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Home > Amazing FBA > Wholesale sourcing for Amazon by Dan Meadors
Podcast: Amazing FBA
Episode:

Wholesale sourcing for Amazon by Dan Meadors
Category: Business
Duration: 00:48:20
Publish Date: 2019-10-24 00:00:59
Description: Did you know that you can start with no experience when you go into wholesale sourcing for Amazon? Learn more from today's episode with Dan Meadors. How can you use wholesale sourcing for Amazon?   Eg: give up day job quickly; build a scalable business; build a sellable business.  The Amazon wholesale model can create a reliable, consistent business.  It’s a very cashflow based business.  They have tried to make something as simple as possible.  Download their FREE Guide here! thewholesaleformula.com/amazingfba  Capital requirements for wholesale sourcing With any physical product business, you do need to have the capital to invest.  Private Label is probably more capital intensive.  For wholesale sourcing for Amazon, you should be able to start with $2000. Ideal brand partners have a MOQ (minimum order quantity) between $250-750.  With those, $2000 gives you enough bandwidth to access discount tiers and have a few SKUs.  Who can do this?  Dan has had a 17-year old start - now 19, selling millions.  Also, a couple in their 60s and 70s have also successfully adopted.  How quickly can you scale the model of Wholesale sourcing for Amazon? The model does scale easily because of pace to market.  From seeing something on the screen to selling it is often 7 days! If you’re running at 30% ROI - that’s 30% month over month growth.    Download their FREE Guide here! thewholesaleformula.com/amazingfba    How to work without capital  If you don’t have the budget for capital, but you have the skills, you. You can be a consultant.  Agency model for Amazon wholesale Dan came across a product with 40 sellers on it. Competing with others   That company wanted to turn the business into a sellable asset.  They wanted to have a clean Amazon presence - large reach.  Wanted to run advertising- margins were not enough.  The manufacturer asked if Dan would help set up an account and manage the account for them and just take a commission.  Example Yesterday signed a deal - working directly with manufacturers Sometimes exclusive with a product In this case, they wanted massive growth and willing to spend serious advertising dollars.  Dan set them up on Seller Central and managed the account for a percentage of revenue Agency type contract Worth $250,000 dollars to their business  - interest-free! Can you start with NO experience of selling on Amazon? Yes - they have a lot of students who do this.  They struggle with the confidence in making the pitch.  Of course,  if you have the experience, you’ll do even better.  Selling your agency service to manufacturers You have to be clear what you’re selling when you talk to the brand.  If you don’t have a lot of experience, you can’t sell that! Base on logic rather than experience.  If it’s poor results, they can just stop! Most decisions are based on understanding.  Dan doesn’t try to sell - he focusses on EDUCATION.  Show them  Where they’re at Where they COULD be Eg adding 5 quality pictures - it sounds legit because it IS! You can show competitor listing or something optimises.  They are buying into the RESULT not the EXPERIENCE You’re not the Guru Dan says things like: “ I don’t promise I’m the solution. I’m more of a consultant.” Eg: Dan has worked with 19 brands to create EBC - Enhanced Brand Content. How does that work? Talk about things that work and invest them in the process.  We’re happy to make a connection with a contractor - they work to create it - and then it goes on Amazon.  Be good at figuring out what the problem is.  There is an outsourceable solution for anything.  The community of the wholesale formula provides this stuff.  The biggest block to wholesale sourcing for Amazon is your fear Dan and Eric have one major virtue - charging into stuff! Eg property - they decided 6-8 months ago to invest in properties. 
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