Thanks to the accessibility of online e-commerce, Amazon Sellers have a great variety of different business and sourcing models to choose from. This includes private label, FBA arbitrage, retail arbitrage, dropshipping or wholesale reselling.
Selling Wholesale on Amazon has multiple potential benefits, including:
Amazon Brand Approval:
When you have brand approval to sell on Amazon, you will see reduced Buy Box competition, and in some cases this can even result in exclusive selling rights on Amazon.
Established Customer Base:
Since you are selling a product from a known brand, you can immediately benefit from the existing customer base that the brand has established. Customers already know about this product, like it, and want to purchase it. And in some cases, an Amazon listing – along with product reviews – already exists, saving your time and work of creating a listing from scratch.
Reliable and Efficient Inventory Sourcing:
With the Wholesale model you can rest assured that as long as the product is produced by the manufacturer, you’ll be able to source it…unlike with arbitrage, where you are dependent on the pricing practices of retailers.
Scalability:
If an item is selling particularly well, you can quickly and easily increase your inventory to keep up with customer demand.
Low Risk ( In Some Ways):
The wholesale model is, in some ways, a less risky business model than arbitrage and private label. Since you are not the brand owner, you don’t carry the risk, responsibility and liability that comes with manufacturing a product and creating a brand. Instead, you are selling products that have a proven reputation and you can focus solely on the work of selling the product.
Also, with a wholesale model you don’t carry the risk of your Seller Account being permanently suspended due to customers submitting inauthentic product complaints, since you source the inventory directly from the manufacturer and you can provide Amazon with the relevent evidence (receipts or invoices) to prove it.
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