Wholesale Amazon is considered to be one of the most popular and productive business models on Amazon. That’s because it allows an online seller to build a profitable business, and make good money. There are tons of videos on how people became successful overnight on Amazon, but in reality, there is a lot more to setting up a wholesale business on Amazon than those Youtube videos show.
Let’s try to understand the concept of wholesale business first:
This process is pretty simple: You buy products in bulk at lower prices, and resell them on Amazon at higher prices. Here is another option: when you don’t have to buy products from wholesaler suppliers, and can become a wholesaler who sells his or her own products on Amazon. All you need to do is to choose the right niche of products, and think through the approach.
Let’s dive deep, and try to figure out the entire process of wholesale on Amazon 2021 from scratch. Our tips would be five-fold:
- First of all, you should open up a seller account on Amazon
- Second, you have to research the market and try to understand which wholesale products are high-demanded among Amazon sellers
- Then, you should add your product listings
- Work on your products’ promotion
- And lastly, you should pay particular attention to your inventory management
Of course, if you are an experienced Amazon seller, you are familiar with the above-mentioned points. However, “Repetition is the Mother of Learning”, and if you really want to succeed in your wholesale business, then you have to keep these rules in mind and go ahead!
But what if you are a beginner on Amazon and are not completely sure whether this business model is going to fly or not? Therefore, let’s try to understand the main advantages and disadvantages of wholesale on Amazon.
The Advantages of Wholesale on Amazon
We have already mentioned that wholesale on Amazon is worth the risks, since it is a perfect way to become an owner of profitable business in the speediest way. Among the main advantages of wholesale on Amazon are:
Quick Start up: If you are doing everything in accordance with all Amazon requirements, then you can launch your wholesale business on Amazon within five-six weeks. Keep in mind that the most time-intensive process is when you should contact your suppliers and ask them to cooperate with you.
Selling Branded Products: Let’s be honest, you have probably heard many times that you should stay miles away from selling branded products. However, wholesale business model provides you with a unique opportunity to sell products of established brands through this platform.
About Scalability: Another advantage of wholesale on Amazon is that you do not have to create brands or listings, since these processes have already been done by the brands. Thus, you can devote all your time to researching reliable suppliers, offering high-quality products, and building your business
Wholesalers Can Establish a Passive Income Stream: One of the best advantages of wholesale on Amazon is that by working with reliable suppliers, you do not face issues connected with out-of-stock items. That’s because you can always reorder products from your supplier when needed.
Disadvantages of Wholesale on Amazon
Merciless Competition: One of the main disadvantages of wholesale on Amazon is that the seller faces a strong stream of competition. All you need to do is to find common ground with your competitors, since there are no winners and no losers in this field.
Investment: Another disadvantage of Wholesale on Amazon is that you need a considerable amount of money for launching your business. Thus, ordering products from the manufacturer requires an up-front payment from you.
Choosing the Wrong Product for Selling May Become a Vital Mistake: Of course, product research is a very time consuming and sophisticated process which requires a lot of effort from your part, since if you go wrong with chosen product, you risk facing lots of issues in your wholesale business. Therefore, it is better to trust this process to professionals, who are like a fish to water in this sphere. In this way, you can be sure that you are offering the right products to right people.
About Restrictions: By selling wholesale on Amazon, you can face issues like restrictions, especially if you are sourcing your goods from closeout companies, or unauthorized distributors. Therefore, we strictly recommend that you work solely with the brands or their authorized distributors.
We have told you about the main advantages and disadvantages of running a wholesale business on Amazon. In accordance with the abovementioned, you can see that the pros definitely outweigh the cons and wholesale on Amazon is worth the risk!
So, if you want to start a wholesale business on Amazon, but are afraid of any possible risks, give us a call and we will help you build a profitable wholesale business within a few days!
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