{"id":5834,"date":"2020-10-29T14:47:00","date_gmt":"2020-10-29T14:47:00","guid":{"rendered":"https:\/\/www.sellerlogic.com\/?p=5834"},"modified":"2024-08-14T12:11:53","modified_gmt":"2024-08-14T12:11:53","slug":"selling-wholesale-successfully-on-amazon","status":"publish","type":"post","link":"https:\/\/www.sellerlogic.com\/en\/blog\/selling-wholesale-successfully-on-amazon\/","title":{"rendered":"Selling Successfully \u2013\u00a0The Amazon Wholesale Business Model"},"content":{"rendered":"\n

Are you planning to sell Amazon Wholesale products? Well, the good news is that getting started is very easy because a seller account can be created in a few minutes. the main challenge, however, is product sourcing. The main two options at your disposal are: sourcing in China under your own brand (Amazon Private Label) or sourcing famous branded products in Europe (Amazon Wholesale). In the following article, we will discuss what you need to take into account when selling Wholesale products on Amazon and what strategy will get you the furthest. <\/p>\n\n\n\n

Private Label vs. Wholesale Products<\/h2>\n\n\n\n

On Amazon, this business decision is something that could go either way. Your product, your strategy and your personal preferences have a big influence on whether you should choose one or the other. Both types of products have advantages and disadvantages, which we will now briefly explain. This doesn’t mean that choosing one necessarily excludes the other. On the contrary, sellers can sell as the owner of a Private Label on Amazon and sell Wholesale simultaneously.<\/p>\n\n\n\n

Advantages and Disadvantages of Amazon Private Label<\/h3>\n\n\n\n

When we talk about Private Label, it means selling products under your own brand. Fact is, most Private Label sellers buy cheap product in China and try to resell it in the EU or UK. The production costs in China are incomparably low and thanks to Alibaba it is not difficult to find a source of supply. However, sourcing in China is not the only option. There are many EU partners that are worthwhile dealing with, especially if the EU is to be your main marketplace.<\/p>\n\n\n\n

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<\/th><\/th><\/tr>
Advantages<\/th>Disadvantages<\/th><\/tr><\/thead>
1. Building up your own brand <\/td>1. Sourcing and communication problems<\/td><\/tr>
2. Economies of scale possible<\/td>2. High risk with sourcing in China<\/td><\/tr>
3. No competition on the product<\/td>3. Full product liability and declaration of conformity<\/td><\/tr>
4. Access to product listing<\/td>4. High costs with small quantities for testing<\/td><\/tr>
5. SEO and keyword optimisation possible<\/td>5. Long delivery times + planning effort for repeat orders<\/td><\/tr>
6. Large profit margins possible<\/td>6. High marketing effort to create brand awareness<\/td><\/tr>
<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n\n\n\n

Advantages and Disadvantages of Amazon Wholesale<\/h3>\n\n\n\n

Wholesale products are products that are sold under established brands. This means that, as a retailer, you are only involved in sales, not in building the brand itself. This format also brings disadvantages and advantages alike.<\/p>\n\n\n\n

<\/th><\/th><\/tr>
Advantages<\/th>Disadvantages<\/th><\/tr><\/thead>
1. Sourcing in Europe<\/td>1. No unique selling point<\/td><\/tr>
2. Low quantity orders possible<\/td>2. Hardly any economies of scale possible<\/td><\/tr>
3. Fast delivery<\/td>3. High competition, possibly even against Amazon<\/td><\/tr>
4. No product liability and declaration of conformity<\/td>4. No intervention in the product line<\/td><\/tr>
5. Easy handling and product advertising<\/td><\/td><\/tr>
6. No effort for product listing<\/td><\/td><\/tr>
7. Ratings already available for known products<\/td><\/td><\/tr>
8. Low marketing costs<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If you are still unsure whether to go for Wholesale or Private Label, this blog article<\/a> will give you a few pointers.<\/p>\n\n\n\n

Special Features When Selling Wholesale on Amazon<\/h2>\n\n\n\n

In a regular store, selling wholesale produce is not necessarily any different than selling private label goods. The situation is different on the Amazon marketplace. Selling Wholesale on Amazon has a couple of downsides.<\/p>\n\n\n\n

