For more than a decade, I have been an active Amazon seller, dedicating the past six years to exploring various selling methods on the platform. Through my experience, I have found that leveraging wholesale suppliers is the overall best approach, offering scalability, consistency, and ease of entry.
However, what most people don't realize is that you don't necessarily need to make bulk purchases upfront to engage in this business model. In fact, combining Amazon wholesale with Drop Shipping opens up a whole new realm of possibilities. In this blog post, I will compare the benefits and drawbacks of selling wholesale on Amazon FBA versus drop shipping, drawing from my personal experiences.
Wholesale on Amazon FBA: Selling wholesale on Amazon FBA involves purchasing products in bulk from manufacturers or distributors and then reselling them on Amazon. One of the major advantages of this model is the ability to secure products at a lower price due to the bulk purchasing power that comes with partnering with established companies. Additionally, you can capitalize on existing product demand and recognized brand names on Amazon, eliminating the need for extensive advertising or brand building efforts.
Moreover, Amazon FBA handles logistics, customer service, and fulfillment, allowing for seamless scalability. However, it's important to note that competition from other sellers offering the same products can be a challenge, as they may acquire the goods at similar costs. Another hurdle is accurately testing listings before committing to large inventory purchases, as miscalculations can lead to costly mistakes.
The Rise of Wholesale Drop Shipping: Wholesale Drop Shipping, often underestimated, is a viable and permissible approach within Amazon's terms of service. This method closely resembles wholesale FBA, but with significantly lower risk. Wholesale Drop Shipping involves setting up accounts with wholesale companies, scanning their product lists for profitable items already selling on Amazon, and listing those products for sale.
Rather than shipping products to Amazon FBA, the wholesale company directly ships the products to customers on behalf of the seller, while the seller keeps the profit. This eliminates the need for large upfront investments in inventory and the hassle of product inspections and FBA shipments. Utilizing software can further automate and streamline the wholesale Drop Shipping business, significantly reducing manual efforts.
However, it's important to note that the pool of drop shipping-friendly suppliers may be more limited compared to traditional wholesale, and competition with FBA sellers may initially impact sales for new sellers due to shipping times and sales history considerations. Nevertheless, as trust is built with Amazon and sales increase, these challenges diminish.
Choosing the Right Path: Deciding between wholesale FBA and wholesale Drop Shipping depends on individual preferences and circumstances. Both approaches have their merits and offer unique opportunities. To delve deeper into each method, I have curated playlists on both wholesale FBA and wholesale Drop Shipping, providing comprehensive insights and guidance for those interested in exploring either path.
As an experienced Amazon seller, I firmly believe that both wholesale FBA and wholesale Drop Shipping present tremendous opportunities. While wholesale FBA offers the advantage of bulk purchasing power and access to established brands, wholesale Drop Shipping reduces risk and capital requirements, allowing for a more flexible and scalable business model. It's essential to thoroughly understand the benefits and drawbacks of each approach before embarking on your Amazon selling journey.
Remember, success lies in choosing the right path that aligns with your goals, resources, and appetite for risk. Should you wish to explore the world of wholesale Drop Shipping and learn how to set up a self-running business with software, watch the short video linked in the description. Ultimately, this blog post reflects my personal experiences and highlights the vast potential in both wholesale FBA and wholesale Drop Shipping. May this insight guide you towards a thriving Amazon selling venture.
If you'd like to watch the complete video explanation of this, check it out below.