Hello my name is Ramon Gonzalez, and I’m an amazon seller who has been selling since 2015. the main business model I follow is the wholesale model. For those of you that dont know what the wholesale model is, I essentially buy branded products at wholesale prices, and I sell in Amazon at retail prices. Think buying Barbies and adidas shoes at wholesale pricing, and sellign them in amazon at full price.
The main advantages of the wholesale model is that it is a very scalable model. Unlike private label, you can start with small purchase orders and scale up to huge ones with the right supplier. Another advantage would be that you dont necessarily have to learn marketing when comparing to private label.
Some of the disadvantages of the wholesale model would be that your margins are usually less than both private label and retail arbitrage.
If you spoke with many wholesale sellers, the vast majority would tell you that the most important thing about this model is buying right to guarantee a profit, and that you make your profit when you buy, not when you sell. Although I dont disagree this is important, I would say the most important thing is establishing long term relationships with the right suppliers.
Finding the right suppliers will absolutely guarantee success or failure in this business model, and when it comes to finding suppliers, by far the most effective way of closing a supplier and having them approve you as a seller would be to meet them face to face in a conference or expo. Far too many sellers try and fail to open accounts by email only, and most good suppliers receive dozens of cookie cutter emails that they automatically disregard. Although we still email suppliers to try and get more product to purchase, the best ones we have are the ones we have met in expos and got our foot in the door by talking to them there.
There are many expos all over the United States you can attend if you have an established business. The main tips I can give you in terms of attending expos would be:
1) come prepared. Dont just show up to roam the isles. Do your due diligence beforehand. Go to the expo website and download the exhibitor list. Most suppliers in an expo will not work in Amazon. Only visit those that you know will work for you
2) be personable and flexible when talking to suppliers. Listen to them talk about their product line. Make small talk with them and appear comfortable. Be willing to offer advice and ideas on how to sell their products, such as fixing their amazon listings or creating bundle ideas.
3) dont be afraid of rejection. Most sellers that fail in this model fail because they’re too afraid to strike up a conversation with a stranger, and quit before they even get a chance to fail. Understand that there is no success without failure, and if you avoid failure, you also avoid success.
I hope these tips will get you on your way to a successful year with the amazon wholesale model.