Amazon Basics
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Wholesale

Lesson 16 Chapter 2 Module 2

(Start of Day 6)

Considering all the new terms and concepts you've learned during the Crash Course, "wholesale" probably sounds more familiar to you. It has been around since forever in the traditional business world.

Of all the Amazon business models, this is the one I am least familiar with. Considering that it's essentially the same as retail and online arbitrage (only on a much bigger scale), it doesn't make a whole lot of sense to me to pursue it. 

Wholesale is perfect for someone who doesn't want their own brand (private label), but still wants long-term success. Unlike retail and online arbitrage, wholesale is scalable.

That being said, most people who go into the wholesale business model are already successful on Amazon. So it's not a good business for new Amazon sellers.

HOW WHOLESALE WORKS

You'll basically do what supermarkets do: they buy high quantities of stock items directly from manufacturers and resell them in their own stores. The difference is that you will sell the products you buy from the manufacturer internationally, using the Amazon Marketplace.

PROS AND CONS OF WHOLESALE


Pros

  • Lower purchase price means higher profit.
  • As you find profitable items, you can reorder them over and over, thus increasing your product line every time you find a winner.
  • When your purchase price is lower than other sellers, you have a better chance at winning the Buy Box because you can go lower on your sales price if needed
  • Scalable business model.

Cons

  • Large investment of capital.
  • Bigger risk than retail arbitrage because you are buying larger quantities. There is always a chance you get stuck with large amounts of a product you can’t sell.

We don't teach wholesale at ecomMEMBER but it's something you can keep in mind if it interests you. 

I'd like to hear from you though - is this something you would want to learn? If enough people are interested in wholesale, we might consider creating a course for it. Send me an email at info@ecommember.com.

Next we'll look at the ecomMEMBER Success Formula. Head over to the next lesson when you're ready.

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