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How to Build a Profitable Amazon FBA Wholesale Business in 2025
Michael S.
Amazon FBA simplifies your logistics and inventory management, making this a popular fulfillment method for sellers. To fully leverage the benefits of FBA, many sellers choose to source products wholesale. However, in order to be successful with this approach, careful research and preparation are key.
In this article, we’ll explain the specifics of Amazon FBA wholesale and offer a step-by-step guide on how to get started effectively.
How Does Amazon FBA Wholesale Work
Amazon FBA wholesale is a business model where you purchase products in bulk from distributors or brand owners and sell them individually on Amazon. Once your products are listed, you send your inventory to Amazon’s fulfillment centers. From there, Amazon handles all of your storage, packing, and shipping directly to customers, while ensuring that you receive payment for each order.
The main advantages of this approach include:
Competitive edge: You can secure exclusive distribution rights for certain products.
Higher profit margins: Purchasing items at wholesale prices and selling them at a markup can significantly boost your profit margins.
Efficient logistics: Amazon handles order fulfillment and returns, saving you time and effort.
Lower marketing costs: Selling well-known products with established demand reduces advertising costs, as these products already attract customers organically.
However, given that Amazon takes fees for its logistics and buying in bulk entails substantial order quantities, it’s important to optimize your business setup to ensure that it’s worth it. Let’s discuss how to sell on Amazon with an FBA wholesale model effectively.
How to Start an FBA Wholesale Business in Five Steps
To become an Amazon FBA seller, the first thing you need to do is set up an Amazon account. If you haven’t set one up yet, the Professional plan ($39.99/month) is typically the best choice for wholesalers, as this option includes additional features and eliminates per-sale fees.
Here are the five essential steps to kickstarting your Amazon business.
Step 1: Find a Winning Product to Sell on Amazon
First, it's important to decide what you’re going to sell on Amazon. While there are millions of products available, not all of them can generate significant profits. To choose a successful product, conducting a thorough product analysis is crucial. This process involves evaluating several factors, with three key criteria to consider:
Profitability: In order for a product to be considered viable, the profit per item should not only cover the cost of the product, but also leave room for advertising expenses and reinvestment in your business.
Product demand: You need to check whether the product is in demand to ensure consistent sales. Additionally, understanding seasonal fluctuations in sales will help you plan your inventory accordingly.
Competition: It’s crucial to assess how tough the competition is within the niche or for the specific product you’re considering. A highly competitive market might make it difficult to stand out.
Conducting this kind of research can be overwhelming and time-consuming, especially when monthly sales data is not always readily available. If you don’t want to spend time learning how to use analytical tools or performing your own research, consider utilizing Sellerhook's professional services.
Getting Booming Wholesale Product Ideas
To simplify the product selection process, consider outsourcing your research to Sellerhook. Their team of experts will provide personalized analysis of market trends and product characteristics to help you identify the best products for your business.
Here’s how to get booming product ideas:
1. Place an order on the Sellerhook website. To do this, indicate the following:
Business model: Choose Online Arbitrage & Wholesale to match your preferences.
Product ideas: Decide how many product ideas you want to receive (one or five high-potential products).
2. Answer a few questions. Provide details about your preferences, including your desired product category, price range, and business model. Sellerhook’s specialists will use this information to conduct thorough research and identify the best opportunities for you. 3. Receive your report. Within 10 business days, you’ll receive a curated list of top products to consider for your store.
By leveraging Sellerhook’s expertise, you’ll save time and avoid the risk of choosing unprofitable products. Sellerhook’s tailored reports will help you focus on the right opportunities and set your business up for success.
See what your research report would look like.
Get a sample
Step 2: Find Suppliers or Distributors
Once you select a product to sell, it’s time to source it. For branded products, here are the most common ways to find contacts for authorized suppliers or distributors:
Brand websites: Many brands have a “Work with Us” section where you can find wholesale opportunities or authorized distributors.
Authorized distributors: Look for official distributors by searching for the product name and “authorized distributor” or search “Buy wholesale” in Google.
Industry events: Attend trade shows and brand presentations to connect with suppliers and distributors directly.
LinkedIn: Search for brand managers or distribution partners to whom you can reach out.
Once you narrow down an option from which to source your products, the next step is to secure reselling permission and place your order. Let’s review the details below.
Step 3: Place an Order
In order to partner with a distributor or brand, you often need to present your store portfolio to demonstrate your ability to showcase their products effectively. Consider preparing information about your business, including how long you’ve been in operation, other brands you sell (if applicable), your social media presence, and more. If they agree to collaborate, here are a few key questions to ask to ensure that you get the best deal when placing an order:
What is the minimum order quantity (MOQ)? Do you offer any discounts?
Do you offer exclusive rights for distribution?
What is your return policy?
What are the payment terms?
(And others, as needed)
Make sure to secure reselling permission, as you might need to present this to Amazon in order to sell the product. It might also be smart to place a test order to evaluate the supplier’s service, assess the product quality, and ensure a smooth long-term partnership.
Step 4: List Your Products
Since you’re selling branded products, it’s highly likely that they’re already listed on Amazon. In this case, you can simply join an existing listing. Here’s how:
1. Access your Amazon Seller Central Account. Log in to Seller Central, navigate to the Inventory tab, and select Add a Product. 2. Search for your product. Use the search bar to find the product by entering its name, ASIN, or barcode. 3. Provide product details. Locate the correct product in the search results, click Set Yours, and fill in your offer details such as price, quantity, and condition. 4. Add yourself to the listing. After entering your details, click Save to finalize. Your product will now appear as part of the existing listing.
Your offer will typically become visible to customers within 15 minutes. However, before fulfilling orders, you need to have your inventory delivered to Amazon’s FBA centers. We’ll walk through that process next.
Step 5: Organize Delivery to FBA Centers
In order to benefit from Amazon’s FBA storage and order fulfillment solutions, it’s necessary to have your products shipped to their centers. There are two options:
Use Amazon Partnered Services: Amazon partners with UPS, which offers discounted rates. You can schedule a pickup or drop off the package at a UPS location.
Use a Non-Amazon Partnered Courier: In this case, you can arrange for delivery of your products yourself to FBA centers on your own, or have your supplier ship them directly.
If your supplier doesn’t offer logistics solutions, you’ll need to find a reliable courier. When choosing one, be sure to review all costs, including any potential hidden fees for packaging or customs (if applicable). Additionally, consider adding insurance to safeguard your goods against loss or damage.
Once Amazon receives an order for your product, they will handle the packaging and shipping process, and deliver the product directly to the customer on your behalf. This streamlines your operations, saving you time and effort—particularly during peak seasons.
By following these steps, you’ll establish a strong foundation to become an Amazon FBA seller. It’s important to monitor your results continuously . This will help you refine your strategy and drive the long-term growth of your business.
Conclusion
Selling wholesale products on Amazon can be profitable, but success largely depends on selecting the right products. Consider using Sellerhook’s services to identify the best opportunities, saving you time and effort. With expert insights, you can make more informed decisions and increase your chances of success for your business.
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