If an item is selling particularly well, you can quickly and easily increase your inventory to keep up with customer demand. With a wholesale model you can rest assured that as long as the product is produced by the manufacturer, you’ll be able to source it… unlike with retail arbitrage where you are a slave to the pricing practices of retailers. Reliable and Efficient Inventory Sourcing And in some cases, an Amazon listing - along with product reviews - already exists, saving you the time and work of creating a listing from scratch. Customers already know about this product, like it, and want to purchase it. Selling wholesale on Amazon has multiple potential benefits, including: Established Customer Baseīecause you are selling a product from a known brand, you can immediately benefit from the existing customer base that the brand has established. With private label products you are the only seller offering this exact product, so you only compete for the customer, never for the buy box. Once the product is finally manufactured, you then have to grow a customer base from scratch since your brand won’t hold sway in the same way that mainstream brand names do.īut while a wholesale model might have a quicker ramp up time than with a private label, you are looking at potentially fiercer competition since you are competing not only for the customer, but potentially with other sellers in an effort to win the buy box. With private label products you own the brand, which means the ramp up time can be lengthy since it consists of working with a manufacturer to develop, modify, or improve upon a product. This can greatly reduce the amount of time it takes to ramp up your business on Amazon. With a wholesale model, you already have an established customer base since you are selling a product from a known brand. But the main differences between selling wholesale and selling via private label is the ramp up time, as well as the amount and type of competition you’ll face once your product is available for sale. The greatest similarity between a wholesale and private label model is the reliability of inventory sourcing and the scalability potential that comes from sourcing directly from a manufacturer.

Similar to - But Different From - Private Labeling This means you can scale your business in a flexible and quick manner, increasing the amount of inventory you purchase as product demand grows. The wholesale model does not present that same restriction since there is a consistent and reliable source for inventory replenishment. With retail arbitrage scalability can be difficult since you are always limited by inventory availability.

With a wholesale model it is usually a pretty quick process to purchase inventory directly from the manufacturer, and even easier and quicker to replenish inventory. Sellers who use retail arbitrage make a significant time investment when it comes to sourcing inventory, whether they purchase from online retailers or brick and mortar stores. One of the biggest differences between a wholesale model and a retail arbitrage model is the time investment required in sourcing inventory, as well as the scalability of your business. Similar to - But Different from - Retail Arbitrage Under this model you may be one of many sellers who sells the product on Amazon, or you may be the only seller offering this particular product in the Amazon store. In a wholesale model, the seller purchases products in bulk directly from the manufacturer at a wholesale price and then makes a profit by selling the products on Amazon. How Does a Wholesale Model Work?īefore we get too deep into the nuts and bolts of selling wholesale, let’s begin by looking at exactly how a wholesale model works when selling on Amazon. If you are curious about this business model and want to learn more about the ins and outs, read on. Selling Wholesale is just one more way to grow a successful business as a seller on Amazon.

Customer middleman arbitrage