Can Amazon do wholesale? What are the tips for wholesale?

Amazon is a very good platform, and there are many domestic merchants doing this. To expand the store, we must first find a good source of goods. There are many domestic suppliers, and we can slowly select them. However, can this platform be used for wholesale? We need to have a good chat.

1. Can I do wholesale?

Of course you can do wholesale, but before you start a business through Amazon wholesale purchases, you need to understand some basic information, such as the challenges you face and how to start from the beginning to the end.

Challenges of Becoming a Wholesaler, Establishing a wholesaler, while profitable and with great opportunities for rapid success, is challenging.

First, you need to make sure your product is not sold by a private label seller. You will never compete with Amazon on the wholesale market, so there is nothing to try. They can choose to lose money on an item if it means they keep their customers loyal.

While you want a well-known brand that doesn't require marketing, you also want one that has profit opportunities. You want to ride the wave of success for that brand, and there's a margin of profit there. As you can see, choosing the perfect product is certainly a challenge.

You want to compete for the Amazon Buy Box. Therefore, you want your price to be within 2% of the best price offered. The Buy Box is your price equity on the site because it is the widget that sends your product to the buyer's cart. However, if you are not in the cheapest range, your product will be listed on a separate page and will not be found or purchased.

Another challenge is finding profit margins, even with the significant fees involved in opening an account with Amazon. The best way to find out if you can make money is to use Amazon’s FBA calculator. Determining profitability is an essential step in the process that will allow you to show interest in your product and then knock it off the shelves. You need to know your expected sales in order to calculate your turnover rate.

Strategies and Techniques

When selling on Amazon, there are some limitations and mistakes that you need to be aware of and try to avoid.

Tip 1: Be aware of brand restrictions

Third-party sellers must be approved before they can sell certain brands on Amazon. You will need to apply for a license to sell certain brands, while other brands are completely restricted. You won’t be able to sell products from Apple, Bose, Adidas, etc.

So, before you move forward, you need to be aware of these restricted brands and those brands that require you to obtain a license. You need to know that if there are restrictions on the brands, the only way you will be able to sell them is through a wholesale model negotiated with the manufacturer. The retail arbitrage model will not cut it here.

Tip 2: Consider working with restricted brands

If you’re still going to communicate directly with brands, why not target those that restrict sellers! This means that if you’re approved, you’ll be part of a more competitive, smaller group of sellers. In order to prove yourself as a respected seller to these brands, you’ll need to step up your professionalism and make yourself look like a valid store on Amazon. You’ll need a business plan that models the future growth and strategy of your business.

Amazon can do wholesale, but you need to be strategic. Some brands require brand licenses, so you need to negotiate a proper wholesale model with the manufacturer in advance, or you can discuss cooperation with restricted brands. The wholesale price can also be slightly lowered.