Wholesale Overview

A Primer On Selling Wholesale On Amazon

Selling wholesale on Amazon is a scalable, long-term business model that involves purchasing bulk inventory from authorized distributors or brands and reselling it at a profit. Unlike arbitrage, wholesale focuses on consistent replenishable inventory rather than hunting for one-off deals.

In this guide, I’ll break down: ✔️ How wholesale compares to arbitrage ✔️ How to open wholesale accounts ✔️ Best practices for placing orders ✔️ Who should choose wholesale vs. arbitrage

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Wholesale vs. Arbitrage: What’s the Difference?

Factor	Wholesale	Arbitrage (RA/OA)
Sourcing Method	Buying directly from brands or distributors in bulk	Buying discounted items from retail stores (RA) or online (OA)
Consistency	Replenishable products, scalable	One-off finds, harder to restock
Profit Margins	Lower per unit, but higher volume	Higher per unit, but lower volume
Scalability	Easier to scale due to bulk orders	Harder to scale, requires constant sourcing
Account Risk	Lower risk (authorized distributors reduce IP claims)	Higher risk of suspensions & IP claims from unauthorized sourcing
Time Required	Less time sourcing, more relationship building	Constant sourcing required to stay profitable

💡 Bottom Line: 🔹 Wholesale is better for scaling & long-term stability. 🔹 Arbitrage is great for quick profits but requires constant sourcing.

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Step 1: How to Open Wholesale Accounts

📌 To get started, you’ll need to set up wholesale accounts with authorized suppliers.

1️⃣ Set Up a Legitimate Business

✔️ Register an LLC or Sole Proprietorship (LLC is preferred). ✔️ Get an EIN (Employer Identification Number) from the IRS. ✔️ Apply for a Resale Certificate (Sales Tax ID) in your state—this allows you to buy tax-exempt.

2️⃣ Find Wholesale Suppliers

🔹 Brand Direct: Reach out to manufacturers to open an account. 🔹 Authorized Distributors: Purchase from official wholesalers. 🔹 Trade Shows: Attend industry events like ASD Market Week to network with suppliers. 🔹 Wholesale Websites: Some great sources include:

• AENT Distribution

• EE Distribution

• Faire

• Green Supply

💡 Pro Tip: Use Google searches like: "Brand Name + Authorized Distributor" "Brand Name + Wholesale Program"

3️⃣ Contact Suppliers & Apply for Accounts

✔️ Email or call suppliers and ask if they work with Amazon sellers. ✔️ Provide your business information (LLC, EIN, Resale Certificate, Amazon store link). ✔️ Be professional—don’t say you only sell on Amazon! Instead, position yourself as a growing eCommerce retailer.

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Step 2: Placing Your First Wholesale Order

📌 Once you’re approved for an account, it’s time to order inventory.

1️⃣ Find Profitable Products

✔️ Use Keepa & SellerAmp to check:

• Price history & stability

• Sales rank & demand

• Number of competing sellers ✔️ Avoid products with Amazon as a seller—they dominate the Buy Box.

2️⃣ Start Small & Test Orders

✔️ Place a small test order (5-10 units) before going deep. ✔️ Monitor how fast the inventory sells before restocking in bulk.

3️⃣ Replenish & Scale Up

✔️ Once a product sells well, place larger orders. ✔️ Build relationships with suppliers for better pricing & exclusive deals.

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Who is Wholesale Best For?

✅ Best for: ✔️ Sellers who want long-term scalability ✔️ People with starting capital ($2,000+) ✔️ Those willing to build supplier relationships ✔️ Sellers who prefer consistent inventory replenishment

🚫 Not ideal for: ❌ People who only have a few hundred dollars to start ❌ Those who don’t want to manage supplier relationships ❌ Sellers who enjoy finding quick one-off deals

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Who is Arbitrage Best For?

✅ Best for: ✔️ Sellers who want fast, high-margin flips ✔️ People with low starting capital ($100-$1,000) ✔️ Those willing to constantly hunt for deals ✔️ Sellers who enjoy retail & online shopping

🚫 Not ideal for: ❌ People who want consistent, replenishable products ❌ Those looking for long-term scalability ❌ Sellers who don’t want to deal with IP complaints & suspensions

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Final Thoughts:

🚀 If you want to build a real, sustainable Amazon business, wholesale is the way to go.

✔️ Scalable & sustainable – No more running around sourcing deals. ✔️ Less account risk – No IP complaints from unauthorized sourcing. ✔️ Predictable profits – Replenishable inventory = stable cash flow.

💡 Start by opening just ONE wholesale account, test a product, and scale from there!

💰 Mastering wholesale can unlock a 6-7 figure Amazon business. Are you ready to level up? 🚀