As an Amazon seller, you might be ready to venture into the world of wholesaling on Amazon. But where do you start?
When it comes to Amazon wholesale, one of the first steps is figuring out how to find wholesale products to sell on Amazon—products that not only have strong demand but also offer enough margin to make a profitable business.
In this guide, we’ll cover everything you need to know to get started. We’ll explore what it means to run an Amazon wholesale business, review the different wholesale models available, and show you how to source profitable products.
By the end, you’ll have a clear path forward, equipped with strategies, tools, and best practices to help you succeed in Amazon wholesaling.
Table of Contents
Understanding Wholesale on Amazon
Amazon wholesaling is a popular and scalable way to do business on the platform. If you want to buy products in bulk and resell them at a profit, wholesale might be the perfect model for you.
By purchasing inventory directly from manufacturers or distributors at a discount, you can leverage bulk buying power for greater profit margins. Wholesaling offers stability and the potential for consistent sales with established products that already have demand.
What is an Amazon Wholesale Business?
An Amazon wholesale business involves purchasing products in bulk directly from manufacturers or authorized distributors and reselling them as individual items on Amazon’s Marketplace. Even if private label FBA is the preferred selling method for 67% of Amazon sellers, it’s not the only way to succeed.
Unlike private labeling, wholesale focuses on reselling existing, brand-name products rather than creating your own from scratch. The key is to buy large quantities of in-demand products at a discount, and then sell each unit to individual customers, leveraging the built-in demand of established brands.
Amazon wholesale is ideal for entrepreneurs who want to avoid the complexities of product development. By focusing on popular, ready-made products, wholesalers can get started quickly and focus on scaling their business with effective marketing and streamlined logistics.
The Different Amazon Wholesale Business Models
When it comes to wholesaling on Amazon, there are several business models to consider. Each model has its own advantages and challenges, allowing sellers to choose the one that best aligns with their goals and resources.
Here’s a quick look at the main Amazon wholesale business models:
- Reseller Model
Purchasing branded products in bulk from authorized suppliers or distributors and reselling them individually on Amazon. - Private Label Wholesale Model
Buying generic products in bulk, adding your brand or packaging, and selling them as branded items on Amazon. - Exclusive Brand Partnerships
Forming exclusive agreements with brands to be their only or primary Amazon seller, giving you control over the brand’s Amazon presence. - Amazon Business-to-Business (B2B) Wholesale
Selling in bulk to business customers on Amazon’s B2B platform, targeting companies that need large quantities of products. - Dropshipping with Wholesale Suppliers
Partnering with wholesale suppliers who manage inventory and shipping, while you focus on listing and customer service.
The Benefits of Starting an Amazon Wholesale Business
Now that you know the basics of the Amazon FBA wholesale business, let’s explore why it’s such a popular choice in 2024. Here are some of the biggest advantages:
Lower Upfront Costs
Wholesale allows you to start selling popular products without the high costs of developing or manufacturing your own. By purchasing items in bulk from trusted brands, you save on initial expenses and reduce financial risk.
Built-in Demand for Trusted Brands
Selling well-known brands means you’re offering products consumers already recognize and trust. This built-in demand can make it easier to achieve consistent sales without heavy marketing or brand-building efforts.
Potential for Higher Profit Margins
With wholesale, buying in bulk at discounted prices lets you maintain competitive pricing while securing solid profit margins. This cost savings from bulk purchasing translates into more profitable sales.
Quick and Easy Setup
Getting started with wholesale is often faster than other ways of selling. Since you’re working with established brands, you can skip brand development and jump straight into listing and selling.
Product Variety and Flexibility
Wholesale suppliers offer a wide range of products, letting you test new items and adapt quickly to market trends. You can expand your inventory without committing to a single niche.
Scalability
The wholesale model is easy to scale by adding more products or suppliers as you grow. You can focus on growing your sales volume while Amazon’s FBA program supports your fulfillment needs.
How to Find Wholesale Products to Sell on Amazon
Sourcing products in bulk from wholesalers allows you to buy inventory at discounted rates and sell it on Amazon for strong profit margins. This approach provides access to high-demand products that you can quickly list and sell.
