- Mar 24, 2013
Eventually I will start a ecommerce site. It will help with opening new wholesale accounts.If you sell someone else’s brand you have no control and no exit strategy. Even worse considering you are talking about selling on amazon. This is not a business it’s just a hustle to make a bit of money.
If you want to sell branded products the way to make money would be to create your own website that sells branded products along side your own private label products and use the branded products as a break even or loss leader to get people to buy the private label products. This is actually what most big box stores and supermarkets are doing now and they are doing it for a reason. Buying from a brand you have to add thier margin in so how could it ever be as profitable as private label. “They have spent the money/margin on marketing and branding” you might say “so that’s worth the extra markup”. That’s true but even more of a point for you to build your own brand. All the extra money you spend on thier markup is being invested into thier brand and they will get it back when they sell the company. So why not invest it in your own company.
My business won't depend on any product or brand. In fact I expect products to go in and out of profitability and will use software to monitor that. The name of the game is gaining access as many branded products as possible... if 0.5 to 1% of those items are viable on amazon at any given time then it is just a numbers game.
I agree this is a hustle but there are also companies making 8 and 9 figures doing this. The exit plan is simple... sell the business.
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