Best way in Amazon FBA Wholesale Business । How to Start Amazon FBA Wholesale

Best way in Amazon FBA Wholesale Business । How to Start Amazon FBA Wholesale 

Currently, 1 in 4 sellers on Amazon sell wholesale model products. Wholesale is a preferred model for Amazon sellers due to relatively quick start-up and earning, low risk, high profits, and scalability.
However, it is not the case that everything will be ready to start the wholesale business just by having a seller account on Amazon. To work in wholesale model there are some prerequisites related to business (company/business registration) which you need to prepare before starting work.
And you may have to spend some money for business registration. Starting a local business or setting up a shop in the neighborhood requires you to get a trade license, it's kind of like that.
[Those who don't have any money to register their own business or invest have no reason to despair! You will also get an idea of how you can work in wholesale model without business registration or investing any money.]
So without further ado, let's talk about what it takes to start working on Amazon's wholesale model.

Computer and internet connection

Everyone reading this blog post probably has their own computer and internet connection (that's awesome!). It is a must for doing Amazon FBA wholesale or any internet based business/business.

Amazon seller account

Whichever model you start working on Amazon will require a seller account (obviously).Seller account requires government ID (scanned copy of passport), bank statement, and credit card and seller account can be made from Bangladesh (with full Bangladeshi ID).

However, since the business needs to be registered in America to work in the wholesale model, it is better to account with (American) business information (especially for the business address)I will discuss the whole process of making a seller account in a separate post inshallah.

Registered Business / LLC (LLC)

Brands/distributors work only with legitimate businesses at wholesale. So you need to set up a Limited Company (LLC) in any state of America and get a business license (Sole Proprietorship Business can also be set up but Limited Company is recommended for wholesale). While filling out a brand or distributor wholesale application form, you need to provide this information about your company.

EIN

EIN (Employer Identification Number) or Federal Tax ID is basically the social security number of your business. Many suppliers ask for this when making a wholesale account.

Resale Certificate

A resale certificate should be obtained from your state (the state in which the business is located). A resale certificate allows you to purchase products tax-free from a brand, distributor, or wholesale supplier. And most brands or distributors will not sell the product to you without a resale certificate.

Bank accounts and credit cards

You will need a business bank account and credit card to pay for products to wholesale suppliers. Most suppliers prefer credit card or wire transfer payment, but some suppliers also accept PayPal.

Commercial address, phone number, professional email, website

In addition to the above, working in the wholesale model requires a commercial address where suppliers will ship your products (some suppliers also require your delivery address and credit card address to be the same). Phone number and professional email (branded) will be required for communication with suppliers. And having a website is also very useful (professional email and website increase the probability of getting approval from the supplier).

Business registration (LLC, resale certificate, EIN, business bank account, credit card etc.) can cost approx $1000 (somewhat less or more) (cost may vary by service provider).

capital/money

'Money brings money' as people say and same is the case with wholesale, the bigger the investment, the bigger the size or scale of the business. But it is not the case that Amazon FBA wholesale requires a lot of investment to start. Wholesale can be started with small capital (5000 or less).

Yes, most distributors have a minimum quantity for opening orders. So far in my personal experience I found only one distributor whose minimum quantity for opening (first) order was $5000, but for most distributors it is not more than $200-$500. And subsequent orders from the first order from a distributor usually have no minimum quantity or are much lower.

So start wholesale with a budget of $5000 including the cost of business setup and grow the business by reinvesting from there. However, it is not a fixed budget and can be started with a lower budget, but in that case it may take a little more time to get a considerable amount of profit.

Profitable product

It is not the case that the product will be profitable or can be sold profitably on Amazon just by buying a product wholesale from a brand or distributor. There are certain techniques for finding profitable products and opening wholesale accounts/sourcing products with suppliers (brands, distributors). So find and order only those products that can be sold profitably on Amazon (you must know how to do this before starting work).How to find profitable products and open wholesale accounts with suppliers (create business relationships) I will share them in the next blogposts, Inshallah.

English Proficiency

To open a wholesale account, contact the supplier by email or phone. Later, contact with any suppliers to order the product. As we will work in the English market (Amazon USA) and the language of the suppliers is English, it is important to be good in English to successfully open a wholesale account and to communicate well in general and to carry out business duties.

Similarly, someone working in a non-English market like – Germany, Netherlands, Italy, Spain, etc. needs to be proficient in the language of the respective country or hire someone who is proficient.

Can you work in a wholesale model without setting up your own business or investing money?

There are two alternative ways to work with Amazon FBA wholesale model without having to setup your own business or invest any money.

1. partnership

Find a partner who has capital to invest and work with him on a profit sharing basis. In this case you will look at the overall work aspect with your skill and time and your investment partner will invest for the cost of inventory (product) along with business setup.

Hint: If you know someone in America or UK, Canada, Australia, or any European country (with Amazon Marketplace) and are interested in investing in online focused work/business, you can contact them and discuss your business model. (Process of business setup will be easier if your partner is in respective countries).

I myself started working on the Amazon FBA wholesale model in partnership (and still do). Started working on a wholesale model in partnership with one of my clients (now business partner) in Florida, USA, so didn't have to go through the process of business setup (he already had almost everything needed for his own business including LLC, Resale Certificate, EIN), He even created the Amazon seller account himself (I called Prosesta).

Now we do all the work in between from product research to sending the product to the Amazon warehouse and ordering inventory using his credit card (ie his investment money and my work).

Note that we are working on 50-50% profit sharing basis. The percentage of profit share with your investment partner will depend on the mutual agreement between you and the client, conditions etc.

Pro-tip: If you can partner with someone who has a physical store, you will get some extra benefits. 1. Since he has his own store, he will already have some suppliers whose products you can start selling on Amazon. 2. Brands or distributors prefer to work with physical stores, but don't want to give many supplier approvals to Amazon or ecommerce-only sellers. Having a physical store eliminates the hurdle of having a wholesale account with suppliers.

2. Freelancing

Amazon FBA wholesale jobs are in high demand in freelance marketplaces. One of the most popular and largest freelance marketplaces, Upwork posts new jobs almost every day. If you have the skills to work in the Amazon FBA wholesale model, you can bid on jobs with an account on Upwork (apart from Upwork, almost all marketplaces including Fiverr have job demand). And online communities also offer good job offers.

What if you are not very good at English?

It is not necessary to be good in English communication to open wholesale accounts with brands or distributors, nor is it essential that you cannot work in the wholesale model if you are not good at English. In this case, you have to hire someone who is good in English communication or work as a team as a partner.

As your clients or work increases, you may need to hire more people or form a team. Team building can be done by creating different positions for different work parts or by dividing the work into departments. For example, Product and Brand/Distributor Researcher, Supplier and Purchasing Manager, Purchase Order Creation, Shipment, Store Management etc.

You can hire someone who is good in English as a 'Supplier and Purchasing Manager' to do all the work of communicating with the supplier including contacting the brand or distributor, opening a wholesale account, product order placement.

So far like today. Hopefully this blog post has given you an idea of what you need before you start working on the wholesale model. If you have any questions, please comment below, I will try to answer inshallah. And if you think the blog post is useful or useful to someone, please share it.