WHAT IS AMAZON WHOLESALE?
Amazon has more than 6 million third-party sellers globally, selling hundreds of millions of different products all over the world. 26% of these sellers sell their products through the Wholesale model. Wholesale business model means buying branded products from the wholesaler or directly from the manufacturer and selling them on Amazon.
WHY AMAZON WHOLESALE?
Pros
- Product request : You can sell known brands that consumers are already looking for and buying. This takes the burden off your business in terms of marketing.
- Quick start : The Wholesale business model is one of the easiest business models to get up and running. Around 42% of those using this business model are able to get their business up and running in less than six weeks.
Snowy
: 55% of those who do the Wholesale business model start making a profit in less than six months.
Scalable
: Instead of focusing on building a brand, organizing listings or other requirements that new brands need to do on Amazon, you can focus your time on growing, or even building a team to manage the day-to-day operations.
Cons
- Competition : Almost all of the listings you bid on will have multiple sellers. You may need to lower your prices so that you can sell by winning BuyBox.
Capital
: The wholesale and dropshipping business model requires upfront capital as you need to buy goods in bulk.- Research : The most time-consuming part of the Wholesale business model is research. Explore dozens or even hundreds of product deals and make sure you can get the product from a supplier
Brand Approval
: If you are a new seller on Amazon, you may often need to be approved by the brand before you can start selling other brands.- Document Requirement : The Wholesale business model may require you to obtain a “business license”, a “resale permit” or a “resale certificate”. These two items allow you to purchase items tax-free and collect sales tax on behalf of your state. Also, most brands you contact will ask you for this information before opening a wholesale account. You should make sure to look at what the wholesale requirements are in your country or state.
HOW TO MAKE A WHOLESALE BUSINESS MODEL ON AMAZON?
