9 Reasons Why You Should Add Wholesale to Your Amazon FBA Business

The more you talk with Amazon FBA sellers from all walks of life, the more you understand why each seller prefers the sourcing model used in their business.

Some folks love the thrill of the hunt, and they thrive on getting out there and scanning to their heart’s content at garage sales and thrift stores. Other sellers enjoy working retail arbitrage into their daily routine, or they love the huge profits that come from RA during the Q4 selling season. Some sellers live in a remote area or their time is limited, so they choose to do online arbitrage (OA) or wholesale. Still others like all aspects of product development and marketing, so they dive into private labeling.

Today I want to focus on one method of sourcing for Amazon FBA: sourcing from wholesale suppliers. We’re going to have a couple more posts after this one, so stick with me to learn more about where to find wholesale sources and other wholesale time hacks. But for today, let’s discuss the top 9 reasons why you should consider adding wholesale sourcing to your Amazon FBA business.

1. Profit potential

We’re all in this business to make profits, right? Well, selling items sourced via wholesale has huge profit potentials. You can find items with great return on investment (ROI) for resale on Amazon because you buy them at a low wholesale price, compared to what other sellers are getting by buying from retail sources.

2. Go both wide and deep on inventory

Buying via a wholesale account gives you the opportunity to search their catalog for several different profitable items in one product line, and you can then buy larger quantities of those items than you would be able to if sourcing via RA or OA. Once you’ve done your research on the sales history data on CamelCamelCamel and Keepa, as well as researching how much your competition has in stock (we use the How Many? extension for doing this research), you can make an informed decision and buy as many of an item as you feel comfortable buying, rather than being limited to what’s on the shelf at the retail store.

But you don’t have to worry about making a huge wholesale order of only one item to meet a company’s minimum purchase requirement. You can order a few of several different items, test them out, assess the results of your sales, and make a decision about reordering and possibly going deeper.

3. Opportunity for consistent replens

“Replen” is short for replenishable. A replenishable item is one that is profitable to buy over and over again because you can sell through the item at a decent rate. Replens can be a lovely cash cow for your business, since all you have to do is order, send to FBA, sell, order, send to FBA, sell, and repeat, repeat, repeat. Finding a replen today saves you time tomorrow by not having to repeat your sourcing research once the item sells out. You’ve already done the research – now all you need to do is reorder and send that item in again. It’s a much more time-efficient process than the one-offs that come with RA, OA, garage saling, and thrifting.

4. Potential for less competition

If an item isn’t available from retail sources at a low enough price to resell on Amazon BUT you can find it at a wholesale source, you will have lower competition. If you’re sourcing items that anyone can find at a retail store and resell for profit, it’s often only a matter of time until a ton of sellers jump on that listing. Sourcing via wholesale opens the door of opportunity to find unique items that RA and OA sellers can’t source at your buy cost.

5. Predictable cash flow

Once you have found several replens through wholesale sourcing, you can get to a place in your business where you have more predictable cash flow. Often with RA, OA, and thrifting, you will see ebbs and flows with your sales throughout the year, depending on what’s going on in your part of the country or in the stores where you like to source. Wholesale sourcing can provide more stability when it comes to ordering products to sell consistently throughout the year.

6. Saves time

Like I said above, finding a wholesale replen saves you a ton of time when it comes to not having to constantly be out sourcing for more one-off items to resell. It could take you all day to drive around town and spend $800 on RA finds, or you could spend a couple of hours doing wholesale research and find a great replen, place an $800 order, and then just reorder when you’ve sold out.

Another way wholesale saves time is when it comes to prepping your inventory. Wholesale items won’t have stickers to remove, and they often (though not always) come already poly bagged. You also can save time in listing the items. Instead of having to list and price 20 one-offs from RA clearance, you could list and price one item with 20 multiples from a wholesale source.

7. Easier to scale the business

As your FBA business grows, you will need to find ways to scale the business. Scaling your business means being able to increase your output. There are only so many garage sales in your town every week, so unless you hire folks in other towns to source for you, you can’t scale an FBA business based on garage saling. Same with retail arbitrage – you only have so many hours in the day to drive to retail stores, so you will need to hire someone else to source if you want to scale your RA business. But with wholesale, it is much easier to keep your business simple, source large amounts of inventory, and process it without needing to hire help. In fact, if you use a prep and pack center to process your inventory, you can grow your Amazon FBA business even more through wholesale.

8. Protects your seller account

Many Amazon FBA sellers experience great anxiety over the thought of being suspended because of claims by customers, especially claims of inauthentic products. As of this writing, Amazon is accepting retail receipts as proof of your source for inventory, but it’s often more difficult to prove your case with Amazon using retail receipts than using wholesale invoices – not to mention, at any point Amazon could stop accepting retail receipts altogether. Adding wholesale sources to your Amazon inventory gives you a level of protection for your seller account.

9. Become a brand approved seller

Brand restrictions on Amazon can be tricky when you’re looking for good retail sources for inventory. There’s nothing worse than finding an awesome item for resale, only to discover you are restricted from selling that brand. But with wholesale sources, you have the potential to work with Amazon and the manufacturer to become a brand approved seller. It requires some time and effort to get approval, but if you’re successful, you have the potential to make even more profits with even lower competition.

