I guarantee that if you watch this video from start to finish you will go from a complete beginner to an expert in Amazon wholesale my name is Brad I've spent the last 5 years building a seven figure Amazon business and when I first started learning how to sell on Amazon I had to jump around to countless videos and articles to try to piece information together I don't want you to have to go through the same thing I'm going to do my best to get rid of all the guess work that I did when I first started and give you exactly what you need in one place if you watch this entire video I truly believe you will never need to watch another video on YouTube to learn Amazon wholesale we're going to cover everything from how to set up your wholesale business to finding profitable suppliers and exactly how to contact them whether you're just getting started or you're already selling on Amazon with a business model like retail or online Arbitrage I'm going to show you that Amazon wholesale it's not just for sellers that have years of experience actually you can do it even as a complete beginner and make sure you stick around until the end of the video because I'm even going to give away a live call of Me closing the most profitable type of wholesale account a brand direct exclusive in case you did want to jump around the video I got you here are the time stamps for each [Music] section just keep in mind that in Amazon wholesale each step Builds on the previous one so if you don't have all the pieces from the first part you might not understand the next let's dive into it so what is Amazon FBA wholesale first off FBA stands for fulfillment by Amazon and it's the process by which you send your inventory in bulk into Amazon and Amazon then picks packs and ships your orders when customers purchase from your Amazon store your entire business is going to run through Amazon Seller Central on Amazon Seller Central you'll be able to list price and ship your products into Amazon now I'm not going to go into all of the details of Amazon Seller Central because this video is to focus on Amazon wholesale that being said you'll still definitely want to watch this video from start to finish because it's going to give all kinds of beginner information such as how to ship your products into Amazon and exactly how to analyze your first profitable wholesale product so this video is going to be 100% focused on wholesale but let's do a quick 60-second comparison of the three main business models on Amazon in order to get a full understanding of what the wholesale business is all about Amazon wholesale is where your purchasing name brand products in bulk from either an authorized distributor or the brand directly these are products that customers shopping on Amazon already know like and Trust so you don't have to do any marketing manufacturing or R&D this differs from a business model like private label where you have to create your own brand and bring a new product to Market not only is this risky but it also requires more Capital so I definitely wouldn't recommend it for a beginner with Amazon wholesale you simply have to find name brand products that are already selling well and then reorder these products from your wholesale supplier every single month as you sell through the inventory this differs from the third business model that I started with retail or online Arbitrage with Retail Arbitrage you're going into physical stores like Walmart or Target scanning the products on the Shelf packaging them up and then sending them into Amazon online Arbitrage is the same exact thing except you're actually buying the products from the store's website online the challenge with this business model is that you have to constantly be on the hunt for inventory don't get me wrong retail and online Arbitrage are fun and attractive and you can definitely make money quickly doing them I was once in the position where you might be right now which is currently doing retail or online Arbitrage but unsure of if you should pivot to wholesale and looking back on it it was the best decision that I ever made the biggest difference with wholesale and why it's better is that it focuses on economies of scale so with wholesale you're actually purchasing replenishable products over and over again instead of having to constantly be on the hunt to find new products with retail and online Arbitrage with Amazon wholesale you put in all the work upfront to get your wholesale accounts and you focus on building the relationship with either the brand or an authorized distributor and once you've built that relationship up you can continue to reorder these products over and over again from your wholesale supplier now that we know what Amazon wholesale is let's talk about exactly what you'll need to get started so there's a couple basic things that you'll need like Amazon Seller Central a business credit card and a business bank account but I really want to focus this section on the three mus haves for Amazon wholesale the first thing that you will absolutely need to start Amazon wholesale is business Ein a business Ein is simple to get and it's free and you're going to get one on the IRS website a business Ein is going to show legitimacy to your wholesale suppliers so when you first go to sign up for a wholesale account with these suppliers they're going to ask you for what your business Ein is not only is a business Ein necessary for securing a wholesale account but it's also necessary for tax reporting purposes the second thing that you'll need to get started with wholesale is a resale certificate a resale certificate is interchangeable with the terms sales and use tax permit business license and tax exempt certificate this document is probably going to cost you anywhere between $5 and $100 depending on the state that you live in so a business license is necessary for two main reasons number one is that it is going to show legitimacy and professionalism to your wholesale suppliers in addition to your business Ein your wholesale suppliers are going to ask you for your sales and use tax number so it's going to help you secure your first wholesale account the second reason a resale certificate is necessary is that it allows you to purchase your goods tax exempt from your wholesale supplier so you definitely don't want to be paying tax on the goods that you purchase this is thrown out money and the reason for that is because Amazon collects and remits sales tax on your behalf when your Goods sell to the customer so if you were to pay tax on the goods that you purchased they would be double taxed to obtain this document just Google State resale certificate go to your State's website and fill out the necessary paperwork the third requirement for Amazon wholesale is a professional email domain this is probably going to cost you anywhere between 100 and $150 to get set up this is super important because you're going to come across as way more professional and legitimate to the wholesale supplier that you're reaching out to you don't want to be that guy contacting from hockey player one2 2 34@gmail.com here are some examples of professional email domains a common question that I get asked is do you need a website to start Amazon wholesale and the answer is no but it's nice to have a website shows legitimacy and if you are going to have one you'll want to choose between two different types of websites first you have your Amazon services and marketing website which is what I use and then you have your industry specific or Shopify website and let me explain the difference between both an Amazon marketing website is going to show you the potential services that you can provide to the brand directly it's also not going to limit You by product category so with a Shopify website you're actually going to have products listed on the site with an add to cart feature just remember that if you are using a website like this you'll want to make it in a specific industry and the reason for that is because in Amazon wholesale you could be reaching out to brands in multiple different Industries so let's say you're reaching out to a brand in the health and natural food category you'll want to have a website backing that up with all different products in the health and natural food space this will work to your advantage in securing an account with that brand now this can also go the other way too because if you're reaching out to say an automotive company you won't want to show them a website that isn't in their same industry so if you have an industry specific website that carries health and natural food products like this you'll want to reach out to a brand in that same industry because it may give you more leverage in securing a spot as an Amazon reseller if you're just starting out I would recommend going with the Amazon marketing website this is because it doesn't limit You by product category and you can Source in all different Industries this is exactly what I've done to scale my business to seven figures just remember that building a relationship with your wholesale supplier is the most important thing guys if you don't build a relationship with your wholesale supplier a website isn't going to mean anything it's just going to be another thing around the business focus your attention on building those relationships let's talk about software selling on Amazon is all about making the best decisions possible with the information that we are given there are tons of different softwares out there in selling on Amazon I'm here to tell you that you really only need three softwares to start Amazon Seller Central which is going to cost you about $40 per month Amazon's revenue calculator which is free and built in with Amazon Seller Central and keepa which is going to cost you about $20 per month a few honorable mentions are seller amp profit calculator which allows you to see your profit and return on investment for a particular product listing and shipping softwares like inventory lab or boxum which will allow you to streamline your process of shipping into Amazon's Warehouse although I have to say Amazon Seller Central works just fine in many cases seller board to track the profitability of your business and an automatic repricer like Aura allowing you to constantly stay competitive on your price these softwares are great to have but I want to reiterate again that you only need three softwares when you're just starting Amazon Seller Central Kea and Amazon's revenue calculator let's dive into part two where I'm going to walk you through step by step of how to find your first profitable wholesale supplier all right welcome to part two of the video where we are going to learn how to Source brands in this segment we are going to cover three key ways to Source number one is reverse category sourcing where we're going to focus on niching down further and further into different subcategories number two is storefront stocking so we're going to look at other sellers stores to potentially find Brands to work with and number three we're going to touch on Smart Scout the first two sourcing methods are going to be the focus of this segment of the video because even if you're a complete beginner I want you to have two tools that you can utilize in order to Source Brands and Source them profitably so the first thing we're going to do is we're going to start on Amazon and the first thing I want to do is pick a category right and there's so many categories on Amazon this might seem overwhelming but you can go over here to the sidebar here and you know look at different product categories um you can also go ahead and click on the drop down here and I can click any category I want right let's say we're in uh you know holiday season it's Black Friday week and I'm sourcing um you know there's many many different categories that I can choose from but you know what's a category that I like for this time of the