Selling wholesale on Amazon: an aisle in Costco

How to Sell Wholesale on Amazon in 2020

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In order to sell hundreds of millions of different products to consumers around the world, Amazon’s sales platform is supported by more than 2 million third-party sellers worldwide. Of those sellers, 26% sell products using a sales model called wholesale. 

Wholesale is the practice of purchasing bulk branded products from another manufacturer, supplier, or distributor to resell to consumers. Examples include popular consumer electronics, kitchenware, and even popular toys.

Selling wholesale on Amazon in 2020 is a lucrative opportunity — but there’s a lot you need to know before diving in. This article offers the pros and cons associated with the wholesale business model and offers step-by-step instructions on how you can efficiently get your business up and running on Amazon.

 

How wholesale works on Amazon

In a nutshell, selling wholesale on Amazon comprises the basic steps of:

  1. Setting up a seller account
  2. Finding a high-demand product to sell
  3. Sourcing the product (in this case, from the manufacturer)
  4. Creating an optimized listing to rank against your competitors
  5. Launching and promoting the product 
  6. Managing and growing your business (including inventory, sales, etc.)

(See here for more on how to sell on Amazon.)

For all methods of selling on Amazon, sellers will need to follow certain business setup practices.

For wholesale sellers, this may require you to get a wholesale license — which might also be called a business license, tax exempt form, or something else, depending on where you live. Make sure you look into what the wholesale license requirements are in your country or state.

How does wholesale differ from other business models?

At first glance, wholesale may seem similar to the other business models on Amazon. However, there are some pretty big differences as detailed below.

Wholesale versus arbitrage

Arbitrage is the process of purchasing products from retail sites at a discounted price to resell on Amazon. Like wholesalers, resellers buy branded products. Unlike arbitrage, wholesalers make bulk purchases instead of individual purchases.

Also, wholesalers negotiate rates with suppliers and manufacturers directly (ie. earlier in the supply chain), whereas resellers (arbitrage) purchase discount products retail to sell via retail.

Wholesale versus private label

Wholesalers purchase existing branded products whereas private label sellers create their own branded products to sell on Amazon.

Because of this difference, wholesalers do not necessarily need to create new product listings. Instead, they add their offer to an existing product listing. On the other hand, private label sellers must create their own product listings.

Wholesale versus dropshipping

Dropshippers list goods for sale on Amazon. Then, when a purchase is made, they place an order through the supplier/manufacturer of the product, who fulfills the product on behalf of the dropshipper.

Wholesalers own their inventory and are in charge of fulfilling orders themselves.

 

Why sell wholesale?

Pros:

  • Product demand: You can sell established brands (Apple, Kitchenaid, etc.) that consumers are already searching for. This takes the burden off your business for marketing.
  • Quick to get started: Behind retail arbitrage, wholesale is the easiest business model to get up and running. More than half of wholesalers (51%) in Jungle Scout’s study of thousands of Amazon sellers told us it took them less than six weeks to get their businesses up and running.
  • Profitable: Also, 57% of wholesalers told us that they started to turn a profit in under three months, compared to 65% of private label sellers who said it took six months for them to see a profit.
  • Scalable: You can focus your time on growth, even building a team to manage the day-to-day operations, rather than focusing on building a brand, creating listings, or other efforts fledgling brands need to do.

Cons:

  • Competition: Nearly all of the listings on which you place offers will have multiple sellers. And since the only “lever” you have to pull is price, it can sometimes become a “race to the bottom.”
  • Up-front cost: Because you must purchase goods in bulk, usually, wholesaling is more expensive than reselling or dropshipping.
  • Research: The most time-consuming aspect of wholesaling is research. You will have to explore dozens — maybe even hundreds — of product opportunities and ensure that you can get the product in stock from a supplier. 

 

How to make money selling wholesale products on Amazon

1. Find a good product to sell wholesale

Make sure that the product is not sold by Amazon or a private label seller. Amazon can afford to lose money on a sale. As such, they will price their products lower than many competitors, so you don’t want to (and likely can’t) compete with them.

Further, private label sellers often block other sellers from placing offers on their respective listings with similar products. 

Look for established brands. You don’t want to have to market for a company that’s not your own. Remember: a big part of wholesaling is about riding the coattails of successful brands.

