Amazon Wholesale FBA Model: Ultimate Guide to Amazon Wholesale FBA Model
If you want to learn how to sell on Amazon but don’t know where to start, this blog is for you. We will teach you how to create your own business and sell products using the Amazon wholesale FBA model. This is a proven method that has been used by thousands of people around the world with great success. If you are ready to take action, then keep reading.
We have created an easy-to-follow guide that shows you exactly what steps need to be taken for this business model to work for you. With just a few simple clicks, anyone can start today and begin making money online immediately.
What is Amazon FBA Wholesale Model?
Amazon FBA Wholesale Model is when the seller sends the Amazon to pick, pack and ship items purchased from a wholesale supplier. Amazon takes care of all customer service issues during the process. This model allows you to skip all middlemen costs which enables you to sell products at a lower rate making more money.
Why do You Need to Consider Amazon FBA Wholesale Model?
There are many reasons why Amazon FBA is one of the best ways for individuals to make money online quickly. Amazon is widely used by millions of customers worldwide, which means your business will have access to an endless amount of buyers with just a small investment.
Amazon FBA is Amazon’s internal program. Amazon takes care of all customer support issues, which means no phone calls or emails to be answered by you, ensuring your new business will have little effort being put into it. Amazon will handle everything for you, order fulfilment, shipment tracking, returns & refunds, product quality control, customer service and more.
How does Amazon FBA Wholesale Model work?
This model works in three simple steps:
Step 1: Find Suppliers & Products
Identify wholesale products that are available on Alibaba/Aliexpress website. You can also use Amazon itself for this purpose. You may visit the Amazon website and go to the “Sell on Amazon” tab at the top of the page, then click on the “Start Selling” button to create your account with Amazon if you don’t have an Amazon account yet.
They will guide you through the process to make sure your account is set up correctly for this model. Amazon requires photos of each product, product specifications and a complete description of your products before they can be listed on the website.
After listing all products on Amazon, the next step is to identify wholesale suppliers from Alibaba or AliExpress that are capable of shipping those products directly to Amazon warehouses in the United States and Europe, where Amazon will take care of warehousing & shipping costs once goods arrive in their warehouse.
Step 2: Order Products
Once you have found wholesale suppliers and verified their authenticity, you can now order as many units as possible until your monthly storage limit is full, usually around 80 items in Amazon US or 50 items in Amazon UK.
There is a monthly storage fee for each item stored in Amazon warehouses. Still, the cost per unit is usually between $1 – $2 depending on product category and size, which is very cheap compared to eBay or any other marketplace that requires you to pick, pack & ship orders yourself.
Step 3: Ship Orders & Make Money
Amazon does all customer support issues from order fulfilment, shipping tracking, returns/refunds and quality control. Hence, the only job remaining for you is to sit back and relax while money starts pouring into your Amazon account. You can also sell products on eBay with this model if you want. However, Amazon offers a better product variety and cheaper shipping options due to their large number of warehouses worldwide.
How Much Can You Make with the Amazon FBA Wholesale Model?
Many Amazon FBA users make over $2,000 per month, and some make as much as $10,000 or more. It is straightforward to start this model with less than $500, so there is no reason why you shouldn’t begin Amazon FBA right now.
Challenges of Amazon Wholesale FBA Model
The Amazon FBA model is not 100% hands-off and requires you to put in some work. Although Amazon takes care of most customer support issues, there will always be a case where you will need to get involved. Such as when Amazon receives damaged products from your suppliers or if Amazon does not receive your shipment (most common for new Amazon sellers), Amazon will demand refunds from your account if they do not receive your shipment.
Amazon may also charge you Amazon storage fees for products that Amazon receives but cannot sell (unsellable products). Amazon requires resellers to send all unsold products at the end of the year. They also require the sellers to use the Amazon report system to submit customer product reviews, which can be time-consuming if you have hundreds or thousands of products.
Tips for Success in Amazon Wholesale FBA Model
- To be successful in Amazon Wholesale FBA Model, you have to find wholesalers with a good reputation and ship as many units as you can to Amazon warehouses before monthly storage fees start eating away at your profits.
- Use the Amazon report system to generate product reviews which will improve the credibility of your brand and help you rank higher for specific keywords on Amazon search result pages.
- Always be on the lookout for new products to sell by continuously checking Alibaba and Aliexpress and using the free Amazon seller app to quickly scan barcodes in retail stores or search for hot selling items.
With these tips, you will use Amazon Wholesale FBA Model to generate a stable income that can grow into a full-time job or even a passive income stream.
For more Amazon FBA tips, you can learn more here: Your FBA Shipment Checklist: What Is It About and How to Use It?
Frequently Asked Questions
How much does Amazon charge for monthly storage fees?
A monthly storage fee per unit costs between $1 – $2, depending on the product’s size and category.
What is the best time of year to start selling on Amazon?
The best time to start using the Amazon FBA model is when you have more free time during winter break or summer vacation.
What if Amazon does not receive my shipment?
If Amazon does not receive your shipment, you will have to refund all the money Amazon paid you for the products. As a result, you will lose some of your profits.
In this blog, we have covered the Amazon wholesale FBA model in detail, where we told you what it is and how it works, and we even gave you tips on getting started. Take a deep breath and get ready to create your own business today. You can do it! We are here to help you every step of the way, but we know that with hard work, dedication, and an open mind. You will be able to make this happen.