Amazon Wholesale

Guide to bulk and wholesale buying

Bulk and wholesale supplies, all in one place at Amazon Business, to help you save money and time for your business.

The process for getting products to consumers can often involve multiple sources and a sometimes-complex web of touchpoints known as a supply chain. Manufacturers, wholesalers, distributors, and retailers play important roles in this process. Like other businesses involved in supply chains, end goal is to move product from one point to another.

A common question we get is, “What is the difference between wholesale and bulk?” They are actually quite different but tend to be confused. Let’s dive in and review the differences.

What is wholesale?

Let’s consider an example:

A retailer orders 1,000 widgets and the manufacturer charges $15 per widget. A wholesaler orders 100,000 widgets and the manufacturer charges $5 per widget. The Wholesaler then sells the retailer 1,000 widgets for $10 per widget.

In the end the manufacturer, wholesaler, and retailer make a profit on each phase of the supply chain.

What is bulk buying?

Bulk buying refers to the purchase of multiple quantities of product in exchange for a lower price per unit. Retailers or consumers based on their need can make this type of purchase. Amazon, Amazon Business, and big-box stores are examples of where you can buy in bulk.

Benefits of buying from a wholesaler or in bulk

There are multiple benefits for you to consider when purchasing larger quantities:

• Buying Efficiencies: When businesses find wholesaler(s) that provide reliable inventory and sharp pricing, they cuts out the need to interact with manufacturers who typically have no available inventory on hand and often have long lead times for production.
• Cheaper Pricing: Because wholesalers are buying large quantities at discounted rates, they are able to pass savings to retailers. In the example above, the retailer is saving $5 per unit by buying from a wholesaler versus going direct to the manufacturer with their small quantity order.
• Smaller Orders: Retailers are able to purchase smaller quantities from wholesalers allowing them to effectively meet demand, manage inventory levels, and reduce storage costs.

Guide to buying in bulk with Amazon Business

Buying in bulk is easy with the tools Amazon Business customers have access to and the thousands of supplies available for purchase in bulk quantities. Here’s how bulk buying works.

• Quantity Discounts: Save even more when you buy multiple units at once. We make it easy for our selling partners to list up to five pricing tiers for their products. For even larger quantities, customers can request pricing from all selling partners who offer a specific product. Paper towels
• Recurring Delivery: This tool offers you the convenience of automatic deliveries in addition to competitive pricing and free standard shipping. There are no commitments, obligations, or fees, and you can cancel a recurring delivery at any time. Food service prep containers

Buy in bulk for resale

Are you looking to buy in bulk for the purposes of reselling? If so, we can help. Every week we work with over 2,500 resellers across brick and mortar and authorized resellers.

The needs of these resellers are similar to that of end users; broad selection, competitive pricing, and fast delivery. The typical process for resellers today involves repeating cycles of ordering supplies from distributors when the reseller is low or out of stock. Often times this process and the subsequent delivery of supplies can take a week or more.

With Amazon Business, resellers can streamline their process by simplifying the buying procedure and consolidating supplies and gaining access to the tools we’ve described above, like Quantity Discounts and Reoccurring Delivery. These features help resellers save time and money.

Start saving by buying in bulk for your business. Sign up today with Amazon Business.

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Starting & Scaling an Amazon Wholesale Business (Complete Guide)

Amazon wholesale business is a great way to make money online. It lets you sell popular brand-name products on Amazon. This business model is easy to grow and can be quite profitable.

The best part about selling wholesale on Amazon is that you don’t need to do much marketing. People already know and like the brands you’re selling. This saves you time and money.

In this guide, you’ll learn everything you need to start an Amazon wholesale business.

P.S.: We also have a tip to help your business grow. You can sign up for a Getida audit to maximize reimbursements from Amazon that you might have missed. You can use this extra cash to reinvest in and grow your Amazon FBA business.

Table of Contents

What is Amazon Wholesale?

Wondering what Amazon wholesale is ? It’s a business model where you purchase branded products in bulk from manufacturers or distributors at discounted prices and then resell them on Amazon for a profit.

It’s different from other models like private label or retail arbitrage because you’re dealing with established companies and larger inventory quantities.

Here’s a simple breakdown of how it works:

1. Find popular branded products
2. Buy them in bulk at wholesale prices
3. List and sell them on Amazon
4. Make a profit from the price difference

It’s a straightforward concept, but success lies in the execution.

Amazon Private Label vs. Wholesale

To gain a better understanding of the unique characteristics of Amazon’s private label and wholesaling, let’s compare the two models:

Private Label :

• Create and sell your own branded, unique products
• Complete control over product design, packaging, pricing
• You need to create your product listings
• Higher effort for development and promotion
• Lower initial competition

• Source and sell established company-name products
• Leverage existing consumer demand
• You don’t need to create new product listings
• Quicker to launch with lower upfront risks
• Must compete with other resellers

When considering Amazon private label vs wholesale , weigh the pros and cons of each approach.

Wholesaling lets you get started faster by piggybacking on popular companies people already buy. However, private labels offer more control and exclusivity.

Benefits of Wholesale Selling on Amazon

Compared to other models, wholesale selling on Amazon has some significant advantages:

• Minimal Upfront Risks : You sell established products that are already popular rather than betting on unproven products. This provides a more dependable income stream.
• High Sales Volumes : You can generate significant order volumes by consistently stocking best-selling products in demand. This can also maximize the discount rates suppliers provide.
• Steady Cash Flow : Reliable access to inventory from reputable suppliers combined with surging organic demand can result in predictable and stable monthly revenue.
• Scalability Potential : It’s easier to scale your business by adding new products or increasing the inventory of best-sellers.
• Generous Profit Margins : Wholesalers typically earn 20-50% profit margins. With scale, margins can be higher from bulk order discounts and lower logistical retail value per unit.

Success in this model requires careful product selection, efficient operations, and smart pricing strategies.

Amazon Wholesale Account Requirements

Before buying bulk goods to sell on Amazon, you must ensure your business is legit. Amazon and the suppliers will look for things like:

• Business Registration : You’ll need to set up your business legally. This can be a registered business entity or a sole proprietorship in your state. When you’re filling out forms from brands or distributors, they’ll ask for this information.
• Resale Certificate : This document lets you buy products without paying sales tax. Most companies will not do business with you without this certificate.
• EIN (Employer Identification Number) : Consider this your business’s social security number. It’s also called a Federal Tax Identification Number. You can get it for free from the IRS website .

You should also have a professional email address. Reaching out from an email tied to your business name rather than a casual Gmail address leaves a good impression. [email protected] tells them you operate professionally!

How to Sell Wholesale on Amazon

Follow this step-by-step process to launch your wholesale business on Amazon:

Step 1: Find Profitable Wholesale Products

To do that, first of all, avoid products sold by Amazon or private-label sellers:

• Amazon can afford to price products lower, making competing difficult
• Private-label products usually have only one seller

Focus on established companies, preferably small—to medium-sized ones. Leveraging the success of existing companies is a significant part of wholesaling.

Another thing to take care of in this step is using Amazon minimum advertised pricing (MAP):

• MAP is the lowest price at which you can sell a product
• These products often have prices ending in .99 or .95
• MAP pricing helps prevent price wars among sellers

Note: Not all products are always priced at MAP

Step 2: Identify the Right Suppliers

Once you have some product ideas, it’s time to find wholesale suppliers. This process differs from sourcing private label products. Instead of looking for overseas manufacturers, you’ll want to contact owners directly.

There are several benefits to this approach:

• You don’t have to deal with shipping from China to Amazon FBA , which means faster inventory receipt and no worries about customs clearance or overseas shipments.
• Communication is more accessible as you’ll work with suppliers in similar time zones and business hours.

To find the right supplier for a product, simply Google the company name.

Step 3: Reach Out and Negotiate with Companies

Once you’ve found their website, look for a “wholesale” or “dealer” tab. If you can’t find one, use their general contact form or email address.

Here’s a template you can use to initiate contact:

I am interested in opening a wholesale account with [brand name]. Please let me know what information you require from me, and I will get it back to you as soon as possible.

When you receive a reply, focus on demonstrating how you can add value to their company and products.

Here are some ways you can do this:

• Identify areas for improvement (e.g., poor product images, weak SEO)
• Show how you can grow their business on Amazon
• Offer to help with Brand Registry and advanced features
• Target companies not actively selling on Amazon
• Aim to become an exclusive seller for higher profits

If a company initially says no, don’t give up. Negotiations can take time. Continue to follow up every few weeks. Consider calling and speaking to someone over the phone; this can sometimes be more effective than email communication.

Step 4: Calculate Potential Profits

Once you’ve secured a wholesale account and received a price list, it’s time to evaluate the products’ profitability.

Here’s how to do it:

• Use one of the Amazon FBA fee calculators to understand fees.
• Determine profitability with Amazon’s Revenue Calculator .
  • Look for products with at least 15-20% net margin.
  • You can use Jungle Scout’s free Sales Estimator to preview Amazon estimated sales .
  • Divide total sales by number of sellers plus one.
  • Example: 3,000 monthly sales / (9 current sellers + you) = 300 sales/month
  • Keep 2-3 months of inventory to avoid high storage fees.
  • Example: For 300 sales/month, stock 600-900 units

  Step 5: Create Amazon Listings

  Once you’ve determined a product’s profitability, it’s time to create your Amazon listing. Develop compelling product titles, detailed descriptions, and high-quality images.

  For best results, follow these Amazon listing best practices to ensure your listings are optimized for Amazon’s search algorithm and improve visibility.

  Step 6: Ship Inventory to Amazon

  The final step is to prepare your products according to Amazon’s FBA requirements and ship your inventory to Amazon’s fulfillment centers.

  Follow Amazon’s guidelines carefully to avoid any issues or additional fees.

  Source: https://getida.com/resources/blog/amazon-features/what-is-amazon-wholesale/