Hitting the six-figure level with your Amazon wholesale business is much easier than you would think. Initially, hitting this level seems far out into the future. Like next year far, but in reality you could be on track to hit this first major milestone within 45 days. I’m not being anecdotal either, we have members in your provide Facebook group and Vendrive users who are currently doing this.
Breaking down how many profitable accounts you’ll need can seem like a daunting idea, mainly because you will be faced with the reality of what it will take to reach your goal. Luckily in this case, it’s a positive outcome.
Truth be told, to sell $10,000 a month of inventory, you’ll need between 4-8 profitable wholesale accounts (click here if you don’t know what we mean by profitable as we have a distinct definition).
Not what you expected to here? Were your assumptions higher or lower than what I just told you?
Wholesale is this lovely balance, across many topics of an Amazon based business between Retail Arbitrage and Private Label. It’s the perfect mixture of the good from each end of the business model spectrum. It doesn’t cost as much as Private Label (to do it effectively of course!), but it does cost more than to get started with Retail Arbitrage (although, not by much). The perfect mixture of automation and systemization, where Retail Arbitrage leads to a complete pain in the a*s and Private Label is the ultimate, hands-off business model.
I’m of course generalizing here, but the point stands true. Wholesale is the ultimate model in our opinions. Whether you agree or don’t…
I make this point because you need both a healthy dose of reality when starting this business but also a nice dose of optimism and motivation. If you only get ten wholesale accounts other the course of the next three months, you’d still be selling $100,000 worth of inventory annually. But, what If you could at 10 new and profitable accounts each month?
Can you see the scalability there? Is that even doable? yea, I personally do it each month and it doesn’t show signs of slowing down and time soon. What to know the secret to getting from zero accounts to ten accounts and then to one-hundred accounts? How many accounts you have in total. That’s it and it’s really that simple. You start with zero, you add your first ten. Then, you keep adding in batches of ten. If you can add ten new suppliers each month (again, perfectly doable) then by the end of the year, you would easily be at the seven-figure mark.
I’m talking a million dollar a year business…. Just by yourself. No employees, no crazy large expenses or warehouse, other than buying inventory each month of course.
Hopefully this will help you understand your business from a higher vantage point and break things down a bit better for you to visualize the process as a whole. All we’re really doing is working backwards and that’s all you need to do in the first place. Create your goal, break it down and work backwards, making sure each step is accounted for and implement a system to ensure you stay on track without a crazy amount of effort.
About The Author: Dillon Carter
Hi, with James, we're building Amazon tools that we wish we had when starting our own companies. We love tech, coffee, building systems and all things Amazon.
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