Amazon Wholesale Account Requirements: The Basics

Learn the basics of Amazon Wholesale Account Requirements, so you can understand and make informed decisions when creating your versatile wholesaler setup. All the information and resources you need to succeed!

Amazon Wholesale Account Requirements: The Basics

There are many ways of earning online today, and one of the most popular forms of creating wealth is by turning into an Amazon seller. By selling goods and products online, you can quickly generate a lot of money. Amazon selling can be a very stable source of income for people who wish to go for something other than a full-fledged business model. 

Onboarding on the Amazon platform as a seller is effortless, and you can do it. However, the trick remains in choosing the right product and business model for prolonged success. The best way to do this is to start with wholesaling on Amazon. Before you start selling on Amazon, know about the Amazon Wholesale Account Requirements to make an informed decision and maximize your earning potential. 

Even if you are a professional with a 9 to 5 job, the Amazon FBA wholesale can be a great side hustle. You can identify as a small-scale entrepreneur by managing your Amazon FBA profile and business. eCommerce and consumerism are here to stay, and partnering with the pioneers of eCommerce can help you create an earning potential that you do not get with a traditional job. Signing up on Amazon as a seller is easy, but you need to know in depth to sustain it. Amazon is a place where you can sell anything and start a business. It is famously known as the A to Z marketplace. 

How Do You Wholesale On Amazon? 

Think of a wholesale store but on an online marketplace; that is what you do when you sell wholesale on Amazon. You buy the products you want offline from producers and suppliers at a low rate and then sell these discounted products online. This is also drop shipping because you are not producing these products but simply sourcing these products out. The selling method is wholesale because you source many products from the market and sell them to a large audience. 

This bulk selling is called wholesale selling online. The profit margin can be very high because you source out the products at a wholesale offline price. The audience can learn how you sourced the products or the actual cost of the product. All they need to know is the online cost. For Amazon business wholesale selling, you must create a great rapport with local suppliers and create a robust supply chain to source the right products at highly discounted rates. 

The wholesale method differs from the standard selling method because you must sell many products and source them simultaneously. Bulk sourcing and wholesale selling help you get an excellent discount to increase your profit margins. There are many reasons why interested sellers should sell in the wholesale mode on Amazon. Read on to find out about the benefits of trading in a wholesale manner on the Amazon marketplace. 

The Benefits Of Selling Wholesale On Amazon 

Reach A Wider Audience

You can reach millions of customers online by signing up on Amazon and taking up wholesale selling on the platform. Amazon has existed for decades as a marketplace with billions of users. When you choose a product niche and start selling, you are selling products and connecting with millions of people. The online market is more comprehensive than any physical marketplace in the offline mode. 

When you buy products at a wholesale price and sell online, you can make profits while keeping the price low. This will attract many potential customers and help you make more profits. You can start as a local store but slowly send to global locations. Therefore, Amazon's business wholesale mode is very profitable for small-scale sellers with geographical limits.

Increasing Sales

You can also start selling and then focus on increasing sales. Usually, in the physical mode, you can increase sales when you create more stores. However, with one wholesale store on Amazon, you can increase sales by focusing on marketing and promotions. Amazon has its own inbuilt marketing tools and algorithm that you can look into to attract more audiences. Simple marketing tactics like SEO marketing on Amazon can help you increase your customer base. 

Moreover, the Amazon platform has a growing audience. So, your sales will automatically increase if you are consistent with your selling processes. If operations and quality are stable from your side, you will see a steady rise in sales and profits. You can also take Amazon seller courses online and read case studies of wholesale online selling to increase your sales and profits.

Save Time And Money

With the singular platform of Amazon, you can create a stable and growing business. If you want to use marketing strategies, you can do so on the Amazon platform and link your social media with the platform. You save a lot of time by streamlining activities online and focusing on one profitable, growing platform. On the other hand, you can also save a lot of money because you do not need to invest a lot in Amazon marketing. 

The marketing tools and algorithm of the platform help you get more customers and revenue with minimal costs. Once your business is established, and considerable profits come in for the venture, you can hire a marketing consultant or digital marketing expert to increase your sales. Even with the hiring costs, you will spend very little money compared to an offline venture or traditional marketplace.

Maintain A Steady Inventory

Everything on the Amazon platform is digital and has digital records. Therefore, inventory and supply chain management are also accessible while selling on Amazon. You can keep track of your inventory and still maintain a steady supply of products to circulate. Before your inventory is over, you can restock it as required. 

The inventory can be maintained by coordination between offline and online modes. You can also use the platform's analytics to know how well a product is selling to estimate its demand. Depending on the market, you can decide which products to stock up further and which ones to keep as they are. Knowing the demand and supply trends on the Amazon platform is very easy.

Faster Ordering

When you sell online on Amazon FBA wholesale, you can create more selling scope as customers order faster. You can list your items as single inventory items, and then customers will order them faster. These single-inventory items are more accessible to buy than single-click items. The customer will be able to purchase these items as bulk items in an impulsive way.

High-Demand Products

When you are ordering in a bulk manner, and you want to engage with the customers to provide what they want, you will have to study the marketplace trends. Knowing which products are in high demand can take time and effort. However, you can understand the high-demand products once you know where to look. Research the marketplace and online to understand what exactly is in demand. 

