Amazon wholesale means buying existing branded products from authorised suppliers and reselling them on Amazon. Combined with Fulfilment by Amazon (FBA), Amazon stores your inventory and ships orders to customers. It is one of several ways to sell on Amazon, and it suits people who prefer working with established brands over building their own.
How the model works
- You open accounts with suppliers: brands, distributors or wholesalers who sell to retailers.
- You research their products to find items that sell steadily on Amazon at a price that leaves a margin after fees.
- You buy inventory and send it to Amazon's fulfilment centres.
- Amazon fulfils orders and pays out your sales after its fees.
What makes a product worth considering
Most wholesale research looks at the same few signals: steady demand shown by Best Sellers Rank (BSR) history, a stable price, a reasonable number of competing sellers, and an estimated margin after Amazon's referral and FBA fees. We cover this in more detail in our guide to evaluating products.
What you need before you start
- A seller account in good standing on your target marketplace.
- A registered business. Most suppliers will not open accounts for individuals. See Company Formation.
- Documents suppliers commonly request, such as tax or resale information.
- A professional website and business email address.
- Working capital you can afford to have tied up in inventory.
The risks to understand
Wholesale avoids the cost of building a brand, but it carries its own risks:
- Competition: other sellers can sell the same product on the same listing, which can push prices down.
- Restrictions: some brands and categories need Amazon's approval before you can list.
- Supplier dependence: a supplier can change prices or stop supplying you.
- Policy changes: Amazon's fees and rules change, which affects margins.
No model guarantees profit. A careful, documented process helps you make decisions you can check.
Where to go next
If you want to learn the model properly before investing, look at Wholesale FBA Training. If you want help with the whole process, see Amazon Wholesale FBA: A to Z Solutions.
About the author
Nasir Mehmood is CEO of ECom Seller Core and writes about Amazon and ecommerce. Meet our team.
This article is general information, not legal or tax advice. Rules and procedures change; check current official sources or ask a licensed professional about your situation.