Amazon wholesale is one of the fastest-growing models in e-commerce, allowing sellers to partner with established brands and leverage their existing success.
Unlike private label, where you’re building a brand from scratch, Amazon wholesale skips product creation and focuses on selling already established products.
The goal is to secure brand approvals and sell trusted products on Amazon, offering a faster route to profitability. Here’s an up-to-date guide on how to get started.
Step 1: Understand the Amazon Wholesale Model
In Amazon wholesale, your focus is on brand approvals rather than extensive product research. You’re partnering with existing, recognized brands and reselling their products on Amazon.
This makes it less risky compared to models like private label, where you have to invest in product creation, marketing, and demand-building.
Key Benefits:
No need for product development or untested market research.
Sell products that are already in demand.
Scale faster by focusing on logistics and brand relationships.
Step 2: Setting Up a Professional Amazon Seller Account
To sell wholesale, you need a Professional Seller Account on Amazon.
This account costs $39.99 per month and unlocks important features like access to bulk listing tools & winning the Buy Box
Here’s how to set it up:
Register through Amazon Seller Central.
Complete the required information: business details, tax ID, bank account information, and proof of identity.
Choose Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) based on your logistics strategy (more on this in Step 6).
Tip: FBA is generally preferred for wholesale sellers as it offers better access to the Buy Box and Amazon Prime customers.
Step 3: Finding and Securing Brand Approvals
Instead of researching products, your focus in Amazon wholesale is on securing brand approvals.
This means becoming an authorized seller for established brands that already have demand on Amazon.
Steps to Secure Brand Approvals:
Research potential brands: Look for brands with strong Amazon presence but limited competition from other sellers.
Trade Shows and Supplier Directories: Attend trade shows (e.g., ASD Market Week, Global Sources), and use directories like Wholesale Central and SaleHoo to find reputable suppliers.
Reach out to manufacturers: Directly contact manufacturers and build relationships to become an authorized reseller.
Offer value to brands: Show that you can represent their products well, offer competitive pricing, and maintain stock levels.
Securing brand approvals means you don’t need to worry about whether products will sell. You’re taking proven products from reputable companies and listing them on Amazon.
Step 4: Sourcing Products and Negotiating with Suppliers
Once you have brand approvals, you need to source products at competitive prices.
Wholesale works on volume, so negotiating with suppliers for the best price and terms is critical.
Things to consider:
MOQ (Minimum Order Quantities): Ensure the supplier’s minimum order quantities fit within your budget.
Wholesale pricing: Ensure that after Amazon’s fees and shipping, you can still make a healthy profit.
Stock levels: Always maintain enough stock to avoid running out and losing Buy Box eligibility.
Ask for long-term contracts or bulk discounts if you plan on scaling quickly.
Step 5: Product Research and Amazon Analysis
While you won’t be developing products, you still need to analyze the potential profitability of each item before listing it.
Use tools like Jungle Scout, Helium 10, or AMZScout to conduct product research.
Key Metrics to Review:
Sales volume: Is the product selling consistently on Amazon?
Competition: How many other sellers are offering the same product? Are they using FBA or FBM?
Buy Box Potential: Can you win the Buy Box by being competitive on price, stock availability, and fulfillment method?
Profit Margins: Ensure that after Amazon fees and logistics costs, there’s enough room for profit.
Pro Tip: Focus on products with stable demand, low seasonality, and margins of 15% or higher after all fees.
Step 6: Choose Fulfillment Method (FBA vs. FBM)
One of the biggest decisions you’ll make is choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
FBA: Amazon handles your storage, packing, shipping, and customer service.
It offers higher visibility, easier Buy Box wins, and Prime eligibility.
Most wholesale sellers prefer FBA because it’s easier to scale without managing logistics.
FBM: You handle the entire fulfillment process, including storage and shipping.
While you may save on Amazon’s FBA fees, it’s harder to scale, and you might struggle to compete with FBA sellers for the Buy Box.
Why FBA is Preferred for Wholesale:
Amazon’s logistics infrastructure is hard to beat.
Prime customers are more likely to purchase products fulfilled by Amazon.
Easier to win the Buy Box.
Step 7: Winning the Buy Box
Winning the Buy Box is crucial to success in Amazon wholesale, as most sales happen through this feature.
Here are the key factors that Amazon’s algorithm considers:
Competitive pricing: Your product price must be competitive without undercutting too much.
Inventory levels: Make sure you always have enough stock to meet demand.
Fulfillment method: FBA sellers typically have an advantage over FBM sellers in winning the Buy Box.
Customer feedback: Maintain high seller ratings and low order defect rates.
Pro Tip: Use Amazon’s Automated Pricing Tool to keep your prices competitive without constantly monitoring them.
Step 8: Managing Finances and Reinvesting for Growth
Amazon wholesale requires significant upfront investment in inventory, so managing your cash flow is crucial.
Keep an eye on your profit margins, reorder levels, and supplier payments to ensure smooth operations.
Financial Tools: Use accounting software like QuickBooks, Xero, or A2X for Amazon to track your revenue and expenses accurately.
Pro Tip: Reinvest profits into more inventory or additional brand approvals to keep scaling. The faster you can restock and grow your catalog, the quicker your business will grow.
Step 9: Expanding Your Product Line
Once you’ve established a successful wholesale business with a few products, it’s time to scale.
You can expand by:
Securing more brand approvals.
Adding complementary products that match your current offerings.
Expanding into new categories or niches to diversify your portfolio.
Key to Scaling: Focus on high-demand, low-competition products and keep building strong supplier relationships.
As you grow, negotiating better terms with suppliers can lead to higher profit margins
Generating Millions in 
