For those who are planning to start their business on Amazon Wholesale FBA, here is a brief overview of this model.
What is Amazon Wholesale FBA?
The wholesale business model is in high demand and is considered one of the best business models after Private Label (PL).
This model is the quickest and safest business model on Amazon, making it perfect even for newcomers in the world of e-commerce.
In wholesale, we sell established brands with existing rankings and sufficient sales on Amazon. Once we have authorization to sell, we list our products alongside the existing brand listings and enjoy our share of the market.
- No need to create new product listings.
- Requires a lower investment compared to PL.
- Offers a quick startup (2 to 3 months).
- Provides greater growth opportunities.
- Benefits from well-known brand names.
- Offers ample chances of achieving up to a 90% ROI.
- No need to spend money on ads, PPC, and giveaways.
Why is this model safe for businesses on Amazon?
In this model, we purchase products directly from established brands or distributors, giving us the authorization to sell their products with minimal risk.
There’s no need to put all your eggs in one basket because brands typically have a wide range of products. We diversify our investments, spending our budget on various products from different brands.
What We Need to Start and What Should Be the Initial Budget?
- Business Entity
One of the most crucial factors is having a valid business entity. It should be registered in the country where you intend to sell, as this will be recognized by brands in that country. For instance, in the UK/EU, European companies like GmbH, SRL, or AB can be more expensive to set up compared to a UK LTD. You can hire an accountant or service provider for company formation, or you can easily do it yourself.
- Business Bank Account
If you can set up a mainstream bank account, that’s an ideal solution. Otherwise, you’ll need to create fintech bank accounts for your business entity. Some popular fintech banks include TransferWise, Payoneer, Monzo, N26, etc.
You’ll need to create a professional business website for your company, which brands often require for seller scrutiny.
- Professional Business Email and Contact Number
Having a business email and a contact number is essential.