When and How to Start Wholesale on Amazon for Beginners
You may have had your Amazon business for a while now, knowing the ins and outs of online arbitrage like the back of your hand. Or you might not have even started yet, waiting for the right opportunity to begin your journey with.
Either way and wherever you might be in your Amazon selling journey, selling wholesale is truly an opportunity and an experience that you don’t want to miss out on.
Since starting my own Amazon FBA business back in 2015 from my living room, I’m proud of my journey and my team for getting to where we are today. We’re now based in a 10,000 square foot warehouse where we ship multiple online arbitrage boxes and wholesale pallets every single day. I’ve also had the pleasure of working with many other Amazon sellers so far, helping them to grow, scale and systemise their online arbitrage and wholesale businesses.
It’s fair to say that I’ve learnt a lot about these online selling models having experienced it all firsthand for myself. Keep reading to find out my top advice on when and how to start in wholesale on Amazon for beginners…
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The difference between online arbitrage and wholesale
I’ve come across many sellers who have failed to get started with wholesale because they simply don’t know or understand the difference between these two different models. And that’s something I want to highlight - they are different.
Online or retail arbitrage is when you are purchasing products from Business to Consumer businesses (B2C), to then sell on Amazon at a profit.
Wholesale, on the other hand, is Business to Business (B2B). You are a business purchasing products at scale directly from another business, to then sell on Amazon at a profit.
Although they sound similar, which of course they are in some ways, you’re actually dealing with very different types of people. In wholesale, there is much more opportunity to create long-lasting, beneficial relationships for both parties which is why this business model is one that I personally feel more aligned with.
When to start
The answer to this, all comes down to you and what your goals are with your business.
Do you want to quit your job?
Do you want to achieve financial freedom?
Do you want to build your own team?
I’m guessing that most people will answer yes to at least one if not all of the above - and with that being so, then it has never been more important than NOW to start in wholesale for your Amazon business.
As those that are already sellers may know, a lot has changed over the last few years on Amazon with rule changes and other updates.
And 2020 has been one heck of a year with the pandemic, completely changing the world as we know it. However, with it, it has brought so much opportunity for online sellers.
Things can change at any time, so if building a multiple figure business it something that is on your mind, wholesale is an amazing way to do that and the time to start is now.
How to start
The crux of succeeding in wholesale lies in creating strong, happy relationships with suppliers. And the way to begin in wholesale is to start by opening accounts with suppliers. That’s why you must give your all into establishing these relationships.
One of the best ways to open new accounts is to attend a trade show, where you can meet lots of potential new suppliers face to face. Check out this blog post sharing our top tips for attending trade shows and opening new accounts with suppliers.
However, due to the pandemic, as you may know, many trade shows have been cancelled or put on hold. Don’t worry though - if you go on to a trade shows website, you’ll usually be able to find the full list of suppliers who would have been trading at said trade show, along with their contact information. This means that you can start contacting them and building rapport straight away!
Building these relationships is so important because it is only when you have a good relationship with a supplier that you can begin to negotiate different discounts, resulting in higher profit margins for you. There are reasons why a stock list and its prices could look very different to two different sellers - and it all comes down to the relationship they have with the supplier.
The most vital step in beginning in wholesale is to open as many accounts as possible. You can start making calls and sending emails straight away - do as many as you can! You need to get those accounts open so you can get access to the stock list, and then look to taking the next steps that are necessary.
If you want to get started as a beginner in wholesale on Amazon FBA, don’t put it off any longer and start straight away.
Start looking at products, researching suppliers, contacting them and building those all-important relationships. Open as many accounts as you can!
You can succeed in wholesale as long as you approach it with the right attitude and mentality. Get started now by checking out our free in-depth wholesale training here.
Here’s to your massive success!