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Proven Wholesale Course
About Us � Started with $100 dollars from our emergency fund � Started with selling items on Craigslist in 2010 � In 2011 we became students of Jim’s Programs � Started to look for ways to scale our business in 2012 � We now have a warehouse and 2 employees � Over 1 million sold on Amazon alone
Why Wholesale? � Do the work sourcing once and replenish items � Save on hassles like in store tax exempt, online quan:ty limits, etc.
� Easier record keeping � Possibility for Net 30, 60, or 90 � Easier to scale up your business � Predictable items and shipping schedules means easier shipments
What You Need to Start � Amazon.com Professional Seller Account � Resale Number (In some states called a TPT or Resale License) � EIN (Employee Iden:fica:on number) – this can also be called your
Federal Tax ID Number � Professional Email Address – preferably with a domain you own � A Name For Your Store (Spend no more than 20 minutes on this) � Separate Bank Account (Makes tracking expenses for taxes easier) � Liability Insurance � Start with a Sole Proprietorship and move to LLC once your business is
profitable (always check with your accountant)
What You Need to Start � Understanding of Buy Box Algorithms
� You don’t have to be the lowest price � Buy Box is Rotated among Featured Merchants with about 2-‐4% of the lowest price
� Different loca:ons can show different buy box merchants
What You Need to Start � Understanding of Sales Rankings � Sales Ranking gives you a hint about sell through rate
What You Need to Start � It is a snapshot and not a fixed number � Sales Rank is Dynamic � Graph Courtesy of CamelCamelCamel.com
What are the spikes in the chart? � You can see when there are a flurry of purchases
� Season bumps � Blog post � Out of stock becomes available for purchase
Capital � Smaller companies will, in general, have lower opening orders than larger companies.
� This will vary by industry but you can expect opening orders that range from $100-‐$10,000.
A Place To Start � Start with the familiar
(then you know which brands are popular/generic) � Niche-‐Sell what you know � Follow your passions � Generic Brands vs. Major Brands � Fill a Void-‐ Need a barf bag?
Op>onal-‐ Website � A website is not needed. However, it can help with your
being perceived as legi:mate. Don’t spend more than a few hours on this site and don’t expect any sales on this site.
� Why do I need a Website? � Legi:macy � Branding
� Some companies I have used and have been happy with are:
� Wix � Big Commerce � Word Press
Op>onal-‐ Commercial Shipping Address � Having a commercial address helps when a company wants to send the shipment via pallets.
� If you know someone who owns a business you can ask to use their address for shipping.
� Another op:on is using a service like My Inventory Team to accept the shipments for you.
Op>onal-‐ Commercial Shipping Address
� When companies say they will ship via freight ask about-‐
� Residen:al Charges � Lif Gate Fees
Important Vocabulary Having the right vocabulary can help give you the confidence you need to approach vendors…
MAP-‐ Minimum Adver>sed Price: � The lowest price you can adver:se (including via an online price) an item.
� If you cannot have the product be compe::ve at this price or above you should not purchase this item.
MSRP-‐ Manufacturer Suggest Retail Price: � This is the price the manufacturer recommends as a price point. This number is not highly significant to us unless the MAP is based off of the MSRP (i.e. MAP is 15% off MSRP Price).
� Unless MAP pricing is based off our MSRP (i.e. MAP = 20% discount off MSRP) MSRP is not as important as other factors.
Sales Sheet or Line Sheet
Keystone: � This term is used to indicate that the MSRP is double the cost of the wholesale cost. (i.e. The item costs $10 wholesale and the item retails for $20)
MSRP= 39.95 Keystoned Price=?
Terms and Conditions � Usually located on the price sheet or on the reseller agreement. Always check this to see if they have any MAP requirement or if they prohibit selling on Amazon.
FFA-‐ Free Freight Allowance: � This means free shipping!
FOB-‐ Freight On Board: � Determines who is responsible for shipping. � FOB Origin generally means that the buyer is responsible for shipping.
� FOB Des:na:on generally means that the seller is responsible for shipping.
� Some:mes the word freight is tossed around-‐ by asking you can see if UPS or FedEx can be used.
Loading Dock: � An area of a building where goods vehicles
(usually road or rail) are loaded and unloaded. � Dock High- � Graded-
LiM Gate Charge: � This indicates that there will be a charge if your shipment will require a truck with lif gate abili:es.
� You will need a straddle stacker or fork lif to avoid these charges
Residen>al Fee: � This is a fee that can be assessed if you are having a freight delivery to a residen:al address.
Case: � The number of items ordered in the box coming from the manufacturer. Ofen :mes they will ask you to make your order in mul:ples of the number in each case.
Sku– Inner Case – Master Carton
Image Source: hQps://www.shipwire.com/w/support/configuring-‐‑product-‐‑catalog/
Pallet: � Used in orders shipped by freight. You can load pallets up to around 6 feet high. If you have to order an item by the pallet that can mean buying up to a thousand units depending on the size of the item.
Minimum Opening Order: � This is the smallest order they will take for opening account.
� So if they have a Minimum Opening Order of $500 that is the smallest order they will take.
� It sounds much more professional to use this term rather than saying, “What is the least I can order from you?”
Minimum Reorder: � The minimum order needed to complete the next order.
� So they might charge $500 for the first order and any consecu:ve order would have a minimum of $200 for any reorders.
Net 30,60,90: � This means that you as the buyer will have 30 days afer the order to pay the invoice sent.
� Ask if you can pay with a credit card at the end of the term and you can get interest free for up to 60 days.
Prepaid: � The order needs to be paid (usually with a credit card) before the items will be shipped.
Purchase Order: � A commercial form that documents types, quan::es, and agreed on price. We use these to check in products as it is received.
Where to Find Wholesalers � Tradeshows (Google, TSNN.com, Events in America, Current Wholesale Contacts)
� Tradeshow, No Show-‐ Register for a trade show and use the exhibitor list to contact new wholesale accounts)
� Search and Contact -‐ Look for items over $15 dollars, limle or no FBA sellers, that are underrepresented on Amazon
� Add What is Missing-‐ Have trouble finding that Jam your mom likes-‐ bring it to Amazon so others can find it too!
Using Exhibitor Lists � More detail in Trade Show, No Show � Go through Exhibitors � Look for items that have a rank in your range � Check MSRP and assume Keystone � Add any that qualify onto your list
Use Keystone Pricing to Find Vendor Lists � Look up the item on Amazon � Look up the item on the company site � If the MSRP is more than is less or equal to the price on Amazon request a price list
Q & A
Homework for Session 1
� Make sure you have all you need to get started � Even experience sellers review:
� Category Approval Page � Hazmat Identification Guidelines � Date and Temperature Senstitive Products � Packaging and Prep Guidelines
� Review Vocabulary � Register for a tradeshow to look through or start to gather contact information for wholesalers you would like to look into opening accounts with.