Why Amazon FBA Wholesale?

I did a very very tiny test with Amazon FBA Wholesale. It was merely $120 or something back in probably early 2019.

However, I've got privileged to sit with Amazon FBA Wholesalers and know few things here and there.

If you are puzzled with where to invest on Amazon and you dont want to take MUCH risk, Amazon FBA Wholesale, is the business you can dive into.

The mindset required is to just focus on profitability. Send smaller quantity in the start, no matter what. Follow Amazon's guidelines and do sell product that dont require Brand Authorization letter and you will be good.

Online Arbitrage (OA):

OA put your Amazon Seller Account on risk. You will be struggling with managing ODR, Stocks, Account health, shipping, complains like all the time. But, money is quite good. In Wholesale, specially if you are doing FBA, you dont need to worry about ODR and Account Health, generally you are in calm seas when you do WS instead of OA.

Private Label (PL):

Its like re-inventing the wheel if you compare with Wholesale. In WS you dont worry about creating listing, ranking, launching etc. All you need is to take care of having buy box and selling units as soon as possible and enjoy ROI. Control over Inventory and Logistics/Supplies are the pros of Private Label. But if you compare with WS, you will find WS whole lot easier than PL.

Assume, you got $30K to invest. You invest in WS, you will start getting ROI by 3rd to 6th month. While, in Private Label, sometime people take a year or more, even if they are able to get ROI, they might be not able to take profits home for another couple of months in the name of re-investment or growth.

Amazon Kindle:

Its for writers. And there is no usual grey hat tactics that would get you ranked. You can try to launch, but it will remain your genuine buyers, who would aide in deciding your fate. Comparing WS with Kindle Writing is like comparing oranges with apples. But just in case, if you want to get your hands dirty in Amazon, Kindle could be good thing.

Amazon Merch (Print on Demand):

Its a good business on Amazon, but it require extreme care about trademark, patents and copyrights. Generally only designers can get hold of this account. As per Amazon itself, just around 10 designs make money out of 100. So, you will need to come up with not just idea but good converting graphics as well. There is no direct comparison with WS, as its just purely designer/creative work.

Amazon FBA Wholesale:

Experts could shed more light. I personally think, if you invest atleast $10K, beware you will be able to get ROI in 3 to 6 months. And $10K is good amount, since you can afford a senior VA with this much investment. To manage cashflow, you should have something extra like $5,000 at least.

Say, you invest $10K, with 10% on average profit margins, you get $1000 a month as Gross Profits.

Your monthly expenses could be (a) Amazon Seller Subscription Fee (b) Amazon Tools (c) Repricer and/or ScanUnlimited kinda subscriptions, assume $200. A senior VA would cost $400 while a junior could be hired around $200/month.

Now your expenses would vary in between $400 to $600, depending upon if you hired experienced or less experienced VA. Rest of $400 to $600 (out of $1,000) would be your profit.

It's quite easy to become millionaire on calculator and like in every business, Amazon FBA Wholesale require persistency and patience. Learn the business and dive after concluding informed decision.

All the best (Y)

#Amazon