If I said you could start with no product idea, have a bestseller on Amazon in 30 days or less, and you could do it without a product launch…would you believe me?
What if I told you this could be completely automated into a process that not only generates fast cash flow, but builds up equity over time into sellable assets?
Not only are both of those things possible, in this article you are going to learn exactly how you can get started doing them as early as tomorrow.
We are also going to discuss how to turn your private label expertise and knowledge into a sellable asset. How to turn the information in your brain into a sellable asset in addition to your private label brands.
So who the heck am I?
My name is Dan Meadors. My business partner and I own an Amazon business that has generated over 12 million dollars in sales over the last two years.
Do want to know what the best part about our multi-million dollar Amazon business is?
We only work 1 hour per week.
And that 1 hour is a weekly meeting we have with our employees.
We aren’t CEOs. We are more like shareholders, or a board of directors. And all of this is possible because of the simplicity of our business model.
Want to know my second most favorite part about our multi-million dollar Amazon business?
I can sell it at any time.
Our business is a sellable asset because it runs, grows and sustains itself without me.
Now there is a very important distinction here I want to point out. I said our BUSINESS is a sellable asset. Business.
I didn’t say our brands or our products. Sure, those are also sellable assets too, but a business is much more valuable as an asset than a brand or a product. Let me explain why.
Let’s roleplay a bit. Imagine you are an investor. What would you rather buy?
1.) Rights to a brand, but you still have to manage it and take over the day-to-day operations for selling those products.
2.) You could buy a business that runs itself. You are just the owner, and nothing more.
Now I ask you, which of these is more valuable? You got it. The second option.
My goal here today is to help change your mindset so you can start making more money. Yes, building a brand is great, but if you build a business around that brand, you’ll double what it’s worth(or more).
So let’s double your business!
Now for the big reveal. Just how are you able to do this? What is the big secret to doubling the value of your business?
It is to incorporate selling other people’s products. Not just your own.
By incorporating selling other people’s products into your business, you can significantly increase the value of your business. That is because selling other people’s products not only adds diversification, but it can be done with a repeatable and outsourceable process, while still adding assets to your business.
Doing this is actually a really simple process we call wholesale, and we are going to break it down right now step-by-step.
Step 1: Identify bestselling products and brands on Amazon. We are talking about products selling hundreds or thousands of times every month. Turns out, this is really easy to do with Jungle Scout.
Step 2: Reach out to the brand owners of those products directly, get their approval to be an Amazon retailer of their products, and then buy at direct, wholesale prices.
Step 3: Sell those products on Amazon at a profit.
It really is pretty simple. And as I mentioned, you can automate all of these steps just as we have.
You can also kick all this up a notch. If you get good at this, brands are willing to sign contracts that make you the exclusive Amazon retailer of their products. This means you are the only one allowed to sell those products on Amazon.
These contracts are an asset. When an established brand gives you exclusive rights to sell their products on the world’s largest marketplace, it is very valuable! It’s predictable, defined revenue and profit. Investors absolutely love this.
The two big questions I usually get when I explain all this to someone are:
1.) Why don’t these brands just sell their products on Amazon themselves? And why would they want to let me sell their products on Amazon?
Maybe it’s not painfully obvious, but the vast majority of brands don’t retail their products. They sell their products to retailers and allow THEM to sell their products. There is no Pepsi store, Proctor and Gamble Store or Johnson & Johnson store. And likewise these companies, and many more much smaller than them, aren’t selling their own products on Amazon either. In fact, they have no desire to.
These companies want to have expert Amazon sellers handle the sales of their products on Amazon for them. They want someone who understands how keywords work. They want someone who understands how to create a great listing. They want someone who understands the nuances of Sponsored ads, product reviews and ranking a product.
Does that sound a lot like you? That’s because it is. They need you!
Traditional Retail is dying. Every year more and more people are buying things online instead of in stores. So every year, the demand for companies needing an Amazon expert like you grows. And your expertise gives you a ton of leverage. It is a very scary time for brands that have depended on physical retail store sales.
Let’s take a look at an example. I want to make it real for you.
Here we are looking at Dominique’s US Senate Bean Soup.
This product averages about $3,000 revenue per month according to Jungle Scout.
I looked into it a bit. The Dominique’s brand is owned by a company called World’s Finer Foods.
Here is the kicker: World’s Finer Foods is a 100 million dollar a year company and they have been around since the 70’s, well before Amazon even existed. They are huge. Even though I have never heard of the brand before, apparently it is in stores all over America.
Again, this product does about $3,000 revenue per month, but it should be doing way better than that, right? So what gives?
