Amazon FBA Wholesale for Beginners STEP BY STEP Full Course

Amazon FBA Business Models 10 Year Outlook 

Phase One 

The first business model, the first phase in any eCommerce business on Amazon, is getting started with online arbitrage or retail arbitrage. These two are the lowest regarding difficulty and protection, which is why it is much easier to learn and make mistakes in these two business models, because it may not have a disastrous impact on your business.  

For example, if you are only just getting started with retail and online arbitrage, you are going to learn a lot of the basics such as what is a winning product, what tools you need and how to analyse keeper. Phase one is all about what the milestones are in your life and your business. 

If you would like to learn more about online arbitrage, then press on the link:
Online Arbitrage For Beginners STEP BY STEP Full Course Part 1: Amazon FBA Business Overview ⭐

Here Kev goes through in full detail online arbitrage and what the business model really is.  

The problem with online arbitrage and retail arbitrage is that the difficulty is super low – it is very beginner-friendly and the protection is also super low. One problem with this is that there is going to be a lot more competition when it comes to online arbitrage, and you are going to have to be much smarter and diversified.

Phase Two 

Phase two comes naturally to outsourcing online arbitrage as quickly as possible, so you have team managers, sourcing assistants and purchasing managers. Once you are ready to build some stability in your business, this is when you are going to want to implement wholesale, which is the next level of difficulty, but it is the next level of protection too. For example, when you have accounts opened and you are starting to build relationships, this is business to business, and you are dealing with wholesalers; however, stores in online arbitrage, may not want to sell to you because you are a reseller, whereas wholesalers do, because that is what their business model is.  

There is wholesale general and there is wholesale exclusive. 

Wholesale General = the first steppingstone with getting involved with wholesale – getting access to accounts, building relationships with wholesalers who are selling the same products which you are getting at online arbitrage. 

Wholesale Exclusive = This gives you the potential with working with other brands, and at some point, if you build enough of a relationship, you could potentially start opening some accounts.  

Phase Three 

Phase three is private label, your own brand. At this point, you are going to protect your own brand and build your own branded products.  

The whole point in the 10-year outlook is Amazon themselves, want to have third-party sellers in wholesale business models/private label business models.  

In terms of what Amazon needs, they need and want invoices, suppliers and sellers in the wholesale model. 

Wholesale VS Online Arbitrage

When it comes to online arbitrage, because you can just log into an account and because the suppliers are online arbitrage, they are the business to consumer, you could just place an order for £10 or go into a store with £10, and if you have enough for a box and a shipment to Amazon, it is low.  

Starting capital 

When it comes to starting capital with both, you can start with whatever you have got. The problem with wholesale is that there may be varying minimum order quantities. For example, you may have a wholesaler who has a £700 minimum order quantity or a wholesaler who has got a £3000 minimum order quantity. So, when it comes to wholesale, the more the better. If you have got £5000, £10,000, £15,000 to get into wholesale, the more the better. However, this is not to say that you cannot start if you only have around £1000 or even less. But be aware that the more you have the better it is going to be, both for online arbitrage and wholesale.  

When it comes to wholesale, you really want to be medium to high.   

Time 

When you think of online arbitrage, once you have got your account open and setup on Amazon, you can start sourcing straight away. You could find enough winners today, if you started your online arbitrage business and went through different stores, you could find from 10-20 winners depending on how much experience you have. You can find winners in a really short amount of time. 

However, with wholesale, the chances are many wholesalers will have different catalogues, that they are not going to give to you until you have an account open. You are not going to be able to just go onto a website and start finding some catalogues and start sourcing through different products. This means that wholesaler will take a lot longer than online arbitrage.  

If you have not got an account open yet, the first thing you need to do is to set up your business to give you the best chance to actually open an account. Once you have got the account opened, you then need to get the stock list and then go through the stock list. This takes a lot more time, you will not be able to just do it in one day.  

Location 

What is meant by location is online arbitrage is many times started from home. This is because, when it comes to online arbitrage, it is B to C and it is expected for it to be sent to your home, to your living room, dining room etc.  

This is how Kev began out.  

Although, when it comes to wholesale, it helps if you have elsewhere – a unit, prep service or warehouse. It is not impossible to start from home, but it would be so much easier and beneficial for you if you had more space available.  

Accounts 

Accounts in online arbitrage are easy to open and you do not need a lot to be able to open accounts. You need an email address, name and home address. Anybody can open an account from home with online arbitrage.  

