How much money do people usually start with after finding an item from a wholesale distributer?
How much money do people usually start with after finding an item from a wholesale distributer? I needed to know how many units as well is a good starting point to buy as well.
How much money do people usually start with after finding an item from a wholesale distributer?
How much money do people usually start with after finding an item from a wholesale distributer? I needed to know how many units as well is a good starting point to buy as well.
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Seller_kIukTwdhvntAp
"How much money do people usually start with after finding an item from a wholesale distributer?"
These days it is probably more than they really want to use but less than their total net worth.
It was much easier back 20 or 25 years ago. As to the sourcing I go back 20+ years for my first products and I ended up with them because I could not find supplies for one of my hobbies (since gone dormant).
I looked around and found one of my old packages and called up the company. Found out they DID/DO sell wholesale and only required something like $500 initial order and a tax exempt number.
Filed with the state for maybe $10 and put an order on plastic for the $500+. Took about six months to pay off the card balance.
Kept adding suppliers and it became easier since they all ask for trade references and I had ONE. Found another small company that didn't have a large footprint and they let me in and again a small opening order.
NOW with TWO references it got easier for larger companies in the same or similar industries -- competitors of company #1 or #2 since competitors LOVE to compete for your business!
Find local or regional businesses looking to expand distribution, new companies just starting out ( I have had a few that I bought from and they failed.)
Something that you know about or WANT to know about that doesn't have 10,000 offers on Amazon.
The possibilities are endless but it is VERY hard if you start with the 'big boys' in any industry. Those guys want some large orders. I had one manufacturer of products that I was sourcing from hobby supplier #1 but I wanted to go direct to save about 20%. They wanted $5,000 minimum and a pallet full of two or three SKUs as a starter. Did NOT happen back then. Now, I would think about doing it.
The MORE IMPORTANT questions are what you have not asked or perhaps have not thought about --
Here are the NEW RULES for survival on Amazon -- do NOT ignore them!
THE AMAZON TWO STEP -- A NEW DANCE FOR SELLERS
There are two important questions that you need to address these days for selling on Amazon --
DO YOU have an LOA from the brand allowing you to sell on here?
DID YOU source from AUTHORIZED wholesale sources that your rep at the brand says are OK?
If you don't already have these in place you are probably going to have stranded inventory and a suspended account.
For any rookies out there reading this, please take the following information into account so you don't end up suspended!
HINT #1 -- VACATION MODE -- NOW!
HINT #2 -- SELLER U -- NOW!
https://sell.amazon.com/learn
HINT #3 -- Start writing your "please help with my Section 3 suspension' letter NOW. It will save you time when you get it if you do NOT have an LOA and proper invoices.
Pay attention to this recent story in the Amazon 'news' from September 25, 2024.
Sellers were given a 5 day warning that this was being put in place. Sellers have posted that LOAs are required in Europe, so you can see the handwriting on the walls -- this is coming for EVERYTHING on Amazon eventually!
"Updates to listing products with compliance requirements, effective September 30, 2024"
https://sellercentral.amazon.com/gp/headlines.html?id=GTF566XNEPCPXKDM&ref=nslp_at_6_GTF566XNEPCPXKDM_en-US_ttl_rf_recent_news_7
SEAmod
Hi @Seller_QhExdURDKW5Dg
You have the benefit of a thoughtful and thorough response from @Seller_kIukTwdhvntAp. Read, and reread what they have shared with you about selling on Amazon. Then, keep reading these forums and start learning by using the help pages, and especially the Seller University videos.
Welcome to the forums and welcome to selling on Amazon.
Seller_JUzllISOgHLP6
If you plan to run a business, then you need to build yourself a business model. How much does each unit cost? What are the expenses for each unit? What can you sell the unit for? What does that look like for you?
Seller_7AcEeaT8sGdxu
You will need more experience in business before jumping into these shark infested waters. Review all of Seller U, read this forum regularly to understand the hardships of some sellers, and start your business on its own before using Amazon as a solution.
Seller_W6vNnb9Dv4v3c
Watch out how much money you invest. Tip your toes in slowly.
Some points that Neverlast did not explain is that Amazon can and does change the rules of engagement whenever they want. Not only do they do that, but sometimes they give you NO warning at all. You may have been selling somthing successfully for 15 or so years, and then get an E-Mail that says you can no longer sell in that category without documentation. Unfortunately the documantation they say is necessary, does not exist in this world because the manufacturing company has gone out of business.
Amazon has NO real concern for you. They say they are your selling partner, in fact THEY ARE NOT! They are here to squeeze as many dollars from you as they can. They constantly change the rules of engagement some of which may harm you and your business.
Be very Careful before signing on to sell anything on Amazon. Do your homework as NEVERLAST recommended. He gave you excellent advice.