Check for the product’s demand. Use Jungle Scout’s Extension or free Sales Estimator to estimate a product’s monthly and daily sales (more on this below). You want to find products that have a chance of selling tens—if not hundreds—of units per day. 

2. Calculate how much money you can make

Obviously, you’re interested in selling a product on Amazon to earn a profit. Here’s how you can evaluate sales and profitability before making an investment.

Make sure your product is priced within 2% of the Buy Box 

The Buy Box is the widget to the right side of the Amazon product page that lists pricing and has the gold button that reads “Add to Cart.”

Whatever the current price is in the Buy Box, you want to be within 2% of that price. If your price is higher, your offer for the product may never display in the Buy Box. 

Understand the product’s fees

Next, make sure you know what fees to expect from the product. The easiest way to do this is to use Amazon’s FBA calculator. Enter the ASIN of the product into the calculator, enter the data, and review.

Determine your profitability

Subtract Amazon’s fees and the cost of your product from the sales price. If you’re in the positive, then congratulations: you’re profitable!

If you know how many products you expect to sell (if you have the stock or can estimate it — see next step), you can calculate profitable from those sales and fees, too. 

Estimate your monthly sales

Determine the product’s monthly sales estimate using the Jungle Scout Extension or free Sales Estimator. Divide that number by the number of sellers on the listing (rather, those within 2% of the Buy Box price) plus one (which will be you). This is the average number of sales those wholesalers share on the listing.

For example, if a product has 3,000 sales per month and there are currently 9 sellers selling the product within 2% of the sales price, the math looks like this:

3,000 / (9 + 1) = 300 sales per month.

Understand your turn rate

To avoid costly storage fees on Amazon, try to keep only 2-3 months of sales in stock. For example, for the example product above, you would need 600-900 units in stock in order to cover sales between orders.

You can continue to monitor how much stock you’ll need and when to reorder with Jungle Scout’s Inventory Manager

3. Research products with high potential on Amazon

If you aren’t sure where to start your search for good wholesale products to sell on Amazon, you can use Jungle Scout’s Product Database, which sorts Amazon’s massive catalog based on your criteria. 

First, set your preferences:

Selling wholesale on Amazon: Product Database filters

In this example, you can see the categories selected to the left. We also set the following criteria:

  • A minimum price of $20
  • Minimum of 10 reviews
  • Minimum of 10 sellers
  • Minimum of 300 sales per month

Jungle Scout returned:

Selling wholesale on Amazon: Product Database results

 

Let’s check out the 05310 Ceramic Flipside Belgian Waffle Maker.

 

This looks like the perfect opportunity. It’s priced well enough to earn profits, there’s sufficient consumer demand, and there aren’t too many sellers or reviews that we won’t be able to compete in the space.

Once we do this homework to find the right product to consider selling, we move on to sourcing.

4. Find the right suppliers 

Finding suppliers for wholesale products looks a little different from sourcing a private label product. Typically, you’d use a tool like our Supplier Database to find high-quality suppliers in China or other top overseas manufacturers. But for wholesale, we’ll go directly to the brand owner. 

Yup, that’s right! To open a wholesale account, you’ll contact the brand owners directly. If you’re approved, you will be able to place an order and start selling as soon as possible—some brands may even ship to Amazon for you! 

There are a few benefits to this approach:

You don’t have to ship products from China

This is a huge plus. Since the brands you will be contacting are most likely located within the US, you won’t have to wait weeks or months to receive your inventory or worry about things like customs clearance or overseas shipments. 

You don’t have to wait for responses from Chinese suppliers

Usually, in order to contact suppliers in China you’d need to stay up late to communicate or wait until the next day to get a response. With wholesale, the brands you contact will be working normal US business hours.

You don’t need to create your own brand

One of the biggest benefits of selling wholesale products is that you’ll be reselling someone else’s brand—you won’t have to start from scratch and launch a new product. The idea is to source a product that is already selling well on Amazon.

Sell products with little to no PPC advertising

Since you will be selling a product that already has a following and sales history on Amazon, you won’t really need to worry about advertising. Again, the idea is to sell products with existing strong demand. If you want to help boost your sales, PPC is still recommended but not necessary for many products.

How to find the brand’s contact information

Getting in touch with a brand is as simple as Googling them. Using the previous example, let’s search for “Presto.”

