Kris and Dustin speak with Amazon Wholesale expert Greg Borsuk about how to get started with Amazon Wholesale and what are some things he recommends doing to get accounts.
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How to Start an Amazon Wholesale Business with Greg Borsuk
– Hello everyone and welcome to episode 60 of Two Amazon sellers and a Microphone. Today, Kris and I have a special guest on with us to talk all about wholesaling on Amazon, Greg Borsuk. Greg, what’s happening man?
– What’s up guys? Thanks so much for having me. I appreciate that.
– Yeah. Sure. We appreciate you coming on. I was telling Dustin, so for those of you guys out there listening, if you sell on Amazon go get this app called Clubhouse. And like, just download it, you’ll join rooms, you’ll hear peoples talk about strategy stuff. So I heard Greg talk and I was like, hey, Dustin, we got to get this great guy in here. He’s dropping the bombs in this chat about wholesaling and stuff. So we’re excited ahead because Dustin and I both have tried this and like… I’ve always come up against a roadblock or there’s always something that we don’t have. And it was like, ah, we’re not gonna mess with it. We’re going to go somewhere else. We’re just going to continue doing our private label stuff. So I know I have a lot of questions. I know Dustin has a lot of questions. You go ahead and get it rolling.
– So excited. It’s a completely different model than the private label model. And so that’s why Kris and I, we just love having you on so we can ask her these questions. Before we do, why don’t you just give us a little… Give us the story of Greg. How did you get involved in Amazon in the first place? When did you start and just sort of the story of how it evolved into a business.
– Yeah, certainly. So once again, thank you guys for having me. And the Clubhouse mentioned is absolutely appropriate. Everybody should get on it. If you’re not, I don’t know what you’re doing. But yeah, man. I started selling online in general in 2005, I started an eBay account at that time. And it was just mainly selling things around the house. Wasn’t anything crazy. I was dabbling here and there. And then I was actually working at a pharmacy for a while as a stock boy and a friend of mine started working at another company and that company happened to be selling on Amazon, they sold on eBay and they sold on their own personal websites too. So they were just getting into the Amazon space and in their particular product categories, they were sort of first movers. So they had a retail store there. Their father had a retail store, but they were first movers in terms of the E-commerce side of things. I left or what I was doing, I started working with them and my sole responsibility was to basically take listings on Amazon. I was just taking listing after listing, after listing I was sitting there and doing that. It wasn’t the funniest job, but it paid the bills at the time and it definitely paid many more bills for my employers. So yeah. I learned really about the power of Amazon at that point, I was like, wow, this is just incredible. While I was there for like a year, year, and a half, I mean, I think I made them like $2 million in sales. I don’t want to fabricate it, but it was around there. And so I this is just incredible. So long story short about a year and a half in I ended up leaving and I was like, listen, I think it’s time for me to take my own chances and see what’s happening. So, I went and I started my own Amazon company and we did everything. We were selling mainly outdoor products and outdoor goods, things like that. So everything you could think of for the outdoors, whether it’s bicycles or water bottles, you name it, I had it. And the model was one that it’s sort of unconventional relative to some of the other models that exist now, which is that we basically found distributors, like high-quality distributors, and we throw all of their listings, all of their UPCs up in one shot using an Excel file on to Amazon. And there’s like five different distributors that we use at the time. And what would happen is people would come, they buy the products, We put specific handling times for the relevant distributors, and people will come buy the products, the next day we would place the orders and we had enough to place the orders because we had about 50,000 skews. So we had enough to place the orders from each respective distributor. I think the minimum is 300 or $500 per order at the time, and so we essentially were getting paid in advance of buying the merchandise. We already had the salient. So in that respect, that was a great business model because it’s kind of like drop shipping but the wholesale method of drop shipping which we’re also fulfilling ourselves. So we were sending it to our own warehouse where we were fulfilling most of the items we were mainly doing merch fulfilling, things like that. And essentially my business progressed and I was like, okay, like, I really want to focus on not only expanding this particular business model but also sending a lot more stuff into FBA. So I started dabbling a lot more with Fulfillment by Amazon, which is obviously sending it to Amazon’s warehouses and letting them do a lot of the work for you. I’ve done every single business model Amazon you could think of from a Merch by Amazon to affiliates, to wholesale to online arbitrage, retail arbitrage, you name it, I’ve I’ve dabbled in it. Yeah. But I hope that makes sense so far if there’s any other questions with regards to that, I’m happy to.
