A private label becomes an asset and it is your own label, a brand that no one else can sell.
Here are some of the reasons why many eCommerce entrepreneurs opt for Amazon FBA wholesale.
The entire dependence on private label is on a single product.
If a private label fails, it will wipe off all the money that is spent over time in it. Some private label Amazon businesses are bound to fail since there is a lot of competition.
There may be factors out of control like the product going out of trend, there is a change in the product’s model, the trends change, any new technology introduced, a more cost-effective alternate becomes available, or there is a change in design. All the inventory in private labels goes to waste. So, there are a lot of risks involved in the private label business.
Amazon FBA wholesale business model is relatively straightforward with a lot fewer variables to consider. The product already successful in the market is sold under this AMZ business model. It is a lot simpler business model. There is not much hassle involved in starting an Amazon FBA wholesale business. There is a lot of growth and money-earning opportunity in this business model. FBA wholesale business model can be scaled to any level without any limits. You can add any number of products to your inventory as you desire under the Amazon FBA wholesale business model. The minimum inventory level to maintain under the Amazon FBA business model is 10 units. You can always increase the inventory to keep with the increase in sales. The returns in the Amazon FBA wholesale business are a lot quicker and you do not have to wait for a long time.