How Amazon FBA wholesale works?
Amazon FBA wholesale is the most secure and long term business model considered. But it takes 30-90 Days for finding a good item for your store. The process involve finding a good product and then getting approval for that product from the Brand. For every item we didn't get approval from Brand we need to find multiple products and have to contact multiple brands and only few of them get approved. For FBA Wholesale the initial investment varies from $7000-$15000. We will not relay on only 1 Product but we will keep adding multiple items with less units for all items so your Investment doesn't get stuck. Wholesale FBA takes time to getting product live as only products can be listed after getting approval from Brands. With $7000-$15,000 initial investment we will try to live atleast 25-50 items with low inventory on Amazon.com. In this business model it may takes 3-5 months for generating over $10,000 profits. The profit margins usually between 15-30% in this model. First 2-3 months just goes in finding the product and getting them ordered to a 3PL service Provider and from 3PL to Amazon Warehouse. But after that we keep adding more items on regular basis. So First 2-3 Months doesn’t have any Pay Back but if we get approval in beginning days then we might get some profits at the end of first or second month.
