Amazon FBA Wholesale Business Tips After Quitting Job & Moving Into Own Warehouses

In this blog post, I am going to be sharing with you a few tips and a few personal experiences on wholesale, and why you should get started. If you are doing online arbitrage at the moment, and you are thinking of doing wholesale, I am going to be sharing a few tips which are going to be helpful. 

Don't Allow Things to Stop You

Once of the first things when you are looking at starting wholesale is people will be saying that you need a lot of money, or that you need a lot of capital, and wholesale is a massive game...

Wholesale is a massive game, but there is no reason why you shouldn't be able to follow an online arbitrage approach to wholesale. There are many different wholesales who have a minim order quantity of minimum value of 200 - 300 pounds, so really, you do not need a lot of money to get started.  

Pallet Shipping

For pallet shipping, it can be a lot cheaper than using UPS. Your cost shipping via UPS to Amazon is going to be around 25p and 33p, depending on volume. With shipping pallets, you can bring that down really easily for 12p per Kilo. So, once you are shipping several tons of products every month, you can very easily save 500 pounds per month, just in shipping. You are also able to reuse most of your boxes depending on the wholesaler. 

Competition is Less

You don't really have to rush, like you would in online arbitrage. When there is an offer, in online arbitrage, you rush to buy, and if you go late in the listing, you are going to have to wait. However with wholesale, there is competition, but it isn't crazy, and the people who are competing with you are professional - they are businesses, and they are not people who are just starting, and they still don't understand how it works. 

When you go through different barriers to getting into a wholesale, you have a lot less competition. 

Expiry Date

If you are buying products from the groceries category which have an expiry date, when you get them from a supermarket, you will probably get one product with one date, then another unit with another date, and it can be a struggle, because they have to go in different boxes.

With wholesale, you will usually receive 5 or 6 to 10 boxes, with 30 units each, and they all expire on the same day. 

If for any reason, they are close to your expiry date, Amazon will destroy the products after 45 days from the day that you told them it is going to expire, so most of the time on the wholesale side, you will be able to see the expiry date, or find out what it is. 

You Are Going to Need Commercial Premises 

This doesn't mean that you need to rent a massive warehouse. You could have a bunch of different storage units - this is a very good option if you are in the south, and you are prepping yourself.

If you prefer to take off all the overheads of prepping, and handling over to a different company, you can use Systemise Fulfilment, and they will prep their items for you, which will save you a lot of time. 

But if you prefer or you decide that you want to take full control of your operations, and you want to prep yourself, consider the option of self-storage units, because they are very cheap, and you won't need to pay business rates. They can receive your products for you during normal working hours, so you don't need to be there to receive pallets or send them. 

ROI

ROI depends on the product and the listing - it is not better or worse. In many cases where it's way better than the ROI, and it is really good. 

Wholesale or Online Arbitrage?

Wholesale is a lot different than online arbitrage. This doesn't mean that is better - they are both complementary, so you can start wholesale on the side, and you can put more cash on wholesale account, or on the online arbitrage as you need. This way, you will be protected against issues. 

Further reading:

Warning Before You Move Your Amazon FBA Business into a Warehouse

How You Can Open 3 Wholesale Accounts In 24 Hours

Amazon FBA Wholesale For Beginners Step by Step Full Course - Checklist For Exclusive Brand Deals