22/12/2021
Amazon PL vs Amazon Wholesale
what is Amazon PL?
• Amazon PL (Private Label) is one of the most common amazon business models where you create or introduce your own brand.
• In this model, you usually source your product from China (un-patented so that you can make it as your product after some changes).
• This model needs relatively higher amount of investment to launch in big market like USA or UK as the steps to launch a new brand are not few.
• Usually, a good PL launch in US or UK market must have an investment of $15-30K. People are doing it on much cheaper investment but they are not recommended as we can face some constraints down the road.
• The return on PL stores is much higher comparing to other one, because once your brand (listing) gets ranked, you can expect high profit.
What is Amazon Wholesale?
• In Amazon wholesale, you don’t create a new brand/listing. You find a supplier (already reknown brand) and sell their products on Amazon.
• To start selling, you just need a good supplier and his permission to sell their products.
• This model requires very low investment comparatively as you work on already created/ranked listing.
• Amazon wholesale can be launched with investment as low as $3K (yes, your read it right!).
• The return on wholesale is usually not that much as compared to PL but with the right strategy and suppliers, you can hit the jackpot.
• Those who do not have high investment at the moment, they can start with wholesale to start saving and then launch a big PL brand.