Once you find the brand’s website, navigate to the contact section. Sometimes, a brand will have a “wholesale” tab, so keep an eye out for that. 

Here is an example of what you can say to initiate a negotiation:

Hello,

I am interested in opening up a wholesale account with Presto products. Please let me know what information you require from me and I will get it back to you as soon as possible.

Thanks,

[your name]”

What brands or distributors will require from you

Now that you know how to find and contact brands, you need to be aware of what they’re likely to ask for as a prerequisite to opening a wholesale account.

Register a business or sole proprietorship

You will need to register a legal business entity or do business as a sole proprietor in your state. When filling out a wholesale form from a brand or distributor, they will ask for this information. 

Resale certificate from your state

This allows you to purchase products from a brand, distributor, or wholesalers tax-free for the purpose of reselling. Most brands or wholesalers will not allow you to purchase at wholesale without this.

Apply for an EIN number

An EIN (Employer Identification Number) or Federal Tax Identification Number is basically a social security number, but for your business. You can receive an EIN number for free from the IRS

Now that you know how to find suppliers and what you’ll need to do business with them, let’s move on to the negotiation.

5. Contact and negotiate with suppliers

When you contact the suppliers, you want to demonstrate how you can add value to the brand. Remember that these manufacturers are big companies concerned with new product development, patents, global marketing initiatives and so on.

You are offering to help extend their brand and increase their sales. 

This also gives you a fantastic advantage to negotiate with here. You can help them with selling on Amazon, because they often don’t have the time or know-how to do it themselves. 

Here are some ways you can offer to add value:

  • Identify any problems that you can help with them. For example, does their product have poor images? Could the SEO for their listing use improvement?
  • Show examples of how you can make their products more appealing or address customer pain points (see the reviews for this). After you identify the issues, tell them what you can do to help them.
  • Look for brands that aren’t interested in selling their products on Amazon themselves. These might even be brands that are already selling on Amazon, but have had difficult with it in the past. If you can effectively convince them you bring the Amazon selling experience, you’re solving their problem.

If they come back with a resounding “no” at first, that doesn’t mean it’s the end. Sometimes, negotiations take a while. Continue to follow up every month or so.

Plus: How to source established brands that aren’t already on Amazon

There are also a handful of ways to source brands that aren’t yet on Amazon. 

1. Look for successful Kickstarters, especially those with thousands of backers. These business owners may not have sufficient knowledge about Amazon and its benefits. As a wholesaler, you would purchase extra units of their product to sell on the platform once their product is manufactured.

2. Check Facebook ads, which a lot of entrepreneurs use to start advertising their products. Similar to Kickstarter, these entrepreneurs may not know enough about Amazon to get started there. You could help them get set up on the platform and expand their reach.

3. Follow lifestyle and consumer-facing blogs. Blog posts from major influencers (think  Real Simple or Joanna Gaines) can sometimes lead you to awesome products that aren’t yet available on Amazon. 

 

How to fulfill your wholesale orders through Amazon 

There are two ways to fulfill your Amazon sales: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

Fulfillment by Amazon is a program Amazon offers that lets you ship your products to Amazon’s fulfillment centers to store. After you make sales, Amazon’s picks, packs, and ships the products on your behalf. This takes a lot of the pressure of your new business as you won’t have to worry about shipping your own goods.

Plus, the fees for FBA are often less than the costs involved with shipping the products yourself.

However, if you are selling products that turn slowly or are oversized, FBA may not be the best choice for your business. You may have to turn to your own resources to store and ship your products. 

In that case, Fulfillment by Merchant may be the optimal fulfillment method for your business.

Unlike FBA, rather than paying Amazon a fee for taking care of their orders, FBM sellers are responsible for handling the storage, picking and packing, and shipping of their products to their customers.

 

Get started with wholesale now

If you want to sell on Amazon, but don’t want to get involved with private label, wholesale is a great alternative. Plus, as mentioned above, selling wholesale could mean turning a profit in half the time it might take as a private label seller.

So don’t wait! Explore your opportunities with Jungle Scout and start wholesaling now.

