Amazon Wholesale: The Complete Guide to Selling Wholesale on Amazon

How to Start, Grow, and Profit from the Wholesale Business Model on Amazon

By ChannelMAX Staff Writer
July-2025#04

If you’re looking for a stable and smart way to grow your Amazon business, wholesale could be the best option for you. Unlike retail arbitrage or private label, Amazon wholesale allows you to buy popular branded products in bulk and resell them, without having to create your own brand or spend a lot on marketing.

This method is ideal for sellers who prefer well-established products that already have strong customer demand and good reviews. It’s easier to start, gives steady sales, and can grow fast if you learn how to find the right products and trusted suppliers.

In this guide, we’ll explain everything you need to know to get started with Amazon wholesale, including how to find products, contact suppliers, set up your account, and avoid common mistakes. Whether you are new to selling or want to expand beyond arbitrage, this guide will help you grow your Amazon business to the next level with wholesale.

What is Amazon Wholesale?



Amazon wholesale is a business model where you buy products in large quantities from trusted suppliers or manufacturers, and then sell those products on Amazon for a higher price. Unlike private label sellers who create their own brand, wholesale sellers sell products from well-known brands that already have customer demand, positive reviews, and high search rankings. 

This means you don’t have to worry about designing a brand, making new product listings, or spending a lot on marketing. Instead, you focus on:

a. Finding products that are already in demand

b. Buying them at the best bulk prices

c. Using smart pricing and shipping to win the BuyBox

How It Works – In Simple Steps:

1. Find popular branded products that are already selling well on Amazon

2. Buy them in bulk from the brand or an authorized distributor

3. List the product or join existing listings for those products on Amazon

4. Choose how to ship – FBA (Amazon ships) or FBM (you ship)

5. Make a profit from the difference between your cost and the selling price (after Amazon’s fees)

Amazon wholesale is a lower-risk business model with good profit potential if you pick the right products, buy from trusted suppliers, and price smartly.

How Does Wholesale Selling Work on Amazon?



Wholesale selling on Amazon means buying branded products in bulk and then reselling them. It’s different from private label or dropshipping because you don’t need to create your own brand or product. Instead, you sell items that are already popular and trusted.

Let’s go through the steps one by one:

Step 1: Research High-Demand, Low-Competition Products

Look for products that:

a. Sell consistently on Amazon

b. Have strong reviews and ratings

c. Belong to well-known brands

d. Are sold by many sellers (not just one)

This helps you pick products that people already want to buy.

Step 2: Find and Contact Wholesale Suppliers

Once you choose what to sell, the next step is to find where to buy it from. You can:

a. Reach out to the brand directly 

b. Talk to authorized distributors

c. Search in wholesale directories or visit trade shows

Ask for a price list and verify that the supplier is genuine and can give you invoices. You’ll need these for Amazon approval.

Step 3: Get Approval to Sell the Brand (If Required)
Some brands or categories need special approval. To get approved, you may need:

a. A professional seller account

b. Valid invoices from an authorized distributor

c. Possibly additional documentation

Once you’re approved, you can list the product.

Step 4: List the Product and Manage Inventory

You can either:

a. Join an existing listing if the ASIN is already on Amazon

b. Create a new listing if it’s not there yet

Make sure your price is competitive and you follow Amazon’s listing rules.

Step 5: Fulfill Orders via FBA or FBM

You can choose:

a. FBA (Fulfilled by Amazon) for faster shipping and Prime eligibility

b. FBM (Fulfilled by Merchant) if you want more control or lower fees

Many sellers use tools like ChannelMAX to help manage pricing and improve profit margins across both models.

Also Read: Amazon FBA vs FBM: Which Fulfillment Method Is Right for You?

Why Choose Wholesale Over Other Amazon Models?

