Wholesaling on Amazon: How to have Established Brands Crave for You to Sell their Products
Ever wanted to diversify your Amazon business? Today I want to talk to you about something really exciting, and that is how to get well known brands ask you to sell their products on Amazon. I hope you are intrigued!
In this blog I spend most of my time talking about the process of creating our own brands, and selling our own physical products online on Amazon. But today we will shift a little bit into the wholesale territory learning how to start working with well-known brands. In fact I have been diversifying my own Amazon business, and it’s not that things are not going well with private label, on the contrary. Things are going just great. It’s just a matter of not having all of your eggs in one financial basket.
With Amazon wholesale business, it’s not such a big deal if one of your SKUs underperforms, it’s the diversity that shines in wholesale business on Amazon. Usually wholesalers have hundreds of SKUs, sometimes floating up to thousands.
Wholesaling is a little bit of a volume play. It requires reframing the way that we think about selling on Amazon. But still things like optimizing your listings and using promotions, or sponsored products ads, optimizing your images and your bullet points – these same things can be applied to well-known brands. And the process of being successful selling wholesale on Amazon is really about the products, it’s about finding the product where the best opportunity lies, followed by convincing those brands to sell to you. And when you are successful you are getting to the point, when established brands start practically begging you to sell their products on Amazon, because they see how much you can help them.
Most of the work goes into finding profitable products and contacting, and negotiating with brands. Once you have all that figured out and wholesale account setup, it’s simply about ordering and reordering. And that’s where the scalability of this business model comes in.
So how to have well known brands ask you to sell their products?
Well, it’s all about the value proposition. Put yourself in the shoes an established brand. They may have hundreds of people reaching out to them on a daily basis wanting to sell their products. Some of them want to sell in retail stores, some of them want to sell at trade shows, some of them want to sell at discount or second-hand stores, and some want to sell online, either through Amazon or eBay. These companies get hit up all the time, left and right, with inquiries of people wanting to sell their products.
So, in order to have success in cutting through all of that noise and getting their attention, ultimately getting them to say YES, you have to stand out, you have to be different. The truth is – most big brands do not know how to sell well on Amazon. Usually they do not understand it and do not have time to learn it. Big brands are not doing things that I know me & you can do: optimizing the listings, copy, bullet points, ranking for keywords, providing exceptional customer service, running promotions on Amazon. These big companies just do not understand all these things, and they most likely do not have an interest in learning it.
Amazon is usually not their primary mechanism of making sales. For big brands Amazon is just one half percent of their sales. They are not sitting around monitoring their listings, looking at their keywords, fending off hijackers. And that’s where we come in.
I believe that not only big well known brands create opportunities to compete against, but I also love getting in the mix. You already know that they have a product that has traction at selling well, it’s well known, people are looking for it, sometimes searching for it by brand name. Well, what if you can get a slice of that action? Just by negotiating a great deal and getting it in front of the right people you are getting a piece of transaction by selling it on Amazon. Of course the commission is not that big, as if it was your own product. You are not getting 30-40% margins, maybe you are getting 8-15% margin, but keep in mind – you didn’t do anything to build that brand, you did not have to create or reformulate the product, you did not spend time and money applying for trademarks or patents, you did not have to design the packaging, or oversee the manufacturing process. All you did was get cozy with the manufacturer.
So convincing them to allow you to sell their products is about using the experience you have, using the fact that you have successful business on Amazon – point them to products that you have taken from nothing and show them how you know have them competing against, sometimes, other well known brands. Show them where you can take their product if you were successful in turning your obscure unknown brand into a winner on Amazon. Let them imagine how successful you can be with their name recognition and the fact that people are actually looking for their specific products.
Talk to them about specific things that you know how to do on Amazon. Take the time to find out what their pain points are. Maybe they are dealing with a lot of people violating their pricing policies. Talk to them about sponsored products and promotional opportunities available on Amazon platform. And, finally, talk to them about optimizing their listings. If possible give them screenshots, show them things that they can do to improve their listings, bring up any violations that they might be making. It helps to underscore your knowledge of the platform, when at that point they are starting to see that this is something they can benefit from.
Talk to them about volume. Ask what an average opening order is with them. And a lot of time you will be surprised to find out that they only require one or two cases be ordered. Offer to make a large opening order, not that large to have a bunch of products sitting around, but enough to show them that you mean business, that you are into selling and moving a lot of their products.
Finally, be real, take the time to listen. Find out what their struggles are on Amazon as a platform. Empathise with them. Talk to them about the ways that you can help them overcome those challenges. Most of the people they are being contacted by, simply want a transaction. But big brands truly value relationships. They are looking for good partners for their business, and if they start to see you as someone interested in a win-win solution, they are more likely to give you a wholesale account, or make YOU one of their authorized Amazon sellers, and not someone else.