 

 

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72 comments on “How to Sell Wholesale on Amazon in 2020

  1. Hi, Great info here! Question: I am wondering which business I should select in the sign up business category. “Select an entity type”. I am assuming “None, I am an Individual as I dont have a name registered. But I could use some feedback, thanks

  2. Hi, thanks for the helpful information! I’m new to the wholesale process, and feel like I’m missing something with Step 5. When you say “contact and negotiate with Suppliers”, does “Suppliers” refer to the manufacturer, or the company that created the product? For example, if I want to sell a KitchenAid waffle maker, and I use the Supplier Database to find a manufacturer, do I need to contact KitchenAid to ask about selling their product, as well as the manufacturer? Or are they one and the same? Thanks in advance!

    1. Hi Mandy,

      You will want to contact the brand owner to get approval as they will be the ones selling you the product at a wholesale cost.

  3. when i am a new seller and i launch a product against other sellers as the same price like them or lower and ultimatly i would have zero ratings and reviews so will the buyers buy from me or not. or i have to do something like give a ways and all that stuff to rank.

    1. Hi James,

      If you are selling wholesale on a listing with multiple sellers, the buy box will rotate if you are the same price or lower price. You will still get sales but the other sellers may have the buy box more.

  4. Hi. Quick question: What happens if the competition gets ugly? Let say and existing seller is not happy with incoming new seller. He decided to buy all or most of our inventory and return them on purpose. So that we both have bad return percentage and run out of stock. What happens next? Is there any way to avoid or prevent that ?

  5. HI I READ THIS USEFUL ARTILE. I HAVE AQUESTION .IF I DO AMAZON WHOLESALE FBM.I SEE A PRODUCT ON AMAZON 89$. THE SAME BRAND IS SELLING IT AT 33$ ON ALIEXPRESS. IF I GET AN ORDER.I WILL ORDER ON ALIEXPRESS.I WILL HAVE TO HOLD NO INVENTORY.PLEASE GUIDE CAN THIS MODEL WORKS

    1. Hi,

      You will need to be 100% sure that the item you are reselling is authentic. If you see a brand name product on Aliexpress, most likely it is counterfeit.

      What you are describing is dropshipping.

  6. Hi. Can you suggest what’s you prefer when it comes to Wholesale or Private label. And from you experience which more profitable for the long term.

    1. Hi Nasser,

      Both have pros and cons, it just depends on what your business goals are.

      Both models can be profitable long term. Personally, I prefer the wholesale model as you selling products that are already on the marketplace vs. launching a brand new product.

      Private label will typically have a higher profit margin as well.

      Hope this helps!

      Brian

  7. hi, i found the article very helpful, i have one concern and that is i have found most of the manufacturers and wholesalers reluctant to sell their brands on Amazon, i wonder how can i negotiate with them and should i tell them i am selling your brand on amazon?

    1. Hi Aamir,

      Thanks for the question! You should always be upfront with brands about selling their products on Amazon.

      If they’re reluctant to allow you to sell on Amazon, show them how you can provide value to the brand vs. just reselling. Say you can help optimize their listings, increase sales, run PPC campaigns. etc..

      I hope this helps!

      -Brian

  8. Do you know any companies that will do all the of fulfilment and everything wholesale on Amazon that have success selling products? I’m looking to sell big name brand products.

  9. I manufacture a branded retail product sold all over the world to the art/craft/hobby business. I have stayed away from selling around my customers as I don’t want to bite the hand the feeds me. However, things are changing and I was curious as to what you thought of me setting up a wholesale business on Amazon allowing folks to purchase my products but with a higher than one or two minimum. Or, at least establishing a price/minimum that won’t piss off my distributors. It all sounds a bit risky to me, but things are changing as brick and mortar vanish. Anyway, if you have thoughts, I am all eyes.

  10. THANKS FOR THIS GREAT POST, IT HELPED ALOT
    I HAVE FEW QUESTIONS

    1. WHAT WOULD BE THE RECOMMENDED PRICE RANGE OF PRODUCTS
    2. HOW WOULD WE KNOW THAT ITS THE PL BRAND / INTL RECOGNIZED BRAND ETC. WHEN SEARCHING FOR PRODUCT
    3. SALE ESTIMATE WAS POSSIBLE BCZ JUNGLE SCOUT WAS USED, WHAT IF SOMEONE DON’T HAVE(HE COULDNT BUY)
    4. IS IT OK , IF WE WENT OUT OF INVENTORY , WHAT IMED STEPS WE SHOULD TAKE THEN
    5. HOW MANY PRODUCTS WE CAN DEAL IN FBA WHOLE MODEL, FROM ONE ACCOUNT

    1. Hi Salman,

      Hopefully I can answer some of your questions.

