14/06/2022
Some Info about Amazon FBA Selling:
Wholesale VS Private Label
PRIVATE LABEL: Investment required (20k $ minimum)
WHOLESALE: Investment required (5k $ minimum)
1- HUNTING
Wholesale: You just need to check few things like BSR sellers, AMZ out of stock, price fluctuation etc, and wholesale required only 1 tool that is “KEEPA”.
PL: Product hunting required more time and more analysis like 5 years of trends, revenue, reviews, no brand and amazon dominancy, CPR, search volume and much more things. PL hunting takes time when you are a newbie and you need the tools named “HELIUM 10” and “JUNGLE SCOUT”.
2- SOURCING
Wholesale: In wholesale you are going to sell the existing brand and for that you need approval from the brand or its distributors. People face difficulties while approaching brands or their wholesalers/distributors. When you approach the brand sometimes, they reply early but sometimes they don’t bother to even reply to you. It usually takes 1 month or above time to get approval.
PL: You just need to put the product name on Alibaba and get suppliers easily.
3- ROI (Return on Investment)
Wholesale is a good business in which we can get the ROI very fast. However, in the wholesale model we shall be live in 2-3 weeks straight after payment to our wholesalers/ distributors. In wholesale we can get 15%+ ROI on an average.
PL: we have to see many things that mean after placing the order from supplier we have to wait for at least 60-70 business days and in PL we can get more than 25 % ROI easily.
4- LONG TERM BUSINESS MODEL
In the wholesale model we don’t know that when wholesaler/distributors are going out of stock. There are too many issues to manage our inventory.
In PL we don’t need to worry about inventory because we are producing our own inventory from China. This is a long-term business. People go with PL usually because they want to build up their own brand.
Regards
Abeera Malik
