current ASINs.
• Get the Buy Box and make sales.

Keep an eye on stock levels and adjust orders as necessary. 

How profit margins are made

Depending on the brand, supplier agreements, and level of market competition, wholesale margins usually fall between 10 and 30 percent.

Challenges and compliance

Gaining Wholesale Accounts Can Be Tough if You’re New

One of the biggest initial hurdles for new Amazon wholesale sellers is securing wholesale accounts with established brands or distributors. Many suppliers prefer working with experienced resellers who have a proven track record. So, if you are just starting out, you may be sceptical or outright rejected until you can demonstrate credibility. This could mean building a professional-looking website. Registering a legal business entity or even showing sales data and operational capabilities to demonstrate to your suppliers how serious and reliable it is.

You Must Compete for the Buy Box, Which Directly Affects Sales

The Amazon Buy Box is the holy grail for sellers, nearly 80-90% of sales will happen through this. However, when you are selling branded products that others also sell, then you are not alone in this listing. You will be competing with other sellers (sometimes dozens) for that coveted Buy Box. Amazon’s algorithm has several factors, such as pricing, fulfillment method, seller ratings, and inventory health. Winning and keeping the Buy Box needs constant monitoring and strategic pricing, which can be time-consuming and competitive.

Compliance with Amazon Policies, MAP Pricing, and Restricted Products Is a Must

Running a wholesale business on Amazon is about playing by Amazon’s ever-evolving rules. This includes staying compliant with seller performance metrics, understanding the marketplace fair pricing policy, and sticking to each brand’s MAP (Minimum Advertised Price) guidelines. Violating MAP agreements can get you blacklisted by suppliers. Non-compliance with Amazon’s restricted product policies will lead to account suspensions. To succeed, sellers should stay vigilant, keeping up with policy updates and ensuring their operations are always above board.

Finding and Choosing Reliable Amazon Wholesale Suppliers

Choosing the right Amazon wholesale suppliers is important for your business.

Where to find legit suppliers

• Trade exhibitions such as Global Sources or ASD Market Week.
• Listings such as ThomasNet, SaleHoo, and Global Brands.
• A “Become a reseller” section is frequently found on brand websites.
• Amazon itself, locate and contact brands that are already selling.

Red flags to avoid

• Absence of a physical address or verified business information.
• Suppliers who decline to send invoices.
• Demanding high upfront costs with minimal assistance.
• Offering “new” goods at ominously low costs.

How to vet and verify a supplier

• Request case studies or references.
• Request test orders and samples.
• Check your resale rights.

Verify whether they are listed in wholesale directories.

Legal and Business Setup for Amazon Wholesale

Business licenses and resale certificates

Having the right business licenses and resale certificates allows you to legally purchase products that are tax-free from wholesalers and resell them on Amazon.

Setting up an LLC or business entity

Establishing an LLC or other legal entity protects your personal assets, adds credibility with suppliers, and simplifies business taxes and rankings.

Tax and import considerations

Understanding sales tax obligations and import duties is important for staying compliant and avoiding costly penalties.

How to Create a Wholesale Amazon Seller Account

Choosing the right selling plan

• $0.99 per item sold under the individual plan is not the best for wholesale.
• The Professional Plan, which is necessary for wholesale success, costs $39.99 per month.

Requirements for wholesale sellers

• EIN and business entity.
• certificate of resale (particularly in the United States).
• Invoices from approved brands or distributors.

Setting up product categories

• If you sell in gated categories like health, beauty, or groceries, you must apply for category approval.
• Only use Amazon’s Brand Registry if you also engage in private labeling in addition to wholesale.

How to Source and List Wholesale Products on Amazon

Tools to research profitable products

• Jungle Scout.
• SellerApp.
• Keepa (for historical pricing).
• Helium 10.

Using FBA vs FBM for wholesale

• Amazon Fulfillment (FBA): Suggested. Reduced logistics, Prime eligibility, and quicker shipping.
• Fulfilled by Merchant (FBM): Slower growth but more control.

Optimizing listings for visibility and sales

• Use pertinent keywords in the backend and bullet points.
• To win the Buy Box, keep your prices constant.

If permitted, enhance product photos under the shared ASIN.

Managing Inventory and Supply Chain Efficiently

Reordering and managing stock

Staying on top of inventory levels by ensuring that you never run out of bestsellers or overstock slow movers, helping to maintain cash flow and Buy box eligibility.

Tools for automation

Inventory management software such as RestockPro, SoStocked, or InventoryLab helps automate reordering and tracking stock levels in real-time and forecast demand accurately.

Working with distributors

Building strong relationships with distributors helps in securing restocks, negotiating better terms, and reducing supply disruptions.

Marketing and Advertising for Amazon Wholesale Products

Even in wholesale, a little marketing is a big thing.

Amazon PPC strategies for wholesale

• Make use of sponsored products to increase Purchase Box Rotation
• Put low bids on keywords that convert well.
• To find hidden keywords, use automated campaigns.

Creating bundled offers or value packs

• Mix in high-demand and slow-moving SKUs.
• If your brand is registered, use Amazon’s Virtual Bundles.

Gaining reviews and ranking products

• Encourage reviews by sending out automated emails with feedback.
• Click the “Request a Review” button on Amazon.
• It is against the law to manipulate reviews.

Common Challenges in Wholesale on Amazon and How to Solve Them

Competition and Buy Box loss

• Price wars, subpar seller metrics, and erratic stock levels are the causes.
• Fix: Use programs like RepricerExpress or Aura to automate pricing.

Pricing wars and MAP violations

• Always adhere to agreements regarding minimum advertised prices.
• Inform the brand if someone else is breaking the rules.

Banned or restricted products

• Utilize the Category and Product Restrictions tool on Amazon.
• Obtain written brand authorization at all times.

Is Amazon Wholesale Still Profitable in 2025?

Yes, in fact, it is very profitable as well.

Trends in the wholesale model

• 3P sellers are being actively sought after by niche brands.
• Resupply is becoming simpler thanks to automation tools.
• Selling in the UK, UAE, Australia, and other countries is made possible by global expansion.

How to stay competitive

• Expanding into more than one area.
• Developing relationships with exclusive suppliers.
• Purchasing data-driven instruments to increase productivity.

Final tips for long-term success

• Use seller forums or LinkedIn to expand your network.
• Prioritize providing exceptional customer service.
• Continue to enhance your Buy Box metrics.
• Keep a close eye on Amazon’s policy changes.

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