– For sure. I mean, I’m itching here to ask a question. So I’m going to go ahead and go. So you mentioned like you just started and you found all these distributors. I mean, you make it sound easy.
– Definitely not.
– Definitely not. Well, what’s that process like? Like if I’m a new seller and I want to get wholesale and I want to start doing this, I’m going to have to go knock on some doors and start calling people. What’s that process look like?
– Yeah. So at the time, it was easier to get wholesalers than it is today because these days a lot of wholesalers and distributors, and manufacturers want to sell their own stuff on Amazon. A lot of them and a lot of others don’t want you selling on Amazon altogether. They want to protect their brand, things like that. But at the time it was really similar to what a lot of the people these days was going to Google and trying to locate distributors in the category of interest. So that’s what I did. I scoured different categories, whatever it was at the time that I was interested in, whether it’s toys or outdoor goods or whatever else, and there are different ways that you can search on Google. It’s not just about typing in outdoor distributor on Google and it’s simple as that. No. There certain elements to the game. So for example, I would avoid the search results with ads because for the most part if they’re promoting themselves that likely means that they’re going to have like a ton of people already involved and it’s probably going to be saturated and things like that. So I wasn’t focusing on those. Then you can go deeper rather than just saying wholesale distributor, you could say wholesale distributor in New York or a wholesale distributor in New Jersey or wherever you are in the world. So you’re basically going deeper and deeper to try to lessen the amount of competition that you have. Because those people don’t know that this entails some of this kind of work. So outside of that, you can search by trade show. There’s a ton of Amazon-related or retail-related trade shows, the toy show in New York, things like that. And the beauty of it is you don’t even have to go to those shows. To go online and find their exhibitor lists posted there. You can reach out to every single exhibitor on that list. These days, a lot of wholesalers talk about that kind of stuff but that’s why you really have to explore the different opportunities that are out there whether it’s through the Google searches and going deeper in them, whether it’s the retail list, whether it’s leveraging your connections. If you have a pharmacy, for example, you can leverage the owner of the pharmacy, they have their own distributors. You be like, okay, like you have a distributor, I know how to sell on Amazon, let me sell the products that you’re buying from the distributor on Amazon and we can partner up. And in fact, a lot of the big sellers that you see like promoting themselves online, they did something of that nature when they were first starting. Which was fine. But it’s just an amazing way to get involved in the game.
– Okay. So you find the distributor, you find what you’re looking for and you find them, how do you start the conversation? What does that look like? I mean, are you having to order a ton? How do you negotiate to where… In the wholesale game on Amazon, the margins can be thin. It’s all about what you can get the product for and how much competition there is. So how does that look once he found them, how did those conversations start and what do they go like?
