📈 How to Make Money on Amazon: Wholesale Model
Are you looking for ways to make money online? Amazon is one of the biggest opportunities out there to start your ecommerce business. The great thing is that there are a lot of different ways to approach Amazon, and I talk about this on my channel as I explore my business Vino Cards and share what I've learned with you. But today, I want to share one great way to sell on Amazon, and that is by pursuing wholesale.
What is Wholesale?
Wholesale is a business model where you purchase products in bulk from a manufacturer or distributor and then sell them to retailers or consumers at a markup. In the case of Amazon, you would purchase products in bulk and then sell them on the Amazon marketplace.
What You Can Expect by Wholesaling on Amazon
One of the big reasons why the wholesale model is very popular on Amazon is because the initial cost is not very high. You don't need to make a large investment into something when you are pursuing wholesale. A few other business models for selling on Amazon usually require a really big investment because you need that upfront cost for inventory expenses and marketing. The wholesale model is really great for beginners, especially if you want to dip your toe into the Amazon world and see what competitors are like and how you can make money online.
What You Should Look for to Have Success by Wholesaling on Amazon
When considering wholesale, you want to look for a product that is selling well on Amazon that you have access to the historical data so that you can forecast future sales. In this case, there's a lot less unpredictability when you have that data access, and then you can start seeing sales from day one.
First, you'll want to find established products that are selling on Amazon. These products don't have to be super well-known brands, and I'll explain why not in just a little bit. But you'll want to find products that maybe don't have the best listing, but there is potential. Maybe you see that there are high reviews, or there's a lot of traffic to this site by looking at the data. So, you'll want to find these products. Typically, they may be some niche products or just a product that you've seen trending well.
When you do find these products, you want to find a contact form or maybe you see that they might have a social media some way to communicate that may be a different site so that you can start that communication process with the brand. The reason for this is that you want to communicate with them directly so that you can let them know what value you can bring by wholesaling their product on Amazon.
As you reach out to brands, you might come across some brands that don't want to work with you, that are not interested in the wholesale model, or maybe just not reply to you at all. But when you are going through that process of writing out an email, you want to make sure that you're communicating effectively what value you can bring to their product and why you want to sell it on Amazon.
For example, your enthusiasm is key. It shows that you're excited and passionate, perhaps about the product that they have. You may also want to share your contact list or what influence you have on social media because if you already have a base of followers or influencers that are interested in working with you, then you can bring that value to the brand.
After that introduction, you'll want to request to be an authorized reseller of their product. Another quick tip I have is that if you do come across a listing that can be improved, share with that person some concrete examples of what you can improve on their page. That way, they can see your thought process and see exactly how you can bring value to their brand. This will help build a better relationship and again increase your chances of being able to resell their product.
Some Key Things to Take Away Before You Start
Creating your own product helps to create that sustainable growth on Amazon over a long period of time, whereas wholesale might be a short-term plan. Another great thing about creating your own product is that you're creating a product that you're passionate about. So, the amount of time and money that you're spending into something should be something that you're super passionate about.
If you're curious about how to create your own product as an alternative, I have a video linked for you guys up here, and it's an in-depth tutorial on how I created Vino Cards and what it's been like these last few years owning this business. But wholesale is something that you should be knowledgeable of, especially because you're going to be meeting other entrepreneurs in this space, and a lot of them are pursuing the wholesale model. The best thing for you to do is just explore both options and see what works best for you.
Pros and Cons of Wholesaling on Amazon
Pros
- Low initial cost
- Access to historical data
- Potential for high profits
- Great for beginners
- Opportunity to meet other entrepreneurs
Cons
- Short-term plan
- Limited control over the product
- High competition
Highlights
- Wholesale is a business model where you purchase products in bulk from a manufacturer or distributor and then sell them to retailers or consumers at a markup.
- The wholesale model is really great for beginners, especially if you want to dip your toe into the Amazon world and see what competitors are like and how you can make money online.
- When considering wholesale, you want to look for a product that is selling well on Amazon that you have access to the historical data so that you can forecast future sales.
- Creating your own product helps to create that sustainable growth on Amazon over a long period of time, whereas wholesale might be a short-term plan.
- Pros of wholesaling on Amazon include low initial cost, access to historical data, potential for high profits, great for beginners, and opportunity to meet other entrepreneurs.
- Cons of wholesaling on Amazon include short-term plan, limited control over the product, and high competition.
FAQ
Q: What is the wholesale model?
A: Wholesale is a business model where you purchase products in bulk from a manufacturer or distributor and then sell them to retailers or consumers at a markup.
Q: Is the wholesale model good for beginners?
A: Yes, the wholesale model is great for beginners, especially if you want to dip your toe into the Amazon world and see what competitors are like and how you can make money online.
Q: What should I look for when considering wholesale on Amazon?
A: When considering wholesale, you want to look for a product that is selling well on Amazon that you have access to the historical data so that you can forecast future sales.
Q: What are the pros of wholesaling on Amazon?
A: Pros of wholesaling on Amazon include low initial cost, access to historical data, potential for high profits, great for beginners, and opportunity to meet other entrepreneurs.
Q: What are the cons of wholesaling on Amazon?
A: Cons of wholesaling on Amazon include short-term plan, limited control over the product, and high competition.
Resources:
- [Vino Cards](https://vinocards.com/)
- [Amazon](https://www.amazon.com/)
