Paul Michael
March 13, 2025
Are you looking to start or scale an eCommerce business? Selling wholesale products on Amazon using Fulfillment by Amazon (FBA) presents an excellent opportunity for those seeking a reliable and scalable income stream. Whether you're searching for a side hustle or looking to build a full-fledged business, leveraging Amazon's infrastructure can help you succeed with minimal logistical hassle..
Selling wholesale on Amazon can be a scalable and profitable business model, especially when combined with the right tools to streamline sourcing, pricing, and inventory management. 15 Best Amazon Seller Tools for FBA in 2025 can help you maximize efficiency and profitability.
This guide will cover selling strategies, the advantages of Amazon Wholesale FBA, comparisons with other business models, and tips to help you source profitable wholesale products effectively.
What is Amazon Wholesale FBA?
Amazon Wholesale FBA involves purchasing branded products in bulk from distributors, suppliers, or manufacturers and reselling them as individual units at a profit. Unlike private labeling, wholesale selling eliminates the need to develop your own brand, making it a faster and less risky way to scale an Amazon business.
The Fulfillment by Amazon (FBA) model takes care of storage, packaging, and shipping, allowing sellers to focus on sourcing and scaling operations. Traditional wholesale businesses require renting warehouses and hiring staff to handle logistics, but Amazon FBA reduces upfront costs and operational headaches by shifting fulfillment responsibilities to Amazon.
Wholesale vs. Other Business Models
To make an informed decision, it's essential to compare Amazon wholesale with other common selling strategies.
Wholesale vs. Retail Arbitrage
Retail arbitrage involves buying discounted products from retail stores and reselling them on Amazon at a higher price. While this method has a low barrier to entry, it requires continuous effort to source inventory manually.
Pros:
- Low startup costs
- Ideal for beginners
- No minimum order quantities
Cons:
- Time-consuming and hard to scale
- Requires constant product hunting
- High competition and risk of price fluctuations
Wholesale vs. Online Arbitrage
Online arbitrage follows the same concept as retail arbitrage but sources products from online retailers instead of physical stores.
Pros:
- Work-from-home flexibility
- Access to thousands of online stores
Cons:
- Intense competition due to widely available deals
- Difficulty in restocking the same profitable products
Related: 15 Best Amazon Seller Tools for FBA in 2025
Wholesale vs. Private Label
Private label selling involves creating your own brand by sourcing generic products from manufacturers and adding unique branding and packaging.
Pros:
- Full control over branding and pricing
- No competition on your listing
- Potential for long-term brand growth
Cons:
- High startup costs ($10k+ recommended)
- Requires marketing investment
- No guaranteed demand
Wholesale vs. Dropshipping
Dropshipping allows sellers to sell products without holding inventory, where suppliers ship items directly to customers.
Pros:
- No inventory storage or handling required
- Minimal upfront costs
Cons:
- High risk of account suspension (violates Amazon’s policies if not done correctly)
- No control over fulfillment speed and product quality
- Limited profit margins
Selling Wholesale on Amazon
The wholesale business model combines the scalability of private label with the low risk of arbitrage. Instead of constantly hunting for deals, you can reorder profitable products in bulk, ensuring a stable and scalable income stream.
With wholesale selling, you can analyze past performance data to minimize risks. Using tools like Analyzer.Tools, sellers can quickly assess sales trends, pricing history, competition, and profit margins before making a purchasing decision.
Steps to Start Selling Wholesale on Amazon
- Create an Amazon Seller account
- Find profitable wholesale products using data-driven sourcing tools
- Contact suppliers and open wholesale accounts
- Order and ship inventory to Amazon’s FBA warehouse
- Let Amazon handle fulfillment while you collect profits!
Best Wholesale Products to Sell on Amazon
Choosing the right products is critical to success. The goal is to find products with high demand and low competition. Instead of guessing, use bulk analysis software to filter through supplier catalogs and identify hidden gems quickly.
What to Look for in a Profitable Wholesale Product:
- Consistent sales history – Avoid seasonal products unless planned strategically.
- Lightweight and small – Lower shipping costs increase profitability.
- No Amazon competition – Avoid listings where Amazon is a seller, as they dominate the BuyBox.
- Healthy profit margins – Ensure profitable after all fees.
Tips for Selling Wholesale on Amazon
- Check if Amazon is a competing seller – Amazon prioritizes its own inventory in the BuyBox. Avoid products where Amazon holds significant stock.
- Use competitive pricing strategies – Instead of undercutting competitors, price competitively while maintaining healthy margins.
- Stick to smaller, lightweight products – This reduces FBA storage fees and shipping costs, maximizing profit margins.
- Factor in all Amazon fees – Use a profit calculator like Analyzer.Tools to ensure profitability before purchasing.
- Avoid “Amazon supplier directories” – The best suppliers are not publicly listed; find them through trade shows, industry contacts, or direct outreach.
- Follow Amazon’s Terms of Service – Failure to comply can result in account suspension.
Finding Wholesale Suppliers
1. Use Wholesale Trade Shows
Industry trade shows like ASD MarketWeek feature top suppliers. Even if you can’t attend in person, exhibitor lists can be valuable for supplier outreach.
2. Source by Competing Seller Storefronts
Use Analyzer.Tools’ Storefront Search to analyze competitors’ inventory and identify brands they source from. Then, contact these brands to open wholesale accounts.
3. Reverse Sourcing on Amazon
Instead of searching for suppliers first, identify low-competition profitable products on Amazon, then trace them back to the manufacturers.
4. Subscribe to Trade Publications
Industry magazines and wholesale directories provide insight into upcoming trends and supplier contacts.
Final Thoughts
Selling wholesale products on Amazon via FBA is a scalable, low-risk business model that offers long-term growth opportunities. Unlike arbitrage, it allows repeatable product sourcing, and compared to private label, it involves less upfront investment and risk.
To succeed, data-driven decision-making is key. Use powerful analytics tools like Analyzer.Tools to quickly assess wholesale catalogs and make profitable sourcing decisions. By leveraging Amazon FBA’s logistics, focusing on high-demand, low-competition products, and working with reliable suppliers, you can build a profitable and sustainable business on the world’s largest eCommerce platform.