Amazon Wholesale Explained: How to Source, Sell, and Profit with FBA - BellaVix

Amazon Wholesale Explained: How to Source, Sell, and Profit with FBA

Amazon Wholesale is one of the easiest models for starting to sell products on the marketplace. It has many advantages that can be game changers. However, because you sell branded products, you’ll need to do a lot of research… and then face the fierce competition selling the same products as you. 

This article will explore Amazon Wholesale’s opportunities while explaining the step-by-step process for you to start selling as soon as possible.

Understanding Amazon Wholesale

In the Amazon Wholesale model, sellers buy branded products in large quantities directly from authorized distributors. These products are then listed and sold on Amazon, often with the help of the Fulfillment by Amazon (FBA) program. 

Amazon Wholesale is different from private labeling, where sellers create and market their own brands. The key here is buying a specific product in bulk for the lowest price possible to resell it for a profit. Amazon FBA inventory management is crucial for this model of business. There are many factors to consider before even starting the process:

Certifications and Seller Account 

Before launching a wholesale business on Amazon you’ll need proper certifications and legal setups. These documents allow you to source products from authorized distributors and brands while ensuring your business follows Amazon’s policies and state regulations.

Seller Central Getting Started Amazon

1. Business License

To operate as a wholesaler, you must first register your business legally. This typically involves forming an LLC or corporation (though a sole proprietorship is also possible). A business license legitimizes your operations and is often required by wholesale suppliers to initiate partnerships.

Once you’re in, always prioritize having a positive professional relationship with your suppliers. Engage with respect and confidence, as buying products in bulk usually involves a phase where you can negotiate prices with your supplier.

North-carolina-business-license

2. EIN (Employer Identification Number)

An EIN, issued by the IRS, acts like a Social Security number for your business. It’s essential for tax purposes and a requirement when applying for wholesale accounts or opening a business bank account.

Business EIN Number Amazon Account Setup

3. Resale Certificate (or Sales Tax Permit)

A resale certificate allows you to purchase goods tax-free when you plan to resell them. Most wholesalers and distributors will ask for this document before supplying products to you. The specifics vary state by state, so check with your local tax authority about what you need.

4. Amazon Professional Seller Account

While not a “certification” in the traditional sense, a Professional Seller account is a prerequisite for selling wholesale on Amazon. The Individual plan doesn’t support the scale or features needed for wholesale operations, such as inventory management tools or bulk listings. Plus, for Amazon, it’s another barrier against scam sellers.

5. Brand or Supplier Approval Documents

Some brands require specific approval or authorization letters before allowing you to sell their products. Amazon may also request invoices or authorization letters to verify your sourcing and prevent counterfeiting or unauthorized listings.

 

Keep up with the latest Amazon and Walmart news updates and subscribe to our BellaVix newsletter 👇👇👇

Research

It is the backbone of a profitable Amazon Wholesale business. Unlike private label sellers who build a brand from scratch, wholesale sellers rely on existing products with established demand, which means a lot of competition. Having that in mind, finding the right product to sell still requires strategy, data analysis, and a reasonable understanding of Amazon’s sellers and competitors.

Amazon Product Opportunity Explorer

1. Product Research

The goal of product research is to identify branded products that are already selling well but leave room for additional sellers. You’ll want to target products with:

  • Consistent demand (using tools like Helium 10 will help you identify it)
  • Low to moderate competition
  • Stable pricing and margins
  • Favorable Best Seller Rank (BSR)

Avoid products where Amazon Retail (not third-party sellers, but Amazon itself), is one of the sellers on the product page. Unless you have brand approval, you should also avoid restricted categories or brands that enforce tight seller restrictions or MAP (Minimum Advertised Price) policies.

2. Profitability Analysis

Before moving forward, here’s a breakdown of all costs involved:

  • Wholesale cost per unit
  • Amazon referral and FBA fees
  • Shipping and storage costs
  • Taxes and returns

Use profit calculators to ensure you reach healthy margins after taxes (typically aiming for 15–30% profit). A good rule of thumb is the 3x rule: your selling price should be at least 3 times your product cost to remain profitable after fees.

You can use Amazon’s FBA Revenue Calculator to estimate:

  • Fulfillment fees (FBA)
  • Referral fees
  • Net profit
  • ROI (Return on Investment)

You enter product data such as item price, shipping cost, and dimensions, and it calculates your estimated profit after Amazon’s fees.

Amazon FBA Fee Calculator Beauty Products

3. Verify your suppliers

Once you decide on a product, find authorized distributors or directly contact the brand. Always verify supplier legitimacy. Many wholesalers require:

  • Your resale certificates
  • Business license
  • Minimum order quantities

4. Listing Optimization

While wholesale sellers don’t usually create listings from scratch, they must enhance or contribute to existing listings to compete. A few things you should take into mind for listing optimization:

  • Ensure accurate product titles, descriptions, and bullet points
  • Upload better-quality images (if allowed via Brand Registry or Listing Contributions)
  • Use relevant backend keywords
  • Monitor and improve listing content through Amazon’s Brand Analytics or third-party tools.

Amazon Listing Optimization Getting Started

5. Inventory & Pricing Strategy

Once listed, success comes down to pricing and inventory control. The Wholesale model requires it. For example, a common mistake is overstocking and being unable to sell all your products… while losing a ton of money. Or the contrary: missing big selling opportunities because you missed a crucial restock.

To avoid this, use automated repricing tools to stay competitive without engaging in race-to-the-bottom pricing. You should also monitor sell-through rates and plan restocks to avoid long-term storage fees.

Conclusion

Amazon Wholesale can offer lower risk than private label models and the potential for steady, scalable income. It’s no wonder wholesale has become a go-to strategy for serious Amazon sellers.

However, conversions require preparation and optimized execution across listings, pricing, and inventory management. The competition is fierce, and sometimes you’ll need a little help. That’s where we come in. BellaVix specializes in improving the visibility of your listings in the Amazon marketplace to boost sales and improve profit margins.

Ready to Launch (or Scale) Your Amazon Wholesale Business?

The Amazon Wholesale model is full of opportunity—but only if you get the details right. From choosing the right products and verifying suppliers to managing pricing and staying competitive with your listings, there’s a lot to juggle.

That’s where we come in.

At BellaVix, we help Amazon sellers like you cut through the noise and build a wholesale operation that actually scales. Whether you’re new to Amazon or looking to optimize an existing account, we’ll help you avoid costly mistakes, stay compliant, and increase your margins.

Fill out the form below and let’s talk about where you are, what you’re selling, and how we can help you grow.

You’ll walk away with actionable insights—and a clear path forward. No fluff, no pressure. Just strategy that works.

Fill out the form and let’s get started.

Leave a Comment

Posted in | | |
Scroll to Top