Amazon wholesale means buying branded products in bulk from authorised distributors and reselling them on existing Amazon listings. It is one of the most stable Amazon models, but it needs real working capital.
The main costs
- Inventory: the largest part of your budget. Distributors often have minimum order amounts.
- Business setup: an LLC, EIN and reseller certificate, which most distributors ask for.
- Amazon fees: a monthly Professional selling plan, referral fees on each sale and FBA fulfilment and storage fees.
- Prep and shipping: labelling, packing and shipping to Amazon warehouses.
- Tools: product research and repricing software.
- Advertising: a PPC budget to help new offers get seen.
- Cash reserve: money set aside to restock winners without waiting for payouts.
A typical budget split
For many new wholesale stores, around 60% of the budget goes to inventory, with the rest split between fees, prep, ads, tools and a reserve. Our free budget planner shows this split for your exact amount.
How long until payouts?
Amazon pays sellers every two weeks once sales begin. Most new stores take a few weeks to get products approved, sourced and checked in at Amazon warehouses before the first sales arrive. Plan your cash flow for that gap.
How to lower your risk
- Start with a smaller range of proven products and reorder what sells.
- Only buy from authorised distributors, so you can prove where your stock came from.
- Keep a cash reserve instead of spending everything on the first order.
Try the store budget planner to see a typical split for your budget.
Want a plan for your store?
Book a free store audit. We will recommend a marketplace, a product direction and a clear quote for your budget.
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