There are multiple ways to sell on Amazon, like retail arbitrage, private label, or dropshipping. So, why choose wholesale? The reason is that it offers more stability, can grow faster, and is quicker to start. Let’s look at the benefits and a few possible challenges of selling wholesale:

Benefits of Selling Wholesale on Amazon



Selling wholesale on Amazon offers many advantages for sellers who want to grow fast. Unlike private label or retail arbitrage, wholesale gives you a quicker, more stable, and easier way to sell, without the need to create your own product. Here are the main benefits:

1. Faster Launch Time

With wholesale, you don’t need to:

a. Make your own product

b. Design a brand

c. Create a new listing (in most cases)

You just buy branded products that already sell well and join existing listings. You can start selling immediately.

2. Lower Marketing Effort
You're selling products that are already popular and trusted, so you don’t have to spend on ads or build brand awareness. Customers already trust the brand. Your job is to:

a. Offer competitive pricing

b. Manage inventory efficiently

c. Win the BuyBox

3. Sell More Products Easily
Most wholesale products already have high search volume and consistent sales. With the right product, you can:

a. Sell in large quantities

b. Reorder based on proven demand

c. Grow your business with predictable revenue

This makes the wholesale model more stable than selling trendy or seasonal products.

4. No Need to Build a Brand
Private label sellers spend a lot of time building a brand reputation. But with wholesale, you use the existing brand value, which is faster and easier. You don’t need to:

a. Design packaging

b. Hande product warranties

c. Build long-term customer loyalty

You simply resell what's already trusted.

5. Bulk Pricing = Better Margins

When you buy in bulk, you get products at lower prices. That means higher profits for you. With proper planning and negotiation, you can get:

a. Better cost per unit

b. Special pricing for regular orders

c. Reliable profits from repeat sales

Challenges and Drawbacks of Selling Wholesale on Amazon



Selling wholesale on Amazon can be a great way to make money, but it also comes with some challenges. Knowing these early can help you plan better and make smarter decisions as you grow. Here are some common issues you may face:

1. You Need a Lot of Money at the Start

To sell wholesale, you must buy inventory in bulk. This means:

a. You need more money upfront

b. You pay first before seeing returns

c. If the products don’t sell, you may lose money

So, wholesale may not be the best choice if you have limited capital or are just starting out.

2. Brand and Category Restrictions
Many popular brands are not open to all sellers on Amazon. To sell them, you must:

a. Ask Amazon for permission

b. Submit invoices

c. Prove that you’re sourcing from authorized suppliers

If you can’t meet these requirements, you won’t be allowed to sell certain items.

3. Tough Competition for the BuyBox
In wholesale, many sellers sell the same product, so you have to regularly monitor:

a. Your pricing

b. Inventory availability

c. Your shipping speed and seller performance

If another seller offers a better deal or uses FBA and you don’t, you might lose the BuyBox and most of your sales.

4. Finding Reliable Suppliers Takes Time
Not all suppliers are genuine or willing to work with Amazon sellers. You’ll need time to:

a. Find trusted distributors

b. Build good business relationships
c. Avoid middlemen and fake wholesalers

You’ll also need proper documentation to follow Amazon’s policies.

5. Amazon Policy Changes
Amazon often updates its seller and product policies. As a wholesale seller, you must:

a. Stay updated on new product rules

b. Monitor changes to fees or BuyBox algorithms

c. Be ready to adjust your business quickly

If you don’t follow the rules, your listings can be removed or your account may be suspended.

How to Find Wholesale Products to Sell on Amazon?



Finding the right products is the first step to succeeding with wholesale on Amazon. You need to look for popular brand-name products that sell well and give a profit after fees and shipping. Here’s how you can do it:

1. Conduct Product Research on Amazon

Start by exploring what’s already selling:

a. Go to Amazon’s Best Sellers in your category

b. Look for products with good reviews and high rankings

c. Avoid items with too many sellers or frequent price drops

Look for products that have:

a. Moderate competition

b. High sales (low Best Seller Rank - BSR)

c. High customer demand

You can use tools to find best-selling products and spot trends across categories.

2. Use a Data-Driven Approach

Don’t just guess what will sell. Validate your product ideas with real data. Check:

a. How fast the product sells (Sales velocity)

b. How many other sellers are selling it?

c. If sellers are using FBA or FBM

d. Historical price trends (is it stable or always changing?)

