WHOLESALE/PRIVATE LABEL

The main difference between wholesale model and private label on Amazon is the ownership and control of the products being sold.

In a wholesale model, the seller purchases products from manufacturers or distributors in bulk at a discounted price, and then resells those products on Amazon. The seller does not own the products or control the branding or packaging of the products. Instead, the products are sold under the brand name of the manufacturer or distributor.

In contrast, private label involves the seller creating their own brand and products, and then selling those products on Amazon. The seller is responsible for the design, manufacturing, packaging, and branding of the products. Private label products are often manufactured by third-party manufacturers or suppliers, but the seller retains control over the branding and packaging of the products.

In terms of the advantages and disadvantages of each model, wholesale allows for a faster and easier way to get started on Amazon, as the seller doesn't need to create their own products or branding. However, profit margins may be lower due to the competition and the lack of control over pricing and branding.

On the other hand, private label allows for more control over the products and branding, which can lead to higher profit margins and more brand recognition. However, it requires more investment and effort in terms of product development and marketing.

Ultimately, the choice between wholesale and private label depends on the seller's goals, resources, and preferences