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Business Models

Wholesale

A business model where sellers purchase products in bulk directly from manufacturers or authorized distributors at wholesale prices, then resell on Amazon. Requires establishing supplier relationships and often involves brand authorization.

Related Terms

Private Label

A business model where sellers create their own branded products, typically manufactured by third parties. Private label sellers own their brand and control pricing, unlike retail arbitrage or wholesale. It requires more upfront investment but offers higher margins.

MOQ

Minimum Order Quantity - The smallest number of units a supplier will sell in a single order. MOQs vary by product and supplier, ranging from 100 to 10,000+ units. Negotiating MOQ is crucial for managing cash flow and inventory risk.

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