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How to Make Your Wholesale Business Work on Amazon


With all of the marketing platforms readily available to wholesalers today, there are virtually tens of hundreds of paths that you can take to sell your closeout and liquidation merchandise. However, many wholesalers are unaware of the profitability of different Internet websites, such as eBay and Amazon.

In particular, Amazon offers wholesalers a way to make significant profits due to its high margins and millions upon millions of loyal customers. By selling your merchandise on different platforms such as this, you not only increase your profits but also help to extend your brand by creating a new market on one, or many, of these websites.

Of course, building a profitable network on Amazon does not happen overnight. You must research niches diligently while marketing your brand with appealing prices and professional customer service. To avoid costly missteps during this process, we have compiled a number of tips for you to follow when considering Amazon as a selling platform. This helps you sell intelligently, and effectively, increasing the chance that your business will become a force to be reckoned with one day.


Narrowing Down a Niche, or Several Niches, for Your Business

Like many other platforms for wholesale merchandise on the Internet, it is impossible to turn a profit without first securing a niche within which to sell. Naturally, you need to find a market that is somewhat sparse, as overpopulated niches will make it difficult, or virtually impossible, to sell any merchandise.

Amazon adds an additional level of complication by offering products to customers that they store and ship themselves. Customers will almost always opt for the products offered by the company, therefore it is best to attempt to secure a position in a niche that is free from these kinds of products. By doing so, you are making your business indispensable to customers that are dependent upon your merchandise. This means long-term prosperity in just one of many possible Amazon markets.

After coming up with five to ten areas in which you typically sell merchandise, you can begin to delve further into your research, determining the price at which you can sell your products and the quantities of the merchandise being sold on a regular basis. Once you complete this task, you should distinguish at least one market in which your wholesale business can sell on Amazon.

While it certainly takes time and effort to find a niche, it is well worth your time and energy. Without taking this crucial first step, it is incredibly likely that your Amazon venture may be both unsuccessful and short.

Never Attempt to Sell Popular Products

If there’s one thing to universally avoid when seeking out alternative marketplaces on Amazon, eBay or any other platform, it’s popular items. These items occupy incredibly saturated market space, making it next-to-impossible for you to sell anything. When given the choice between your company or an easily recognizable brand, customers will almost always opt for the latter.

Don’t waste time thinking about selling popular products. Think about what makes your wholesale business unique, and target markets that contain products that you carry regularly and can easily access for larger bulk buys. Seek out a niche that contains merchandise that can be sold year-round, as this maximizes profitability while minimizing the risk associated with purchasing large quantities of merchandise.


Amazon Margins and Pricing for Your Products

One benefit of using Amazon over other platforms is that Amazon possesses a different clientele, making it possible to mark up your prices more than usual while still selling a sizeable amount of merchandise. Purchasing your products in bulk also facilitates greater gains for your business, as many liquidation and closeout distributors offer lower prices when you purchase products in greater quantities.

When you are still determining what niche will be best for your business, it may be more beneficial to purchase small amounts of products until you know what sells both quickly and for the most money. Typical Amazon margins for sellers are approximately 40%, meaning that you can purchase merchandise inexpensively and sell products at reasonable prices while still earning the capital you need to sustain and grow your wholesale business.


Use Free Shipping Without Losing Money to Increase Sales

There have been numerous studies in recent years that all indicate the beneficial effects that free shipping can have on profitability. In fact, many individuals will choose to purchase a product that is slightly more expensive if it has free shipping in contrast to buying a product that is less expensive but includes shipping expenses.

The secret is that you can build shipping charges into the cost of a product, meaning that you don’t lose any money but are still able to increase sales. Of course, there are numerous conditions to consider when making this decision as often, this transition to free shipping is easier said than done.

If you’re operating within a relatively sparse market, marking up prices slightly to offer free shipping is fairly simple. Because you have few competitors, free shipping will make your company distinctive and appealing to customers who are seeking out the merchandise that you offer. However, if you are in a market that is more saturated, increasing prices can sometimes put you out of the running for top sales, even if free shipping is an appealing factor to your business.

Again, this requires trial and error on your part to determine what works best within your niche and for your business.


Managing Customer Service Inquiries In a Hands-Off Way

One of the best options available for expanding your business into the Amazon marketplace is to hire a virtual assistant, or VA, to manage this portion of your business for you. Whether you want a full-time assistant or part-time help, this creates an individual who is only responsible for this sector of your expansive wholesale operation, which is invaluable when you are competing for purchases online.


Make Amazon an Indispensable Leg of Your Business

If you’re in need of a new marketplace for your wholesale business, consider Amazon as a platform in which you can sell your liquidation and closeout merchandise for incredible revenues.

By doing so, you can greatly expand your brand, making you recognizable to a wider variety of customers who may not be familiar with the wholesale world. This integrates you into the mainstream marketplace, facilitating profits and growth that are extremely difficult to achieve without using companies like Amazon to make your business an even greater success than it already may be.