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Amazon Wholesale

Amazon Basics / October 15, 2019

Amazon wholesale is a model that allows sellers to purchase items directly from the manufacturer at a discounted price, and sell on Amazon at the full price. This may sound like retail or online arbitrage, but there are some differences.

  • With wholesaling you need a license
  • Approval from the manufacturer
  • Purchase larger quantities at a time
  • Longer term commitments
  • Requires much more effort

Selling wholesale on Amazon is something that is going to take time and effort. Usually, sellers start off with retail arbitrage to get the hang of it and build experience from that.

Before getting into Amazon wholesale, you should check with your state to see what kind of license you need to wholesale. For example, in California you need a resale certificate if your business buys products from other suppliers exclusively for resale, according to It is best to be double check with your state before getting into wholesaling so you don’t get caught up in fees and fines.

Before applying for a wholesale license or permit, you need to have an EIN, which is an Employer Identification Number. You can obtain one with the Internal Revenue Service (IRS). Every organization must have an EIN, even if it will not have employees. The EIN is a unique number that identifies the organization to the IRS according to the IRS official website. For more information about EIN and the application procedures click here.

How To Source Items For Amazon Wholesale

amazon wholesale

When looking for items for Amazon wholesale, you want to pay attention to a couple of things. The first thing you want to determine is how established the brand is. Have they been established for a couple of years? Are there products in demand? Are there any other sellers on Amazon that are wholesaling the product?

After determining the above, the next step is contacting the manufacturers. When it comes to buying someone else’s product and selling it in bulk on Amazon, some manufacturers and suppliers are picky. So be prepared to get a couple on nos before you get a yes. But also, don’t let that discourage you. When it comes to wholesaling, it takes a while before you get a yes. Wholesaling is a great way to make great money on Amazon, as long as you have some experience in private labeling or retail arbitrage you should be fine since there are some similarities. If you already into Amazon wholesale and you’re looking for a platform that can help with insights and analytics, ad automation, financial reporting, and expert support then you came to the right place! Sellozo offers the best AI-driven ad automation for Amazon Sellers. Get started by clicking here!

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