As more entrepreneurs explore eCommerce, the Amazon FBA wholesale model has become one of the most popular and profitable ways to build a sustainable online business. It combines the benefits of bulk product sourcing with Amazon’s fulfillment infrastructure to create a streamlined system for generating consistent income.

In this blog, we’ll break down everything you need to know about the Amazon FBA wholesale model, how it works, and why it could be the perfect opportunity for you.

Understanding the Amazon FBA Wholesale Model

The wholesale model on Amazon involves purchasing branded products in bulk from manufacturers, brands, or Amazon FBA wholesale distributors, and then reselling them on Amazon for a profit. Unlike private labeling, you don’t create your own brand. Instead, you leverage existing brands that already have demand in the marketplace.

When combined with Fulfillment by Amazon (FBA), Amazon handles storage, packaging, shipping, customer service, and even returns, allowing sellers to focus entirely on sourcing and scaling.

Key Steps in the Amazon FBA Wholesale Process

1. Create a Professional Amazon Seller Account

To start wholesaling on Amazon, the first step is to register for a Professional Amazon Seller account, which costs $39.99/month. This account gives you access to features like bulk listing, advanced analytics, and most importantly, eligibility to win the Buy Box.

You will also need:

• A business entity (LLC or sole proprietorship)
• A business bank account
• A reseller certificate or sales tax permit (depending on your location)
• Proper documentation to show suppliers you’re a legitimate seller

2. Find Reliable Wholesale Suppliers

The next step is finding suppliers for Amazon FBA. You can do this by:

• Contacting brand manufacturers directly
• Reaching out to authorized Amazon FBA wholesale distributors
• Attending trade shows or using supplier directories like ThomasNet, SaleHoo, or Worldwide Brands

Make sure to request wholesale price lists, confirm product authenticity, and verify the supplier’s credibility before placing your first order.

3. Select Profitable Products

Not every product is suitable for Amazon wholesale. Focus on products that:

• Are already in demand on Amazon
• Have a stable sales history
• Are not being sold by Amazon itself
• Offer enough profit margin (typically 30%+)
• Don’t have excessive competition

Use tools like Jungle Scout, Helium 10, and Keepa to analyze product trends, price history, and competitor activity.

4. Get Brand or Category Approval

Many products require approval to sell on Amazon, especially if they fall into restricted categories or are gated brands. To get ungated, you’ll often need:

• A purchase invoice from a distributor or brand
• A professional seller account
• A track record of seller performance

This extra step helps protect the brand reputation on Amazon and ensures that only verified sellers represent them.

5. Place Bulk Orders

Once you are approved to sell a product, place your first wholesale order. This typically involves a Minimum Order Quantity (MOQ), which could range from a few hundred to several thousand dollars’ worth of inventory.

Start with smaller quantities to test the product's performance before scaling.

6. Ship to Amazon FBA Warehouses

After you receive your inventory, it's time to ship it to Amazon. You can:

• Prep and label the products yourself, then send them to Amazon’s fulfillment centers
• Use a third-party prep center to handle labeling, bundling, and packaging

Once your products are in Amazon’s warehouse, FBA takes over, handling customer orders, delivery, returns, and customer service.

7. List and Optimize Your Product Offers

In the wholesale model, you are usually selling under an existing ASIN (product listing). However, you still need to optimize your offer by:

• Setting competitive pricing
• Maintaining healthy inventory levels
• Competing for the Buy Box

Winning the Buy Box is key to generating sales, and it’s influenced by factors like pricing, shipping speed, and seller performance.

Advantages of the Amazon FBA Wholesale Model

The wholesale model offers several advantages that make it appealing to both beginners and experienced sellers:

Proven Products, Lower Risk

You are not launching a brand from scratch — you're selling products with existing demand. This greatly reduces the risk of failure.

Scalable Business Model

Once you find reliable suppliers and profitable products, it’s easy to scale by adding more SKUs or increasing order volumes.

Time-Saving Fulfillment

Amazon FBA takes care of storage, shipping, and customer service, giving you more time to focus on growth.

Access to Prime Customers

Using FBA makes your products eligible for Amazon Prime, giving you access to millions of loyal customers.

Challenges to Be Aware Of

While the model is profitable, it’s not without its challenges:

Higher Upfront Costs

You need capital to buy inventory in bulk, pay for prep services, and cover seller fees.

Brand Gating

Some brands won’t approve new sellers easily, and it can be difficult to break into certain categories.

Competitive Market

You may face competition from other sellers offering the same products, which can lead to price wars.

Is Amazon Wholesale Right for You?

The Amazon FBA wholesale model is ideal for:

• Entrepreneurs looking for a scalable and sustainable business
• Those who don’t want to build a brand from scratch
• Sellers with initial capital to invest in bulk inventory

It is a proven path to success on Amazon — provided you do proper research, find trustworthy suppliers, and manage your listings effectively.

Work with Experts to Get Started

Looking for help setting up your business, sourcing products, and getting approvals?

Check out our page on amazon fba business for sale where Ghauri LaunchPad offers complete solutions — from company formation and supplier outreach to logistics and launch support.

Closing Insights

The Amazon FBA wholesale model offers an excellent way to build a profitable eCommerce business by leveraging existing product demand and Amazon’s world-class fulfillment system. With the right strategy, research, and supplier partnerships, you can turn this model into a long-term revenue stream.

Whether you are just getting started or ready to scale, now is the time to dive into wholesale on Amazon.