Unlocking Amazon Wholesale Success: Comparing FBA vs. Wholesale Dropshipping

Unlocking Amazon Wholesale Success: Comparing FBA vs. Wholesale Dropshipping

🎓Build a 6 Figure Dropshipping Business on Amazon: https://bryan-guerra.teachable.com/p/amazondropshippro

🎓Start a 6 Figure Wholesale FBA Business on Amazon: https://bryan-guerra.teachable.com/p/wholesalesellerpro

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I’ve had an Amazon seller account for well over a decade….& I’ve sold pretty seriously on Amazon for the past 6 years roughly.

I have experience with literally every single method of selling on the platform.

The overall best method is leveraging wholesale suppliers. It’s one of the best scalable, consistent, and easy to start ways of selling on Amazon.

But most people don’t know you actually don’t NEED to purchase in bulk and spend thousands of dollars ahead of time, in order to leverage the business model.

You can actually combine amazon wholesale with dropshipping, which opens up a whole new can of possibilities for you.

This isn’t ALWAYS the best way to go for everyone, though.

So, in this video, we’re going to compare selling wholesale on Amazon FBA to drop shipping on Amazon…. The benefits and drawbacks of each….And I’ll talk about my experience with both.

As we touched on the previous comparison video I did, Selling wholesale with Amazon FBA is a business model where you buy products in bulk from a manufacturer or distributor and then sell those products on Amazon.

One of the key benefits of this model is that you can buy products at a lower price due to the bulk purchasing power you’ll have with these companies.

You also won’t actually need to run any ads to your products to generate sales….or even build the brand at all….simply b/c you’re sourcing products that already have demand on amazon and typically already have a recognizable brand name.

There’s a TON of scalability her b/c you’re typically selling products with lots of demand AND you’re leveraging amazon fba who will do all the logistics, customer service, and fulfilment FOR YOU.

One of the main drawbacks of this however is that you'll be competing with other sellers who are also selling the same products (usually from similar – if not the same distributors – so their cost of goods can be the same as yours).

One of the main issues I faced when learning this business model was understanding how to properly test listings before jumping full into them.

There can be a lot more risk on product listings like this b/c you typically need to buy more inventory for them, which means if you miscalculated your competition or the opportunity on this listing, it can be a more costly error….and costly learning experience.

Like we just covered, many manufacturers require a minimum order quantity, which means you may have to invest a large amount of money upfront to get into each listing….which IS NOT the case when you’re doing wholesale dropshipping.

Wholesale dropshipping is more similar to wholesale fba than most people realize….but comes with a lot less risk.

And despite what most people think…it IS WITHIN the terms of service on amazon. So you’re not breaking any rules when doing this. You’re allowed to dropship on amazon if it’s from wholesale suppliers where you are the seller of record on the invoice.

When wholesale dropshipping you take the same approach you would with buying wholesale products in bulk. You setup accounts with wholesale companies. Then you scan their product lists to see which products are selling on amazon AND are profitable…then you list those products and wait for the sales to roll in.

The only differences here are when applying to suppliers, you need to make sure they’ll work with dropshippers. The easiest way to do this is to check if they have NO minimum order quantities…AND they offer order fulfillment.

On top of that, you DON’T ship your products into FBA either. Instead, the wholesale company ships the product directly to your customer on your behalf. And you keep the profit.

There’s software that will take care of your entire wholesale dropshipping business FOR YOU which is a game changer too….and I covered all of it in depth in the video up in the right hand corner right now (ALSO LINK THIS IN THE DESCRIPTION).

The drawback of wholesale dropshipipng compared to wholesale fba is that the supplier pool you’ll be able to work with is much less than if you weren’t dropshipping b/c NOT every wholesale supplier will be dropship friendly…which can limit your prospects.

The Amazon Wholesale Dropshipping Blueprint: A Step-by-Step Guide for Beginners: https://youtu.be/gOkzqBqYuGM