Amazon wholesale is a business model in which sellers purchase products in bulk from a brand or distributor, resell them on Amazon, and make a profit from the price difference. By buying in bulk, sellers can benefit from lower costs and in some cases, may even secure exclusive distribution rights, limiting competition.
For example, a seller might source clothing from a well-known brand and gain a competitive advantage, since not every seller can offer those products. Branded items already have demand and a loyal customer base, which makes them easier to sell.
Once a customer places an order, the product is sent to an Amazon fulfillment center. Amazon then handles storage, packing, and shipping to the customer, which allows sellers to focus on sourcing and scaling their business.
Keep in mind that this model requires a greater investment, as bulk orders mean higher upfront costs compared to purchasing single items or dropshipping. That’s why it’s crucial to make strategic decisions. Below, we’ll share a guide on how to start your own Amazon FBA wholesale business the right way.