      1. Generally speaking, between 18-25 is a good range because it will help you cover the fees and your costs while still making a healthy product.
      2. I’m not sure what you mean.
      3. We have a free estimator tool that can help. https://www.junglescout.com/estimator/
      4. If you run out of inventory just work to get more back in. Don’t close your listing or anything like that as it could potentially hurt the listing. Amazon understands that sometimes products run out.
      5. Hundreds of thousands. Amazon won’t start charging a high volume listing fee until you reach 100,000 skus.

  11. Hi Greg, I have been doing wholesale for several years now and I actually am selling a product on your marketplace that includes all the work we have done to find wholesale suppliers. That is not just a list of companies and their email address but a very extensive product where we give all kinds of extra data that Amazon sellers can use to find a match with the right wholesaler for them. Right now that is a bestseller on the JungleScout Marketplace with great reviews. Proud to be a part of the JungleScout fan base! Love you guys! https://market.junglescout.com/en/listings/531668

  12. Looking to becoming a seller. The information you provided was very insightful, and put me at ease with my decision to start .

  13. Good day, I just want to know how can I start an Amazon FBA business from South Africa ?

    I have a business that is registered in South Africa

    Kind regards

  14. Good day, I just want to know how can I start an Amazon FBA business from South Africa ? I have a business that is registered in South Africa.
    Any advice will be helpful.
    Kind regards

  15. I am interested in both the private label route of selling and wholesale.
    Do you have any tips on who I can get in touch with to get help.
    The Wholesale Formula classes are closed.
    Also, not sure who to contact that is doing the private label approach. I did look up some podcasts from Chris Guthrie but they were not recent.

  16. hi,

    we have created amazon seller account few years back and we were going very good and getting some small profit, we were buying online and then were selling to amazon from Pakistan, we accidentally lost our debit card and when we updated the debit card amazon didn’t accept it by saying we need credit card for verification or usa bank account,
    its been 2 years now we are facing this issue please help us if you have any material so that we can start selling again,please

  17. Hello

    I got my idea but l want the name of the manufacturer to buy what want not to be a third part buying and selling please help.

    27

  18. hello

    I am an Egyptian artist make very beautiful handmade craft such as leather small bags can be used in several fields and many other small product I want to sell them to Amazon in large quantaty
    what i have to do definitly

    thank you

  19. The wholesale selling is a potential concept in business. The success and viability of wholesale selling on Amazon are highly predicted. Selecting the products that aren’t already on Amazon platform for selling on Amazon as an exclusive seller can be a profitable deal. Before implementing any idea into a business, calculate the estimated cost of products purchase, its selling cost, profit margin, and ROI and then only finalize the decision. Always keep the good relations with the manufacturers and brand owners from whom you are purchasing your inventory so that you can always fulfill your customer’s orders. Though starting from the research of products and manufacturers to managing the wholesale business on Amazon require some efforts yet it would turn into ripen fruits. Don’t miss out any reason for selling on Amazon.

  20. I have, just a little more involved to do PL. Wholesale seemed like an easier route. I’ve watched your million dollar case study, really great stuff!! I may end up going that route.

    1. Phil,

      It’s always best to do what you’re most comfortable with! And we know plenty of sellers who’ve made quite a bit doing wholesale. Having said that, it is far more competitive than private label since it is, in fact, less involved. And less involved = lower barriers of entry. Lower barriers of entry = more competitors, including big Papa Amazon.

      I myself started off in wholesaling. I bought used books and flipped them. It’s a little different than some varieties of wholesaling, but the process was the same. The toughest part of wholesaling is “race to the bottom”… when the only way you have to distinguish yourself is price. Plus, lower prices tend to win the buy box–unless, of course, Amazon’s competing, too. Amazon always wins the buy box! And they don’t mind losing money to be the lowest.

      These days all I do is private label. Sure, it’s more involved, but I control my prices, my products, and ultimately the fate of my business. If you’re interested in learning more about it, please feel free to reach out here in the comments or to our support team. Plus, we’re doing the Genius Series which goes through the entire process of private label (and it’s free). Here’s the link: https://www.junglescout.com/amazon-seller-genius/

      Hope that’s helpful! 🙂

  21. In the video Dan mentions not to wholesale products where Amazon is a seller. I spent considerable time researching products in many different categories and especially the pet supply niche. Every single viable product I found had Amazon as a seller. Upon calling some of the manufactures, I was told not to bother trying to compete with Amazon because of the volume discount they get. It seems Amazon finds the well performing products and can undercut everyone. I literally was not able to find a single product to sell. I am really interested in selling on Amazon but it seems it has become way to competitive.

  22. I was contacted by a Manufacturer about listing their products on Amazon for them. They have a website and FB page but nothing on Amazon.

    What suggestions would you have for this type situation as far as how to proceed, what questions to ask, how to style a contractual agreement, etc?

    1. Hey Larry,

      Did they contact you via Amazon or by email? With the Amazon-based solicitations, I usually ignore them or mark as no reply needed. In my experience, those companies are just starting out and don’t have trade assurance, references, etc.–the stuff that makes me trust them on Alibaba. Additionally, they may just be a supplier and not actually manufacture the goods themselves.

      If you do try to work with them, make sure you do so through safe channels such as Alibaba Trade Assurance or, at the very least, PayPal. And always be sure to get plenty of samples to inspect the quality of what they’re trying to sell you.

      In the next couple weeks, Kym, Lenny, Becky, Greg, and I will discuss import and sourcing methods in the Genius Series, and that’ll shed even more light on this topic.

      But please feel free to ask plenty of questions here in the comments so we can help!

  23. Hello Kym, thanks for the article and all your responses! very helpful stuff!

    I find this wholesale model very interesting, however, I have a concern. Let’s take the same example given in the article. Assuming you can negotiate a 30% margin with the manufacturer, you would buy each unit of Vitamin C at $20,965 ($29,95 – 30%). But, if you sell each unit at $29,95, Amazon will charge an FBA fee of $ 7,49/unit, leaving you $ 1,495/unit. This represents roughly a %5 margin. If we take the 484 estimated sales per month, this represents $723 profit/month.

    In addition, we didn’t include any other transportation and/or warehousing and/or prep center fees. How is this model profitable? Am I missing something? are FBA fees calculated differently for wholesales products?

    Thanks,

  24. As a newbie, what’s your best advice for finding products? I’m using JS but seems that many of the products I find are already sold by Amazon or the brand itself. Any more tips would be greatly appreciated. At this point, I’m looking for one product and it’s like a needle in a haystack.

  25. I enjoyed this article. It’s given me a lot of good information. I viewed a recent wholesale site where they charge close to $2000 to teach the same methods you provided here. This articles makes more economic sense. I’d like more information about private labels and where do you begin your search?

    1. Hey Jessie, glad that you found it helpful. The best place to learn would be our content, of course! 😉 The Million Dollar Case Study is probably the most comprehensive content, so a good place to start is there!

      Gen

  26. Hello Kym!

    Thank you for your great feedback! I am just starting and narrowing down my research on a product. Question though, I get private labeling and Wholesale, but let’s say I was going to sell in baby, for example, if my product was a baby bottle. Lets say my company was going to be “Baby Bottle” If babybottle.com is taken, it doesn’t mean there is an actual company and I could still use the private label “Baby bottle” for example… or it may make more sense to go wholesale, but i really want to do private label, just dont want to infringe on anyone else’s product. Where do i begin to see if my private label is an actual company and not just a URL?

    Thank You!

    1. Hey Chuck,

      If you have already set your heart on becoming a private label seller, and you have found a product that you don’t think would be viable as a private label item, then it’s probably best to move on with your research and find other products. Rather than to consider if you should sell that same product as a Wholesaler. The criteria for a wholesale product and a private label product are quite different. This post covers wholesale, but for more detailed information about finding private label products, make sure you check out our Million Dollar Case Study.

      Usually, Amazon sellers will adopt either a Private Label business model or a Wholesale model. I would be super interested to hear from any sellers who mix the two!? 🙂

      Thanks for reading & make sure you check out the Million Dollar Case Study!
      Kym

  27. Hi Kym, Great stuff here. I have a question as to how this differs from selling an already Merchant fulfilled product using the FBA model? Thanks for the insight!

