10 Hard Truths Why People Fail Wholesale On Amazon FBA

Nobody likes listening to hard truths, especially when they are negative. The hard truth is that not everyone who starts wholesale on Amazon FBA is successful. There are reasons why people starts wholesale, and are not successful. 

In this blog post, I want to share with you 10 hard truths why people fail on wholesale. The goal of this blog post is to be able to support you, to be able to encourage you, and you can do this if you have the motivation, the hunger and the drive to take massive action, and make it happen in your business.

False Expectations - Give Up Too Early

Whenever it comes to starting any business, we go in with false expectations. We go in with expectations that it is going to be easy, and things are going to be just the same as online arbitrage. This isn't the case. This is the truth. It is going to take hard work, and you already know this.

If there is anyone who is telling you that it is going to be super easy, and that it is going to change your life overnight, then they are wrong - it is not. It is going to take you blood, sweat and massive action tears.

Applying the Same Rules As Other Business Models

There are different business models within Amazon which you already know. There is retail arbitrage, there is online arbitrage, there is wholesale, private label, and there is exclusive brand deals. The truth is, every single business model needs different ways of thinking, different criteria, different systems. there are so many things which change from business model to business model. Those who do retail arbitrage, will find that online arbitrage is a lot different; those who do wholesale, will see that online arbitrage is a lot different. 

When you start wholesale, don't fall into the trap of using the same principles, the same ways of thinking, the same systems, the same criteria which you have got when it comes to online arbitrage, and you are trying to transfer it to wholesale. They are different.

Learn more about online arbitrage here:

Online Arbitrage For Beginners: Why Amazon FBA?

Don't Build Long Term Relationships

The big difference when it comes to wholesale is you now have the ability to build a great relationship with your wholesale supplier and your account manager, whether that is having their phone number, email address, and you have opened an account - it is now about the long term and building a relationship. Therefore, you want to check in on your wholesale supplier, you want to make that phone call, send that email, you want to go meet them at the trade show, you may want to invite them to come meet you with their brochure. If you build a relationship with your supplier, it will make a huge difference to the ultimate relationship which you build, which can lead to some great opportunities down the road, such as discounts, giving you special offers, giving the heads up that there may be a clearance or a discount, or there is a new line coming up. Building that relationship cannot be underestimated. 

Master Data Analysis 

You have got to master the skill of data analysis. When it comes to wholesale, over the last couple of years, there has been some incredible tools - data analysis tools, research tools, where you can click a button and in seconds, it will tell you lots of great data about that particular product. 

The negative to this is the fundamental skills of analysing Keepa, the fundamental skills of being able read the Keepa charts, understand the Keepa charts, what is it telling you about that particular product, what is happening with the sales rank, what is happening with the number of sales, what is happening with the buy box, what is happening with Amazon - using Keepa to its absolute maximum capacity. 

Rely on Single Suppliers

When you do find a product to purchase at wholesale, and you have got a great supplier at wholesale, you don't want to rely on that one wholesale supplier. You want to immediately start looking to see if there are any other suppliers for that particular product. The reason for this is if you do find a great supplier, and you have a great product which you have placed orders for, then what happens when they run out of stock, or if they have any issues from an inventory point of view.

Therefore, it is super important that you look for other suppliers for that particular product if you can. 

Personal Growth 

This is your negotiation skills, your relationship skills, building skills, and learning from some amazing people who you can get access to. Kev has met some fantastic people over the years, by using his YouTube channel, being able to connect with people over Instagram, being able to go into Facebook communities, being involved and putting himself out there. Doing this, can make such a huge difference in your business.

Lack of Inventory Management System 

Amazon has changed over the last few years, and they have made some significant changes and lots of people have been impacted by restock limits. 

This all comes down to the fundamental practice of developing skills, and creating and developing fundamental systems in your business.

You need to know everything from lead times for suppliers, lead time for your warehouse or prep service, you need to know how you ship whether that is through pallets, which courier you are using, what tools you are using, and looking at timesaving all the time. 

One-Man-Band

This is that one-man-band mentality. Now that you are building your business from a wholesale point of view, the chances are, that you may have quit your job, or you are looking at quitting, you may be looking at getting into a warehouse, or you may already be in a warehouse, you may be looking at going into a prep service, or you already are in a prep service. 

If you are interested in joining a prep service with a highly experienced and determined team, then consider checking out Kev's prep service here: https://www.systemisefulfilment.co.uk/

 The truth is, you have got to start building systems. Systems in Kev's opinion will allow you to optimise streamline your entire operations. Everything from your SOP's, everything from team building, everything from your applications, to your interviewing, to your online, to your on-boarding, to your training procedures, and everything which goes into that one-man-band mentality. 

Lack of Financial Management Systems

This is everything from cash flow, the orders which you are placing may start to get a little more significant, this now goes onto the leveraging of capital, being able to leverage. Whichever way you look to do this, whether it is through the leveraging of capital can make such a difference in your business. Not just capital, but also different government schemes. There is so much opportunity, and so many options when it comes from a financial leverage point of view. 

If you want to build your business to the next level, if you want to be a big wholesale seller, then you have to use everything at your disposal, and from a financial point of view, developing some financial management systems. 

Resourcefulness & Creativity 

You have to do whatever it takes to be resourceful to make it happen. How many phone calls do you need to make, how many stock lists do you need to go through, how many people do you need to start building relationships with, whatever it takes to being resourceful at every single level trying to optimise your processes, trying to develop your team, trying to learn new ways of selecting products. You need to do whatever it takes.

Further reading:

Amazon FBA Wholesale Business Tips After Quitting Job & Moving Into Own Warehouses

Every Online Arbitrage & Wholesale Business Needs This!

How You Can Open 3 Wholesale Accounts In 24 Hours