year is Arts crafts and sewing it's also somewhat of a niche category it's not as big of a category as some of the other categories like health and household um or home and kitchen so I'm going to go ahead and hit search here and really the Focus right now is to just find a subcategory and then find another subcategory and continue to go down further and further and the reason for that is because when you search a a main category like this on Amazon Amazon is going to bombard you with the bestselling products the bigname brands and the brands that Amazon is selling right we don't want to touch any of that we want to find those smaller to medium-sized brands that we could potentially position our company in a way that's going to provide value to them the only way we can do that is reducing the size of Revenue that we're actually sourcing and smart Scout has a great feature to use here and and we'll get into that in just a little while but the Focus right now is just to go right on Amazon and see what we can find so I'm not going to search by brand essentially what I'm going to do is I'm going to scroll through here and I'm actually going to look to find a subcategory first so we're in arts crafts and sewing let's see where where do we want to go next right let's pick swinging products let's see what's in swinging products so I'm now in sewing products and again bigname Brands brother really well selling products right on the first page and what we need to do essentially guys is we need to scroll through this and there's no two ways around it this is a tedious process right sourcing especially in the beginning when you first start out selling on Amazon you know you're going to have a hard time sourcing Brands but eventually it's going to multiply and you're going to be able to do it really well really quickly so I'm going to just bypass through the first page here because we know it's all bigname brands I'm going to go all the way to the bottom here I'm just going to jump to page three so again the focus of what I'm looking at here is I'm looking to see multiple resellers on the listing and if you guys are not familiar with this Chrome extension here it's called DS AMZ quick view and it's free and it is able to show you all this information I also have a jungle Scout Chrome extension here installed so definitely can save you some time there right so this is going to populate and we're just going to keep scrolling here right so I'm seeing a lot of one FBA Sellers and you know we're not targeting products and brands that have one seller on them because they're probably private label products maybe they're exclusive agreements right maybe they're Amazon so we have to just keep digging further and further and see what we can find you know so I'm here on the 200th right segment of the catalog I can also filter this down by price now you'll see this goes all the way up to $7,000 which is a super high pric product but we do not and and when I Source I actually focus on higher selling price products and that's because it allows me to scale my business faster I can carry less SKS than the next guy who's you know carrying hundreds upon hundreds of skus and I can scale my business faster because I focus on higher average selling prices and that on ly is the way to do it in Amazon Wholesale in my opinion so I'm going to go up here right and I'm going to Target a um selling price of at least you know let's say at least $50 right and chances are we're not going to find a product selling for $7,000 so that would be a super high ASP but that's going to at least narrow down our search a bit and so you know the first thing I'm seeing here right is a product here it's a sewing machine it's that's a super it's a super high average selling price of $1,700 it's actually uh somewhat attractive to me so the first thing I'm looking at here is I'm looking at the number of sellers that are on the listing and for this particular jomi product it looks like there's about 18 sellers so something that might be of interest again another product here with eight sellers on it something again might be of interest let's keep scrolling and see if there's anything else for sellers on this item here and now we might be starting to find some different products here so I'm going to give you guys a good example right brother is a very bigname brand and brother's an example of brand that you might be able to Source from a distributor you would never be able to get a brand direct account with brother because they're going to have either a super high minimum order quantity that you need to purchase from them or they're only going to work with you if you're a brick-and mortar store or a sewing shop of some kind right so brother we might be able to work with a distributor which is going to lower the barrier to entry but bear in mind it's a big brand so we have less control we're not going to be able to pitch them value or get exclusivity or you know we might be competing with Amazon um down the road even if we're not today Amazon might pop up out of nowhere but that's just kind of the risk that you run when you sell bigger name brands from Distributors not saying you can't make money doing it but we're going to Target smaller to medium-sized Brands today so here's a product uh and a brand that's you know a nice consistent selling price here like $70 so I'm seeing a few things here now and I'm going to start clicking on some things as I'm scrolling so I'm going to jump back up here let's see to that product that I was looking at before and I'm bypassing anything that says number of sellers one I'm I'm just not even paying attention to it because it's a like we said it's a private label product of some kind or an exclusive seller so I'm going to open that up in a new tab um I'm going to open this one up in a new tab this one Amazon is selling which we can see from the yellow chart chart here and if you guys are not familiar with what this chart is it's Kea I have a full tutorial breakdown of a keepa chart on my channel if you're interested I'll link it up above for you to check out we're going to keep scrolling here so we've now found a couple products let's open them up and see what they're all about and the first thing I'm seeing here is a product with some FBA sellers on it um and it's fairly you know consistent in terms of sales volume it looks it's does decent for the holiday season in terms of sales volume so I'll take a quick glance of the keep a chart and then I'm going to look and just make sure that there's other FBA sellers on the listing and there in fact is right so now I'm seeing other FBA sellers I'm seeing uh you know keep it sharp product sells price is a little bit inconsistent but that doesn't just because you know we're sourcing it doesn't mean we're buying it right we still have to get a price less from that brand so the listing another thing that you want to look at here is is the listing itself and from what I'm seeing the images are pretty good you know they have decent images they have a video Let's see if they have something called A+ content which they don't they just have you know an incomplete Brand Story which is right here and it's really not that aesthetic so in this section is A+ brand content it's a way that you can pitch a brand on you know providing value to them and we'll get into that in the next segment of this video but right here is an example of a brand that I would Source right so the first thing I'm going to do now since I've identified a brand is I'm actually going to add it to my spreadsheet which is right here so I'm going to link the Amazon link I'm going to grab that in the URL and notice how I'm only grabbing up to the as because I don't need any of this other stuff after it it's going to just clutter my list here and I'm going to copy and paste the product name and the brand name right because if I call the company they don't answer and then they call me back after I leave a message I want to be able to control find and search for this brand name right so if I only have the product listed I might not be able to find ever sewn right if if I have ever sewn then if they say this is ever Evers when they call me back well I'll be able to control find those keywords in my spreadsheet and pull up their listings so I have everything in front of me ready to go for the pitch so this is what we have here and the next thing I'm going to do now is I'm actually going to search Google for everone the brand name um and let's see if we can find their website which is right here I'm going to jump now to their website and I'm going to look for a contact so a lot of times once I'm on the website I'll just contrl F the word contact and from here they will most likely have some sort of contact information it does say contact here it also it looks like it lists an email I'm going to grab the email just cuz it's right in front of me but I really want to get a phone number and let's see if they have it they may not there's a lot of brands that don't list their phone number in which case you have to send an email so let's see if we hit support contact and here's their phone number so again you have to do a couple clicks they might not make their phone number available right away so that's exactly I'm going to do I'm going to copy that phone number here I'm going to paste it into the phone number sheet and then I'm going to go ahead and put the link to the website here pop that link in there and now we have our first lead so this is a good lead guys it's got a good you know solid selling price of 70 bucks it's not a million dooll product by any means it's selling a 100 plus units a month but hey that's uh you know decent sales volume for a product think about if you had 10 or 20 of these different products right and that's what wholesale is all about guys you know so this is a brand that we could potentially reach out to to secure a wholesale account and then if we're met with resistance from them we can actually provide value and that's what we're going to cover in the next segment of the video is how to pitch Brands and contact them and provide that value but the reason I know we can provide value here is because their listing is not too optimized right and their price is inconsistent so there's a number of different signs here that are telling me that we could provide value to this brand right now now that we identified you know one product we have one product here we're just just going to keep rinsing and repeating this process um so I can literally just scroll down here there's many different approaches that I can take next I can go to this right and I can go and see the top 100 products in the Arts and Crafts category and scroll through here and click on one of these and Niche down further and further and further I can also take another approach where I go straight into the subcategory here which is sewing project kits and then again we're in a subcategory already so I'll just keep scrolling through further and the main thing I'm looking for is the number of offers right I want multiple different resellers on that listing not one and I don't want Amazon on the listing either so those are two approaches you can take which are great approaches you know Finding different product categories and going further into the rabbit hole but what I want to focus on is the second sourcing method in this video which has been the bread and butter of my business over the years which is storefront stocking so now that we found a potential product of Interest right we can reach out to the brand and contact them but the process doesn't end there right we can actually look at the other sellers stores that are selling this product um and I'll just open up a couple here um so my tabs don't run too slow and I'm actually going to click and open up their stores here and I'm going to see what kinds of products they have and now if they're