– Yeah, that’s an amazing question. So I think the first element to consider is at least that’s what I was doing is providing value upfront of some sort. That’s what I preach to everybody today. Especially today. At the time, like I said, it was a little easier. So today, if I had to restart searching for distributors and I searched for distributors consistently even today but I’ve had to tell somebody starting today, it’s thinking about what sort of value upfront that you can provide. Whatever that looks like to you, that’s number one. So if you think about what I just mentioned about leveraging a local shop owner, like a pharmacy owner, for example, you could tell them like, oh not only will your products be sold online, but I’ll also sell them locally in pharmacies and grocery stores and daycares and camps, things like that. That’s an unconventional way to go about just reaching out. You can tell them you have access to a large group on Facebook or on Clubhouse or an Instagram, whatever else. A lot of people aren’t doing that. They’re not leveraging the connections they already have in place. So just taking it back a step for me personally at the time, it was as simple as sending them a message being like, oh, okay, like I would love to start doing business with you and I would just want to know your requirements. Like what do you need? You need a tax ID, you need whatever else. I’ll send it all to you guys. And many responded. Many did not. It’s really a numbers game as you guys I’m sure are aware when it comes to wholesale in particular. So those that responded, we’d keep the conversation going like is very well known in a lot of Amazon-related communities today. Once they send you the application, you fill it out, then potentially you get approved if everything is copacetic. And then when you sort of entering their back-end, whatever that means, whether it’s their portal or they give you an Excel sheet, you can then run the numbers and see if it’s worth it for you margin-wise. Like I said the business model that I employed was slightly different because I wasn’t so concerned by the margins, it was more about getting eyeballs to the products. So the visibility factor contributed heavily to me because I would put 50,000 products up and if somebody is out of stock or I’m on three different listings for the same product and somebody is not, those are the places that I took advantage of the most. It wasn’t so much of a concern of the margins to me. Because guess what, if you’re selling one listing, one coffee listing then you have another coffee listing, that’s a multi-pack or a bundle, you can capitalize on that because there’s nobody else selling on that particular listing. So I was more focused on visibility and then I scaled that visibility to other marketplaces whether that’s Canada, UK, Asia, eBay international accounts at the time, things like that. To provide value upfront to anybody whether it’s the distributor, the manufacturer, particularly to brands. Because the distributor all they do is collect a bunch of brands and start selling them directly. But if it’s a brand, you have so much more to work with so we can get more in-depth on that depending on your desk. Next questions.
– Yeah. So there’s a lot of stuff that we’ve talked to distributors and wholesalers and they’re like, we don’t ship to residential. I’m not gonna ship the pallets to your house like you need to have a warehouse. And you mentioned providing value. What’s the roadblock? How do you get over that hurdle? Because that’s the hurdle I’ve come across is like, hey you don’t have a warehouse so we’re not going to sell it to you and you’re like, well, okay, I guess we’re going to the next person.
– Yeah, definitely. That’s a common response by a lot of these distributors or manufacturers. There are various ways you could tackle it. Number one, let’s say you are selling stuff out of your house or your apartment. And the distributor says that they don’t like that. One thing you can consider doing is get a PO Box. So you have a PO box and be like, okay, I don’t sell in my a house anymore, I have a PO box address. You could send all my items to and they accept the items they’ll… Don’t worry about anything else. If they say that’s still not good enough. Because some of them are like, oh, a PO Box, that’s still not sufficient enough. It’s too small. Because that happens consistently all the time as well. So if that’s not good enough, you can then leverage another business’s location to do it. Particularly if you’re familiar with that business owner. That’s what I was referring to earlier like if I know the owner of my old pharmacy, for example, I can come to him and be like, okay would it be okay if I sent this palette or just to start off, this $500 shipment to your location. All you have to do is just accept it. That’s it. And I’ll give you whatever, 20 bucks on every single shipment that comes in and I’ll pick it up that same day or the next day. All right. That’s one way that it’s worked for me over the years. You’re leveraging the connections that you already have and if you don’t have them, you can literally go into your local store and offer such a scenario. Or if you have a family member that does something you could offer them such a circumstance where it’s like you’re both going to benefit. And one other thing it’s not going to be always like that. It’s not always going to be like that. It’s going to be a short period of time that I’m going to utilize that scenario if that’s okay with you. So that’s what I do. That’s what I would do if I were just shipping out of an apartment and I was trying to get that vendor outside of obviously getting a warehouse.
– Got it. So after you get through that, you provide the value, you place the PO with the distributor to get the stuff in, now you got to like ship it to Amazon. Like that’s the next thing. What’s different about doing that rather than having the wholesaler doing it or distributor. Do you have to label everything? What’s that process look like?
– Yeah. There are multiple ways to go about it. Some people do choose to send it directly from the distributor to Amazon. Some distributors don’t like that though. So you could send it to your 3PL and have them label everything for you and then send it off to Amazon. The other option is you can send it to your own house and label it yourself. That’s totally another option. The fourth option is you can literally send it to your house and then from your house, when you’re sending it into Amazon, you can have Amazon label it all for you. So you’re going to have to label it. You can have them label it for a fee. It’s like 20 or 30 cents only or something like that per item. And in fact, if you’re already making a substantial margin on that item, then it shouldn’t be a concern if they’re taking that little off the top. So in that respect, there are various ways to go about it. Whether you’re going to do it yourself, hiring somebody to do it for you, sending it to a through 3PL, or sending it from the manufacturer directly to Amazon.