In the steps below, we’ll cover the way to find reliable wholesale products to help you succeed on Amazon.
Step 1: Identify Profitable Product Categories
Start by identifying product categories that have strong demand and low to moderate competition. Use Amazon tools, like the Product Opportunity Explorer, as well as third-party tools such as Jungle Scout or Helium 10, to research trending items and categories.
Look for products with high sales volumes, stable demand, and growth potential in niches that align with your interests or expertise.
Step 2: Research and Shortlist Potential Wholesale Suppliers
Once you have a clear idea of the products you want to source, start researching wholesale suppliers. Look into platforms like Alibaba, ImportYeti, and industry-specific directories.
You can also attend trade shows and networking events to connect with verified suppliers. Ensure each supplier is reputable by checking their business licenses, reviews, and past client feedback.
Step 3: Verify Supplier Quality and Product Reliability
After identifying a few potential suppliers, verify their reliability by evaluating product samples. Request samples of the products you’re interested in to assess quality and consistency.
During this stage, check for any certifications, licenses, or compliance documents that verify the supplier’s credibility and capability to meet Amazon’s quality standards.
Step 4: Calculate Costs and Margins for Profitability
For each product, analyze the full cost structure, including unit costs, shipping, and any additional fees. Evaluate whether each product offers a healthy profit margin that accounts for Amazon fees and other expenses.
Use Amazon’s FBA or FBM cost calculators to confirm if the product can be competitively priced while maintaining profitability. This ensures you’re sourcing products that will support sustainable growth.
Step 5: Check for Amazon Category Requirements and Restrictions
Some products may require approval or be restricted on Amazon. Use Amazon’s Compliance Reference Tool and check category-specific guidelines to ensure the products you source are eligible for listing.
This step is crucial to avoid sourcing items that you may not be permitted to sell on the platform.
Step 6: Build Relationships with Trustworthy Suppliers
Finding dependable suppliers can benefit your business in the long term. Aim to establish strong relationships with those who consistently deliver quality and maintain clear communication.
A reliable supplier for Amazon businesses can provide product insights, favorable pricing, and better lead times, helping your business grow more smoothly.
Key Criteria for Selecting the Right Wholesale Products
Choosing the right products is essential for a successful wholesale business on Amazon. Here are some key factors to consider when selecting products:
Demand
Look for products with steady demand by researching popular categories and using tools like Amazon Best Sellers or Product Opportunity Explorer. Products with high search volume or consistent sales rank are usually good indicators of demand.
Profit Margin
Ensure that your wholesale products offer a healthy profit margin. Aim for at least a 30% margin to cover Amazon fees and other expenses, while still allowing room for promotions or competitive pricing adjustments.
Brand Approval and Restrictions
Some brands and categories require approval to sell on Amazon. Make sure you have the necessary documentation and authorization to sell these products to avoid issues with restricted items.
Supplier Reliability
Choose products from reliable suppliers who can provide consistent quality and meet your inventory needs. A dependable supplier helps you avoid stockouts, delays, and potential account issues due to product quality.
Product Size and Shipping Costs
Consider the size and weight of products, as these impact storage and shipping costs. Smaller, lightweight items are often more cost-effective to store and ship, helping to increase profit margins.
Competition
Assess the competition level for each product. Choose items with moderate competition to avoid price wars, and focus on products where you can secure the Buy Box more easily.
10 Platforms to Use to Find Wholesale Products to Sell on Amazon
Finding the right wholesale products to sell on Amazon can be challenging, especially with so many products and suppliers to consider. Fortunately, product research tools and websites make it easier to identify profitable items, assess competition, and track sales trends.
Here are some of the top platforms to help you in your Amazon wholesale product search:
Helium 10 offers a suite of tools, including Black Box for product discovery, Xray for market analysis, and Trendster to analyze product seasonality. These features allow you to pinpoint high-demand products and understand competitive market dynamics.
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A favorite for both beginners and experienced sellers, Jungle Scout offers tools like Product Database and Opportunity Finder to identify in-demand, low-competition products. It also has a Supplier Database, which connects you with reliable manufacturers and suppliers for seamless sourcing.