an industry specific store meaning they only sell in this Niche I'm probably going to bypass it because that might mean I might have more resistance when I go go to contact these Brands cuz they might only want industry specific Sellers and so it looks like this store um might have some opportunity but they are more so an industry specific store so we could potentially scroll through this store and find products I'm not saying we can't but you know for our best use of time I would probably say I'm going to jump to another store and see what else is out there uh just because you know in an industry specific store there might be more resistance um from the suppliers and brand we reach out to so I'm going to close them out and I'm going jump to this next store that we opened up here again sort of in arts and crafts type store let's see and you guys just you know you can do the same thing with that URL so if I click here on the second page and I want to go deeper into this seller store I can actually you know jump up here maybe to page eight or 10 um and just keep going deeper in the seller store the other thing I'm seeing with this seller is that their prices are super low so I'm not going to be ble to compete on anything selling for $4 or below so I'm not even going to bother with that um so I'm going to jump to the next store here uh let's see what they have Mi shopping deals I'm going go ahead and click on this and I'm just going to scroll through here right um see what they have just an initial glance again kind of an arts and crafts type store um some other products too and this is really what the process looks guys you know it's it's just continuously scrolling through and seeing what we can find again we are in the holiday season so I'll go ahead and just check that out or in the Christmas season could be something there you know and this product actually sells super well it looks like from an initial glance the keep a chart just going to open that up so you know this is doesn't look like a bad store they do seem to be a little bit industry specific but that doesn't mean uh we can't find profitable products and opportunity here in the store so let's see right now I'm going to actually go jump up here on this product a seasonal item I'm going to jump up to the URL here and I'm going to get rid of everything after that as that way I can get a clear look at the listing and see all the different sellers that are selling it right so it does look like the brand is selling it elf easy so they are much more competitive too than these other sellers but this other guy does have stock so this is kind of an iffy one I probably would avoid it because elf easy is priced you know uh $10 below the other seller and we're never going to be able to compete with the brand and who knows if they even are going to sell to us so we could add this company to our list but again it might not be the best use of time but you just don't know if you don't contact so it can't hurt to add it to the list and contact and really all I would do here is again repeat that process search on Google find the contact information put it in the spreadsheet and and continue down the rabbit hole same deal here you know I'll jump up to the URL and I will get rid of all of that and search it and see what we can find here so it looks like there's about 14 sellers on this listing so you know there are FBA sellers on the listing and the product is selling super super well so this is another example of a product that I would add to the list you know I don't see why not it sells really well it's got a three-digit rank in arts and crafts so this is the process of exactly what we would do and as we are finding these different products you know we're we're getting these storefronts that are on the listings and you can actually jump to your Excel spreadsheet here and you can make a new tab called storefronts and you can actually put the storefront name along with the link to that storefront so we left off sourcing what was it Mi shopping deals so literally all I'm going to do is I'm going to put the storefront name Mi shopping deals and I'm going to put the link to that store right here and boom we have our first storefront and we'll just continue to add to this list guys it's the more the more time you spend doing this the better you're going to get at it the more you're going to go down the rabbit hole and the more Brands you're going to find to work with we're going after those Niche Brands obscure type Brands small to mediumsized and we do that through reverse category sourcing on Amazon which I just showed you and storefront stocking which was the second method finally I just want to quickly jump into smart Scout and if you don't have Smart Scout you can watch this just so that you know how to do it in the future or you can go ahead and sign up for smart Scout but I don't want you to think that smart Scout is an absolute must have that's why I gave you two completely free sourcing methods that are very very good to find wholesale suppliers particularly Brands to work with now I do have Smart Scout up here so in smart Scout you have to one thing I want you to understand is that the principle of smart Scout is the exact same thing of what we just did with the reverse category sourcing etc etc right the benefit of smart Scout is that instead of spending the time combing through those different categories smart Scout has already prev vetted so we can actually search and filter our smart Scout search by a certain monthly Revenue range so by doing that now we're preemptively targeting those smaller to mediumsized Brands so my target Revenue range is anywhere between 20,000 and 250,000 in monthly Revenue that gives me wide enough range between small and medium siiz to find profitable Brands and and brands that I can provide value to when I go to pitch them right I'm looking for at least an average selling price of $9 but again if you want to Target higher average selling prices raise it to 50 you know and then of course we want to have at least two sellers on the listing and I'm going to go ahead and hit search right so I prev vetted this list with a minimum average selling price of $50 targeting a monthly Revenue range of 20,000 to 250,000 and smart Scout has given us a list of tons and tons of products over a thousand so we have so much to Source through here and this is literally what you're doing guys in smart Scout you're doing the exact same thing you would be doing on Amazon except here you now have data to read before actually you know diving into it right so we have the brand we have the primary category we have the subcategory it tells us how many sellers are on the listing if Amazon is in or out of stock and if so what percentage of the time they're in and out of stock average selling price you know so the whole works right all the information here and you know I can click on any of these products right I can click on this I can click on which actually had a super high average selling price of $600 which is quite convenient for our model here which we're targeting higher average selling prices uh another one with 136 price and guys I'm I'm already finding like you know tons of of different potential brands that we could work with like with good average selling prices so you know that's literally the process is going through this list and continuing to vet and Source I'm going to close out of a couple of these tabs so that we can keep running smoothly but again we just found a few potential brands that we could reach out to so from here we would open it up and see what's going on right is there multiple sellers selling it which it looks like there are I would then probably click on this again to see of those sellers are they brand which it looks like they are you know so again I maybe close that out jump back here and again I would just continue to scroll guys um here's another one Swedish dream salt you know a thousand units bought in the past month five sellers average number of sellers on it and the listing itself does not look to be well optimized that's the first thing I'm noticing here is that they don't really have any sort of listing optimization or imagery bullet points do they have A+ content no they do not they have a few sentences in the product description so again this is a perfect example of a brand that I would reach out to price is kind of up and down there's a lot of value you could potentially provide here to the brand so again all I'm doing is I'm searching searching Google Now for the Brand's website to then put them in my contact sheet and find them and that's the process of sourcing guys it's you know a little bit of tedious process but once you get this model down you will find how quickly it multiplies wise and what I would recommend for how to do it is spend your nights and weekends doing this so spend maybe two hours every night or you know a couple hours on the weekend and Source Brands and get good at this process get good at identifying brands that might be of interest you know is there sales volume is there listing optimization or lack thereof because we're going to use all that in the value pitch right so that's the biggest thing is spending time doing the sourcing process because it's less time you're going to have to take later on when you go to outreach to them because you're going to be finding winning Brands right these are Brands when you go to reach out to them they might not know how to handle Amazon and that's where you're going to come in with a value pitch or they're just going to give you an account right away so that's what we get when we target smaller to medium-sized Brands but the only way to have a full understanding of how to do it is to take the process that I just showed you and do it and multiply it over and over again so that is it for this segment of the video Let's dive into the Outreach section now that we found a few Target Brands let's dive into part three where we're going to learn exactly how to contact them the first thing we want to focus on is developing an Outreach strategy and determine if we are contacting a brand or a distributor a brand is the rights owner and manufacturer of the product they maintain a vested interest in the brand a distributor is a B2B business that maintains an already existing relationship with the brand and they purchase inventory from the brand and then sell the inventory to retailers or detailers like you and I getting a price list is our number one priority a price list gets our foot in the door with the brand or distributor a price list is a list of all the products that the brand carries which we will analyze in the next part of this video our number one priority has to be getting our foot in the door with a profitable purchase here's a basic script of what you'll want to say dial the brand and they pick [Music] [Music] up yes hi my name is Brad I'm calling with my company I was calling because we were interested in opening a wholesale account am I speaking with the right person for that yes this is the right person perfect would you like for me to tell you a little bit more about our company yeah yeah that's fine f so we're an e-commerce company we stock and ship to our facility located in we have our own website and we do sell on Amazon do you mind if I ask a little bit more about how your company is handling the e-commerce space boom that's it now your supplier's response is going to be one of three answers yes no maybe the rest of the call will be based on not just which of those three responses your supplier gives it will be based on how they say their response one of the primary reasons that we make phone calls to wholesale suppliers is so that we can hear the tonality on the other end of the phone engage the degree to which we can persuade them to work with our company let's run through each possible answer yes if the supplier says