Amazon Does Not Allow Double Listings<\/h3>\n\n\n\n

On platforms such as eBay every seller is able to list their products. That is not the case on Amazon. The online giant makes the stipulation that each product may only appear once in the catalogue. For wholesale products, this means that an already existing product may not be created again. By comparing the EAN and brands, Amazon recognises any attempt to create a separate listing and prohibits it.<\/p>\n\n\n\n

As soon as more than one retailer wants to offer the same product, both offers are combined in one listing. We will explain later how the customer then decides from whom they want to buy.<\/p>\n\n\n\n

First Come, First Serve<\/h3>\n\n\n\n

The person who creates the listing first, or has the rights of product creation from the trademark owner, may determine how the listing should look in terms of titles, bullet points, images, and description. Each additional merchant must use exactly the same listing if they want to sell this wholesale product on Amazon.<\/p>\n\n\n\n

This can be advantageous, as it saves the effort of keyword research and writing good descriptions. But if the author of the listing was rather uninspired, all sellers have to live with the consequences of selling Wholesale on Amazon with a rather unfortunately optimised listing.<\/p>\n\n\n\n\n\n

Amazon Itself Acts as a Seller<\/h3>\n\n\n\n

Amazon not only provides the platform but also acts as a trader itself. While this was initially limited to the books category, Amazon now offers its products in all categories. Although Amazon also has some private labels, Amazon’s main business is wholesale products.<\/p>\n\n\n\n

For selling Wholesale on Amazon, this means that you not only have to compete against many other sellers but may even have to compete against Amazon itself. The problem with this is self-evident: Amazon will surely find ways to make its own offer stand out to the customer. <\/p>\n\n\n\n

90% of Customers Buy via Buy Box<\/h3>\n\n\n\n

“Buy Box” is the rather bulky term used for the “Add to cart” button on the product detail pages of Amazon. Selling Wholesale products on Amazon profitably is practically only possible through winning the Buy Box.<\/p>\n\n\n\n

It is logical that customers would want to add an item to their shopping cart if they like it. But what happens if several sellers offer the product that just went into the shopping cart? Which seller wins the deal? Based on various factors, Amazon has developed an algorithm that calculates which offer will win the Buy Box<\/a>. The factors of this algorithm are of course just as intransparent as the Google search algorithm. But there are some hints regarding which key figures Amazon uses for calculation. For example, the total price, i.e. the product price plus shipping costs, the shipping speed, the inventory, and the seller performance will certainly influence which offer is in the Buy Box.<\/p>\n\n\n\n

All offers that are not in the Buy Box are put together in a list that buyers can view by clicking on the “All offers” button. However, 90% of all purchases on Amazon are made through the Buy Box. Therefore it should be the goal of every seller to win them. Only then is successfully selling wholesale products on Amazon possible.<\/p>\n\n\n\n

How to Be Successful With Wholesale Products for Amazon<\/h2>\n\n\n\n

With the special features described, it is clear that suppliers of Wholesale products on Amazon are subject to particular competitive pressure. However, it should not be forgotten that Amazon provides ad hoc access to 37 million buyers – more than anywhere else. For this reason, it is certainly worth a try to successfully place your products on Amazon. With the following tips, we would like to help you do just that.<\/p>\n\n\n\n

For better orientation, we have divided the following part into different sections of the product life cycle.<\/p>\n\n\n\n

Before Sourcing<\/h3>\n\n\n\n

Wholesale products for your Amazon business have to fulfil certain requirements. Before purchasing anything, get an overview of the situation and find out on how best to sell your Wholesale product on Amazon. Here’s what you need to look out for:<\/p>\n\n\n\n

Analyse Competition and Sales Potential<\/h4>\n\n\n\n

If you don’t have a product yet or you are just thinking about buying Wholesale and selling on Amazon, it would be a valuable time investment to have a closer look at the existing competition and potential of the product you are trying to sell.<\/p>\n\n\n\n

You can follow two basic strategies<\/a>:<\/p>\n\n\n

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