Overview

In early 2024 a Helium 10 podcast hosted by Juan David Pardo and Adriana Rangel examined why Amazon sellers are increasingly pairing private‑label brands with wholesale sourcing, a strategy that can cushion revenue against market swings and lay the groundwork for sustained expansion. Understanding how to run two models side‑by‑side is crucial for any seller who wants to protect cash flow while building brand equity.

Key Points

• Dual‑model advantage — Combining a proprietary private‑label line with wholesale inventory typically smooths cash flow because wholesale items can generate sales while the private‑label product moves through development and launch phases.
• Capital split — A common budgeting rule of thumb assigns roughly 60 % of available funds to private‑label creation (design, prototyping, PPC) and the remaining 40 % to wholesale purchases, preventing either side from running dry.
• Operational load — Running two supply chains doubles the number of purchase orders, freight schedules, and quality‑control checks, meaning a small team must manage twice as many logistical touchpoints.
• Risk buffer — If a private‑label SKU is hit by an Amazon policy change or a sudden dip in organic rank, wholesale listings continue to generate revenue, averting a complete sales shutdown.
• KPI separation — Successful dual‑model sellers track distinct metrics—advertising‑to‑sales ratio and ACoS for private‑label products, and sell‑through days and wholesale margin for wholesale items—to fine‑tune tactics in real time.
• Brand cohesion — Mixing branded and third‑party goods can blur a storefront’s message, so many top sellers isolate the two categories into separate storefront sections or use distinct branding elements to keep the customer experience consistent.

How Balancing Two Amazon Business Models Works

1. Select complementary niches — Identify a private‑label category that naturally aligns with a wholesale segment, such as launching eco‑friendly kitchen tools while also wholesaling best‑selling stainless‑steel pots that appeal to the same environmentally conscious cook.