Many sellers source products wholesale to resell on Amazon FBA. But what exactly is FBA wholesale and how does it work?
Amazon FBA wholesale involves purchasing inventory in bulk quantities direct from manufacturers, distributors, or other suppliers to obtain lower per unit costs. This inventory is then sold on Amazon for retail prices, allowing sellers to profit on the margins.
Below we’ll explore FBA wholesale purchasing in more detail and why it’s popular.
Table of Contents
Overview of FBA Wholesale
With FBA wholesale buying, sellers:
- Source high-demand products at discounted wholesale rates
- Purchase inventory in larger quantities to get better volume pricing
- Store bulk inventory in Amazon’s fulfillment centers
- Sell individual units on Amazon at higher retail prices
- Amazon handles order fulfillment and shipping
- Seller keeps the profit margin between wholesale and retail
Wholesale allows maximizing profits while letting Amazon handle fulfillment.
Why Sellers Use FBA Wholesale
There are several key benefits to wholesaling for Amazon FBA:
- Lower Per Unit Costs – Buying in bulk provides better pricing
- Tapping into Proven Products – Wholesalers supply hot selling items
- Reduced Risk – Reselling proven bestsellers is lower risk
- High Profit Margins – Markup from wholesale to retail price is higher
- Easy Scaling – Can continually replenish high-demand items
Wholesale works well for newer sellers since it requires less guesswork.
How to Source FBA Wholesale Inventory
Popular ways to purchase FBA wholesale inventory include:
- Domestic wholesalers – Focus on specific product categories
- Import wholesalers – Import in demand goods from overseas
- Wholesale distributors – Carry inventory from multiple wholesalers
- Liquidators – Offer discounts on excess wholesale inventory
- Manufacturer direct – Buy direct from brand companies
- Online wholesale platforms – Order wholesale goods online
Vet any new wholesale supplier thoroughly before purchasing inventory.
Tips for Effective FBA Wholesale
To make FBA wholesale successful:
- Negotiate your lowest possible per unit cost
- Focus on faster-selling items to turnover inventory quickly
- Start with small test orders to validate products
- Scale up quantities of proven winners to get better bulk rates
- Continuously replenish so you don’t miss out on sales
Wholesale takes some effort to manage, but provides high profit potential.
FAQs About Amazon FBA Wholesale
What is the benefit of wholesale vs. private label?
Wholesale has much lower startup costs. With private label you must design custom packaging and branding.
What order minimums are typical with wholesalers?
Minimums vary but often range from a case of 6 units up to pallets of over 200 units when starting out.
How much profit margin can you expect from FBA wholesale?
Typical margins range from 25-50% between wholesale order costs and Amazon retail pricing.
Can I mix wholesale and private label items?
Absolutely. Many sellers start with wholesale while introducing their own private labeled items over time.
Do I need a business license or EIN to order wholesale?
Some wholesalers may require business registration, while others work with sole proprietors. Check individual supplier requirements.
Purchasing inventory wholesale is a fast, lower-risk way for new sellers to tap into Amazon’s incredible reach. Learn how to source and sell wholesale successfully.