Wholesale Product Mastery – In order to make money with wholesale distribution on Amazon, you have to first understand the opportunity, then the model and finally how to properly execute. Let’s start with what wholesale distribution is.
Name brand products need distribution in order to reach the final end user consumer. Manufacturers are not equipped to deal with the final user. Distribution companies that buy in bulk are not equipped to deal with the final user. The retail marketplaces, brick and mortar stores, they are the ones that are equipped and trained to get the name brand product to the consumer.
Amazon is a marketplace. A marketplace is designed to connect retail distributors to the end user consumers. For that to happen, manufacturers/brand owners sell in large quantities to wholesale distributors. The wholesale distributors look to retail experts, like Amazon sellers, to maintain the supply chain to the end user consumer. Each step along the way adds some cost to the consumer, but this is how the world has always operated.
The good news for you is that you do not have to reinvent Amazon. You don’t have to purchase in bulk. Your main job is to locate name brand products available for purchase through wholesale distributors. The good news is that there are a lot of wholesale distributors. The bad news? They won’t sell to just anyone. You have to understand that there are a lot of consumers that don’t like paying retail prices. They will do pretty much anything they can to try and purchase at wholesale, from wholesale distributors, and that’s why wholesale distributors don’t always welcome us retailers with open arms. There’s other reasons, but we’ll get to those in a minute.
There’s a few things you need to know about wholesale distributors. The first is that they only want to deal with “real” businesses. That might sound harsh, but, it’s the way it is. This normally means you need to have something called an entity. So, what’s an entity? It’s a fancy word for a business. Like, a corporation, a partnership, and LLC, etc. They basically do not want to deal with individuals, because they do not perceive that individuals are serious about running a business. The first thing you need to do to be successful with Wholesale Product Mastery, is to create a real business, an entity. The one place we have worked with that can create an entity fast, is Northwest Registered Agents. These guys are good. They can normally have your entity up and running in a day or two.