Choose products that sell well the whole year, not just during certain seasons.

3. Search for Authorized Suppliers or Distributors

Once you have shortlisted the products you want to sell, the next step is to find suppliers. You can:

a. Contact brands directly and request to become an authorized reseller

b. Search in wholesale directories and trade platforms like Alibaba

c. Attend trade shows or business events to meet suppliers

Always ask suppliers for:

a. A full product list or catalog

b. Prices and minimum order quantity (MOQ)

c. Proof that they are allowed to sell that brand (important for Amazon compliance)

4. Test with a Small Order

Before placing a large order:

a. Start small to test sales performance

b. List a few units and see how they perform

c. Track return rates, price changes, and reviews

This approach helps you avoid risk and gives you time to understand how the product sells over time.

How to Get Brand or Category Approval on Amazon?



Some products on Amazon fall under restricted brands or categories, which means you need permission to resell them. Without this approval, your account could be suspended, or your listings could be removed. Here’s how to get approved:

1. Check If the Brand or Category Is Gated

To find out if a brand or category is restricted:

a. Log in to Seller Central

b. Go to Add a Product in your dashboard

c. Search for the product name or its ASIN

d. If it says “Requires Approval,” you’ll need to apply before selling

Common Examples of gated categories:

a. Grocery & Gourmet Foods

b. Health & Personal Care

c. Beauty & Cosmetics

d. Top brand electronics and fashion brands

2. Collect Required Documents

To get approved, Amazon will ask you for:

a. An invoice from a recognized distributor or brand (must be dated within the last 180 days)

b. The invoice should show at least 10 units of the product listed

c. Your business information and address

Make sure the invoice includes:

a. Supplier’s name, address, and contact info

b. Your business name and address

c. Product details and quantities

3. Submit Your Application

Steps to apply:

a. In Seller Central, click "Request Approval" for the brand/category

b. Upload your invoice and any other required documents. 

c. Submit the application and wait for Amazon’s response (usually within a few days)

Tip: Make sure your Amazon seller account is in good health.  Amazon is more likely to approve sellers with good metrics and a good history.

4. Build Long-Term Supplier Relationships
Working with trusted distributors who regularly issue valid invoices will help you:

a. Get easier approvals in the future

b. Avoid fake product issues

c. Protect your seller account from any suspension

How to Start Your Amazon Wholesale Business?



After finding profitable products and getting reliable suppliers, the next step is to set up your wholesale business on Amazon. This setup is important for smooth operations and long-term success.

1. Create a Professional Amazon Seller Account

To sell wholesale, you’ll need a Professional Seller account, which costs a monthly fee (currently $39.99 USD). With this account, you can:

a. Apply for approval to sell certain brands or categories

b. Access bulk listing tools

c. Use inventory and order management features

d. Try to win the BuyBox (which helps get more sales)

2. Register Your Business (Optional but Recommended)
While its not mandatory, but having a registered business (like a sole proprietorship, LLC, or private limited company) is a good idea. It helps you:

a. Work with genuine suppliers

b. Open a business bank account

c. Appear more professional to brands and distributors

d. Complete Amazon’s verification process more easily

3. Set Up Inventory and Choose How You Will Ship Products
You have two fulfillment options. You can choose any which favours your needs.

a. FBA (Fulfilled by Amazon) – Amazon stores, packs, ships your products, and handles customer service. You pay storage and fulfillment fees but you get access to Prime customers and often more sales.

b. FBM (Fulfilled by Merchant) – You pack and ship the products yourself. It’s cheaper as it has lower fees, but you have more responsibility and do more work.

Most wholesale sellers choose FBA because it’s easier and has higher sales potential.

4. List Your Products on Amazon
You can:

a. Join an existing listing if your product is already on Amazon

b. Create a new listing if the product is not yet listed or has a new variation

Ensure your:

a. The title, bullet points, and images are clear and accurate

b. The brand name is written exactly as it’s registered

c. Your product condition and price are good enough to compete

5. Automate Pricing and Inventory
Many wholesale sellers may be selling the same product.  Using tools can help you:

a. Automatically adjust prices to win the BuyBox

b. Keep track of your stock

c. Track your profit margins

d. Avoid stockouts or overstocking

Tools like ChannelMAX help you in repricing to stay ahead of the competition and earn better profits.

