Amazon may have started as a modest online retail company, but today, Amazon wholesale might be its biggest business. More people are buying wholesale on the internet because of the potential savings, convenient shipping, and ease of making payments, so it only makes sense that you want to deepen your hands in this market.
One of the best things about selling wholesale on Amazon is that you do it without ever leaving your desk. You can run a retail or wholesale business from your personal computer. No kidding. With the right tools and the ideal product, you can mint millions from selling wholesale, but before we get to that, let’s pull back some curtains.
How Does Amazon Wholesale Work?
Since selling its first product in 1995, Amazon has grown exponentially to become an e-commerce success story. With Amazon, merchants can build on the legendary and sometimes controversial, innovative, and tech-savvy operations to develop online stores and sell their products to billions of active users.
You can sell almost anything on Amazon. And besides, the process of setting up a wholesale business on Amazon is just as simple as it is to create any other seller account. The only key difference is you will need to obtain a wholesale license or a resale certificate. After all, you may be required to produce this documentation before a wholesale account can be set up for you.
There are two ways to go about selling wholesale on Amazon. First off, you can create your brand of products to sell on the platform as entirely new product listings or sell the products as the brand bought for bulk purchase. In both situations, you own the inventory and are accountable for fulfilling orders by the Fulfillment by Amazon.
Since you are selling an established brand, you take off the burden of marketing. It is the easiest business model behind retail to run on the platform. Rather than finding a customer base for your product on Amazon wholesale, you can focus on growth and scaling the operations of your online store while capitalizing on the existing business user base.
Launching your own product can be daunting but supplier databases like ImportDoor help you find the right supplier for your wholesale products locally and overseas. You can search by importer, supplier, product, country and even find contact detail of fellow Amazon sellers and their actual suppliers from around the world.
Getting Started with Selling Wholesale on Amazon
Amazon sells a lot of stuff. An e-commerce success story on the platform starts by identifying the right product to sell. There are a lot of resources online that highlight the criterion you can use to find the right product for your online store. While this task can be tricky, the simple way to get it done is to make sure what you intend to sell is not already on sale on the site.
The thing is, Amazon has the expertise and leadership in the online commerce market, which allows it to deliver the right tools that allow merchants to predict what the market will look like tomorrow. It unifies a lot of consumer data that act as a reflection of more or less the tastes and preferences of online shoppers. You can do that by using a sales estimator.
Obviously, you might also want to know how much money you can make from selling the product on Amazon wholesale. More importantly, you want to price your products within 2% of the Buy Box, or your offer may never be displayed on the widget. Keep in mind the fees that will play a part in the profitability of your operations.
Knowing very well the turn rate of your inventory, always keep on two to three months’ sales to keep storage fees at bay. It is always a good idea to use a product database to forecast the potential of the product on Amazon.
Setting up a Wholesale Channel
Knowing just how many products you will need to turn a profit and where you will need to source the product for your Amazon wholesale shop, you can start creating a channel for your business. Again, the idea is to find a product that already has a strong demand on Amazon and a little PPC advertising to get noticed.
Getting in touch with a supplier is as simple as using a supplier database. ImportDoor is one of the best for searching through all historical shipping data across the world. You can find a supplier, search for where to buy products, find exporters and importers, get vendors, and open a new business.
Now consider it this way, you can vet each supplier based on their history of doing business. The app allows filtering through the data searching by product, importers and exporters, port of origin, Bill of Lading, the Notify Party, and HS Code. Essentially, it is a one-stop shop to contact suppliers and negotiate with brands to set up a channel.
Is selling Wholesale Worth It?
Yes, but why? First off, Amazon made a whopping $450 billion a year from sales in 2021, and experts predict that figure will only continue to grow as the retailer expands its reach across product offerings and sectors. Now business users are also getting into the platform for wholesale shopping, and the Amazon Wholesale business is only growing.
The revenue numbers are great, but that does not tell the whole story for people running a business on the platform. In contrast to brick-and-mortar wholesalers, you can make up to a 20% profit margin selling products wholesale from a platform like Amazon.
Yes, it is becoming too competitive to sell on Amazon, but starting a store on this marketplace is still profitable for new sellers. With the right tools, seller resources, a little investment, time, and a bit of luck on your side, you can turn a profit in no time.
Final Words
Amazon is one platform that lets entrepreneurs sell millions of products to consumers online, in-person, and anywhere in between. With a little startup money to break into the market, you could be turning a profit easily on Amazon wholesale. Getting started is easy, and with a little engagement, you will see a boost to your bottom line in no time.
