1. Amazon
Wholesale
Business
Model
This business is about making
relationships" with your suppliers and
building successful long term
relationships
Buying brand name products from
established brands and reselling them
Buying branded products in bulk and
large quantities
2. Amazon Wholesale Requirements
Legal business entity (sole proprietorship, LLC, Corporation)
EIN number (Employer Identification Number/Federal Tax ID) - US
Reseller Permit (sellers permit, resale certificate, etc.)
Professional Amazon Selling Account
Professional/business email address - higher response rate when contacting the
supplier
Business Website (Optional)
Commercial Shipping Address (Optional) - some suppliers (like grocery category)
required this, most of them don't ship in Amazon or a residential address. Seller can
make partnership on Prep Center - a 3rd party company that provide prepping
services with a fee.
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Seller must have:
3. The company that makes/own the
product.
Advantage: they will give you the
actual wholesale price, larger profit
margin, safe from risks like IP
complaints and authenticity
complaints.
Disadvantage: very hard to make a
wholesale account on them. Once
mentioned that you're a seller on
Amazon they will reject unless you
offer a value preposition.
e.g.
Procter & Gamble
Nike
A company that is authorized by a
brand to distribute their products
to retailers.
They have a direct relationship
with the brands.
They carry multiple brands.
They don't sell directly to end
customers, they only sell to
business customers.
Easier to open a wholesale
account.
Recommended for new sellers.
e.g.
Sysco
US. FOODS
Amazon Wholesale Suppliers
A company that buys
products from brands,
distributors, liquidators,
etc., and then resells
those products.
They can sell to end
customers and
business customers.
BRAND/MANUFACTURER DISTRIBUTOR WHOLESALER
Locally - US, UK
4. Amazon Wholesale Sourcing
Search in google:
open each result of distributors
create a supplier list template
when you're decided that it is a distributor and not
just an e-commerce, get the name of the distributor,
contact email, phone number, name of sales
representative, and address.
build a list of suppliers and give a day or two to
contact all that's on your list.
pet supplies distributors new york
search 1-3 products in Amazon that are
doing well on the criteria
get the brand name
find the brand name in google
search: pet supplies distributor (brand name)
do this until you make hundreds of supplier
list that you can contact
Methods in finding suppliers:
Using google Reverse sourcing - Amazon
5. Avoid high BSR products (Recommended: average of 120,000 BSR and below)
Price should be at least $15 or higher
Listing should have at least 3 FBA/FBM sellers
Avoid Amazon as a competitor
Avoid Private Label Products
Monthly estimated share of sales per unit at least 50
Profit margin at least 20% (depends on client)
Minimum of $1.5 net profit (depends on client)
Make sure brand owner is not selling on Amazon
Check if products are category/ brand gated, hazmat, etc.
Amazon Wholesale Sourcing
Criteria in finding potential product
6. PRICE: VERY HIGH
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2. DELIVERY TIME: VERY HIGH
3. FULFILMENT: HIGH
4. FEEDBACK: MEDIUM
5. FEEDBACK QUANTITY: MEDIUM
6. PERFECT ORDER SCORE: MEDIUM
7. AVAILABLE STOCKS: LOW
8. CUSTOMER PROXIMITY: LOW
FACTORS TO WIN THE BUY BOX
7. Private Label VS. Wholesale
You make and sell your own product
You source from Alibaba/China
You create new listing for your product
Profit is more promising once you find the
right product
Riskier as you are launching a new product
to the market
Relies heavily on launching strategy
advertisements, PPC, etc.
You resell other people's existing product
You source locally (USA, UK, etc.)
You only need an existing ASIN to list your
product
Profit oftentimes is low. It'll depend on your
supplier's wholesale prices
Less risk as you're selling products that
customers already knew
No advertisements, PPC or any kind of
promotions needed.
