Why Selling Wholesale Products on Amazon is Not Enough [Roadmap to Your 1st Bundle Series - 3]

Why Selling Wholesale Products on Amazon is not enough

Many people who want to start selling on Amazon begin with Retail Arbitrage as the main method of finding products to sell. This is a great way to dabble in Amazon selling before deciding if it is the right fit for you. The problem is there are a ton of risk factors when starting this way. 

• It’s addicting (hidden gold nuggets have big profits, but are hard to find)
• It requires a ton of hours (hit the pavement and physically shop for inventory consistently)
• It’s risky (no proof of authenticity, Intellectual property infringement claims)
• It’s not a sustainable business model (you have limited access to products, quantity)

For a more in-depth look at why RA is risky read THIS

After reading these risks you are probably in agreement that this is no longer a safe or viable Amazon business model. So what are you going to do instead? 

Start buying from wholesale distributors

If you’ve been using Retail or online arbitrage to sustain your Amazon FBA inventory, turning to wholesale is a great shift to make. All retail stores have wholesale supplies, vendors and distributors they work with to stock their shelves. You, as an online retailer, should do the same. You will instantly reduce your risk of IP claims, authenticity issues, and account suspension. You’ll also get better pricing, higher quantities and save yourself a ton of work. It sounds like the perfect business growth plan but….

 It is only HALF the ANSWER to a long-term problem. 

With Amazon's highly competitive ever-changing landscape, it is no longer as simple as scanning UPC codes, or a wholesale catalog full of them, and making an inventory purchasing decision based on that data. With today’s advanced technology there is an abundance of tools and software available to “scrape the data '' from websites and catalogs to find the best products to sell on Amazon. 

Due to the universal accessibility to this type of information, the playing field has been leveled when it comes to single unit wholesale items. When every seller has access to the same sales and profit data competition increases and profits decrease. We find the same products to sell with the same software programs and in turn, supply increases, sale prices decline and in turn eliminates our profit. This is why competition is rapidly increasing on Amazon and why switching to wholesale is not enough. 

A different approach to Amazon selling

With advanced technology and increased competition can anyone really continue to make money selling on Amazon? Absolutely. However, a change is required in order to stay competitive. Our solution to high competition and declining profits on Amazon is to create unique product bundles to sell using wholesale products. With this business model, you create long term sustainability for your business by creating unique niche product bundles customers are ready to purchase. 

By using research tools and analyzing purchasing behavior, you save your customer time and money when you provide a bundle. Not only will you bring more variety to the online marketplace but you will also speed up the purchasing process for your customers. Buying a product bundle reduces the number of clicks someone needs to make in order to complete the purchase. Your bundle offers them a better value by combining products they are already looking to buy and saves them the time and hassle of separate searching and individual transactions. 

Creating product bundles gives you unlimited opportunities to provide speed, value and variety to your customers, all while keeping competition at bay. 

In the next part of this series, we are going to discuss how to create Amazon Product bundles that sell.

Whether you’re a new seller or an experienced seller looking to add some diversity to your business, we are passionate about helping other sellers grow and are ready to share our complete wholesale bundle strategies with you. Access our exclusive Wholesale Bundle System HERE.

Other posts in this series:

• Creating Amazon Product Bundles that Sell
• Build Your Amazon Business for Long Term Success
• What is a Wholesale Bundle?
• Change the Way You Think About the Products You Sell