What are Amazon Business Models?

 

Private Label

In Simple terms, private labeling means selling a product under your own brand name on Amazon. You find a product, add your logo and packaging,

How Private Label Helps Us Build a Profitable Business.

Higher Profit Margin: You work directly with manufacturers "Alibaba...etc", cutting out middlemen and keeping more profit leading to potentially 25-30% higher gross margins.

Full Control of Our Products: You decide the product design, quality, price, and branding. Add new customization to your products that helps you stand out from other brands on Amazon.

Customer Loyalty: Unique, quality products encourage repeat business. By having full control over your product, you can adapt to customer needs and customize your items as needed, helping to build buyer trust on Amazon.

Wholesale

Wholesale means buying branded products in bulk directly from a Amazon Seller or manufacturer. These items are already established and selling in the market, so there’s no need to create or brand anything new. Since customers are already purchasing these products, you’re simply joining an existing demand—essentially, Its like jumping on a moving train instead of building one from scratch.

However, before moving forward with wholesale, you should be aware of the biggest mistakes new sellers make.

• Relying on random suppliers instead of authorized distributors
• Ignoring brand restrictions, leading to “ungated required” issues
• Doing weak or bad product research, resulting in low profits or dead stock
• Forgetting invoices, which puts your account at risk in future

How to Avoid These Problems to Boost Your Wholesale Business on Amazon:

• You should Always source from trusted, verified distributors
• Always Check brand restrictions before placing any order
• Use tools like Keepa or SellerAmp to analyze ROI and product demand
• Keep all invoices safe on your side — they’re essential for protecting your account

Dropshipping

Dropshipping is a fulfillment method where you don’t keep any Physical inventory yourself. It works like When a customer places an order on your Listing, you simply forward the order to a third-party supplier, who then ships the product directly to the customer.

However, Amazon has strict rules against dropshipping. If Amazon detects that you’re fulfilling orders in a way that violates their policy (for example, using another retailer’s packaging or invoices), your account could face serious issues or even suspension in the future. So you should Avoid using this Bussiness Model