However, with wholesale, it is not the same. You must set up your business correctly. In comparison to online arbitrage, it is a lot more difficult.  

Long Term  

When you think about online arbitrage long term, you are going to have a lot more competition on listings. You are going to have a lot of inexperienced sellers on listings. They may bring down the prices, and not know the correct calculations. Depending on your goal, if you are thinking that you are wanting to do this from 10-15 or even to 20 years indefinitely, you only want to build your eCommerce business.  

Online arbitrage is great as a start, but you eventually want to transition over to wholesale. When you think of long-term wholesale, it is great. Once you have accounts open, there is only a little risk.  

Difficulty  

For difficulty, online arbitrage is much easier and very beginner friendly. With online arbitrage, you can learn and make many mistakes and it is not going to impact you massively and be super costly.  

For example, if you place a £50 order and you get it all wrong, you can just return it back to store. But if you place a £1500 order in wholesale and you have got it all wrong, you are going to find it much more difficult. The difficulty is much higher when it comes to wholesale

Wholesale Foundations 

Business to business is you working with a wholesaler, which is the next step down the line. We are now not buying from a retailer, a retail store or online, we are now wholesale. This is where the tradeshows, account managers and relationship build starts.  It also means you must set up a business and let people know who you are – having a story.  

A huge foundation is websites, email addresses and business cards, because this creates a story about your business. When you are talking to wholesalers, they are going to be interested in what your website, email and business cards are. With this, you are representing your business and you are trying to give it an image.  

With phone calls, you are talking to suppliers and trying to gain access to accounts, and you are telling them what you do and what you have done so far. Once you build relationships with suppliers, you are going to be able to have access and potential to discounts, and there are some negotiation tips that wholesale brings into the business. 

If you would like to learn more about phone calls, here is a YouTube video where Kev goes in depth about how it works and gives some great tips:

When it comes to sourcing, once you have got the stock list, things are much different. You do not have it like online arbitrage, where you are able to have a photo you can look at and compare – you may just have a description or barcode. In terms of pricing, you have now got case prices, per price per case or layers. The sourcing is a little more difficult because now you cannot just buy one unit because it is a case of 4 or 12 and you must buy a layer.  

Replenishing becomes a little easier, because now, when you have found one product and wholesale has a lot of them, you can now replenish and get another pallet. 

Shipping becomes a little more complex, because now you have the potential to ship by pallet. You now need to know the difference between shipping by pallets and just ordinary boxes. So, this now involves the weight, material and height of the pallet, you need pallet wrap, pallet toppers and case labels and pallet labels. There is a lot more involved when it comes to shipping by pallets, it is much more difficult than your general online arbitrage.  

Supply Chain Explanation 

This is a supply chain of a product chain, from supplier to customer. The suppliers have the materials, and they go over to the manufacturers, who then create the products. Once made, they are then sent over to the distributors, the wholesalers, the wholesalers then sell to the retailers - they are sent over to physical stores and go onto different marketplaces online, such as Amazon to be able to purchase the goods. What you are doing right now is you are going to a retailer and finding discount deals and offers, then you are making it available in the Amazon marketplace. The Amazon marketplace is just a retailer, it is a marketplace where shoppers go. It is super important to know that the retailer is side-by-side with Amazon, because by taking advantage of different discounts, you are putting retailers at risk and therefore online arbitrage has many difficulties when it comes to some retailers not liking arbitragers, taking advantage of different prices in marketplaces.  

Example Online Retail Websites 

The entertainer on TheToyShop.com 

 Because they have their own website, whenever they are looking for suppliers and brands that they can make relationships and make it available on the Entertainer, the wholesaler is able to go onto their websites and decide if they would like to do business with The Entertainer. The websites usually contain information about them, the deliveries, days they work and so on.  

More websites that you can get this information from include: 

Walmart 

Argos 

Hamleys 

When you start thinking of wholesale, you must start thinking as a retailer, not a reseller.  

Wholesale is the next level of any eCommerce business.  

Just like all the places listed, you can now build an eCommerce business where you can have your own website and you can sell in your own marketplace, like Amazon and eBay.  

Further Reading: 

https://lifesuccessengineer.mykajabi.com/wholesale-academy-training 

How to Find Wholesale Suppliers for Your Amazon FBA Business?

Is Amazon FBA (eCommerce) Success Possible Part Time?