Amazon FBA wholesale vs Amazon Private label: Which one is better?
Amazon FBA wholesale vs Amazon Private label: Which one is better?
Amazon is a vast marketplace that not only provides premium quality products but also generates employment. According to statistics, there are approximately about 1.9 million active sellers.
Do you know Amazon marketplace has 9.8 million total sellers worldwide?
Even though selling on Amazon in 2022 is a money-making opportunity. Yet most sellers fail to understand the problem. Which is the best strategy that works for them- Amazon wholesale or Amazon private label.
Certainly, Amazon wholesale or Amazon private labels both have their pros and cons.
This article lists down a few points Amazon wholesale vs. Amazon private label: Which is better?
But before that, we must know what Amazon FBA wholesale and Amazon private label is?
Amazon FBA wholesale platform is one of the most effective ways to sell physical products online. This allows purchasing branded goods in bulk lots from any company, supplier, or seller and reselling products to buyers.
In Amazon private label products are manufactured by a contract or third-party manufacturer and sold under the retailer’s brand name. As a retailer, you can have your own labeled packaging that will differentiate your product from that of the competitors. Consequently, it is an exceptional business form to gain profit margins.
Amazon FBA Wholesale vs. Private Label: Which is better?
When selling on a giant platform like Amazon, everything boils down to which option is better and more profitable. That’s why it’s essential to consider all the pros of Amazon FBA wholesale and Amazon Private label.
Here we have shared a list of all the pros of Amazon FBA wholesale and Amazon Private label.
Pros of Amazon FBA wholesale
- Amazon sales rank plays a vital role in product sales as most products are already listed and sold in good numbers; you don’t need to worry about it.
- Low expenditure on advertisement because the product is already a renowned brand.
- You don’t have to put effort into ASIN or product detail pages because the product’s listing on Amazon is already done.
Pros of Amazon Private Label
- Having a complete hold over reputation, customer service can be beneficial for you.
- An Amazon private Label Amazon product has more monetary value than a wholesale business.
- The number of products available is not your limit as long as you continue to manufacture also, as long as you have the capital.
- Being a private label, you tend to have control over the end-to-end process. You are involved in every baby step.
Cons of Amazon FBA wholesale
- For selling as an Amazon wholesale seller, a wholesale license is required; this process takes about 4-5 weeks.
- With Amazon wholesale, you get less control over the whole process because the brand takes all the authoritative decisions.
- More intense competition on your product listings.
Cons of Amazon Private Label
- Stealing of data such as product and brand listings by competitors
- The time commitment for creating Amazon listings or branding
- More guesswork is involved concerning demand forecasting.
- There are high chances that your competitor is registering a copyright or trademark breach notice to Amazon.
Key Takeaway
Whenever you face issues while product listing or branding, we recommend considering both business models’ with all the pros and cons. No one can understand your requirements better than you. Dig deep, research well, and choose the business form that will be most productive for your business needs.
Don’t worry if you ever get caught in the act. Asinwiser our very own Amazon wholesale software can help in increasing your Amazon sales and profit by using our services such as product and competitor research tool, Bulk product profit calculator etc