Amazon wholesale is buying existing branded products (Nike, Lego, Vitamix, OXO) from authorized distributors at wholesale prices and reselling them on Amazon at retail. Unlike private label (creating your own products), wholesale has built-in demand โ you’re selling products people already search for and buy.
The Model Explained
Find an in-demand product on Amazon with healthy sales volume (3,000+ units/month). Contact the brand’s authorized distributor or directly the brand for wholesale pricing (typically 40โ60% below retail). Calculate if the margin works after Amazon fees (typically 15% referral fee + $3โ$5 FBA fee per unit). Order inventory, send to Amazon FBA warehouse. Amazon handles storage, fulfillment, and returns.
Finding Wholesale Products
Use Keepa or Jungle Scout to find products with stable sales history and buy box competition. Avoid: products dominated by the brand itself (they always win the buy box). Target: products sold by multiple sellers where no single seller dominates. Contact: brands’ wholesale/distribution departments directly, or find distributors on Wholesalecentral.com, Faire.com, or trade shows.
Required Capital
Minimum practical wholesale order: $500โ$2,000 per product. Starting portfolio: 3โ5 products across different categories = $3,000โ$8,000 initial investment. Return timeline: 3โ6 months to positive cash flow as inventory turns. Target: 25โ35% ROI per inventory cycle (sell in 60 days, repurchase, repeat).
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