Amazon Wholesale vs Private Label: Which One Is Actually Easier to Start?

You're trying to figure out which model to go with. Everyone has a strong opinion. Here's mine, after 9 years selling on Amazon and coaching 60+ people through it.

What private label actually involves

You find a product category, research what's selling, and then find a manufacturer (usually in China) who will make that product with your brand on it. You order a batch, ship it to Amazon's warehouses, and start trying to rank the listing. That means running ads, getting reviews, and waiting to see if people actually buy.

If it works, you own a branded product that nobody else sells on Amazon. You control the listing and the pricing. That's a real advantage.

Here's what it actually takes to get there: $5,000 to $15,000 minimum for your first batch and launch costs. Three to five months waiting for manufacturing and shipping. Then several more months running ads and trying to build reviews before you know if the product is going to work out.

Many products fail. Some succeed, then get copied by the same manufacturers who made them. I'm not saying private label doesn't work. It does for some people. But it's expensive, slow, and you're making a big bet on a product that hasn't proven itself yet.

What wholesale actually involves

You contact brands that already exist, already sell on Amazon, and already have buyers. You get approved to carry their products as an authorized reseller. You buy inventory at wholesale prices, send it to Amazon, and sell it at retail.

You're not inventing anything. You're not creating a brand. You're moving existing products to buyers who are already looking for them.

A simple example: a dog food brand with 8,000 reviews and steady monthly sales. You apply to become a reseller, get approved, order 100 units for $600, and sell them for $1,000. You reorder what sells. You add more brands over time.

The product already has demand. The hard part is getting brand approvals (which is learnable) and managing your account well. Both are teachable skills.

Side by side

Here's how the two models compare on the things that actually matter when you're starting out.

Private Label
Wholesale
Time to first sale
6 to 12+ months
A few weeks to 2 months
Startup cost
$5,000 to $15,000+
$1,000 to $2,000 to start
Main risk
Product doesn't sell, stuck with inventory
Buying proven, in-demand products
Key skills
Design, PPC ads, influencer outreach
Sourcing, brand approval, buying
Competition
Manufacturers copy your product
Negotiate exclusive or semi-exclusive terms

Who should pick which

Private label makes more sense if you have a specific product idea that doesn't exist on Amazon yet, $10,000 or more to invest, a 12-month runway before you need to see results, and you genuinely enjoy the branding and creative side of building a product from scratch.

Wholesale makes more sense if you want to start sooner, you prefer lower-risk bets, you like the operational side more than the creative side, or you just want to test Amazon without a huge upfront commitment.

Most people I've worked with who tried private label first eventually added wholesale anyway. Many who started with wholesale stayed there and never felt the need to switch.

My honest take

I'm obviously biased here. I've spent 9 years doing wholesale and it's what I teach. But I do think it's the better starting point for most people, and here's why.

It's faster to your first sale. It's cheaper to test the model. The skills you build (finding suppliers, getting brand approvals, managing your account, making smart buying decisions) transfer well to other things. And you see results fast enough to stay motivated and keep going.

Private label is a real business and some people build great companies with it. But it's harder to start, takes longer to show results, and most beginners quit before it works out.

If you're new to Amazon and trying to decide where to begin, I'd start with wholesale. Learn the platform. Make your first sales. Then decide later if you want to layer in a private label product once you actually know how Amazon works.

Jakub Filipcsik
Jakub Filipcsik

9 years selling Amazon wholesale. $1.79M generated for one client in 2024. 60+ people coached. I work with beginners starting from zero and agencies that need better systems. US marketplace only.

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