Note: There are times when you spend a few weeks setting up an account with a vendor, then you schmooze them, then you research all their products just to realize they might not be the first (i.e. main) distributor, and therefore the prices are awful, and you feel down and want to give up. You should not! During this time you perfected your negotiations or learned some red flags. Word of advice: do several distributors at the same time – out of many there will be one that would work.
6. Once account is set up now it is time to do research. There are many methods, and these methods
can bring you new products so you should try them all. Mix it up… you need to
give yourself a few weeks of research per vendor…
a. Vendors List (UPC to ASIN match). Most of reputable distributors carry 100-500 different brands with 1000 to 50,000 products. Ask for the list for products in a ‘flat file’ (text, csv) or excel. Now, you need to use a tool to match UPCs to Amazon listings that will generate reports with matched products, calculated profitability, margins, shown BSR, and so on (In theory, you can try to do it manually by copying-pasting into Amazon and collect information – but this is not very efficient and becomes frustrating experience).
Once you get these reports – start looking. Most
likely, you will get many products with high BSR, or negative profitability –
and that’s OK… this is part of the game… 95% (or even more) of products from distributors of different brands have either high BSR or negative
profitability… and of whatever remaining most of them are out of stock 😊 … once again, this is part of
the game – you don’t need thousands of listings from start. You just need a
hand-full of products at first and increase slowly to 100-200-300-1000 listings.
However, with more listings you get additional headaches… But even 10 SKUs
selling 1 per day over 30 days where you make $2-$3 will make you $600-$1000.
It is a numbers game… You could stay at that level
and operate out of you house… but most likely you will keep on digging and
growing.
b. Brand
focus. Once you get a list from
vendors see which brands they seem to carry more products on, and target them.
However, even before you get too deep into your analysis – put that brand name
into Amazon, and study first 2-3 pages (30-60 listings). If you see only one
seller – then it must be a PL (private label) and you should probably stay
away, or if you see only Amazon on most of listings – also stay away – most
likely that brand has some sort of agreement (even if it does not, you will not
win a buybox from Amazon). However, if you see a mix of Amazon, FBA, FBM – this
maybe a good sign… Then, you can either go to step (a) above
and just run bulk Stripetail UPC investigator match, or bulk brand investigator pull, or
pull manually into the spreadsheet and recalculate.
c.
Occasionally you can study the brand
and look for some ‘weird stuff’. Pictures from your distributors might match to
amazon listing but UPC does not. Congrats! You might have found a hidden
treasure – either your distributor did not put UPC, or UPC changed overtime and
it was never updated on Amazon.
d. There are other techniques that we will share in the future, but since it became a large article we would stop at this point :) Stay tuned for new articles, we'll tell you a lot more!
Many factors that would impact your conclusion. Here are things you need to consider
Loading manual spreadsheets is a pain, and I am not happy
with off-the-shelf solutions... My sales are growing, and I want to connect to
the Amazon API and do things my own way. Why should I think twice about moving
forward?