Want to start arbitrage buy from costco and sale on Amazon FBA
Hello Friends,
I'm new to the Amazon selling community and seeking some guidance.
I currently have an LLC, an active resale permit, and a Costco Executive Membership. I'm exploring different avenues for selling on Amazon and considering starting with arbitrage.
My question is whether I can purchase products from Costco and resell them on Amazon FBA. If I obtain an invoice from Costco that includes my business address and resale permit number, would this be sufficient documentation for sourcing products for resale on Amazon?
I would greatly appreciate any advice or insights you may have on this matter.
Want to start arbitrage buy from costco and sale on Amazon FBA
Hello Friends,
I'm new to the Amazon selling community and seeking some guidance.
I currently have an LLC, an active resale permit, and a Costco Executive Membership. I'm exploring different avenues for selling on Amazon and considering starting with arbitrage.
My question is whether I can purchase products from Costco and resell them on Amazon FBA. If I obtain an invoice from Costco that includes my business address and resale permit number, would this be sufficient documentation for sourcing products for resale on Amazon?
I would greatly appreciate any advice or insights you may have on this matter.
4 replies
Seller_nRFmxiQg4EGrw
You need to make sure that you have permission FROM THE BRAND to sell on Amazon.
After that, check with THE BRAND to confirm that Costco is an authorized distributor of their product. Despite the fact that Costco has the word "Wholesale" in their name, they are a retail outlet; and while it is possible to make business purchases there as if they are a wholesaler, the brand may not recognize them as a legitimate distributor, even if they give you permission to sell their items on Amazon.
Note also that many items sold at Costco are unique products and/or packaging made just for Costco.
If you sell something that you do not have authorization FROM THE BRAND, then there is a significant chance that you will get a complaint, and lose your account.
Stevie_Amazon
Hi there @Seller_EldX9YBXspTbT,
Welcome to selling on Amazon and thank you for utilizing the Seller Forums!
I understand you have questions regarding reselling items purchased from Costco.
You need to make sure that you have permission FROM THE BRAND to sell on Amazon.
After that, check with THE BRAND to confirm that Costco is an authorized distributor of their product. Despite the fact that Costco has the word "Wholesale" in their name, they are a retail outlet; and while it is possible to make business purchases there as if they are a wholesaler, the brand may not recognize them as a legitimate distributor, even if they give you permission to sell their items on Amazon.
@Seller_nRFmxiQg4EGrw has made an excellent point here. You will want to ensure that not only your supplier is authorized to sell the items in question, but that you could obtain authorization for yourself and business as well in order to maintain the authenticity of items you offer for sale. This is in addition to obtaining proper sourcing documentation or a letter of authenticity in the event questions of that authenticity and supply chain arise. Listed below are the requirements for such a request:
- Copies of invoices, receipts or other similar documents that demonstrate where your products are produced or manufactured.
These documents:
- Should reflect the sales volume of your product across all Amazon marketplaces in the last 365 days
- Should demonstrate your product’s full supply chain
- Should include contact information for the supplier(s) and the original manufacturer. We may contact suppliers or manufacturers to verify the documents
- Your documents should be able to trace your products to the original manufacturer even if you did not purchase them directly from the original manufacturer. This may require requesting additional invoices or supply chain documentation from your supplier if you are not sourcing directly from the manufacturer.
- You may remove pricing information, but the rest of the document must be visible to enable adequate review of the documents you provide. For ease of our review, you may highlight or circle the ASIN(s) under review.
I do suggest locating the main website of the brands you are looking to sell and locate the best way to contact said brands.
Please do feel free to keep utilizing this thread as the forums community and I are here to support you. Let us know if you have further questions.
All the best,
Stevie