Tips to Succeed with Amazon Wholesale



Selling wholesale on Amazon can be a great way to make money. But to succeed, you need to plan well, use the right tools, and work consistently. Here are some useful tips to help you grow and run a successful wholesale business:

1. Start Small and Test Before Scaling

Don’t buy too much at first. Start with a small quantity so you can:

a. Check if the product sells well

b. Understand how fast it sells

c. Identify any issues or returns

Once you’re sure it’s doing well, you can reorder more confidently.

2. Build Strong Relationships with Suppliers

Reliable suppliers are very important for your business.

a. Communicate clearly and be professional

b. Always pay on time

c. Once you build trust, ask for better prices or special deals

Long-term relationships can give you discounts, early access to products, and many more benefits.

3. Use Repricing Tools to Stay Competitive
Many sellers may sell the same product. To win the BuyBox, your price, fulfillment method, and seller performance matter. Use automated repricing tools like ChannelMAX to:

a. Adjust prices dynamically

b. Stay ahead of other sellers

c. Avoid pricing too low or missing out on sales

4. Monitor Product and Policy Changes
Track changes in:

a. Product performance (returns, reviews, sales)

b. Amazon’s policies (listing restrictions, FBA fee updates)

c. Supplier prices or stock levels

Staying alert helps you act fast and avoid problems.

5. Diversify Your Product Portfolio
Don’t rely on a single product or category. Once you find success with one item:

a. Explore related products

b. Add seasonal or everyday items

c. Remove slow-selling products

Mistakes to Avoid in Wholesale Selling on Amazon



Even experienced sellers can face problems if they miss important steps. Avoiding these common mistakes can help you save your profits, account, and inventory.

1. Buying From Unverified or Unauthorized Suppliers

Don’t buy products from websites or sellers that seem untrustworthy. If Amazon doesn’t accept your invoices, you might:

a. Be removed from a product listing

b. Get flagged for selling fake items

c. Lose your selling account

Always buy from approved distributors or directly from the brand.

2. Not Checking for Brand or Category Approval
Some products are restricted on Amazon (called “gated”). Many new sellers forget to check it. If you list them without permission, Amazon may:

a. Remove your listing right away

b. Give you warnings or suspend your account

Before buying, check in Seller Central if the product needs approval.

3. Ignoring the BuyBox
To make good sales in a wholesale business, you need to win the BuyBox. If your price is too high or your shipping is slow, customers may not buy from you, even if you have the best product. Use repricing software and choose fast shipping methods to win BuyBox.

4. Buying Too Much Inventory Too Early
Don’t order large amounts just because the product “looks” profitable. If it doesn’t sell fast, you may face:

a. High Amazon storage fees

b. Money stuck in unsold stock

c. Expiration issues (especially for food or health products)

Start with a small order. If it sells well, then order more.

5. Neglecting Product Quality and Customer Returns

Even branded products can lead to returns if:

a. You buy from poor-quality suppliers

b. Items are damaged or outdated

c. Product details don’t match the Amazon listing

Always check your suppliers and the products. Too many returns or bad reviews can hurt your seller reputation.

Conclusion

If you want a business that is stable and can grow fast, then selling wholesale on Amazon is one of the great options. It lets you sell products people already want, without the stress of making new ones. You can grow your business quickly by buying in bulk and using tools to automate operations.

Yes, you’ll need some money to start, get approval from brands, and find good suppliers — but the results can be worth it. Wholesale is not a quick way to get rich. It’s a real business model that works when you stay focused and make smart choices. With the right approach, you can build a strong Amazon business that will keep growing in the long run. 

Also Read: Highest Selling Items on Amazon: What’s Trending and How Sellers Can Profit? 

Disclaimer:
Amazon is the registered trademark of the e-commerce brand.

About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing agents to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.



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