How Dylan & Dan got to the money to start their Amazon wholesale business
- You can start an Amazon wholesale business with $250-500 (Dylan and Dan started with a $600 credit card limit!)
- In the early days, Amazon paid out daily (now it’s every 2 weeks in the USA)
- Within 4 months of starting their Amazon wholesale business, Dan got fired from his day job. They honestly started with 10 credit cards which were interest-free for the first year
- They also got a $10,000 line of credit from the bank
- They don’t advise starting with debt now for their new students!
Capital required to replace day job income of say $50K/year with Amazon wholesale sourcing
If you can invest $2000 at 30% ROI month on month, for a “perfect” scenario, you’d end up with a $1M business after a couple of years.
That would be around $130K net profit every year.
So your personal income as a business owner could be $40-60K while still leaving decent profits left in the business to grow it.
Protecting your Amazon seller account when sourcing wholesale
- Amazon LIKES this business model. Amazon themselves do it!
- Amazon makes more money when YOU Sell on Amazon than they do (15% referral fee plus FBA fees). So they like you doing this!
- Amazon has actually been REDUCING their presence as reseller of brands. They prefer to let 3rd party sellers do the actual selling.
How to protect your profits as a reseller when sourcing wholesale
- only work with brands who don’t easily take on new sellers (retailers)
- only work with brands who enforce MAP (Minimum Advertised Price) – this avoids the raise to the bottom
- if a brand DOES allow too many sellers and it’s damaging their sales price, that becomes an opportunity for you to be the solution to their problem!
- if resellers are buying and not being honest about selling on Amazon, you can get them kicked off Amazon by the brand. Or the brand will usually refuse to sell to them again, if you inform the brand