Should you sell wholesale or retail on Amazon? Both models have pros and cons. Our Wholesale Profit Analyzer helps you compare and decide which is right for your business.

Wholesale vs Retail: Key Differences

Wholesale:

• Sell in bulk to other businesses
• Lower profit margins per unit
• Higher sales volume
• Less marketing required
• Faster cash flow

Retail:

• Sell directly to consumers
• Higher profit margins per unit
• Lower sales volume
• More marketing required
• Slower cash flow

Which is More Profitable?

It depends on your situation:

• Wholesale: Better if you have capital, storage, and want fast cash flow
• Retail: Better if you have marketing budget and want higher margins

Many successful sellers use a hybrid approach - wholesale for fast-moving items, retail for high-margin products.

Real-World Example

Let's compare both models for a $20 product:

Wholesale Model:

• Product cost: $10
• Wholesale price: $14
• Profit per unit: $4 (29% margin)
• Monthly volume: 1,000 units
• Monthly profit: $4,000

Retail Model:

• Product cost: $10
• Retail price: $20
• Amazon fees: $5
• PPC: $2
• Profit per unit: $3 (15% margin)
• Monthly volume: 200 units
• Monthly profit: $600

In this example, wholesale generates more total profit despite lower margins!

MOQ Considerations

MOQ (Minimum Order Quantity) is crucial:

• Higher MOQ = Better wholesale prices
• Requires more capital upfront
• Need storage capacity
• Risk of overstocking

Factor MOQ into your decision - can you afford the minimum order?

Best Practices

• Compare both models before deciding
• Consider your capital and storage
• Account for marketing costs (retail)
• Factor in MOQ requirements
• Consider hybrid approach