Why You Should Start with Amazon FBA Wholesale Instead of Private Label

Embarking on an Amazon FBA business journey can be exciting yet overwhelming, especially when deciding between wholesale and private label. Here’s why starting with Amazon FBA wholesale might be the best choice for new entrepreneurs.

Higher Success Rate

Choosing wholesale for your Amazon FBA business significantly increases your chances of success. Wholesale ventures boast a 90% success rate, while private label businesses have a 60% success rate. This substantial difference means you’re far less likely to experience the potential 40% loss rate associated with private label ventures.

Lower Initial Investment

One of the most appealing aspects of starting with wholesale is the lower initial investment required. You can launch your wholesale business with as little as $5,000. This amount is often more accessible for many new entrepreneurs, reducing financial risk compared to the higher initial investment needed for private label products.

Reinvest and Grow

Wholesale businesses generate steady profit margins, allowing you to reinvest your earnings and scale your business effectively. By continually reinvesting the profits from your initial investment, you can accumulate capital faster. This capital can later be used to explore other business opportunities, ensuring sustained growth.

Future-Proof Your Business

Starting with wholesale not only provides immediate benefits but also sets a strong foundation for the future. Once your wholesale business is thriving and you’ve recovered your initial investment, you’ll have the financial stability and experience needed to venture into private label products. This strategic approach minimizes risks and ensures you are well-prepared to diversify your Amazon FBA business when the time is right.

If you are an Amazon Seller looking for free help with any Amazon related issues from me or other sellers with whom you can network, don’t hesitate and join our discussion forum for Amazon Sellers.

To stay in touch on Facebook, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome too.

Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):