Wholesale vs. Arbitrage
Arbitrage is the process of purchasing products from retail stores or websites at a discounted price to resell on Amazon. Like wholesalers, resellers buy branded products. Unlike arbitrage, wholesalers make bulk purchases directly from the brand instead of individual purchases from a retail store.
Wholesale vs. Private Label
Wholesalers purchase and resell existing branded products whereas private label sellers create their own branded products to sell on Amazon.
Because of this difference, wholesalers do not necessarily need to create new product listings. Instead, they add their offer to an existing product listing. On the other hand, private label sellers must create their own product listings.
Wholesale vs. Dropshipping
Dropshippers list goods for sale on Amazon without taking ownership of the product first. Then, when a purchase is made, they place an order through the supplier/manufacturer of the product, who fulfills the product on behalf of the drop shipper.
Wholesalers own their inventory and are in charge of fulfilling orders themselves or through Fulfillment by Amazon (FBA.)