Overview

Leonel Hiraldo describes how he moved from a retail‑arbitrage operation to a wholesale‑driven Amazon business while based in New York. The transition gave him steadier inventory flow, stronger supplier ties, and a clearer path to scale. Sellers should watch this shift because wholesale can cut the hours spent hunting clearance items and open the door to larger, more predictable profit margins.

Key Points

• From deal‑hunting to partnership building — Leonel stopped scanning discount aisles and began negotiating directly with manufacturers and distributors, turning one‑off purchases into ongoing contracts.
• Cash‑flow becomes forecastable — Wholesale shipments arrive on a regular schedule, allowing sellers to project revenue and plan expenses with month‑to‑month accuracy.
• Margins improve with bulk buying — Purchasing in volume reduces unit cost, creating room for healthier profit percentages than the typical arbitrage flip.
• Leverage established brand demand — Sourcing products that already have consumer recognition lets sellers tap into existing search traffic and trust, rather than creating demand from scratch.
• Lower risk of policy violations — Listings sourced wholesale are far less likely to trigger Amazon’s “reselling” warnings, resulting in a more stable account health.
• Scalable operations — With a reliable supplier pipeline, sellers can expand SKU counts and order sizes without proportionally increasing the time spent on sourcing.

How the Wholesale Model Works

1. Identify Viable Product Niches — Sellers start by analyzing Amazon’s Best Sellers Rank, reviewing competitor listings, and spotting categories that show steady demand but limited competition. For instance, a seller may notice that biodegradable kitchen tools consistently rank inside the top 500 while no single brand dominates the space.
2. Research and Vet Suppliers — Platforms such as Alibaba, Global Sources, and regional trade shows help locate manufacturers willing to offer wholesale pricing. The seller requests samples, checks certifications, and confirms production capacity; a typical example is ordering a batch of silicone spatulas to test durability before committing to a pallet.