Overview

Amazon’s wholesale channel enables established brands and authorized distributors to list bulk‑purchased products directly on the marketplace, sidestepping the need to develop private‑label items. The model accelerated in 2022 and now accounts for a noticeable portion of Amazon’s overall sales, offering sellers a route to high‑volume traffic with lower advertising spend.

Key Points

• Low‑margin, high‑volume — Wholesale operators typically accept profit margins of 10 %–15 % in exchange for moving larger order quantities, mirroring traditional distributor economics.
• Brand‑authorized listings — Amazon mandates proof of authorization—such as a reseller certificate or a signed agreement—before a wholesale SKU can be activated, protecting brand integrity.
• Buy Box advantage — Competitive pricing combined with reliable stock levels gives wholesale listings a higher probability of winning the Buy Box, which in turn accelerates sales velocity.
• FBA integration — Most successful wholesale sellers ship inventory to Amazon’s fulfillment centers, leveraging FBA to qualify for Prime and to offload shipping and customer‑service responsibilities.
• Strict compliance focus — Amazon enforces rigorous rules on product authenticity, labeling, and condition; any breach can trigger account suspension or removal of the offending listings.
• Data‑driven sourcing — Tools such as Helium 10, Keepa, and Jungle Scout are routinely used to pinpoint high‑demand wholesale opportunities by analyzing sales rank, price history, and turnover rates.

How Wholesale Selling Works

1. Identify a viable wholesale partner — Research manufacturers or authorized distributors that provide bulk discounts on items already performing well on Amazon. For example, a seller may discover a kitchen gadget consistently ranking between 500 and 1,000 and negotiate a 30 % discount with the brand’s regional distributor.
2. Secure brand authorization — Obtain the required documentation—reseller certificate, letter of authorization, or direct contract—and upload it via Amazon’s Brand Registry or document‑upload portal. A cosmetics vendor would submit a signed agreement confirming the right to list the brand’s products.