First, let’s understand the difference between wholesale FBA and PL.
PL = Private Label and in PL we create a completely new brand and handle everything from getting it manufactured to handling shipments to listing to ranking.
In wholesale, all we have to do is sell someone else’s brand which is already being sold on Amazon.
Still, you can’t say wholesale FBA is easy as the major part of wholesale is sourcing and if you don’t have good sourcing you’d be having a loss and if you have good sourcing you get up to 100% ROI.
As in the major part of wholesale which is sourcing we can actually source from 3 options.
1: Brand
If we get direct approval from the brand which is very hard to get you would be having great sourcing as you’d be getting a very good rate with great ROI and with brand you are likely 100% safe and there is no account risk.
2: Distributor
The distributor is basically one who purchases from brand and have right to source your products but you’d be risking yourself if you don’t get connected with a distributor in most cases amazon would accept distributor invoice and your account would be again most likely risk-free.
3: Wholesaler
When you purchase from a wholesaler you’d be having some more risk than sourcing from the previous 2 as Wholesaler invoice is hard to get accepted and amazon might ask for brand approval and incase if your wholesaler isn’t good you might end up losing your account, we consider wholesaler As last option and we really don’t get good price from wholesaler as they purchase from distributors.
So after considering the above points we should always try sourcing from Brand and if we don’t get from them then we should consider Distributor and always keep wholesaler at last choice.
5 reasons to do wholesale FBA:
1: Lower investment over PL.
2: Lower risk.
3: No Listing, No ranking, no big bleeding.
4: No listing hijacking.
5: chances of getting 100% ROI.
There is no guarantee of success in any business all you can do is put 100% into it and wish for success if you follow the tips above those might be helpful.