Once you know the high-demand products of this season, you can start sourcing them and sending them out to customers. The trick is to cater to the audience by floating what is wanted in the customer base. Once you start knowing the high-demand products, your sales will go up in a short amount of time. You can also change the products you source depending on the demand trends.

Lower Prices Of Cost Margin

This is something that is highlighted in the previous section too. The main difference between standard selling and wholesaling is how much you pay to buy them and how much you make on them. Sourcing them at a meager cost and selling them at higher costs create significant profit margins for your business. When you source products wholesale, you save considerable money in the purchase process, and the difference between cost and selling price goes steeply up. You make a lot of profit, which can happen for an extended period.

No Time Spent On Label Or Logo

Amazon is a marketplace where every kind of product from different businesses is available. The products you sell need not be exclusively branded. What people buy on Amazon mostly depends on usability, reviews, and visibility. While you can gather reviews and visibility through marketing tactics, you do not need to create private labels, brands, and other aspects of your image. 

Many people on Amazon buy based on cost. If your price is lower and there are good reviews of the products online, you are most likely to get orders. Customers know that there are many generic brands and small businesses online. They do not necessarily look for a brand. Most people go on Amazon to experiment with brands and gain access to a larger, cheaper market. 

Therefore, you can focus on something other than creating a private label or a brand. However, you must focus on managing the supply chain and the overall operations. The product that you sell should be as promised, and it should reach the customer intact. Packaging and delivery matter a lot in online wholesale processes.

Related: How To Sell On Etsy Wholesale

What Are The Issues With Selling On A Wholesale Basis On Amazon? 

High Storage Costs

When you start sourcing bulk items wholesale, you need to figure out how you will store these items. Storing so many items in one go will take a lot of storage space and cost a lot. You can create inventory in many ways, but the essential requirement is an investment in the storage space needed. 

If you already have a space from which you can start, like an attic or a backyard garage, then it's good. If you do not have a storage space, you must look for a warehouse for rent. Estimate the number of items you will store and decide the warehouse facility you want to take. 

Depending on the demand and projections, you need to choose the space and, if required, change the space when the need arises. This process will take a lot of research and study. It would help to consider the storage costs and how you will send packages from the setup.

Large Upfront Investments

To set up a wholesale business on Amazon, you must invest a lot first. You must spend much money to source the products first without guaranteeing profits. This can cause the investment amount to go up. When we add the cost of warehouse renting and other costs related to the business, the initial prices are very high, and you need to gather funds.

Once the business is established and you are all set with a steady stream of profits, you can reinvest in and expand it further. If you have the funds from the beginning to invest in a full-fledged wholesale business, you can invest in a small dropshipping business.

Time-Consuming Product Research

You can start your wholesale business online on Amazon in a few steps. However, you also need to consider how much research and study you must put into the platform to know about it. You must know about the marketing tools, the algorithm, competitors, and platform trends. You need to conduct extensive research on the platform to learn about these stakeholders. 

In the beginning, you might even feel lost because of the volume of research you have to conduct. The time you have to invest in getting the research right is a lot of time and money. You may have to hire market researchers and consultants for the process. Therefore, in such a case, if you do not have the time or money to invest in the platform, you should not go ahead with the whole process.

How Is Wholesaling On Amazon Different From Dropshipping?

Drop shipping is a new trendy word that has entered the eCommerce ecosystem. Sellers are interested in drop shipping as it takes fewer resources and time and can create profit on any scale. Some sellers mistake the drop shipping strategy for the wholesaling process on Amazon. However, dropshipping is very different from wholesale selling on Amazon. You do not have to store, package, or fulfill the order for drop shipping. 

You put up the product listing, and when a customer orders the same product, you place the same order with your drop shipping supplier according to the demand. This is very different from the way a wholesale seller operates. The final product for the sellers is the profits, of course. However, how do you go about making a profit? In the wholesale model, the seller buys the products before the customer orders. 

The bulk items are stored at a warehouse or a storage space, and depending on the demand, they are sent out after packaging. There is no intermediary for the registered seller as there is no drop shipper in the middle. The profit margins for wholesale selling are higher than drop shipping, but the seller has to invest money and time to set up and operate the business. It all depends on how much profit you want to make. 

How Much Money Do Sellers Make By Selling Wholesale On Amazon? 

There is a lot of money to earn if you sell products online wholesale. Usually, the profit margins for wholesale selling online can go from 10 percent to 50 percent of the cost you spend. Your profits depend on the supplier you buy from, the storage costs factored in, and other additional costs like marketing costs. Many factors decide the final price of the product and the profits you make. The demand for the product, the competition you face in the marketplace, the tactics you use to tackle them, and the shipping costs all factor in.


The Amazon Wholesale Account Requirements are complicated but understandable with the right amount of guidance. Establishing a successful business on the world's largest eCommerce platform is within reach for any entrepreneur when the proper steps and preparations are taken. Now that you know what your wholesale account needs and understand the process required, you're one step closer to being part of the expansive Amazon marketplace. As you set up your new venture and take it to heights, you never thought possible, remember that Simpl can help. From order fulfillment to success in growing your new business, our platform is designed to bring convenience where previously there was chaos. Get in touch today; we look forward to helping you get started!

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