    1. Hey Philip,

      Thanks for reading! I think what you mean is the same as the Wholesale method. If you are selling a branded product which you are buying from the manufacturer as a reseller, and selling using the FBA model, then this is considered Wholesale.

      Kym

      1. Hey Kim will you send me an email please? I would like to ask about potentially starting my wholesale business.

  28. I really want to try this and get involved. It is frustrating though because Dan’s class is closed and I need to find some more info before I jump in.

    If anyone as anymore steps on how to do this…much appreciated!

  29. Sorry I am confused.
    In this article, If i am not mistaken, LivOn vit C manufacture is LivOn Laboratories?
    If it is, then out of those 7 sellers, LivOn Laboratories is one of those sellers.
    1) So the manufacture allow other sellers (911 Health Stop, Health Media….) sell their stuffs, why would theydo that? Why wouldn’t they be exclusive seller for their own products that they spend so much money creating it?
    2) When you search LivOn Vitamin C, LivOn Laboratories Lypo-Spheric has the main BUY BOX. So how can other 7 seller make money if all customer do is to buy from LivOn Laboratories Lypo-Spheric? I don’t get this concept.
    a) 3,388 and divide this by 7. The scores on the doors? 484 estimated sales per month. isn’t 3,388 sales all belong to LivOn Laboratories?

    1. Hey Quan,

      Correct LivOn are the manufacturer. But there are several other sellers selling their products as approved wholesalers. The buy box will cycle through these sellers. If you check the listing a few times, you will see that the “sold by” will cycle through different sellers: https://cl.ly/jqTa

      Many consumers may not even notice they are not buying the item directly from the manufacturer, and some consumers just assume they are buying direct from Amazon anyway.

      Why would LivOn do that? Increased sales and exposure for their brand most likely. All brands will take a different stance on this, but the key thing to remember is that they are generally big businesses with lots of other priorities. They will want a presence on Amazon, but by enabling other brands in their niche to sell their product too, they benefit from increased sales and visibility. Think of how big brands distribute their products across several physical stores!

      A wholesale business can negotiate a good agreement with a brand manufacturer by offering added guidance and advise on improving the product listing, to increase sales velocity for them, and all approved sellers competing for the buy box.

      Hope that helps explain better.

      Thanks for reading!

    1. Hey,

      Good question. One of the key benefits of wholesale that Dan mentioned in the Webinar is that you don’t have to spend so much time creating and optimizing listings (compared to being a private labeler). This is because you are selling well-known brands and competing for the buy box on existing listings.

      However, he did also mention in that one thing you can do when negotiating with manufacturers is offer added value to their brand, as someone who knows how Amazon works. For example, better product photography, product reviews or listing optimization.

      Oftentimes, you can still edit a listing even though you were not the one who created it! So as a reseller, you might be able to improve the listing, which would increase sales for that product. Obviously, if you are super competitive on the buy box it will increase your sales too!

      Thanks for reading,
      Kym

  30. Hi Greg and gang, I accidentally became a wholesaler about a year ago. I didn’t know what I was doing. I didn’t even know what a “buy box” was, lol. I made roughly a 20% profit in one month of selling about $700 worth of various branded, wholesale products (I bought minimum cases from the manufacturers). I was using FBA for my own website eStore, and happened to click the “sell on Amazon, too” features in Seller Central. Not one sale on my own website, lol. But, sold out quickly on Amazon! So, I do think this is a viable method. Imagine what someone could do with the knowledge you provided here! I’ve learned a LOT since then, thanks to you! I’m a different man now. One thing to note is feedback. Not sure how reviews are done, or if that even matters to a wholesaler. We got a few seller reviews, not product reviews (people loved us, because they got that fast, Prime delivery!). A seller review is probably more important for this model. Thanks for such a knowledgeable post, and for being so generous with all you’ve learned!

    1. Hi Raj – what an amazing comment, glad to hear of your success and glad that we could help you along the way.

      Really interesting point about feedback and reviews when it comes to Wholesale. I am intrigued… do you actively put efforts in to try and get seller feedback as a Wholesale Seller?

      Would you say it depends on how well established the brand/product is when it comes to product reviews being effective as a Wholesaler?

      Thanks for reading and sharing your successes and insights!

      Kym

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