This Post is part of the “FREE Wholesale Training Course”. You can view the entire course listing and introduction to the course here.
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Module 2: Wholesale Preparation
- Introduction to wholesale sourcing
- Understanding how the buy box works
- Understanding how Amazon’s Best Seller Rank (BSR) works
- Understanding ROI / Margin
- Analyzing competition and potential volume
- Setting your personal buying guidelines
- Determining your long term strategy
- Distributors / Wholesalers vs. Manufacturer Direct
- Ideal targets for wholesale sourcing
- Tools for wholesale sourcing
You can click on each of the links above to go directly to the area of the module the best interests you. That being said, lets get right into the content!
Want to skip reading the massive wall of text? After the entire course is released, I will make videos for each of the sections for easier consumption. Make sure you are on our mailing list to be notified when it’s released!
Ideal Targets For Wholesale Sourcing
Depending on the business model you’ve chosen, “ideal” can mean a lot of different things. When we mean “ideal”, we mean “companies you can likely provide the most value to”.
The guidelines below should work for every business model chosen. If your goal is to build out a full e-commerce model, your targets will likely start to change as you build up that model. I’ll discuss those later in this section.
These are the types of companies you want to work with:
- Small to mid-size companies. Companies that may only have one product, or a relatively small catalog. These companies are most receptive to you talking to them about their problems. You likely know a lot more about Amazon than anyone in their company.
- They don’t currently sell to Amazon. Yes, it is possible to “flip” a company from selling directly to Amazon. But starting out with wholesale, you want to stay away from companies that already sell to Amazon.
- It’s obvious they could use some help. Take a look at their listings – if they all have one image and generic product descriptions, that’s a good thing. A lot of sellers undercutting pricing? It’s possible you can help them control price.
Here’s some other things that can make a brand owner a good target:
- None of their items are on Amazon at all. If you are good at marketing, you can bring items to Amazon.
- When you talk to them, they specifically say “We don’t sell to Amazon sellers”. If you can provide value other current Amazon sellers aren’t providing, you may be able to flip that no to a yes. This keeps competition low.
- Their products are in gated categories. This helps keep the competition lower.
- Their brand is currently gated. The keeps the competition out even more.
- No one is doing any PPC advertising for the brand. This is a way to help improve sales, which is a good value proposition to the brand owners.
- They are receptive to contact. It’s always better to work with people that want to talk to you!
Considerations For the E-commerce Model
If your long term plan is to build a niche e-commerce business, you may need to change your targets a bit. Here’s the slight changes:
- You’ll want to keep your targets in a similar niche. When building out your e-commerce store, your initial goal is to build a base of rabid fans for your e-commerce brand. Picking companies that have complementary products help you keep the niche focused.
- You may need to target large companies too. In order to drive traffic to your website, you will likely need large brands.
- You may want to target companies selling well on other marketplaces. This can give you some diversification that you won’t get by only sourcing products for Amazon.
Now that you have an idea of what types of companies to target, lets wrap up Module 2 with tools you should use!
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