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The Difference of Wholesale from Standard Selling on Amazon

We are continuing our talk about how to run one of the most popular Amazon business models in 2021. We have already talked about the advantages and disadvantages of running a wholesale on Amazon in our previous blogs. Today, we will try to figure out the main differences of Wholesale from other Amazon business models.

About Private Label Products

Private label is a win-win business model which can help you succeed in your Amazon business. That’s because you do not have to cope with competitors providing the same niche of the product. Another reason is because you can create a unique product which will differ from others, and will belong solely to you. Keep in mind that you cannot mix up this business model with wholesale, since as a wholesaler, you are sourcing existing products rather than producing your own branded ones. Among the advantages of this business model is the fact that you do not have to create your own listings, since you can add products in your existing listings.  However, there are lots of tricky points with this business model, since you risk going wrong with chosen product which can be low-demanded among Amazon sellers.

About Dropshipping

The main idea of the Dropshipping business model is to list your supplier’s products for sale through your Amazon account, and place an order for sales that you have made with your supplier.  The main benefit of this business model is that you do not have to store, pack and fulfil orders; therefore, you do not have to have much money for your start-up. Unfortunately, this model has several disadvantages. For example, you cannot be 100% sure whether your customer is provided with good customer service or not. As a result, your customer service can suffer. And this is bad on Amazon.

About Online Arbitrage

Online Arbitrage is one of the most tempting and at the same time, dangerous Amazon business models. If you are doing online arbitrage, all you need to do is to find discounted branded products from different retailer sites and resell them through your Amazon account at a higher price. The difference in prices will be your revenue from each deal. However, you cannot apply the same strategy when you are doing a Wholesale on Amazon. Look, as a rule, purchases in bulk require more attention on your part. You should be extra careful when it comes to Online Arbitrage, since once you list an inauthentic product, Amazon will immediately detect it and you will have suspension issues in your business.

How to Succeeded in Wholesale Amazon

When you are doing a wholesale on Amazon, there are two main rules that you have to adhere to:

  • Do Your Own Research
  • Find the Right Supplier

Do Your Own Research

If you want to become a professional wholesaler, then you should understand the importance of product research. Try to devote time to understand which kind of products are currently popular on Amazon. Go through your competitors’ pages, compare the prices, read feedbacks. Believe us, it will help you a lot in understanding which products are popular on Amazon. There are several important rules that you have to follow when you are searching products:

  • Try to ensure that the product chosen by you is not sold by Amazon.
  • Avoid seasonal products
  • Avoid trends, since they can lose popularity after a while
  • Don’t choose products that are too expensive

Find the Right Supplier

Once you determined what kind of product you are going to sell on Amazon, you should start working on finding reliable wholesale suppliers from whom you will source your goods. We strictly recommend that you go directly to the brand in order to do everything by the book. That’s because there are lots of unauthorized distributors, cooperating with whom may become a reason of your account’s deactivation.  Generally, wholesaler suppliers do not want to deal with Amazon sellers, since there are lots of wheel and deal sellers who may damage the brands business. Therefore, you should trust this process to professionals from Oceanic Zoo, who will find you the best wholesaler suppliers with whom you can create a trustworthy relationship for years!

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