How to Launch an Amazon Wholesale Business in 2024: The Ultimate Guide

With over 200 million Prime members and counting, Amazon offers entrepreneurs a golden opportunity to tap into a massive customer base.

Instead of creating your private label products or engaging in retail arbitrage, Amazon wholesale allows you to leverage the demand for popular branded products.

Making money on Amazon requires you to purchase goods in bulk from manufacturers or brand owners and resell them.

What is Amazon Wholesale?

Amazon wholesale involves purchasing large quantities of branded products from suppliers and selling them individually on Amazon.

Unlike private label or retail arbitrage, wholesale focuses on established products with existing consumer demand.

Wholesale vs. Retail Arbitrage vs. Private Label

Pros and Cons of Amazon Wholesale

Here are some pros and cons of Amazon Whole. First, let’s look into the pros:

• Quick Set-up Time: Get products to market within weeks.
• Built-In Demand: Sell trusted name brands with existing demand.
• Higher Margins When Scaled: Bulk orders and steady reorders boost margins.
• Passive Management: Minimal active management once suppliers are secured.
• Flexibility: Easily test new products and brands.

The cons of Amazon wholesale are,

• Capital Expenditure: Significant upfront investment.
• Sourcing Time Investment: Initial effort required to find suppliers.
• Brand Restrictions: Some brands have strict sales requirements.
• Inventory Risk: Need accurate forecasting to avoid excess inventory.
• Amazon Fees: Fees can range from 15–25%+ of sales, affecting margins.

How to Start Your Amazon Wholesale Business

1. Choose a category that fits your interests and expertise.
2. Use SellerApp to find high-demand products.
3. Validate broader market demand.
4. Check Instagram hashtags for customer interest.
5. Find brands open to new wholesale partners.
6. Use directories like Salehoo, attend trade shows, and explore B2B marketplaces.
7. Build rapport and secure favorable terms.
8. Focus on profitability, inventory management, and leveraging FBA.

Final Thoughts

Starting an Amazon wholesale business requires careful planning and execution. By following these steps, you can tap into Amazon’s vast marketplace and build a successful business. Consistency and realistic goals are key to long-term success. Don’t wait — use this guide to launch your Amazon wholesale empire today.