At AH Square, we are a team of experienced professionals dedicated to assisting you in establishing a successful Amazon FBA wholesale business. Whether you're new to e-commerce or looking to expand your business, our comprehensive module ensures that you navigate the complexities of Amazon FBA with confidence.
Investment Requirements
To initiate your Amazon FBA wholesale venture in the USA market, an initial investment ranging from $5,000 to $7,000 is recommended. This investment covers essential steps from account creation to product testing and launch.
Step (1): Creation of Amazon Individual Account: Set up an Amazon Individual Account tailored for the US market using Pakistani details. Requirements include Passport/National ID, Bank Statement, Credit Card from a Pakistani bank, and Payoneer or Wise as deposit method.
Step (2): Creation of LLC: Registering a Limited Liability Company (LLC) in the US is crucial for legal compliance and business structure. This involves obtaining an Employer Identification Number (EIN), Individual Tax Identification Number (ITIN), Reseller Certificate, and Sales Tax ID. The process typically takes 50-60 days and requires a budget of approximately $800-$1,000.
Step (3): Upgrade to Professional Account: Once the LLC registration is complete, upgrading the Amazon Individual Account to a Professional Account is necessary. This step provides access to advanced selling tools and features, including bulk listings and reporting capabilities.
Step (4): Create Website & Company Email Address: Establishing a professional online presence is crucial for brand credibility and customer engagement. This step includes creating a business website with product listings and a dedicated company email address.
Step (5): Product Hunting: Identifying profitable products suitable for wholesale distribution involves comprehensive market research and partnership negotiations with brand owners or authorized distributors. This phase requires meticulous attention to product metrics such as Best Selling Rank (BSR), Reviews, Ratings, Revenue, Price, and Competition.
Step (6): Order Product for Testing: Initial product testing involves ordering a minimum quantity of selected products for market validation. Typically, 20-30 units per product are ordered, with an estimated budget of $500-$600. This testing phase helps minimize risk and assesses market demand and product viability.
Step (7): Generate Amazon Label & Send to Prep Centre: Preparing inventory for Amazon's Fulfillment by Amazon (FBA) service involves creating shipment plans and generating Amazon labels. These labels are then sent to a prep center for labeling and packaging before shipment to Amazon warehouses.
Step (8): Order Large Inventory: Upon successful product testing and market validation, scaling up inventory levels is crucial for maintaining supply continuity and maximizing sales potential. Ordering larger quantities of profitable products ensures competitive pricing and enhances visibility in Amazon's Buy Box.
Step (9): Repeat Inventory Preparation: Repeating the inventory preparation process involves generating Amazon labels, sending them to a prep center for packaging, and shipping inventory to Amazon warehouses. This step ensures ongoing product availability and adherence to Amazon's operational requirements.
Conclusion
The initial investment for establishing an Amazon FBA wholesale business with AH Square totals approximately $4,490. This investment covers LLC registration, website setup, initial product testing, and inventory scaling to kickstart your wholesale venture effectively.
Profitability and Timeline
Unlike Amazon FBA private label ventures, which may take 8-12 months to stabilize profitability, Amazon FBA wholesale businesses typically achieve profitability within 3-4 months. This timeline includes LLC registration, product approvals, and initial sales cycles.
USA Product Hunting Criteria
Best Selling Rank (BSR): 1 to 60,000 in the last 90 days.
Reviews: Above 100.
Ratings: Between 4.2 to 5.
Revenue: Minimum $4,000.
Price: $12 to $50.
New Offers: 4 to 20 competitive sellers.
Package Weight: Maximum 2kg.
Variation: Not more than 4.
Amazon as a seller: Not Selling or Out of Stock.
Sales Equity: At least 25 sales per seller.
Ready to embark on your Amazon FBA wholesale journey?