AMZ Scout offers both a PRO Chrome Extension and a Product Database that provide insights into product potential, sales estimates, and competition levels. This tool is ideal for conducting detailed product research and making informed decisions.
ZonGuru’s Niche Finder helps you discover profitable niches, while its Easy Source feature allows you to connect directly with suppliers. This combination makes it easy to identify high-potential products and secure reliable sourcing options.
SmartScout provides in-depth data on Amazon sellers, market share, and category trends. This tool helps you identify profitable niches and find wholesale opportunities by analyzing market performance across categories.
Seller Assistant combines two extensions—Browser Extension and IP-Alert—that provide profit calculators, stock checkers, and supplier insights. This tool streamlines your product research process by consolidating critical data into one dashboard.
ImportYeti is designed to find suppliers for your Amazon business by analyzing actionable data. You can search for wholesale suppliers based on your product needs, making it easier to connect with trustworthy manufacturers and distributors.
Zignify is a service-based platform that offers end-to-end product sourcing support. They help you find and connect with verified suppliers, manage negotiations, conduct quality checks, and handle logistics.
This hands-on support is highly valuable for Amazon sellers seeking reliable wholesale suppliers without the need for self-guided research tools.
9. Tactical Arbitrage
Tactical Arbitrage offers a suite of tools for sourcing and analyzing wholesale and retail arbitrage products. It scans supplier websites and provides in-depth analytics, allowing you to compare prices and forecast profit potential across a variety of marketplaces.
10. Alibaba
Alibaba is a leading B2B marketplace that connects Amazon sellers with a vast network of manufacturers and suppliers. With millions of products at competitive prices, Alibaba offers bulk sourcing, customization options, and secure transactions through trade assurance and supplier verification.
Best Practices for Finding Amazon Wholesale Products
When sourcing wholesale products for Amazon, following best practices can help you secure reliable suppliers, maintain quality, and build profitable partnerships. Here are key strategies to enhance your wholesale sourcing process:
- Seek suppliers experienced in working with Amazon sellers, as they are more likely to understand the industry’s requirements and avoid common mistakes. Reliable suppliers often propose enhancements to products or packaging, drawing from their expertise. For example, a supplier might suggest cost-effective materials or added features that set your product apart from competitors.
- Make a detailed checklist of your business needs and match potential suppliers against it. Consider factors like available colors, shipping options, delivery timelines, payment terms, and quality control standards. Avoid compromising on essential criteria—if a supplier doesn’t meet your needs, continue your search.
- Before signing a deal, ensure you’re aware of every aspect of the supplier’s operations. Inquire about storage capabilities, hidden fees, and the origin of their materials. Discuss FBA fees, referral fees, and expected margins to understand the profitability of each product. It’s also advisable to set up a clear contract or agreement to outline responsibilities and address potential issues.
- Since many suppliers offer similar products, compare pricing and bulk discounts to secure the best deal. Developing a solid relationship with your supplier can lead to benefits like lower minimum order quantities and more favorable terms, especially helpful when working within budget constraints.
- Ensure that each supplier is registered and holds the necessary licenses to operate. Checking for certifications adds a layer of security to your investment, protecting you against potential issues. Additionally, working with suppliers who carry insurance provides a safeguard for both parties in case of mishaps.
Your Guide to Find Products to Sell Wholesale on Amazon
Starting an Amazon wholesale business may seem challenging, but with the right approach and strategies, you’re set to build a profitable venture. By understanding the wholesale models available and carefully selecting products that align with market demand, you’re positioned for growth.
Using effective tools to buy wholesale products and working closely with reliable suppliers will give you a competitive edge. With the steps and best practices in this guide, you’re ready to make informed decisions and grow a successful Amazon wholesale business.
Whether aiming for steady B2C sales or expanding with bulk B2B orders, the potential for success in selling wholesale products on Amazon is within reach.
Ready to take your Amazon wholesale business to the next level? Contact our Amazon agency for tailored advice from our Amazon experts to help your business thrive.
