distributor in USA for amazon

21 Mar 2025

How to Start a Successful Amazon Distribution Business in the USA

 

Step 1: Choose Your Distribution Model

  1. Wholesale Distribution: Buy products in bulk from manufacturers and sell them to Amazon sellers.
  2. Private Label Distribution: Manufacture or source products under your own brand and sell them on Amazon.
  3. Authorized Brand Distributor: Partner with established brands to distribute their products to Amazon sellers.

Step 2: Register Your Business

✅ Choose a Business Structure

  • LLC (Limited Liability Company) – Recommended for liability protection.
  • Corporation – If you plan to raise funds or expand big.
  • Sole Proprietorship – For small-scale operations (not recommended for distributors).

✅ Apply for an EIN (Employer Identification Number)

  • Get it from the IRS (IRS website) to open a business bank account and file taxes.

✅ Get a Reseller Permit

  • Needed to buy wholesale tax-free and sell in the USA. Check your state’s tax department.

✅ Business Bank Account & Credit Line

  • Separate your personal and business finances.

Step 3: Find Product Suppliers

  • US-Based Suppliers: Use directories like Wholesale Central, ThomasNet, SaleHoo.
  • International Suppliers: Alibaba, Made-in-China, Global Sources.
  • Direct from Brands: Contact brands to become an authorized distributor.
  • Liquidation Suppliers: Bulk buy from B-Stock, Liquidation.com.

💡 Pro Tip: Build relationships with suppliers for better pricing and exclusive deals.

Step 4: Setup a Warehouse or Fulfillment

  1. Use a 3PL (Third-Party Logistics) Provider – Partner with warehouses that handle storage, packing, and shipping.
    • Examples: ShipBob, Flexport, Red Stag, Deliverr
  2. Fulfill via Amazon (FBA or FBM)
    • FBA (Fulfillment by Amazon) – Amazon handles storage, shipping, and customer service.
    • FBM (Fulfillment by Merchant) – You handle shipping via your own warehouse or 3PL.

Step 5: Sell to Amazon Sellers or Consumers

✅ B2B Distribution to Amazon Sellers

  • Create a website showcasing your product catalog.
  • Market through LinkedIn, Facebook groups, and industry forums.
  • Offer bulk discounts and credit terms to Amazon sellers.

✅ Sell on Amazon Yourself

  • Create an Amazon Seller Central account.
  • List products and manage inventory.
  • Use Amazon Advertising (PPC) for more sales.

Step 6: Marketing & Growth

📌 Join B2B Marketplaces

  • Sell your inventory on platforms like Wholesale Central, Faire, Tundra, eBay B2B.

📌 Build a Website

  • Use Shopify, WordPress (WooCommerce), or BigCommerce for an online presence.

📌 SEO & Social Media

  • Optimize product listings and market through LinkedIn, Instagram, and YouTube.

Step 7: Compliance & Legal Aspects

  • Follow Amazon’s distribution policies (avoid restricted brands).
  • Keep track of import/export regulations if sourcing internationally.
  • Have a strong contract with suppliers and clients.

Final Thoughts

Starting as an Amazon distributor in the USA requires solid supplier relationships, a distribution strategy, and logistics management. Whether you supply to Amazon sellers or sell on Amazon yourself, the key is bulk purchasing and competitive pricing.

Do you need help finding suppliers, setting up an Amazon account, or anything specific? 🚀