Dan Meadors - The Amazon Wholesale Formula 2019

[G_P2018]

[center][/center]
[center]Dan Meadors - The Amazon Wholesale Formula 2019
mp4 | avc1: 1280x856 G_P| Audio:mp4a-40-2 89 Kbps | Total files:175 | 20.84 GB
Genre: eLearning | Language: English[/center]


General:

What do you mean by "Amazon Wholesale"?

The traditional model of Amazon Wholesale

Traditionally buying wholesale for Amazon means buying products in a business-to-business through a distributor or wholesale company and then distribute.

Usually, someone just sells those products from the distributor and doesn't have a direct relationship with the brand when you buy wholesale to sell on Amazon.

That didn't work for Dan as not enough capital and couldn't access discount tiers when you buy wholesale to sell on Amazon.
Dan and Eric's model of how to buy wholesale to sell on Amazon

The aim is to help manufacturers in the marketplace.

Firstly, you need to educate the brand as to the value of Amazon as a platform.

Amazon was 55% of e-commerce sales last year in the USA.

More people will see the product on a day than in any store etc.

Foot traffic vs. Online traffic

Dan realised could provide a lot of value to companies.

Combined that with the ability to find great products when you buy wholesale to sell on Amazon.
Why buy wholesale to sell on Amazon?

What results can you get from Amazon Wholesale?

The best thing is this is governed by systems and processes.

They've worked through various models.

This works way better than anything they've done before.
What goal do you want to achieve with your Amazon wholesale business?

Do you want to make crazy money millions?

Or a great lifestyle?

Early on that was confusing for Dan - they thought the path to freedom was the money generated.

It turns out that what mattered more was creating systems and processes.


Day to day work on an Amazon wholesale business

Dan has no day to day role in Amazon.

He hasn't opened an Amazon account for 2 years!

They have 2 domestic employees (in the USA) and 2 in the Philippines that handle all operations.

Dan DOES have input in agreements with manufacturers.

An employee asked Dan to review - what do we want from a relationship as well as what they can offer.

It's not passive but more passive than most business models.

Also, it delivers a sizeable profit!
Profit

The average margin for Wholesale on Amazon is 20-25% net for Dan and Eric. As a cashflow business, that's great.

1-3 hours obligated to the business - 35-40% ROI month to month.

With Private Label, there are a lot more decisions to be made eg designing product, sourcing etc.
Improving easier than creating

Making something better that is already good is also much easier than creating or finding a new product.

And you get predictable income when you buy wholesale to sell on Amazon.

That's why Amazon wholesale has advantages over the private label as a model.
Goal - more time and freedom

Spend more time with kids and provide with experiences Dan didn't get.

Dan asked them before school started, what do you want to do?

Daughter (9) - I'd love to go to LA and see Santa Monica pier.

That day Dan called into office - off rest of week - booked ticket for rest of week

Position kids to have the mindset for freedom.
Another example - employee vacation

One rule - no talking shop about business.

Over the 2 weeks, never talked about business.
Quick Background

Retail company

Dan worked for a retail company selling eg Pokemon cards.

Saw amazing growth - Dan played a fair role in that.

Saw how to see how to grow a business.

Was there after college 5 years - $1.5M/yr sales up to $25M

Went from 13th employee to 200 people.
Starting on Amazon - the impulse

One of the employees came in and gave notice. Making more money on Amazon part-time than in day job.

Started company back in December 2011.
Fired

Dan was actually let go from the job which was traumatic.

He enjoyed his job and in theory enjoyed his job.

But was afraid of debt because it ravaged his mum.

He bought a house outright, paid off wife's student loans.

Replaced a roof which was very expensive.

When got terminated - had only $3000 in the account and lots of bills and a 1-year-old baby.

Told wife -"I quit my job today to do my Amazon business".

He was actually fired! So he just faked bravado.
Starting the business

Couldn't use money out of the account.

Got credit card for $600.

Did RA - grew it organically.

Working very hard. The budget grew fast.

$850,000 in sales, maybe $250K in profit!

From nothing!!

The 2nd year, worked even harder - 70 hour weeks.

But ended up $950K sales end of the year.

That Thanksgiving - Black Friday is the biggest shopping day of the year.

For RA if you're not shopping, you're missing an opportunity.

In the USA, you have to be out on Thursday - meant missing out on Thanksgiving!

Dan and his partner talked about - what happens if we can't work 70 hours/week
Other businesses didn't work

Dan tried a Retail store but shut it down.
Website my little pony collectables

Had seen sales via RA
It produced profit but wasn't passion or saleable
Didn't have the knowledge to drive traffic etc.
Sold that business for a little money but not a lot.

Private Label on Amazon

1st product successful - good at selecting products.
Not great at listings.
Probably $200K profit off the first product.
But when the competition showed up, they were more skilled.
Outranking them etc. - product dropped off.
1 product fell on the face.
Another one breakeven plus a bit.
Couldn't get consistent.

Private Label related products

Wanted a way to scale time - found wholesale
Didn't know what they were doing!
No real marketable business.
Research how to start selling wholesale
Got a list of distributions and went to shows
Got Giant catalogues - were these sellable? Margin?
Margins thin.
Trade show ASD - tried to negotiate but not comfortable

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