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In the last couple of weeks I thought a lot about what business to start. I had many ideas, also in areas, where I don't have any expertise or clue of how things work. But in the last days, I had the feeling that I should start out in an area, where I already know, how things work. That way, I can move faster and make at least a litte less mistakes, at least at the beginning.
So last week the e-commerce-company I currently work for made a deal with one of the biggest drugstore chains in middle europe. Turned out that they do have nearly 1000 branch offices, but that they don't have an online shop until now.
That got me thinking. If such a big company with more than 3 billion revenue per year is only now starting out online, what about other, smaller businesses? There have to be many, that are successful since decades, but that don't have really started out online or are just beginning to try to do so.
As I work in public relations and marketing, I don't really have expertise in helping them build their own online shop, but I know how Amazon works, because I already sold things there for my own business (now closed) and also the company I work with. So I was thinking, what if I start looking for established companies, that are not yet selling on Amazon themselves and do that for them?
The business model I have in mind would be, that they pay a monthly fee (maybe 200 bucks or so, depending on the size of the company and the number of products they have) and then my company becomes the only authorized reseller on Amazon. I would then exclusively sell the complete product range of that company on Amazon, create good listings ... As my company would buy the products of the companies, that want this service, the risk the companies have, is only the monthly fee.
Thus I would handle the sales channel Amazon for them and they don't have to worry about it. I would also make sure, that their company and their products would have the right representation on Amazon (Which is often not the case at the moment. Just a quick look on Amazon proves, that many companies don't sell themselves, but there are many Amazon sellers, that sell products of these companies with bad listings, horrible pictures and so on.) There is room for improvement, if one would really get at it professional.
Analysis of the five commandments:
-Control: This business model completely violates the commandment of control, as you are completely dependend on Amazon. I haven't really found a solution for this problem yet (as I had the idea just yesterday).
Entry: When I am the only authorised reseller on Amazon, entry should not be a problem, as there cannot be other resellers, if the company I work with does not authorize it.
Need: I think that there are many companies, that would like to use Amazon as a sales channel, but don't know how or don't have the ressources to do so.
Time: I think, that I could leverage my time quite efficient, especially when using FBA. I just have to find the right companies to work with.
Scale: The inventory value could be huge and binds a lot of capital. (If there is a company that has 100+ products, you have to make a big investment up front and that money is then bound for unspecified time.) If you are short on money, it could negatively influence the commandment of scale.
What do you think of that? Any feedback or suggestions for improvement on this idea are really appreciated.
Thanks.
So last week the e-commerce-company I currently work for made a deal with one of the biggest drugstore chains in middle europe. Turned out that they do have nearly 1000 branch offices, but that they don't have an online shop until now.
That got me thinking. If such a big company with more than 3 billion revenue per year is only now starting out online, what about other, smaller businesses? There have to be many, that are successful since decades, but that don't have really started out online or are just beginning to try to do so.
As I work in public relations and marketing, I don't really have expertise in helping them build their own online shop, but I know how Amazon works, because I already sold things there for my own business (now closed) and also the company I work with. So I was thinking, what if I start looking for established companies, that are not yet selling on Amazon themselves and do that for them?
The business model I have in mind would be, that they pay a monthly fee (maybe 200 bucks or so, depending on the size of the company and the number of products they have) and then my company becomes the only authorized reseller on Amazon. I would then exclusively sell the complete product range of that company on Amazon, create good listings ... As my company would buy the products of the companies, that want this service, the risk the companies have, is only the monthly fee.
Thus I would handle the sales channel Amazon for them and they don't have to worry about it. I would also make sure, that their company and their products would have the right representation on Amazon (Which is often not the case at the moment. Just a quick look on Amazon proves, that many companies don't sell themselves, but there are many Amazon sellers, that sell products of these companies with bad listings, horrible pictures and so on.) There is room for improvement, if one would really get at it professional.
Analysis of the five commandments:
-Control: This business model completely violates the commandment of control, as you are completely dependend on Amazon. I haven't really found a solution for this problem yet (as I had the idea just yesterday).
Entry: When I am the only authorised reseller on Amazon, entry should not be a problem, as there cannot be other resellers, if the company I work with does not authorize it.
Need: I think that there are many companies, that would like to use Amazon as a sales channel, but don't know how or don't have the ressources to do so.
Time: I think, that I could leverage my time quite efficient, especially when using FBA. I just have to find the right companies to work with.
Scale: The inventory value could be huge and binds a lot of capital. (If there is a company that has 100+ products, you have to make a big investment up front and that money is then bound for unspecified time.) If you are short on money, it could negatively influence the commandment of scale.
What do you think of that? Any feedback or suggestions for improvement on this idea are really appreciated.
Thanks.
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