yes we are going to waste no time and get our hands on a price list please do not oversell if you don't have to get the price list make a purchase and start the relationship and then worry about pitching exclusivity later on no if the supplier says no or they're asking you for things like a brick and mortar store or a physical license this is something that's not going to be worth the squeeze I would recommend focusing your attention on working with suppliers that are either receptive to working with you as an e-commerce business or a supplier that you can actually persuade to work with you these hard NOS are not going to be worth your time unsure these are the suppliers that we close this is because these suppliers are unsure of their Direction when it comes to handling Amazon because with Brands we are positioning ourselves as a strategic partner we are providing a value and a service that all of the other resellers reaching out to them are not providing so if they're a Target brand and they're unsure in how they're handling the Amazon platform it's a go for example the brand says yeah I'm sorry we're just not taking kind of our s we already have some sell that we're working with and we're really just not looking to take on anyone else at this point stop before you respond pick up on the Brand's tonality their words say no but their tone says otherwise we're going to handle this in a four-step approach first validate their position your response should be something like this completely understand that limiting the number of Amazon resellers makes perfect sense number two social proof we encourage many of our existing brand Partners to do the same thing it serves no strategic advantage to you as the brand owner to sell to a multitude of resellers number three calibrated question so Jeff I did a search for your branded keywords on Amazon and from what I'm seeing there's a number of different competitors and even knockoffs that are running advertisements on your listings have you or any of the existing Amazon resellers used Amazon ads as a means of protecting the long-standing brand Equity that you've built for your company number four value proposition so a lot of times what we'll do with Amazon ads is we focus ads as a means of brand protection so our main priority in working with our brand Partners is to secure as much digital real estate as possible what that accomplishes is not just an increase in sales volume but it also makes your brand equity the focus so now we're Defending Your brand from competitors or even knockoffs that may alternatively if you didn't have that digital real estate be advertising against your brand this is just one example of a value proposition you can offer a brand on Amazon I chose Amazon PPC but there are tons of ways you can provide value to a brand listing optimization where you can improve their product imagery videography add in SEO in the title and bullet points and incorporate things like A+ brand content into their listings there's also Amazon brand registry where you can secure and protect the Brand's presence on Amazon and you can help them control their resellers with minimum advertised price enforcement and distribution control the abbreviation for minimum advertised price is map and it's a set price that all of the resellers have to sell at on Amazon or other marketplaces this preserves profit margin and it protects the brand Equity guys the most important thing is helping Brands understand that you are targeting a vision examples of targeting a vision are increasing brand Equity increasing customer loyalty and price stabilization the value proposition helps you accomplish a greater vision for the brand and it now takes Amazon which was a platform that previously gave them all kinds of headaches and helps that platform now provide value to their business when you approach this with empathy and understanding you will win instead of focusing on the pitch itself or the transactions start being empathetic to the rejection that you are facing money doesn't always solve Brand's problems now if you're reaching out to a distributor you'll need to take a little bit of a different approach there are three main things that we want to focus on when we're reaching out to a distributor number one is legitimacy you have to present yourself as an e-commerce company and not just an Amazon Seller I see new sellers do this all the time where they call themselves Amazon sellers and whether you're reaching out to brands or Distributors show the distributor that you're an e-commerce company and that you're focused on Stocking their inventory this is different from Drop Shipping the distributor is not your warehouse and they don't want to ship out onesie twz orders for you if you're going to drop ship from them if you go to that distributor with a purchase order in hand and show them that you are going to carry their inventory they're going to be much more inclined to work with you also make sure to give them a location in the first couple opening sentences of reaching out to them because it's going to further reinforce that you're a legitimate business number two long-term customer Distributors want to work with long-term and serious buyers one of the biggest problems is that Distributors are always dealing with Amazon sellers that are in place a small order here and there and then they're out you want to be that serious and large buyer and another great way to incentivize that distributor is actually by prepaying for your inventory through an acch wire we'll talk more about how to pay your supplier later but a prepayment is a great way to start a relationship number three show them that you are a serious and large buyer money talks and it will get your price down after the first order the price is never the price so there's nothing wrong with starting a relationship with the distributor and placing that test order to mitigate risk but after you do that the larger the buyer you are it's going to give you more leverage in the relationship with your distributor now that we've learned how to contact both Brands and Distributors we've probably secured a price list or to at this point the focus of the next section is going to be how to analyze profitable products when we analyze products the three primary metrics we are looking at are profitability per unit and we want to make sure that we're making at least $2 per unit Roi which stands for return on investment this is a measurement between the amount of money that you make on a product relative to how much you spend on that item and you'll want to keep that between the target of 20 and 30% number three sales volume this is where we're going to use keepa to analyze the sales data over a historical period of time let's dive into part four where we're going to analyze our first price list and get ready to place our first wholesale order all right everyone welcome to part four of Amazon Wholesale in 2025 in this part we are going to go through a price list now I'm not going to have the actual price list in front of me because I'm actually going to build on the example that we used in the sourcing section of this video and you guys can see that I have my wholesale supplier contact sheet right here on the screen and we left off with um the everone product so this particular item here the one that we were looking at and again not a crazy selling product by any stretch of the imagination however it is doing a lot better for the holiday season and my product is consistent you know it sells over a hundred units a month year round pretty much and this is an example of a product that we could add to our inventory simply by reaching out to the brand and opening a wholesale account the power of wholesale and the economies of scale is when you start to get 10 of these products or 20 or 50 of these products and now your business really starts to scale so in this section of the video we've already sourced this product we've reached out to the brand and developed an Outreach strategy and we've been able to successfully close the wholesale account and what that means is that the brand is now going to give us a sheet of paper they're going to send it to us in an email with the actual products that the brand s sells so that's this product it could be other products here and we can look at that too so we can jump and click on the brand name and we can see what other products they sell so potentially we these are selling machines that we might be able to buy from the brand if of course we determine that they sell well on Amazon for now we're going to focus on this one product here and we're going to essentially because I don't have an actual price list in front of me I didn't actually reach out to this brand so we'll end up just making up a cost of goods sold for this item that being said you know we are going to go through every single step of the price list analysis process and then once we complete this we're actually going to add this Asin into our inventory in Seller Central before we place our first test order and the reason for that is just to make sure that the item can be added to our inventory because I've been there before where I've placed an order with a brand or a distributor and I didn't do the proper due diligence by adding the item adding the as into my Amazon selling account catalog and what happened was that the as was actually gated or it had a generic brand name and it did not allow me to list that item so before making a purchase on any items you'll always want to add them into your Seller Central inventory first but for now the first step of this process is we're going to jump into a spreadsheet here so I have a spreadsheet here which is the Everson product analysis and guys one thing I want to point out is is that when you are going through a Brand's price list chances are that the brand doesn't have massive amounts of asens like a distributor might when you work with Distributors they could potentially be carrying thousands of thousands of different skus so if you were to get a distributor's catalog with thousands of different asens in it you are going to have to run through that catalog in a software something like scan unlimited where you can automatically punch in and upload the up C codes into the software and it will generate a profit analysis for the products but when we have a Brand's catalog and price sheet A lot of times there's only a few different asens so in this case there's maybe a few different asens as we saw on the Amazon they carry you know maybe a dozen different SKS but we're just going to Target this one skew right now um in a preliminary search it looked like it was the only one that sold well so one item and if there are multiple items in the Brand's catalog you're just going to repeat this exact process for those different items so the first thing we're going to do here is we're going to put the uh product description or the name you're going to have the as in here and then you're going to have the item number or UPC which you're going to obtain this information directly from the Brand's price sheet this item number will be useful when you go to place your purchase order with this brand because they need some type of an identifier to know what products you're ordering there's no reason to give them the as because that doesn't really mean anything to them that's for your reference but when you go to make your purchase order you will specify the product description you'll specify the item number the cost of each item whether there's a case pack quantity of you know let's say 12 or 24 the amount of cases that you're ordering the total unit count and the total cost you'll then also specify on that PO a bill to address and a ship to address if they're both the same then they're going to you know you can just put Bill to and ship to at the same address and you're going to send that PO to the brand now