25/04/2022
The Challenges of Selling Wholesale
Along with the benefits of selling wholesale, there also come challenges. You’ll want to carefully consider these challenges and work to mitigate these risks if you do decide to pursue a wholesale business model.
✅Finding Products That Aren’t Already Sold on Amazon
If you can find a product that isn’t already sold on Amazon then you have a chance to establish yourself as the exclusive seller. This gets harder and harder as selling on Amazon becomes so ubiquitous.
✅Finding Products Where You Can Successfully Compete with Other Sellers
The other approach is to find a product that sells well on Amazon, where you feel confident that you’ll be able to win the buy box often enough to secure a certain percentage of the total sales of that product. This can be tricky though, and if you aren’t careful you’ll end up eating into your profits due to pricing wars with other sellers.
✅ Amazon Dominancy
In wholesale fba biggest challenge is to check weather amazon is dominant or not if amazon is selling itself it will not allow us to get buybox that's why we avoid those products.
✅Brand Dominancy
Similarly we don't go with products where brand is selling itself as brand don't give us option of selling they prefer themselves and we don't get buybox.
✅ Profit Calculation
We do have to check three time profit we have to calculate FBA fee supplier cost shipping cost prep cost after that we select products which give us profit atleast 2$ per below that profit we avoid those products as well.
There are more challenges we have to face while selecting products that's why Amazon FBA wholesale is time consuming model we don't know how many days we can cover to reach our target.