I Stopped Dropshipping To Do This Instead!

Once I had already made hundreds of thousands with dropshipping, I ventured into what's called Amazon wholesale. This business model is completely different from dropshipping and requires upfront capital. At this point, I had enough money in my account to get into Amazon wholesale properly.

In Amazon wholesale, you need to front the inventory. I began by opening up wholesale accounts with big name brands like Fiji, Logitech, and Sony. I purchased their products in bulk at wholesale prices and then sold them for retail prices on Amazon. The major advantage of this model is that over 50 percent of the U.S. population has a Prime account, meaning you don't have to spend a dime on ads; the products naturally sell because people are shopping on Amazon every second of the day.

FBA stands for Fulfillment by Amazon. For example, if I order 100 cases of Fiji water, I don't have them shipped to me. Instead, they are shipped directly to Amazon's warehouse. Every time a sale is made, Amazon ships the product to the customer. Often, when we buy things on Amazon, we are not purchasing from Amazon or the company we think we are buying from. More frequently, we are buying from a third-party seller like myself, who has a wholesale account with these companies.

Keywords

Amazon wholesale
Dropshipping
FBA (Fulfillment by Amazon)
Wholesale accounts
Big name brands
Retail on Amazon
Amazon Prime
Inventory fronting
Passive sales

FAQ

Q: What is Amazon wholesale?
A: Amazon wholesale is a business model whereby you buy products in bulk from established brands at wholesale prices and sell them at retail prices on Amazon.

Q: How is Amazon wholesale different from dropshipping?
A: In dropshipping, you do not need to hold any inventory; the supplier ships products directly to customers. In Amazon wholesale, you need to purchase inventory upfront and use Amazon's Fulfillment by Amazon (FBA) service to handle storage and shipping.

Q: What is FBA?
A: FBA stands for Fulfillment by Amazon. It is a service where Amazon stores your inventory in their warehouses and takes care of the shipping and customer service when a sale is made.

Q: Do I need to spend money on ads for Amazon wholesale?
A: No. One of the significant benefits of Amazon wholesale is that the products often sell without the need for advertising, thanks to Amazon's massive customer base and the prevalence of Amazon Prime memberships.