if they ship directly to Amazon you'll also send them the shipping labels along with that PO but a lot of times when I first start a relationship with the brand I won't ask them to ship directly to Amazon right away just in case they have any sticking points around that so rather I'll focus on hey let's just get our hands on the inventory you know I'll have it shipped to our warehouse if if you're just starting it's going to be at your house you have it shipped to your house and there's no problem with that Brands don't have to know if they're shipping to your house and if they ever ask you they're probably not even going to Care I've had many Brands shipped to my house we were shipping out of the house for years so not a big deal at all you do not need a warehouse to start Amazon wholesale and then you're going to package those items up send the Seller Central shipment into Amazon and that's going to be a couple steps down into this process so right now we're just analyzing profit sales volume and return on investment so product as item number UPC cost and I might actually want to specify the case pack pack quantity you know let's say that's case pack of 12 12 items in a box going to be useful like I said when we place that purchase order case pack cost we're going to have actually here which is New by Amazon as of this year 2024 is inbound fee so their inbound placement fee and then shipping which is per unit and inbound fee of course is also per unit and profit return on investment we're going to say the average about the average sales um average rank sales rank and then from there we're going to get the sales per month on average and then from here we're going to be able to generate the monthly profit estimate and that's going to be our analysis now this is an analysis that you can use to take a look at and make an informed purchase decision that being said when you actually go to place that order which we'll talk about in the next segment you are always going to place a test order no matter what this monthly sales volume is so test order consists of anywhere between 20 and 30 units and we'll get to that shortly so the product name here is the ever sewn ultimate sewing starter kit right and again I don't have their price sheet in front of me because I didn't actually contact them but you could contact them and go after the price sheet if you like this is just an example that we're doing so there's a UPC here on Amazon that I'll just use but again you know you're going to want to get that information from the Brand's price sheet so we can get our Ace in here too copy that paste it here and then our cost now I don't have the exact cost so I'm actually going to back into the cost after we run it through the Amazon Revenue calculator so this brings me to the next segment here which is we're analyzing for profitability so there are two main tools you want to use to do this now there are many profit estimating tools out there many good ones honoral will mention is seller amp great tool which you can use you know on right on Amazon but this video is you know if you're just starting out maybe you don't have all the tools and I said earlier on in this video that you only need a couple tools to get started so we use today you know in running our seven figure business the Amazon Revenue calculator which is right here this is a free calculator that is given to you by Amazon Seller Central just for having the Amazon selling account we also use inventory lab as a way of measuring the shipping cost per unit so we use inventory lab you can use another software like seller amp you also don't have to use a software if you're not analyzing Priceless in a massive volume you can actually multiply the weight of the item by about 50 cents per pound because when we jump to inventory lab you'll see that that's the preset calculation that we have so if I'm shipping a one pound item into Amazon and I'm estimating my shipping cost at about 50 cents per pound then my shipping cost as an estimate going to be 50 cents so that's how that's going to work and you can get that item weight here on Amazon and that's what inventory lab or seller amp is pulling it's actually pulling the weight of the item from the listing not actually seeing it on here but it may not be on the front end which is visible to customers it might be in the back end of Amazon Seller Central they're automatically pulling that so we're just going to start out in a basic estimate with the Amazon Revenue calculator along with inventory lab so here I have the product as up and we have it at our list price and it's estimating our shipping costs at about a182 which again is just 50 cents per pound you can see that here because the item weighs about 3.64 pounds it's just multiplying that by 50 so we're going to jump back to our sheet here and we know that the shipping cost per unit is about 82 and if I did the 3.64 times 50 it's going to yield me a182 in shipping cost so we jump back to our spreadsheet here and now we can actually copy that as and then paste it in the revenue calculator which I've already done here click search for the product and then you paste that here and it would come up with this and now the first thing we're going to look at is what is the price that we're going to sell this product for and you want to make sure you target Amazon Fulfillment not your fulfillment your fulfillment is fulfilled by Merchant Amazon Fulfillment is fulfilled by Amazon so 6936 yes that's the current price the product is selling for that being said we don't know if that's the price that it always sells for so that's where we have to look at keepa and it does look like there's been a price PR hike in Q4 products selling much better here sales volume is going up price is also going up so could be Q4 driven now that being said I have to estimate this at a more conservative price so only a few months ago actually less than a few months ago the product was selling for $53 so I'm going to go ahead and pay respects down here to keepa and look at the average selling price average selling price is about $59 as we can see in the past 90 days and $65 in the past 180 days so I can get a good gauge on this and take a look at the keut chart and say okay well in October it was actually selling at about 53 and and now you know for the holidays it's selling for 70 so I'm probably going to go somewhere in that middle of about 59 that being said if you wanted to run a very conservative estimate could go at the lowest price that it's been at over the past three months which is 53 so just to be conservative let's say we're going to do that right we're we're going to add a column here for sell price and we're going to put the 53 sell price so we're selling it at 53 and then our inbound fee right so here's the thing about the inbound fee estimate you always want to estimate this inbound placement fee at the most conservative possible based on where your geographic location is so I'm located on the East Coast so I would always estimate this at the minimal shipment split schedule to the east coast which is cheaper of course than the West Coast but because I'm on the east coast and if the supplier is shipping to my warehouse I'm most likely sending the shipment to an East Coast FC unless it's of course it's eligible for Amazon optimized shipments which we'll explore later on um for a five case shipment and the qualification for shipping Amazon optimized is at least five cases so instead of estimating Amazon optimized which is going to be a more liberal estimate because we're not taking into account any fees here we're actually going to estimate it on the minimal shipment split level to the east coast for me now if you're located on the west coast you'll want to select West Coast but I'm on the East so I'm going to click East and it's giving me a placement fee of 37 cents per unit now we have to punch in here in the Amazon Revenue calculator so we're going to put our $182 here in the miscellaneous cost which is going to be our shipping cost and you can put it up here but you know either way it doesn't matter whether it goes in this box or this now we can see here that if we estimate this at 53 so we can see that $53 sell price our Amazon fees which is our referral fee 15% right off the top in most product categories our fulfillment fee our storage costs and now I am in December when I'm recording this so I am going to select the Q4 storage fees which are more expensive than the first nine months of the year so it gives me my total cost there and then it has my cost here and now we can see that before we've even purchased the item we are left with $33 so let's say the item cost 2450 right let's just say it cost 2450 well you would put in the actual cost of the item here from the supplier price sheet and maybe they have tiers a lot of suppliers that I work with have tiers you know so the more quantity that you order the lower your price is going to be but let's say for example purposes it's $ 2450 so we now have $224.50 is our total cost of good sold $ 2450 and now we are able to estimate our profit which is 8.84 and there's nothing more accurate than the Amazon Revenue calculator because you're it's directly pulling all of the data right from Amazon Seller Central so 884 is our profit here we can punch that in here and our return on investment is simply our profit divided by how much we paid for the item and in this case it's 36% so this is a great buy right it's we're profiting $8 eight more than $8 and we're making a 36% return on our investment and that's good I would say in wholesale generally the criteria that we look for is at least a $2 profit per unit and a minimum of about 20 to 25% Roi now as you scale up you may be able to take a lower return on invest like 15% as you scale and grow the reason why we might take a lower Roi at 15% is if the item s is going to sell faster meaning we're going to turn our cash quicker or if the profit per unit is really high so if we're making like $ 20 $30 a unit maybe we can take a 15% Roi it makes more sense but this is the general two criteria that you're going to look at so for beginners I would say Target at minimum 20 to 25% Roi and at least $2 profit per unit and then the average sales rank we're going to grab from keepa here and we can see that the average sales rank let's see here over the past 90 to 180 days is about 66,000 and 88,000 so I'm actually going to go ahead and get the average of the two so 66,000 465 plus 88298 ided by 2 is actually going to yield me a 77,000 sales rank and again it looks like there's a seasonality component here but I think that's pretty fair to say that it was will uh sell for about an average rank of 77,000 we can see that last year products sold until the end of the year and then really the reason why it stopped selling was because it went totally out of stock for months um and we can see that down here there's no offers so the product would have probably kept selling if there was able to maintain stock and this is actually a value pitch to The Brand right you know to be able to carry stocky around because look they're losing a lot of sales on Amazon so we jump back to our uh product analysis sheet and we said that our average sales rank is about 77,000 in arts and that ranges what kind of sales per month is that so Kea tells us you know it's it's about 100 plus sales per month Amazon says 100 plus I like to go to the Jungle Scout sales estimator so I'm going to open that up in a new tab so I'm going to go to Jungle Scouts free sales estimator here and I'm going to select the United States our product category is arts and this is a 77,000 rank which tells me that about 60 units per month now Amazon says it's moving over 100 units per month which I do believe to be accurate um because we can see here that the sales volume has increased we estimated it at a 77,000 rank this chart is showing a 23,000 