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Home > Amazing FBA > Amazon Wholesale with Dan Meadors from the Wholesale Formula
Podcast: Amazing FBA
Episode:

Amazon Wholesale with Dan Meadors from the Wholesale Formula
Category: Business
Duration: 00:42:09
Publish Date: 2019-10-22 00:00:33
Description: There are many ways to buy wholesale to sell on Amazon. How do you maximize your profit and turn it into a cash flow business? Listen in to today's episode. What do you mean by “Amazon Wholesale”? The traditional model of Amazon Wholesale Traditionally buying wholesale for Amazon means buying products in a business-to-business through a distributor or wholesale company and then distribute.  Usually, someone just sells those products from the distributor and doesn’t have a direct relationship with the brand when you buy wholesale to sell on Amazon.  That didn’t work for Dan as not enough capital and couldn’t access discount tiers when you buy wholesale to sell on Amazon.  Dan and Eric’s model of how to buy wholesale to sell on Amazon  The aim is to help manufacturers in the marketplace.  Firstly, you need to educate the brand as to the value of Amazon as a platform.  Amazon was 55% of e-commerce sales last year in the USA. More people will see the product on a day than in any store etc.  Foot traffic vs. Online traffic Dan realised could provide a lot of value to companies.  Combined that with the ability to find great products when you buy wholesale to sell on Amazon.  Why buy wholesale to sell on Amazon? What results can you get from Amazon Wholesale? The best thing is this is governed by systems and processes.  They’ve worked through various models.  This works way better than anything they’ve done before.  What goal do you want to achieve with your Amazon wholesale business?  Do you want to make crazy money millions? Or a great lifestyle?  Early on that was confusing for Dan - they thought the path to freedom was the money generated.  It turns out that what mattered more was creating systems and processes.  Day to day work on an Amazon wholesale business Dan has no day to day role in Amazon.  He hasn’t opened an Amazon account for 2 years! They have 2 domestic employees (in the USA) and 2  in the Philippines that handle all operations.  Dan DOES have input in agreements with manufacturers.  An employee asked Dan to review - what do we want from a relationship as well as what they can offer.  It’s not passive but more passive than most business models.  Also, it delivers a sizeable profit!  Profit The average margin for Wholesale on Amazon is 20-25% net for Dan and Eric. As a cashflow business, that’s great.  1-3 hours obligated to the business - 35-40% ROI month to month.  With Private Label, there are a lot more decisions to be made eg designing product, sourcing etc. Improving easier than creating  Making something better that is already good is also much easier than creating or finding a new product.  And you get predictable income when you buy wholesale to sell on Amazon.  That’s why Amazon wholesale has advantages over the private label as a model.  Goal - more time and freedom Spend more time with kids and provide with experiences Dan didn’t get.  Dan asked them before school started, what do you want to do? Daughter (9) - I’d love to go to LA and see Santa Monica pier.  That day Dan called into office - off rest of week - booked ticket for rest of week  Position kids to have the mindset for freedom.  Another example - employee vacation One rule - no talking shop about business.  Over the 2 weeks, never talked about business.  Quick Background Retail company Dan worked for a retail company selling eg Pokemon cards.  Saw amazing growth - Dan played a fair role in that.  Saw how to see how to grow a business.  Was there after college 5 years - $1.5M/yr sales up to $25M Went from 13th employee to 200 people.  Starting on Amazon - the impulse One of the employees came in and gave notice. Making more money on Amazon part-time than in day job.  Started company back in December 2011. Fired Dan was actually let go from the job which was traumatic. 
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