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Wholesale
- 1. Amazon Wholesale Business Model This business isabout making relationships" with your suppliers and building successful long term relationships Buying brand name products from established brands and reselling them Buying branded products in bulk and large quantities
- 2. Amazon Wholesale Requirements Legalbusiness entity (sole proprietorship, LLC, Corporation) EIN number (Employer Identification Number/Federal Tax ID) - US Reseller Permit (sellers permit, resale certificate, etc.) Professional Amazon Selling Account Professional/business email address - higher response rate when contacting the supplier Business Website (Optional) Commercial Shipping Address (Optional) - some suppliers (like grocery category) required this, most of them don't ship in Amazon or a residential address. Seller can make partnership on Prep Center - a 3rd party company that provide prepping services with a fee. 1. 2. 3. 4. 5. 6. 7. Seller must have:
- 3. The company thatmakes/own the product. Advantage: they will give you the actual wholesale price, larger profit margin, safe from risks like IP complaints and authenticity complaints. Disadvantage: very hard to make a wholesale account on them. Once mentioned that you're a seller on Amazon they will reject unless you offer a value preposition. e.g. Procter & Gamble Nike A company that is authorized by a brand to distribute their products to retailers. They have a direct relationship with the brands. They carry multiple brands. They don't sell directly to end customers, they only sell to business customers. Easier to open a wholesale account. Recommended for new sellers. e.g. Sysco US. FOODS Amazon Wholesale Suppliers A company that buys products from brands, distributors, liquidators, etc., and then resells those products. They can sell to end customers and business customers. BRAND/MANUFACTURER DISTRIBUTOR WHOLESALER Locally - US, UK
- 4. Amazon Wholesale Sourcing Searchin google: open each result of distributors create a supplier list template when you're decided that it is a distributor and not just an e-commerce, get the name of the distributor, contact email, phone number, name of sales representative, and address. build a list of suppliers and give a day or two to contact all that's on your list. pet supplies distributors new york search 1-3 products in Amazon that are doing well on the criteria get the brand name find the brand name in google search: pet supplies distributor (brand name) do this until you make hundreds of supplier list that you can contact Methods in finding suppliers: Using google Reverse sourcing - Amazon
- 5. Avoid high BSRproducts (Recommended: average of 120,000 BSR and below) Price should be at least $15 or higher Listing should have at least 3 FBA/FBM sellers Avoid Amazon as a competitor Avoid Private Label Products Monthly estimated share of sales per unit at least 50 Profit margin at least 20% (depends on client) Minimum of $1.5 net profit (depends on client) Make sure brand owner is not selling on Amazon Check if products are category/ brand gated, hazmat, etc. Amazon Wholesale Sourcing Criteria in finding potential product
- 6. PRICE: VERY HIGH 1. 2.DELIVERY TIME: VERY HIGH 3. FULFILMENT: HIGH 4. FEEDBACK: MEDIUM 5. FEEDBACK QUANTITY: MEDIUM 6. PERFECT ORDER SCORE: MEDIUM 7. AVAILABLE STOCKS: LOW 8. CUSTOMER PROXIMITY: LOW FACTORS TO WIN THE BUY BOX
- 7. Private Label VS.Wholesale You make and sell your own product You source from Alibaba/China You create new listing for your product Profit is more promising once you find the right product Riskier as you are launching a new product to the market Relies heavily on launching strategy advertisements, PPC, etc. You resell other people's existing product You source locally (USA, UK, etc.) You only need an existing ASIN to list your product Profit oftentimes is low. It'll depend on your supplier's wholesale prices Less risk as you're selling products that customers already knew No advertisements, PPC or any kind of promotions needed.