rank so I think 77,000 is definitely conservative but we can go on the side of C and say that it's only going to sell 60 units per month now if we were to sell $8 per unit profit time 60 is going to be $530 monthly profit now we're not the only seller on the listing so we actually have to get our share our sales right and we do that by getting a rough idea of how many sellers we're going to be competing against and seeing who is rotating in and out of the buy box so we can go to keep it and go over to the data tab if you guys haven't seen my keep video I you know it's linked here in the description for you guys to check out we're going to click buyx statistics and from here we're going to see the distribution of sales volume accordingly right so this is not something that's set in stone but it's to give you an idea of what we're going to get a a sales volume on for this product listing when we're uh comparing our selling account you know to competing with some of these other sellers so I'm going to look at seven offers and I'm going to just see who is and who is not competitive competitive competitive competitive I would say they're pretty close to being competitive so right now there's four other competitive sellers so I think it's pretty fair to say that I'll get a fifth of the sales and Bar in mind we already underestimated the sales so if we increase this to 100 it's going to change all our numbers so let's say we're going to be the fifth seller on the listing divided by five so we're making $100 a month right if this went up to 150 units it's selling right now well now we're making $265 per month and we can play with these numbers right so this is our overall estimate before we have you know made a purchase and guys you might be thinking only $100 per month you know that's not that great well number one this is not their only product that the brand carries number two our sales per month is super conservative at 60 I do believe it's going to sell more than that if this product is stocked throughout the entirety of the year what else the Amazon sellers we said we were competing against was five I think that's fair but the other thing we haven't talked about which was what we mentioned in the Outreach section of this video is how do we convince this brand into an exclusive agreement right because now instead of set our monthly profit only being a fifth our monthly profit would now be the entire monthly profit right so that's the biggest thing with exclusives guys and that's why I advocate so much for brand direct exclusives because not not only can you make a lot more money from a sales volume perspective because now you're getting all the sales to yourself but you can also incrementally raise the retail price on Amazon so let's say you know we went back here and said oh well maybe this product's actually going to sell well at $69 we just made so much more money because of this product estimate is priced at 53 now if you got the exclusive you wouldn't want to jump from 53 to 69 you would slowly want to raise it so that the buy box does not get suppressed but that's why brand direct exclusives are super profitable and think about if you can multiply this over and over again and that's what wholesale is all about so now instead of making $100 per month you're making uh a monthly profit of $530 per month let's just say and you do that 10 times Well now you're making a monthly profit of $5,000 per month you know so you can see how this scales and multiplies itself very quickly the last thing I want to cover is that before you place your test order which we'll talk about in just a moment you will want to punch in the Asin into your catalog in Amazon Seller Central and I'm going to show you guys that in just a moment here now the next thing that I will always do is I'll jump to my Amazon selling account Here and Now from here it's going to bring up the asent and I will go ahead and click new and I will press sell this product now from here I would actually list the product on Amazon and we're going to do that because we're going to use this listing in the next segment where we actually ship this product into Amazon one of the things the formats that I will use with with my team in my business is that I will actually set the cost First so$ 2450 followed by the item number followed by the desired sell price so we said 53 right this allows me to at an initial glance see exactly what we paid for it to know what the item number is and to know what we plan to sell it for this is very useful down the road when you go to repress your items and sync your repricer with your Amazon selling account so we're going to go ahead and list it above that price we're actually going to want to list it at the you know above what it's actually selling for on Amazon so we can take a look at that and it's selling for 69 well you know I'm going to list it for $71.95 because I don't want to be that one guy on the listing that jumps on the listing for $53 even though maybe we planned to sell it for 53 my inventory is is not going to be available right when I send it into Amazon so I'm going to price it at $71.95 I'm going to go ahead and hit new and then from here I'm going to make sure to select Amazon will ship and provide customer service definitely want to ignore these other components here because we don't sell in other marketplaces it actually poses a compliance risk from in my opinion and you guys if if you're not familiar with what that compliance risk is you can actually go ahead and watch my video on Amazon account deactivations which I've linked up above it goes into to Global sync and how to avoid issues with your account getting deactivated because of that uh but for now we leave all of this off so we're going to select Amazon will ship and provide customer service and then save and finish and from here it will now bring us to a page where it will prompt us to ship this product into Amazon and that's what we're going to dive into subsequently in this video so we've gone through our first price list now we're ready to place an order it's time to draft a purchase order to our whole sales supplier so we said when we were doing our product analysis that the product sells anywhere between 100 and 150 units per month this does not mean we're going to buy 100 units on our first order our first order is going to be a test order and we said in our hypothetical example that there are 12 units in a case so we're going to place a test order for two cases of 12 which is going to be a total of 24 units I always recommend that a test order is placing an order anywhere between 20 and 30 units this will give you a good gauge on product demand while at the same time mitigating risk we can analyze a keepa chart all day long but the best reinforcement for making a larger purchase is actually seeing those sales come through our Amazon selling account that is exactly why we place test orders before you send the purchase order to your wholesale supplier there are a few questions you'll want to ask them first number one is there a minimum order quantity orq number two is shipping added to our order is there a certain quantity that we can order to obtain free shipping number three can you ship directly to our fulfillment center if we send you prepaid shipping labels for the boxes note how I didn't say can you ship directly to Amazon I use the words fulfillment center instead number four is there a specific quantity per case for this item or items number five how is this item or items packaged do they come in retail packaging or are they Loosely packaged in the shipping box so this question is only going to be necessary if you're shipping directly to Amazon number six is there a UPC barcode on the exterior of each unit if so what is this barcode number and again this question is only necessary if you're shipping directly to Amazon and number seven the last question you'll want to ask them is can we pay by a credit card or AC and do you you charge credit card processing fees now once you have the answers to these questions you're going to send off your purchase order to your supplier and the supplier is either going to charge your credit card or you'll make an a payment an a payment is just a next day wire transfer the transaction will probably cost you only about a few cents and depending on who you bank with you might be charged a monthly service fee for a payments in order to make an a payment you'll need your supplier's routing number account number name of the bank and the name on the bank account I would recommend using a credit card if your supplier doesn't charge credit card processing fees this is because you have 30 days to pay off a credit card and you'll be able to start racking up credit card reward points and building business credit let's talk about net 30-day terms net 30-day terms is perhaps the most underrated way of scaling an Amazon wholesale business this is because it shifts the burden of inventory from your books to your suppliers books net 30 days is a game Cher because now instead of prepaying for your inventory you now actually have 30 days to pay that invoice I even have net 60 and net 90day terms with some of my suppliers which means that I have 60 or 90 days to pay an invoice and then on top of that some of those invoices I can actually pay with a credit card which gives me an additional 30 days on top of that to cycle out the cash if you have 90 days to pay an invoice and your holding a 30-day Supply you can sell through your inventory three times over before you even have to outlay cash for the first invoice that's a game changer one thing that we have to understand is that we're not going to start out with net 30-day terms right away net 30-day terms is going to be a byproduct of the relationship that you build with your supplier the best way to accumulate net 30-day terms is simply time and prepaying for your invoices so if you're a brand new seller you're probably not going to get net 30-day terms right away it's going to take time as you prepay for your invoices your supplier will be more likely to give you net 30-day terms down the road as you've built up that relationship and shown them that you're paying your invoices on time then when they do you can use their reference along with others as you gain them on a credit application which will help you build more business credit and secure net 30-day terms with more wholesale suppliers so one of the biggest questions that we get asked all the time is do I need this place do I need a warehouse to start selling on Amazon like what does that look like for the beginner seller do they need a warehouse or like yeah I mean it's such a common question and people are looking at getting a warehouse you know for legitimacy with suppliers but the reality is that you do not need a warehouse to start selling we definitely didn't have one I mean for what 3 4 years we didn't get a warehouse it it wasn't until we were just totally grown out of the house where we had to move into a warehouse and still running doing seven figures out of a house you and you don't need like all these extra things like we always preach that is just like focus on the basics and I feel like a warehouse is one of those things that people think they have to get to that I mean even the size warehouse now is a lot smaller than I feel like people would expect yeah and and a warehouse is cool but it also comes with a lot more management it comes with more overhead costs so that's the thing is when you're first starting I would say a avoid a warehouse as long as you can you know until you are absolutely growing out of your house then it's time to move into the warehouse just as a small amount of Amazon gives us enough expenses already just as small amount of expenses as possible you know if you can minimize that I feel like you're just going to grow and be able to reinvest your profits faster seven figures you can do seven figures and sales out of a house maybe eight probably not okay so we've gotten our logistical questions answered we've sent our first purchase order paid our supplier and our products have shipped let's jump into Seller Central so that we can learn how to ship our products into Amazon and start making money all right everyone so you have analyzed your product you've placed the test order and you've sent the PO to your wholesale supplier you've shipped the products to your house or your warehouse and you've paid your supplier now you've gotten the goods at your house what's next so this is the part that's awesome because you're going going to ship your products into Amazon and then we can finally start making money so I'm super excited to share this process with you we're going to run through two examples today we're going to run through a small parcel shipment which is where you're shipping your units to Amazon in boxes through ups and we're going to cover an LTL shipment Which is less than truckload meaning your shipping a pallet or multiple pallets into Amazon's Warehouse if you're just starting out your probably not going to be using the LTL feature that's for more advanced sellers doing a lot of volume so I'm really going to focus this part of the video on shipping small parcel ups but we will touch on doing an LTL shipment so we've added this item to our inventory which we did in the previous step and we're going to select the kind of barcodes we're going to use so we can see here that the item is eligible for both manufacturer barcode and Amazon barcode now we can use manufacturer barcode to save on labor and time and if you were shipping from your supplier directly to Amazon you probably would want to do that because otherwise you have to pay Amazon to apply those FN skew labels which is going to be expensive they they charge about 50 cents per FN skew label or your supplier is going to have to do it and they'll probably charge you a small fee now the only drawback to using manufacturer barcode is it runs under something called co-mingled inventory and what that means is that if I ship an item into Amazon and another seller ships the same item into Amazon another seller on the listing and we both are using the manufacturer barcode let's say in a hypothetical example that other seller has a unit that gets returned by a customer and Amazon puts it back on the Shelf because they deemed it sellable again when in fact it wasn't in that case Amazon could potentially grab that customer's return and sell it on my behalf so that's a small risk we we run with manufactured barcode that being said the volume that we're doing in our business far out weighs any small issues with co-mingled inventory that we may run into so I would say if you're just starting out and you've already shipped the products to your house take the extra step and do the Amazon barcode so that's another thing we'll do is if we ship the units to our warehouse anyway and our employees are applying the labels to the units then they're going to do that with a lot of products anyway so you know unless it's a super high prep process like you know bubble wrap poly bag things like that where we have to apply the Amazon barcode if it is eligible for manufacturer barcode and we get a lot of units thousands of units at our warehouse we might actually use manufacturer barcode and save on labor so there's pros and cons to each I'm not going to get into all the details of each but for your purposes uh you usually want to default to the Amazon barcode unless you're again shipping from your supplier directly to Amazon and it makes more sense to use manufacture barcode so I'm going to go ahead and select Amazon barcode and tell Amazon that I'm going to apply the labels onto my products from here we're going to press list as FBA and send to Amazon because we are going to create a mock shipment into Amazon so I'm going to go ahead and hit this and it's going to bring me to the next page here so it's the address that's already on your Amazon selling account and that's what's going to default here but like us if you ship from many different wholesale suppliers directly to Amazon you will have to change this ship from address by clicking ship from another address and when you do that you'll want to specify either the name of the business that you're working with or you can put your name here and then the supplier's address so we're shipping from our address and now we have information here that we have to specify to Amazon so in this particular example we're going to say this is a case packed shipment because many times our suppliers will ship products in case packs to us and we'll just send them right back out in those case packs now that's not always the case but many times it is we have preset packing Dimensions with many of our suppliers because we sh directly to Amazon from their warehouses so I'm going to select new packing template now here we're going to label this with the item number so it would actually be the item number whatever the item number of the product is and you know let's say it's a case of 24 so let's say we're sending 12 units in a box and we said the item was about 3.6 lb or so so that would be about 42 LB um so let's say we're shipping in a 12 by8 by I don't know 18 box and let's say it's 44 lb right so now we're going to select who's going to prep it and this is a no prep needed item if we were using manufacturer barcode we would have already done that but we've already said we're using Amazon barcode and I'm going go ahead and hit save and now we have our packout here and I'm save that it changes to what our packout was now if you needed to print FN skew labels in in Amazon Seller Central you can go ahead and click this print them to your Doo printer or your Zebra printer whatever thermal label printer you have and again guys you know there's many different shipment softwares out there there's inventory lab there's box them there's 2D workflow there's there's there's shipping softwares that you can use we use inventory lab but many many times we are shipping right in Seller Central since they made the changes with the inbound placement we not most the time will ship in Amazon Seller Central and inventory lab only in certain scenarios so this is exactly how we do the process at our Warehouse so I'm going to select how many boxes I'm shipping and let's say it's five boxes right and the reason why I'm using the number five is because I want to it to give me the option for Amazon optimized workflow which is where we're shipping five boxes to five different locations if I change this to four boxes at 48 units it would not give me the option to go Amazon optimized and we can see that because it says it right here so we're going to go ahead and click ready to send and now it's going to prompt us through the rest of the process we're going to hit confirm and continue and from here we will now be able to see our three shipping options so we'll go ahead and select each option and compare the cost of them so let's say we're shipping this on Monday and we can see that shipping small parcel now we know that here because this is small parcel UPS versus LTL only to ship 60 units it's not going to make sense to sh ship LTL we already know that if it's a large mass of shipment which we'll go through in the next example we will be able to see that LTL does make sense in a lot of cases so we can see that if we're shipping to five different locations here our total shipping cost is $99 let's compare that with the partial method so in the partial shipment option where we're shipping to two locations we can see that if we take 1920 and add it to 8103 our total shipping cost is $123 which so far our imized placement is just about a dollar cheaper than that now we'll also send it or test the send to one location so we can see that our shipping cost UPS is 6613 add that to our placement fee of 2220 and we get 8833 making the minimal shipment split to one location cheapest in this scenario we will scroll all the way down to the bottom here click accept charges and it will then generate our box labels and we would print them and ship them into Amazon and that is how to send a small parcel shipment through Amazon Seller Central now if you were sending an LTL shipment let's take a look at that now I'm going to increase the quantity substantially just because I'm going to try to get the volume to make sense to send LT so let's say instead of sending five boxes we're sending 50 now we're sending 600 units and obviously this is not going to make sense because the item only sells maybe 100 to1 50 units per month which we explored in the previous example but let's say we're sending 600 units we're going to hit ready to send and now I guarantee you that the LTL shipment option or at least I am predicting that the LTL shipment option is going to be cheaper because we're sending so much weight in the shipment and we'll let this populate for a moment and we will find out so we will still assess the three options in the optimized workflow which is populating here in just a moment it will cost $1,702 to ship this into Amazon partial it's now going to cost 803 plus 192 and my prediction is that this is going to be the cheapest and that is looks like is in fact the case because you're sending heavy items these are three and 1 half almost 4B per item it's going to one location is probably going to be cheapest because you're shipping heavier items to one location instead of five over here so this would cost over a th000 this would cost about 1,995 and this would cost 5681 plus 222 our placement fee is $790 so quite substantially cheaper now if we wanted to ship this LTL though and that's why I did this example it's actually only going to cost 403 and this is an estimate before the weight of the pallet but we can estimate that it's going to cost 4 368 plus 222 and that right there is economies of scale because as you send in more volume into Amazon and this could be mixed SKS it could be many different SKS we're just using one item as an example as you send in more volume to Amazon your shipping cost substantially goes down as you send a freight shipment in so they are estimating here four pallets with a total weight of 2200 lb this is the actual scenario before the weight of the pallet so we just have to add on the weight of the pallet which we will do once we confirm the shipping destinations here and when we do that the pallet weight is usually going to weigh maybe 40 pounds or so so you know depending on how many pallets you're shipping you would just add that weight on and then of course you'd have to get the height of the pallet and we're going to run through a quick example of this right now so from here I'm going to go ahead and hit confirm shipping destinations now there's just another step that you have to take with an LTL shipment as opposed to just printing the up s labels and the Amazon box labels in the one step that we just did before you're now actually going to have to apply the Box labels to each box in that shipment so from here what we're going to do is we're going to go ahead and download this in a 4x6 thermal printer and then press print this is going to print right to our Rolo printer and from here we will apply these box labels to the boxes now if you're sending one pallet of all the same skew it doesn't matter how you apply those labels to the boxes you can just apply them to any of the boxes uh because the labels are not in any sort of sequential order now from here we're going to print those apply into the boxes and then we're going to hit continue to carrier and pallet information and from here this is where we add the contact information you're going to hit add contact and then you're going to put the name and the phone number and the email address of the person on contact which is going to be you if you're