6 Step to Start Amazon FBA Wholesaling in 2023

By Cecilia

January 11, 2023

What is Amazon Wholesale FBA?

Amazon Wholesale is a program offered by Amazon that allows businesses and individuals to purchase products in bulk from manufacturers or distributors and then selling them to customers on the Amazon Marketplace for a profit. Amazon Wholesale offers a wide range of products, including books, electronics, household items, and more. To be eligible to participate in the program, businesses must apply to be a vendor and be approved by Amazon.

What is the difference between Amazon Wholesale and Private Label Selling?

Amazon Wholesale and Private Label Selling are both ways for businesses and individuals to sell products on Amazon, but they differ in how the products are obtained.

Amazon Wholesale is when businesses purchase products in bulk from Amazon at a discounted price and resell those products to customers. The business does not have to worry about creating or manufacturing the products themselves, but they need to source their products from Amazon.

Private Label Selling, on the other hand, is when a business creates their own brand and products and then sells them on Amazon. The business is responsible for the entire production process, from sourcing materials to manufacturing and packaging the final product.

Benefits of Amazon FBA Wholesaling:

FBA (Fulfillment by Amazon) takes care of storage, packing, shipping and returns for you.
FBA increases trust and customer confidence, as well as improves visibility on the marketplace.
As a FBA Wholesaler, you have access to more features on Amazon such as “Subscribe and Save,” “Prime” and “Amazon Coupons”.
FBA also allows you to use Amazon’s logistical network, which can help you save on shipping costs.

How can I become a wholesale seller on Amazon?

A basic Amazon seller account will do, but since you are not selling a branded product that you own, so the next thing that you will need is a sales tax ID so that you can have a resale certificate to provide to suppliers you will end up working with.

How much to start wholesale on Amazon?

The cost to start selling wholesale on Amazon will vary depending on the products you’re selling and the volume in which you’re selling them. However, there are a few costs you should be aware of when starting a wholesale business on Amazon:

Amazon selling fees: Amazon charges a fee for each item sold on their platform. The fee is based on the product category and varies from 8% to 15% of the sale price.
Fulfillment by Amazon (FBA) fees: If you choose to use FBA to fulfill your orders, you will be charged additional fees for storage, packing, and shipping. These fees are based on the size and weight of the products, and they can vary widely.
Inventory costs: You will need to purchase your products in bulk from Amazon at a discounted price. The cost of your inventory will depend on the products you’re selling and the volume in which you’re selling them.
Other costs: You may also incur costs for things like packaging, labeling, and shipping if you’re not using FBA to fulfill your orders.

It’s also worth noting that, you will also need to have an initial inventory and consider other costs like those of sourcing, packaging, and branding.

As for becoming a seller, the process can take anywhere from a few days to a few weeks, depending on how quickly you can provide all the necessary information and documentation to Amazon, and get your application reviewed and approved.

4 ways to find products to sell through Amazon wholesale

Look for wholesale suppliers: You can search for wholesale suppliers online by using directories like SaleHoo or Alibaba. You can also attend trade shows to find new suppliers.

Identify in-demand products: Look for products that are currently in demand on Amazon. You can use tools like Jungle Scout to find popular products that you can resell at a markup.

Check for clearance sales: You can also find wholesale deals by looking for clearance sales at retail stores. Retailers often sell excess inventory to wholesalers at a discounted price.

Utilize Retail Arbitrage: it is buying a product at a low price and reselling it on Amazon at a higher price. Many retail stores, such as Walmart and Target, offer discounts on clearance items, which can be resold on Amazon for a profit.

It’s important to remember that you should do your due diligence and research your suppliers and products before making a purchase. This will help you ensure that you’re getting a good deal and that the products you’re purchasing are of good quality.

Send The Product To Amazon Fulfillment Center

Shipping from China to Amazon’s FBA (Fulfillment by Amazon) prep centers can be a cost-effective and efficient way for businesses to fulfill their orders on the Amazon Marketplace. However, it’s important to carefully plan and prepare your shipments to ensure that they arrive at their destination safely and on time. Here are some key points to consider when shipping from China to Amazon FBA prep centers.

Choose the right transportation method
Use a reputable logistics provider
Consider insurance

What else do I need to know once I get started?

Once you’ve found products to sell through Amazon wholesale, there are a few things you’ll need to keep in mind:

Understand Amazon’s policies: Make sure you understand and comply with Amazon’s policies for sellers, including its product and listing policies, as well as its terms of service.

Optimize your listings: To increase your chances of making sales, it’s important to optimize your product listings with keywords, accurate and detailed descriptions and high-quality images.

Fulfillment: You have to decide how you want to handle shipping and handling. Amazon offers a fulfillment service called Fulfillment by Amazon (FBA) that can help you with this. However, you can also use your own shipping method, which is known as Fulfillment by Merchant (FBM).

Manage your inventory: Make sure to track your inventory levels and reorder products as needed to avoid stockouts. Keep in mind that Amazon charges storage fees for products stored in their warehouses.

Monitor your account: Regularly monitor your account to see how your products are selling and if you have any negative feedback from customers, it is important to address that as soon as possible.

Be ready for competition: Be aware that as you sell on Amazon, you will have competition, and you will have to work on price, quality, shipping and customer service to keep your sales up.

By keeping these things in mind, you’ll be well on your way to success as an Amazon wholesale seller.

Sharing is caring!