How Amazon FBA Wholesale Works

It’s when you sell branded products that you source directly from authorized suppliers (also known as wholesalers). This requires buying products in larger quantities, which means you’ll need a bigger budget. However, your per-item price will be much less than if you bought your inventory from a retail store. This means there’s potential for higher profits.

Wholesale provides a great way to get into online sales. If you’re interested in learning how to become an Amazon reseller, follow these steps.

How to Start a Wholesale Business on Amazon - Step-By-Step

Wholesale selling might seem intimidating at first, but it’s actually fairly easy to get started. Follow the steps below to learn how to sell wholesale goods on Amazon.


Do Your Product Research

Whether you decide to sell books or clothing, your first step is to decide which wholesale products to sell on Amazon. It may be tempting to simply pick items that you think are cool or interesting, but if you really want to be successful, you need to make decisions based on factual data.

As a wholesale seller, there are two ways you can go about finding new products:

Research the items offered by your supplier to see which ones are most profitable.

Search Amazon to find the most profitable products, then find suppliers that offer those items.

Whether you begin your search with or without a supplier in mind, conducting thorough product research is crucial. Fortunately, there are some great tools available to assist you with finding the best products to sell.


Amazon Wholesale Product Research Tools

To streamline the time-consuming process of finding an ideal product, you can start with the Amazon Dropshipping, Arbitrage, and Wholesale Extension.

Here is how it works:

Step 1: Install the extension. You can add the plugin through this link.

Step 2: Start your free trial. You do not need to enter your payment details.

Step 3: Browse Amazon to find product ideas. Start by opening to search for a niche.

Your search may include:

Products from wholesale suppliers

Niches you are interested in (anything from electronics to cute gift bags)

Products trending on other marketplaces (offline or online)


Prioritize your product ideas.

Scroll through Amazon search results while checking the data underneath each product. The Online Arbitrage and Dropshipping extension will show you:

Margins (pay special attention to margins above 50%)

Amazon fees you need to pay to sell this product (or while using FBA)

Seller types (if Amazon sells this product, you will have high competition and few chances to win the Buy Box. Pay attention to products that have a combination of FBA and FBM sellers)

Using the tips above, you can mark priority products and look at each of them more closely.


Check the TOP products from your list.

Each Amazon product page will have a built-in window with important information about the product. Check for private label, ungated, and hazmat products. You can find out more about these product aspects below.


Review the historical data of the product.

After checking your product criteria in the app and narrowing down your list of products, check Price History and Buy Box History. Looking at price fluctuations can help you develop the best repricing strategy. Whether you’re selling t-shirts or guitars, repricing can help you remain competitive.


Find out how much potential profit it offers.

on-page calculator enables you to enter your costs. Your costs will depend on your business model and may include:

Shipping costs (provided by your supplier or shipping provider)

Advertising costs (from Amazon PPC bids for your target keywords)

Other (tools, subscription, etc.)

The app quickly calculates your sales margins with this data. You’ll see new numbers in Profit Margin, Minimum Net, and ROI fields. Those numbers determine how profitable the product will be.