shipping it from your supplier directly to Amazon it's going to be your supplier so that the trucking company can contact them and they will get the bill of lading directly the bill of lading is a document that the driver that is picking up the shipment will sign and confirm they've picked it up they will mark it with their tracking number and the bill of lading is proof that the shipment has been picked up to Amazon now we're going to add that information and go ahead and proceed with the next step so now is where we would determine how how many pallets we're shipping this on so we said we're shipping a total of 50 boxes and let's just say for simplistic purposes we're sending 25 boxes on one pallet and 25 boxes on the other so we specified earlier on that one box weighs 44 lbs approximately so you're actually going to want get the actual weight of that box and you're going to weigh the box and punch it into Seller Central we said it's 44b so 44b times 25 boxes we said we're going to ship on one pallet is going to be 1,00 lb so I'm going to specify 1,00 lbs to Amazon and let's say the height of the palette is 60 in I'm just making up a number now notice how it does not ask me for anything with the length or width of the palette and the reason for that is because all lengths and widths of the palette have to be standard 48 in by 40 so if your palette does not measure that size you're going to want to get new pallet to put those boxes on another quick note about the pallets and requirements to Amazon is that the pallet has to actually be an Allway pallet meaning that the forklift can access its legs through the pallet on all four sides last requirement for shipping a pallet into Amazon is the height we want that height to be no more than 72 in because that's the clearance of a tractor trailer now we're going to go ahead and say we're shipping two identical pallets at 1100 lb each each 60in height we're going to tell Amazon that they are not stackable pallets and we're going to change this to one because we're shipping a total of two pallets and this you don't have to touch it will automatically select the freight class so you don't have to worry about any of that and then you're going to go ahead and click confirm now I'm not going to do this because it's going to buy the shipping and then I'm G to have to delete the charges off our account but what you would do here is you would hit confirm you would select the freight ready date and then you would print the pallet labels the pallet labels would then be printed from your Rollo printer or your Zebra printer and after the Box labels have been applied to all the boxes and you and your team have wrapped up that pallet you're now going to put one pallet label on each of the four sides of the pallet so it's going to print four pallet labels and that right there is how you send an LTL shipment into Amazon's I will be coming out with a more detailed video on how to send a shipment LTL into Amazon where I'm going to show you exactly how to not just ship in Amazon Seller Central but I'm going to show you how to physically ship the goods via pallet to Amazon and we're going to go through a light example of a real shipment that we are doing in our business so stay tuned for that video but for now this is how you send both a small parcel shipment and an LTL shipment into Amazon hope that was helpful and now we are going to jump into the final step and my favorite part of the Amazon wholesale process how to close brand direct exclusive agreements let's get to it so you've established a relationship with a few Brands you're currently buying products from them but you're competing with several other Amazon resellers 5 10 maybe more what's next the final part of this video has been the largest Catalyst for growth in my Amazon business let me share a story with you about 2 years ago I made a $440,000 purchase with a brand merely to become one of their resellers I know that seems like a lot of money and it was I was scared but because of all the things that you and I talked about in this video I was confident in the decision that I made the reason I made this purchase is because I had several conversations with the brand months leading up to working with them they liked the value that I had to offer them but they really started taking me seriously when I became one of their customers next was timing and sometimes that's the biggest thing to give you an example my business partner Brandon and I have reached out to the same company 6 months apart and have gotten totally different results with this one though I hit the nail on the head when it came to timing the brand was in pain from the existing state of their Amazon presence less than a year later we signed an exclusive agreement this exclusive agreement is one of of our most profitable wholesale accounts with a brand exclusive agreement we don't have to deal with all the problems that come with selling alongside a bunch of other resellers the accounts are more profitable more secure and quite frankly they are way more fun than regular wholesale and because of this Brands don't just hand out exclusive agreements you have to know how to get them let's break it down step by step there are multiple factors that go into to closing an exclusive agreement with a brand not all of which are in your control let's review some potential factors length of time working with the brand overall timing the Brand's receptiveness and willingness to hear new ideas other resellers and the Brand's relationship history with them current state of the Brand's listings and presence on Amazon and there are many more your two biggest assets in closing an exclusive agreement with a brand are one emotional intelligence particularly empathy and knowing when to let the line out and give the brand space but also knowing when to reel the line in and be more aggressive number two your ability to build a relationship with the brand over time notice how I didn't say money or listing optimization or Amazon ads that's because those things are less important than building a relationship with the brand brand and understanding their concerns here are three steps that we can take to close our first brand direct exclusive first analyze the listings and the brands presence on Amazon what do the brands images look like on their Amazon listing is the number of sellers out of control creating price Wars are competitors or even knockoffs running advertisements on the Brand's listings is their brand registered on Amazon all of these different factors are what is going to prompt you to initiate a further conversation with the brand if the answer is yes to anyone or multiple of these factors here's what we are going to say assuming you have several purchases under your belt and you've been working with the brand for at least a few months you're going to send them an email in the same email that you're sending a purchase order to the brand ideally this email is going to go to either the brand owner or an executive decision maker at the company the topic of this email is going to read new order plus opportunity to increase sales and brand presence hi Jeff please see the new purchase order attached also I have some ideas for how we can increase sales and brand presence on the Amazon platform and e-commerce as a whole would you be available for a brief 10-minute phone conversation this week if so please let me know a day in time that works for you notice how I use the Tim stamp in requesting the call this is because once you have them on the phone for 10 minutes you can likely have them on the phone for an hour if you already have a good working relationship with the brand and you tell them that you're going to increase sales they're going to be all over it when you're on the phone with them again open the conversation the same way we always have start with a calibrated question so that we can gauge them and get them warmed up and talking from here we're going to give them value and actual real ways to increase their sales and brand presence on Amazon here are three value propositions that you can give the Brand number one listing optimization listing optimization increases product sales and makes the Brand's products more aesthetically appealing to customers that are shopping this is because with listing optimization we are improving the Brand's imagery adding A+ content which is lifestyle photography and interactive Graphics to help engage with the customers more with listing optimization we can also add in keywords into the title and bullet points which are going to allow for maximum visibility and conversions when customers shop for their products number two Amazon pay-per-click advertising or PPC this is a way to increase sales and digital real estate through paid promotion number three Amazon brand registry which is a way of of securing and protecting your brand on Amazon a common question that I hear from new sellers is that what if I don't know how to run Amazon ads or optimize a listing this is okay the focus should be to present this information to a brand in a logical and seamless way that makes sense for their business you can worry about actually implementing it and executing it later the focus should be the pitch to The Brand and converting that brand into your pipeline there are tons of experts in listing optimization and Amazon ads on Fiverr which is something that I do in my business I Outsource a lot of this and we have a few members of our team that work on these things in house but when you're just starting out focus on the pitch and understanding how to present the information and then later on you can either learn it yourself or Outsource it to an expert remember sell the vision not the value once we touch on one or multiple of these value propositions there's going to be a pause and everyone might be silent for a few moments thinking what's next this is an important moment let the silence be let them soak in everything you just gave them now you're going to position yourself for exclusivity as a means of payment not making it the focus check this out that makes sense right yeah makes perfect sense and that's the thing Mike you know is is what we're looking to do is really take a vested interest in the brand um and and we do that by like I said you know reinvesting some of our profits to focus uh on some more marketing driven efforts so um I mean let me just ask you you know based on everything I shared with you in lie of the fact that we don't um you know really charge services or anything um you know you might be wondering well H how do we get paid right how do we you know really maintain that vested interest well to be honest with you um full transparency a lot of what the uh agreements that we work in are exclusive pertaining to the Amazon only meaning you know we would be the only seller on Amazon not you know other doesn't apply to any other platforms Amazon only where we would be the only seller of the product line and what that allows for is it allows the partnership to be more robust it allows us to reinvest more back into your business in order to help it grow the biggest thing throughout this call is my tonality if we articulate ourselves the right way with the brand we are going to have success we have to approach these conversations with empathy selflessness and a lack of expectation give give give it will come back to you in the long run Brands want to work with people behind every brand is a person just like you and I be yourself and I promise you it will go much farther than trying to be someone you're not there you have it Amazon wholes sale I hope you found value in this video Amazon wholesale changed my life and I truly believe it can change yours too the best time to start was yesterday but the second best time to start is now so take this information and execute peace
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