Now you have plenty of good reasons why you should consider adding wholesale to your Amazon FBA business. Stay tuned because in our next blog post, we’ll share with you how to find profitable wholesale accounts.

For the longest time I had wanted to add wholesale to my Amazon business. I have actually gone through 3 different wholesale courses to teach me how to do it. Each time I went through a new wholesale course, I would try what was taught, and I kept coming up empty. It was extremely frustrating… then I scheduled a phone call with Dan, one of the guys behind The Wholesale Formula. That conversation opened up my eyes to things about wholesale I’ve never thought about before. I took his advice and began to find multiple wholesale accounts.

Would you have wanted to listen in on that conversation? Unfortunately, we didn’t record the call, but Dan and his business partner Eric recently recorded an entire video series that focuses exactly on adding wholesale to your Amazon FBA business. The best part? It’s free! So many people think that you have to have thousands of dollars or special connections to start selling wholesale items on Amazon, but that’s just not true.

In this free video series my wholesale mentors, Dan and Eric, will teach you exactly how to find profitable items to buy via wholesale so you can experience growth in your Amazon business.

Now here’s the deal. These free videos are only going to be accessible for a limited time, so you need to click here and watch today.

Have you considered adding wholesale to your Amazon business? Have you been successful? If you have not tried it yet, what’s stopping you? What’s getting in the way of you sourcing directly from wholesale suppliers? Let me know in the comments so I can best help you in our current wholesale blog series.

13 responses to “9 Reasons Why You Should Add Wholesale to Your Amazon FBA Business

  1. Greetings,
    Great article. When you’re talking about branded products are you talking about the manufacturer?
    Thanks
    Larry

    • Yes, I’m talking about dealing with the brand manufacturers and buying directly from them and the invoices from them helping you get approved to sell them on Amazon if they happen to be restricted.

  2. Thank you!

    I am presently doing some wholesale and I love it. There is some comfort in getting products that you know are new and I like building relationships!

    I am always open to learning more and can’t wait to see what you have to teach!

    Thank you,

    Cindy

  3. Thank you for this info. Can you start out and do wholesale the way Dan and Eric do it without having a warehouse or a lot of start up money? I am new to FBA, but already I want to look into this. I like thrifting, finding deals etc…, but I am seeing that I can take this even further, this is something I would love to teach my children too. The first video makes sense, but I know it can’t be that easy. What things do I need to really get started? Sounds like a pro website, front money, and communication skills is at least a part of it. I am hoping and praying the class is affordable. I will sign up if there is anyway possible. I’m saving my money now. Do you know of any business websites I can look at with this model in mind to see maybe what wholesalers are looking for?

    • You don’t need a warehouse at all to do wholesale. I’ve been doing it out of my home for about a year now. If I ever order something that ends up being delivered on a pallet, I just make sure that the delivery company (who calls to set up delivery times) has a lift gate. Then when it’s delivered, they just roll the wholesale order into my garage and I can start processing it.
      To start, you need a resale certificate from your state and the capital to source your inventory. Communications skills and a website are a plus but not 100% necessary.
      Come join us on the upcoming free webinar where you’ll get even more info: http://www.fulltimefba.com/wholesalewebinar
      Note that on the webinar, I’ll be offering a HUGE bonus (worth over $300) if you purchase the wholesale course through my link. Stay tuned.

      • Can you give me any idea as to when this offer will be made? How long do I have to save or sell stuff to come up with the money? Is the cost doable for someone just starting out? I’m selling everything in sight, so I’m determined I’m going to make this happen. I’ve been studying like crazy and your site is one of my favorites. Dan and Eric’s plan makes more sense than most everything else I’ve heard about. I’m not into get rich quick stuff, but I am interested in doing what it takes and doing it right and I really appreciate people who are good at what they do and still stay humble and helpful. Thank You!

        • I think the offer will be coming later this week. The course will be an investment like a college class… but it will be worth every penny. Plus they’ll have a money back guarantee with it. It’s revolutionized my FBA business and I promise I’m not being over dramatic at all. Plus, if you get the course through my link, I’ll add a bonus package that will knock your socks off. Stay tuned.

          • Thanks Stephen! If there is any way possible I can afford it I will be doing it and I will sign up through your site. I am a homeschool mom to three kids and just starting out with FBA. We technically have only one income, but I am working hard at getting this FBA thing up and running. I’ve owned my own business since I was 16 years old so I am not afraid of hard work. Thanks for all your help. Your site by far has been the most helpful and I like that you are kind and humble. Thanks again.

  4. Hi Stephen it looks like their recordings were done in 2016. Is this a re release of their program or an updated one? Thanks

  5. Pingback: How to Find Profitable Wholesale Accounts For Amazon FBA - Full-Time FBA

  6. Hi Stephen,
    I love your site! You are easy to understand. I’m considering the Wholesale route as it seems there is way less involved in order to get product to market. I also have had my own business with my husband for 23 years BUT I really am looking at this as an investment in our future so my husband and I can have a viable income for the long haul. He is in Commercial/Electrical Trade now but we want to travel and move to an online business for the future.

    How difficult is it to get approved by Amazon in Brand Registry to be an wholesaler for multiple accounts? Especially when you are a new seller?
    Thank You,
    C. Kinne
    P.S. I also have a subscription with you on another e-mail for my on-line business 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *