Amazon Wholesale Seller: Turning Your ‘Whys’ Into ‘Wise’

September 9, 2022
Written by Kevin Wong
Amazon wholesale seller

When starting your journey as an Amazon seller, one of the many things you have to decide upon is whether to create your brand or become a wholesale products seller. You’re responsible for developing your unique products when you create your own brand. But selling wholesale on Amazon is a type of business model where you buy products in bulk and sell them in retail.

Selling wholesale is a profitable business venture, as profit margins are higher than retail businesses. However, it can be risky at the same time. Aside from putting in much bigger capital investment, you should also carefully manage your inventory and keep up with changing trends because your large inventory can quickly become obsolete.

It also demands a significant amount of effort, a huge amount of research, and thorough planning. The responsibilities and risks of becoming an Amazon wholesale seller can be overwhelming. So if you’re wondering if it’s even worth it to become one in the first place, the short answer is yes. Here’s why becoming a wholesale seller on Amazon is a wise decision.

4 Reasons Why You Should Sell Wholesale on Amazon 

At first glance, wholesaling on Amazon can be terrifying. First, you have to invest your time in researching wholesale suppliers and product opportunities. You also have to try your best and luck in reaching out to suppliers to trust you and allow you to sell their products wholesale.

You need to do thorough and endless product research because you’re supposed to look for products with a high potential to make a sale. Why? You’re going to invest a huge sum of money, so you should ensure your inventory won’t get cobwebs from storing it too long because no one’s buying it.

The process doesn’t end in getting your inventory from your supplier. Although Amazon has a massive customer base, you’re still competing with other sellers for your customers’ attention. So ensuring that your products reach their maximum visibility so that your target customers can buy them is important.

But despite these, a lot of people still want to become part of the Amazon wholesaling community. So if you’re wondering why, here are some reasons why selling wholesale on Amazon is wise.

1. You don’t have to develop your own product

It’s the big difference between selling wholesale and being a brand owner on the Amazon marketplace. Selling on Amazon can equate to its massive customer base, but you’re competing with other sellers. It’s coming up with a revolutionary product that will withstand the test of saturated competition.

With the wholesale model, you don’t have to stress yourself out thinking about the right product to sell that is unique, but people will still buy at the same time. With it, you’re not limited to what you can sell. There are a wide variety of products that you can buy from wholesale suppliers in bulk and sell in retail using Amazon FBA.

2. You don’t have to worry about storage  

Selling wholesale on Amazon requires you to purchase products in bulk. So if you don’t have a location to store your inventory, you’ll have a problem. Fortunately, being an Amazon FBA seller allows you to leverage Amazon’s fulfillment centers, wherein you can store all your products and let Amazon pick, pack and ship them to your customers. Plus, Amazon handles customer service and returns for you.

This is a huge leap for sellers who want to sell wholesale but don’t have the storage and human resources to do so. You can take the burden of order fulfillment off your shoulders and focus on other important aspects like building brand awareness.

amazon wholesale seller - Create your product

3. Scaling your business up is easy 

If you’re selling products you manufacture yourself, you’ll need to factor in production time when restocking your inventory. But with wholesale, you can order more from your supplier if a product is in high demand. This versatility enables you to respond promptly to changes in demand and keep your customers happy. As a result, you get to make maximum profit out of your enhanced customer demand sales.

4. It’s a less risky business model 

In wholesale, you’re buying products in bulk, but this business model lets you not pay for resources like materials and workforce in manufacturing your products. But aside from investing too much money, an Amazon store is also at risk of suspension. This suspension can be caused by customers reporting that you sell counterfeit products. Amazon takes serious action on entities selling inauthentic products on the marketplace.

As a wholesale seller, you’re not responsible for creating or manufacturing the products you sell. But, just because you’re not directly involved in creating or manufacturing the products you sell doesn’t mean you should neglect the authenticity of the items you offer. In addition, your reputation as a trustworthy supplier is essential for attracting and retaining customers. So, look for reliable suppliers who are transparent about their operations and have a good track record of providing quality products.

Ultimately, diving away from your doubts about starting your wholesale business on Amazon is a wise decision you’ll make. Because if you’re willing to do the work, selling wholesale on Amazon can be a great way to make money. These are just a few of the many advantages you’ll get if you decide to take the plunge and sell wholesale.

3 Things to Do to Become a Successful Wholesale Seller 

As a wholesale seller on Amazon, you have the opportunity to offer your products to a vast base of potential customers. However, selling on Amazon can be a competitive market, and you’ll need to put in some work to ensure that your products stand out from the crowd. What you can do about it is as follows:

amazon wholesale seller - Success on Amazon

Offer competitive prices

Keep an eye on your competition and make sure your pricing is competitive with what others are providing. You will lose sales if your pricing is too high. If they are too low, you will not make a profit. You should ensure that you provide your customers with the best possible deals. Ultimately, it’s important to strike a balance between offering a competitive price and making a profit.

Provide excellent customer service

You want your customers to have a great experience so they’ll return and recommend your products to others. To make sure of that, you should always be helpful, friendly, and informative when interacting with your customers. Make an extra effort to fulfill all of their expectations.

Keep your communication lines open so they can reach you anytime if they have questions or concerns. Being responsive to customer inquiries and taking the time to resolve any issues that may arise is also greatly appreciated by your customers. Because excellent customer service is the cornerstone of your business, you should always work on improving it.

Develop strong relationships with suppliers 

As any successful business person knows, developing strong relationships with suppliers is important. Good supplier relations can lead to lower prices on your products, better customer service, and more flexible terms. To build strong supplier relationships, start by being a good customer. Be prompt with payments, communicate clearly, and don’t be afraid to ask for discounts. The better your relationship with suppliers, the more likely they will give you favorable treatment. 

Bottom Line 

Are you on the fence about whether or not selling wholesale on the Amazon marketplace is worth it? We get it. It can be tough to make a decision when there’s so much information out there. That’s why we put together this blog post, highlighting four reasons why becoming an Amazon wholesaler is a wise investment and two things that will help you succeed in your wholesale model business venture.

In addition to these reasons, using Amazon FBA on your wholesale business can help you take advantage of Amazon’s world-class fulfillment infrastructure and customer service. But, at the end of the day, it comes down to what is important to you as a business owner and how much effort you want to put into expanding your reach.

If you’re interested in learning more about how we can help you become a successful wholesaler on Amazon, book us a call. Our team of Amazon experts would love to talk about what services we can offer and answer any questions you have about how we can help your business thrive!

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