Private Label vs Arbitrage vs Amazon Wholesale

Private Label vs Arbitrage vs Amazon Wholesale

While coronavirus wrecks havoc, the world still turns. On this episode of Entrepreneur Adventure, we’re breaking down what 2020 means for new Amazon sellers. Can you still go private label? Are Chinese sellers disrupting the marketplace? We’re answering all of these questions and more.

Show Notes & Transcript:

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Private Label

Although many swear by it, private label is a tough gig – and even more so now. What is private label? Simply put, it’s the process of choosing a category (i.e. dog products) and creating products within that category to sell on Amazon. Essentially, you must create your own brand from the ground up, a venture many are unprepared to tackle. Especially given the flux of Chinese sellers entering the marketplace with unbeatable prices and knockoff products popping up left and right.

Nevertheless, if you’re sold on private label, check out Scott Voelker for some top-notch advice.

Bottom Line? Despite the success stories, private label remains the toughest avenue on Amazon to pursue.

Retail Arbitrage

Arbitrage is a great place to learn the ropes. What is arbitrage? Retail or online arbitrage involves buying products from local stores like Goodwill and Walmart (or online) and reselling them on Amazon. While it’s a simple process, if you’re caught in a liability rut, Amazon won’t accept a receipt from Target as bail. While a great place to learn, Arbitrage is hard to scale and therefore tough to sustain.

Bottom Line? Arbitrage is a great place to start out, but don’t stay for too long.


Out of the three entrances to Amazon, wholesale has the most opportunity. As private label and retail arbitrage get harder, wholesale stands above the rest. What is wholesale? In short, wholesale means buying established products from suppliers to resell on Amazon. Luckily you can find ways to predict a product’s profitability. Not to mention, Amazon will always take receipts from brands and distributors if your account is ever flagged.

Selling wholesale requires a smaller investment and because you’re typically buying products from your own country or the country you’re selling in, you can get products in just two weeks.

Bottom Line? While not an “easy” path by any means, wholesale presents the least risk with a high return on investment.


Hopefully this helped to clear up your options in a time of uncertainty. If you commit to wholesale, Entrepreneur Adventure is a great place to learn. As always, happy selling.


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5 Thoughts to “Private Label vs Arbitrage vs Amazon Wholesale”

  1. Thanks Todd, besides the one on one coaching, do you have a wholesale fba course?

  2. As always, your content is great, love your videos

  3. Ali

    Hey Todd,
    Always love your videos!
    We had a 1:1 coaching session and afterwards I emailed some questions. What is the best way to reach out to you ?

  4. thanks you are very honest

  5. Cheers Todd, thank you always dropping knowledge. Is it possible for someone who live in New Zealand but buy products in USA and send to amazon warehouse? Is there like a steps or guide how it’s done?
    Thank you again, Todd

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