Introduction to Amazon FBA
If you are looking to start selling on Amazon, you have likely come across Amazon FBA (Fulfilment by Amazon). This model allows sellers to store products in Amazon’s warehouses while Amazon manages packing, shipping, and customer service.
Wholesale Amazon FBA is one of the most reliable ways to build a scalable and profitable business. This beginner’s guide will cover everything from how Amazon FBA works, sourcing suppliers, and choosing profitable products to scaling your business for long-term success.
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Amazon FBA is a business model where sellers send their products to Amazon fulfilment centres, and Amazon handles:
• Storage of inventory
• Order processing and shipping
• Customer service and returns
This allows sellers to focus on sourcing products and growing their business while Amazon manages logistics.
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Retail Arbitrage vs Wholesale – Which is Best for Beginners?
There are different methods of sourcing products for Amazon FBA:
1. Retail Arbitrage (RA) – Buying discounted products from retail stores and reselling them on Amazon.
2. Online Arbitrage (OA) – Buying discounted products from online stores and reselling them.
3. Wholesale FBA – Buying products in bulk directly from manufacturers or distributors at wholesale prices.
Why Choose Wholesale FBA?
• Scalability – Larger orders mean stable inventory.
• Brand Relationships – Access better pricing and long-term deals.
• Less Competition – Avoid competing with arbitrage sellers searching for clearance items.
For beginners, wholesale FBA is the most sustainable and scalable business model.
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Step-by-Step Guide to Starting an Amazon FBA Wholesale Business
1. Create an Amazon Seller Account
• Visit Amazon Seller Central.
• Choose a Professional Plan (£25/month) for bulk selling.
• Set up business and tax information.
2. Understand Amazon FBA Fees
Before sourcing products, it is essential to understand Amazon’s fees:
• Fulfilment fees – Charged per unit for storage and shipping.
• Referral fees – A percentage of each sale taken by Amazon.
• Monthly subscription – £25 per month for a Professional Seller Account.
3. Find Profitable Wholesale Products
Use product research tools such as:
• Keepa – Tracks price and sales history.
• AMZScout – Identifies trending, low-competition products.
• Jungle Scout – Helps find profitable products.
Look for products that have:
• Consistent demand with at least 30 sales per month.
• Low competition with fewer sellers on the listing.
• A profit margin of at least 30 percent.
4. Find and Contact Wholesale Suppliers
• Use wholesale directories such as SaleHoo and Worldwide Brands.
• Attend trade shows to connect with suppliers.
• Contact brands and distributors directly.
To obtain the best prices, it is advisable to source directly from manufacturers instead of third-party wholesalers.
5. Get Ungated for Restricted Categories and Brands
Some categories, such as beauty and health, require Amazon approval before selling.
To get ungated:
• Purchase wholesale invoices from approved suppliers.
• Submit Amazon approval requests via Seller Central.
6. Place Your First Wholesale Order
• Start with a small test order (10-50 units).
• Ensure the supplier has a reasonable minimum order quantity (MOQ).
• Confirm that the supplier allows Amazon FBA resellers.
7. Ship Products to Amazon FBA Warehouse
• Create an Amazon shipping plan to generate labels.
• Label products correctly, including poly bagging and expiration dates if required.
• Send inventory to Amazon’s fulfilment centre.
8. Optimise Your Amazon Listing for More Sales
• Use high-quality images (at least 1000×1000 pixels).
• Write keyword-rich titles and bullet points.
• Use Amazon PPC ads to boost visibility.
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Common Beginner Mistakes and How to Avoid Them
• Choosing oversaturated or low-profit products without research.
• Underestimating Amazon FBA fees, resulting in lower-than-expected profits.
• Sourcing from unverified suppliers, increasing the risk of counterfeit goods.
• Ignoring competition levels, leading to price wars.
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Essential Tools for Amazon FBA Wholesale Success
• Keepa – Tracks product price and sales history.
• Profit Protector Pro – An automated repricing tool.
• Jungle Scout – Provides product research and sales data.
• Sellerboard – Helps track profits and expenses.
• AMZScout – Assists in identifying low-competition profitable products.
Using the right tools can significantly improve efficiency and profitability.
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How Much Money Do You Need to Start Amazon FBA Wholesale?
• £500 – £1,500 – Small-scale wholesale startup.
• £2,000 – £5,000 – Mid-level sourcing with multiple products.
• £5,000+ – Larger-scale investment for rapid growth.
For beginners, it is advisable to start small and reinvest profits to scale gradually.
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How to Scale Your Amazon FBA Business
• Negotiate better wholesale pricing as you increase order volume.
• Expand into different product categories to diversify revenue.
• Sell across multiple Amazon marketplaces such as the UK, EU, and US.
• Use Amazon PPC ads to increase product visibility.
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Final Thoughts – Is Amazon FBA Wholesale Right for You?
For those looking for a long-term, scalable business model, Amazon FBA Wholesale offers:
• A lower level of competition than retail arbitrage.
• More control over inventory and pricing.
• The ability to develop supplier relationships for long-term growth.
By following this guide, beginners can launch a profitable Amazon FBA business and scale it successfully.
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Next Steps
To succeed in Amazon FBA wholesale, continuous learning and strategic decision-making are essential. For additional guidance, consider joining our Amazon FBA Discord community to stay informed about industry updates, sourcing strategies, and growth opportunities. We also provide the UK’s Best Online Amazon FBA Wholesale Course.
