Overview

Amazon wholesale links sellers directly with manufacturers or authorized distributors, enabling bulk purchases that can be resold on Amazon’s platform. In 2023 the model stays appealing because it sidesteps product‑development expenses, delivers consistent profit margins, and taps into Amazon’s fulfillment services. Mastering supplier talks, inventory planning, and Amazon’s compliance rules allows sellers to grow quickly while keeping operational hassles low.

Key Points

• Bulk pricing advantage — Purchasing large quantities typically trims the unit cost by 30‑50 % versus buying retail, leaving room for healthy margins after Amazon fees.
• No product‑creation risk — Wholesalers move pre‑tested, market‑validated items, eliminating the need for costly research, prototyping, or launch campaigns.
• Fulfillment by Amazon (FBA) support — Sending pallets to Amazon’s warehouses lets the platform handle picking, packing, shipping, and after‑sale service on the seller’s behalf.
• Category compliance — Certain product groups such as health supplies, toys, or electronics require safety certifications, brand‑owner permissions, and GS1 UPC ownership before listings can go live.
• Highly competitive arena — Success depends on finding underserved niches, pricing aggressively, and maintaining a dependable supply chain amid many other wholesalers.
• Scalable revenue model — Reinvesting cash flow into larger orders and expanding the SKU count lets sellers compound earnings without a proportional rise in manual effort.

How Amazon Wholesale Works

1. Market Research & Product Selection — Sellers employ analytics tools (e.g., Helium 10, Jungle Scout, Keepa) to pinpoint items with strong demand, limited competition, and a sales rank generally under 100,000. They also verify that the projected after‑fee profit exceeds 30 %. Example: An entrepreneur discovers a kitchen utensil selling 5,000 units a month, holds a 4.5‑star rating, and estimates a $6 net profit per unit after Amazon deductions.