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FAQs
What is Amazon FBA Wholesale?
Amazon FBA Wholesale is a business model where you sell items from existing Brands on Amazon. How it works is that you find profitable items on Amazon and then contact the relevant Brands and ask for their permission to sell on Amazon. You can also ask for their authorized Distributors if they don’t sell to you directly. Then contact the distributors, order the quantity according to sales on that particular item on Amazon, and then sell them.
What is required to start Amazon FBA Wholesale?
To start a Business on Amazon, be it wholesale or any other business. You first need a Legal Business Entity. Be it LLC or Corp if you’re in the US or Ltd company if you’re in the UK. Then in the case of the US, you require a reseller Certificate and EIN. Apart from this, you also require a website to give to Brands or Distributors to make you look more authentic.
How much Investment is required for Amazon FBA Wholesale?
Different tiers of Investments are required for different tiers of Wholesale Business on Amazon. To start, you need at least 10,000 USD to start with, which includes the cost of registering a Company, making a website, and also for buying inventory. But the ideal Budget should be above 25,000 USD. Different kinds of Service Agencies require different kinds of Investments to start with. We at Sharks Ecom prefer Clients with more budget because more budget means more sales, more profits, and Better ROI.
What is the Difference between Amazon Wholesale and Amazon Dropshipping?
There are plenty of differences between Amazon Wholesale and Amazon Dropshipping. The main one is that in Amazon Dropshipping, you’re selling on Amazon without proper authorization from the brand. Whereas in Amazon Wholesale, you only sell the products after being officially authorized by the Brand itself or by buying the items from the Brand’s Authorized Reseller or Distributor. Amazon Dropshipping also results in more Account Suspensions and Issues as it’s not a proper Business Model, to begin with. Amazon Wholesale takes a bit of time comparatively but overall a very safe and good business Model
Is Amazon FBA Wholesale a risky business model?
The business itself is a Risk. No Business on Earth comes without Risk. But among other Business Models on Amazon, Amazon FBA Wholesale has less Risk and is a lot safer.
Why is Amazon FBA Wholesale better than Private Label?
Amazon FBA Wholesale and Amazon Private Label are two different Business Models that have different dynamics. From Investment Perspective, Wholesale requires less investment. You can start making money on Amazon faster in wholesale as compared to Private Labels.
Is Amazon FBA Wholesale and Amazon FBM Wholesale the same thing?
No, FBA means fulfillment by Amazon and FBM means fulfillment by Merchant. In FBA, you ship your inventory to Amazon, and then Amazon picks, packs, and ships your order whenever you receive one. Whereas in FBM you fulfill the item either by yourself or hire another 3PL company to do so, any fulfillment that is not done by Amazon is known as FBM.
Which is better, FBA or FBM in Amazon Wholesale Business?
Both fulfillment models are for different kinds of Business sizes and depend upon the product size and weight as well. For small and lightweight items, it is recommended to do Amazon FBA as it helps you win the Buy Box more.
When can you start making money in Amazon Wholesale Business?
Typically it takes 2-5 months until you start making some money. Generally is taken by Product Hunting, Brand Approvals, etc. The way most Service Agency works is that they start the process with the first step, which is Product Hunting, then comes Brand Approvals which is the most frustrating and time taking process. Resulting in 2-5 months of waiting before you start Selling on Amazon. Whereas Sharks Ecom takes that all out of the way, we already have suppliers and Distributors lined up. So with us, it takes less than 2 months to start making money on Amazon.
What is the ROI (Return on Investment) in Amazon FBA Wholesale?
What most Service Agencies achieve is typically 15-25%. But Sharks Ecom provides its Valuable Clients with ROI ranging from 20%-50% and above as well in some cases. This is because we have and target High Investment Clients and Investors so we have good relationships with Big Suppliers and Distributors resulting in Better Profit Margins and ROI.