Model
Wholesale
Location
United States
Timeline
2022 - Ongoing
Supplier Selection
This USA Wholesale project started with us looking for brands, however, it was not as smooth as expected and we were facing problems in getting brand approvals because the client’s budget was limited, so to meet the brands’ Minimum Order Quantity was a challenge.
We decided to change our strategy and started searching for distributors instead; for products we had searched and deemed to be of high potential.
This strategy worked and we found the distributor within a week. Using their invoices, we got the product approved on Amazon and started selling.
Product Sourcing
The product was in the beauty category and had really high sales of around +8,000. We had an ROI of 25% on it after deducting all costs, we only purchased 125 units to begin with and sold all of them in the first 30 hours.
Looking at the results, we ordered another 250 units. However, while they were on a roll, we realized that many arbitrage sellers had jumped in and it would not be sustainable in the future. So after selling those 250 units we didn’t order more.
Product
Re-Selection
We found another product in the health category and directly got brand approval for it. This time round, the client had more budget to invest with, so we ordered an inventory of 480 units with an ROI of 33% on the selling price of $29.99.
However, unexpectedly, the listing got taken over by numerous arbitrage sellers who started selling at a low price which would not give us any profit. We could neither wait for them to leave nor sell at their price. We contacted the brand directly and informed them that the sellers were violating its MAP policy. This took us a while but the patience was worth it. The brand removed all the sellers selling at unprofitable prices and we were able to sell profitably. After selling those 480 units, we reordered more.
Scaling Strategy
Up till now, we have sold more than 800 units of this product and made $20,000+ revenues. We have not only built an asset for the client, but also maintained the brand’s MAP policy on Amazon by keeping other sellers’ prices in check instead of diving in the price war and incurring loss on ourselves & the market. This tactic gained us the confidence of that brand, and we’re now one of their exclusive selling partners on Amazon.
