I know the private label is a very popular business model on amazon. In private label, you build your own brand and you have to spend a lot of money on marketing. you just launch one product for the private label and you need a big amount to start like $10k to $20k and if your product is a flop then you might lose your whole investment at the end.
In the wholesale model, you create your offer on an existing listing you don’t need to rank your item and you don’t need to spend money on marketing. you are going to sell established brands you are not the brand owner so you dont carry the risk or any responsibility you can sell items with proven records you can get benefits from the existing customers and you dont carry the risk of your seller account since you are purchasing inventory from the brand or its authorized distributors and you provide the legal documents receipts or invoice to prove it. you can launch 5 to 6 items and even more at a time you can start a wholesale model with a minimum of $3k to $4k Dollars, if your one or two items flop and the rest are going well then they will cover your profit margins that’s why wholesale is the safest business model.
