Private label, wholesale or dropshipping on Amazon: what is the difference?
Common seller question · Read on agentxray.ai: the private label, wholesale and dropshipping glossary pages
Answer · AgentXray team
Private label, wholesale, and dropshipping are three distinct business models on Amazon. Private label involves selling products manufactured by a third party but branded under the seller's own label, which requires significant investment in brand development and compliance with regulations. Wholesale, on the other hand, is about buying branded products in bulk from authorized distributors and reselling them, typically yielding lower profit margins but with lower upfront costs and reliance on existing brand recognition. Dropshipping is a retail model where the seller does not hold stock; instead, orders are sent to a third-party supplier who ships directly to the customer, but it must comply with Amazon's requirement that the seller of record is identifiable on packaging and invoices.
For more details, you can check the private label, wholesale, and dropshipping pages.