Well, this listing is terrible. The pictures don’t even show what the soup looks like. There are 3 lousy bullets, and no description! These are simple fixes that would take 20 minutes to handle and could increase the sales 2 or 3 times over! They could easily be doing over 10K per month or more with a few really simple changes.
I know that. You folks watching know that. You know who doesn’t know that? World’s Finer Foods. Dominique’s US Senate Bean Soup. They have no idea.
That is exactly why they need you and want you. That is why they would be willing to let you be their Amazon retailer. And it’s as simple as that. That is why they are willing to give you these contracts to sell their products on Amazon.
“But Dan, Sharing the buy box is scary!”
No, it isn’t. The buy box is mostly determined by selling price. If everyone is selling at the same price, sales are split pretty evenly. If you can provide real value to the brands with all your Amazon knowledge, they will give you better pricing than anyone else. You can have a price no one can compete with and you get most of the sales. Or, like I mentioned earlier, you can sign exclusivity agreements to be the only seller.
“But Dan, You can’t change or fix other people’s listings.”
That’s not true at all. That is a big myth. It is actually really easy to fix and make changes to any listing.
“But Dan, I’ve heard wholesale margin are small!”
Another myth. Wholesale margins can be as high as 50% to 100%. And yes, it Is very common to for a wholesale margin to be 10% or 15%. But think about it: If all you have to do is send an email or make a phone call to put in your order, and the brand ships it in to Amazon for you and get the sales…a 15% margin is pretty good for that little amount of work. And it’s fantastic cash flow because the product already has built-in demand and requires little or no cash investment from you besides the cost of the inventory you purchase.
“But Dan, you don’t own the products!”
That’s fine, because the contract you sign with the brand is your asset instead. The products have a history of sales so you can project the profitability of any contract you sign to retail their products. That makes it an asset.
To prove that last point to you, let’s look at a real world example.
Josh Neblett had his own Amazon business, primary selling a mixture of his own branded products and other people’s in the same fashion we have discussed here today. In 2015, Josh sold that business for $75 Million Dollars to FYE. Yes, I will repeat that: $75 Million Dollars.
That is the story of Etailz, perhaps you may have heard of them. Still today they are among the largest Amazon sellers.
Alright, now we are going to recap some of the benefits of wholesale that we have already talked about, and some that we haven’t. After that I will walk you through how to find great wholesale opportunities yourself in just a matter of minutes using Jungle Scout.
– Wholesale is very fast to market. You can go from sitting down at your computer, sourcing for products, to finding one and have it live and selling on Amazon in 30 days or less. That’s because the product already exists. You aren’t creating a brand from scratch. You’ve just got to get it ordered and shipped in.
– Speaking of getting it shipped in — with wholesale, you never have to touch, prep or even see the products you sell. Many brands you work with will ship the product direct to Amazon for you, or you can have prep centers receive, prep and send your products to FBA facilities for you. This is a business you can run from a laptop.
-The minimum investment cost to do wholesale is very low. You can get started doing wholesale with as little as $2,000. Think about it. You are buying products that already have a sales history and sustained demand on Amazon. You can buy and sell as much as you want because it’s always selling whether you are buying or not(assuming you aren’t in an exclusive contract.)
– In the same light, the risk is also very low. Because of that built-in demand for the product, your investment is pretty safe. Worst case scenario, you have to sell your product at a 20% loss or something and even that is very rare.
– Like we mentioned earlier, when you sign contracts to retail products, and especially when you sign exclusive agreements, these have value and you are building an asset. The processes to acquire wholesale products is also very outsourceable and can be automated. So as you do that, you increase the sellable value of your business significantly.
– And one of my favorite parts about this is it just takes one really good wholesale account to change your life. We can just look at some of our successful students as an example.
Don’t just take it from me. Take it from student of ours, Aymeric Monello. He has a wholesale account that generates $100K a year in profit for him. Profit, not revenue. From just one account.
Or Cheryl Breitman. She has a single account that generates over $200k in profit each year. Again, a single account.
Or many, many of our other students who have gone on to sell over half a billion dollars on Amazon.
And it should go without saying, these results aren’t typical. Not every wholesale account you find turns out this amazing. But they are out there and they are up for grabs, and like I mentioned earlier, as more and more retail moves online, more and more of these opportunities present themselves!
Okay folks, now I want to show you how to find potential wholesale accounts. Below I have inserted a clip from a special webinar training I held with Greg Mercer of Jungle Scout. In it we walk through one of our many scouting processes to find wholesale products live.
They now accept students a couple times a year to teach them The Wholesale Formula, a blueprint of the exact steps they used to build their multi-million dollar Amazon business.