Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Wooc

Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Wooc

FBA Wholesale sourcing with Dylan Frost of The Wholesale Formula

February 12, 2020


Upsides of FBA Wholesale Sourcing

You can start FBA Wholesale Sourcing with $250-500
You can get started selling within a week  (cf 3-6 months with Private Label!)
You can (and usually do) source and sell domestically ie within the same country as the marketplace. No international shipping!

Criteria for filtering for suitable products for FBA Wholesale sourcing

at least $20 selling price - leaves profit after FBA fees etc.

at least 40 units/month selling - no products sitting around not selling

at least 3 sellers - eliminates private labellers

How to persuade brands to work with you on a wholesale basis
- Position your small size as a win:  "we only have 2 brands so we'll take care of you personally"
- Using the facts of a bad Amazon listing of "your" brand vs their competition. Show the truth of their listings on Amazon-  no need to brag about yourself.

How to predict Amazon wholesale sales
Only FBA (Prime) sellers priced within 2% of the Buy Box are your true competitors

- add up sales revenue, then divide it by the number of true competitors plus 1 (you!)
-you are selling a proven product -it already has proven sales

Free Workshop

For an in-depth free workshop on the "Reverse Sourcing Wholesale" Amazon model, from Dylan and Dan, CLICK HERE
(workshop ends Thursday 13 Feb 2020)

Cashflow of Wholesale compared to PL

PL can take you about 6 months to go from research to product life
with wholesale you can order a product same day; you can get it live in 7 days
you can turn $1000 into $1300 within a month (at a typical 30% ROI)
then rinse and repeat

Capital required to replace day job income of say $50K/year with Amazon wholesale sourcing

If you can invest $2000 at 30% ROI month on month, for a "perfect" scenario, you'd end up with a $1M business after a couple of years.

That would be around $130K net profit every year.
So your personal income as a business owner could be $40-60K while still leaving decent profits left in the business to grow it.

Protecting your Amazon seller account when sourcing wholesale

Amazon LIKES this business model. Amazon themselves do it!
Amazon makes more money when YOU Sell on Amazon than they do (15% referral fee plus FBA fees). So they like you doing this!
Amazon has actually been REDUCING their presence as a reseller of brands. They prefer to let 3rd party sellers do the actual selling.

How to protect your profits as a reseller when sourcing wholesale

only work with brands who don't easily take on new sellers (retailers)