For many sellers, purchasing products in bulk and reselling them for a profit is their ideal e-commerce business operation. If this reflects your circumstances, please continue reading to learn whether Amazon sellers can work with wholesalers, how to successfully navigate the wholesaling process for your e-commerce business, and how the AVASK Group can assist you. 

What is a Wholesaler?

First, it’s important to understand that wholesalers are supply companies that act as middlemen between the manufacturer and seller. Essentially, it is an e-commerce business model in which you buy products in bulk from manufacturers or distributors and then sell them on Amazon for a profit. This allows you to procure a substantial quantity of goods at a significantly reduced price. Sellers don’t have to handle the logistics surrounding product development or sourcing raw materials. Rather, it offers flexibility to select products for their business instead of working directly with the manufacturer.

Can Sellers Work with Wholesalers in the Amazon Marketplace?

As an Amazon seller, it’s crucial to note that you can sell wholesale products from a third-party brand or other supplier. If you have a large volume of wholesale products to disburse, you can list them in bulk if you have a professional selling account on Amazon. There are different types of wholesalers:

• General merchandise wholesalers: Instead of focusing on one specific type of product, general merchandise wholesalers carry a variety of goods in several distinct categories.
• Specialty product wholesalers: These wholesalers focus on distributing a specific type of product. They can specialize in a product line or a selection of products that are associated with a particular genre or business.
• Regional or local wholesalers: This type of wholesaler works regionally or locally, focusing on products that are relevant to a particular area.
• Online wholesalers: While most wholesalers work in the traditional purchasing and warehousing environment, some conduct the entire process online. This means they run their business solely online and seek bulk items from other e-commerce businesses.

While wholesaling is allowed in the Amazon store, sellers bear the responsibility of selling authentic products. If you are selling branded products, they must be sourced directly from the brand or one of their direct distributors or wholesalers. Similarly, if you are purchasing products from a wholesaler, you need to validate their relationship with the brand. You can do this by reviewing the supplier’s business license and brand authorization letter. It’s imperative to ensure you work with a supplier you can trust, and verify their credibility by checking their ratings, liability policy, reviews, and complaints, as well as asking for referrals to learn more about their experience.

If you are considering wholesaling on Amazon, please don’t hesitate to contact the dedicated team at Ebiz Accounting. We are prepared to help you navigate the Amazon Marketplace and make informed financial decisions. Connect with us today to learn more about what we can do for you.