– Go ahead, Dustin.
– Well, I’m just curious. Do you sell the majority of your items FBA or FBM?
– FBA throughout the year, FBM in the fourth quarter.
– Yeah. Fourth-quarter is when people need to really ramp it up FBM. And if this year showed us anything FBM is an amazing opportunity as well. And one thing I’d like to mention relative to FBM is that I don’t think there’s any business model that I could think of off the top of my head in the world that will get your return as quickly as FBM will because you can literally sell something while you’re in a store and get the funds into your account. I mean, it’s remarkable.
– Could a 3PL be considered my warehouse?
– Technically, technically yes. Yeah. I would say that would be considered 3PL as well. Yeah. And you can, you could technically start fulfilling other people’s orders from your warehouse. So yeah, it’s just a third-party fulfillment center.
– If I hit up a distributor and they’re like, hey what’s your warehouse address? I could give them the 3PL and that might work? Or is that of a sketchy area.
– So what is going to happen usually is they’re going to look you up on Google. That’s what they do. Now especially, they got smarter. Every single thing, every single update that Google provides, they leverage it. So they’re going to look you up. Oh, this does not look like a warehouse, it looks like a tiny apartment or a house, whatever it is. So definitely something to consider there. You’re going to have to provide more information even if they’re like, oh, okay, fair enough. But what’s the square footage on this? Or something of that nature. They’re going to get deep.
– So, how you’re set up now, are you buying like sending 3PLs to your distributors and wholesalers and getting bulk inventory and then selling it? Or are you still doing wholesale drop shipping where you’re making the sell first and then being able to order units as they sell? How’s that, is that still possible? Which way do you go mostly?
– It is totally still possible. In fact, if I were… To answer your direct question first, I don’t do it the wholesale drop shipping route anymore. There’s a variety of reasons for it, scalability being one of them, less overhead being another because at the time it’s like you have to hire a bunch of employees to help you with the picking, packing sending out all the stuff. Here it’s very different where you don’t really need a ton of employees to do just to label items or send it into Amazon or anything like that. So I definitely do more sending it to Amazon and letting them handle all those secondary details at this point. If that makes sense. And what was your first question? I’m sorry about that. Like the part of the first question
– I think you got it. I can’t remember now.
– Okay. I must’ve answered it.
– I think you got it.
– I want to sell shampoo and then I’ll see the single item on there as individual items but then I’ll see two-pack, three-pack, six-pack, multi-packs, break that down. Because I know that you don’t ship until you like that. You got to actually make those packages. Is that right?
– That’s absolutely right. Yeah. Yeah. I mean, certainly, with some distributors or brands you can have an agreement in place where they could combine things for you, I’m sure that would be feasible. I haven’t done it, but I’m sure it’s doable. Other than that whether you’re doing it yourself have a family member helping you or have some hired help, for example, you can certainly have them package the items together, use Stretch Wrap, use tape, use polybags, whatever it is depending on the type of item. And that’s how you would send out a multi-pack or a variation listing or things like that. So it’s totally doable and in fact, in today’s Amazon landscape, I think that’s the best and most optimal route to go to… Again visibility is key in my opinion. Get on as many listings as possible for that same item, sort of the riches are in the niches, as Pat Flynn likes to say and quite a few others over the years. And you want to really identify where you could find that goal. Because that goal isn’t necessarily… Just like it’s not going to be when you reach out to the distributor and you start looking through their Excel sheet, it’s not going to be on the first scanned listing that you find. You have to go deeper.
– Are you creating your own listings in a lot of cases? Like if you do make a two-pack and a two-pack doesn’t exist on Amazon and that’s how you’re differentiating, are you creating that listing yourself as well in many cases or are you always trying to jump on existing lists?
– I used to take the approach of creating listings. Also, I don’t do that anymore, I just jump on the listings. Again, it’s really more about efficiency and scalability for me in terms of getting things sent out and put up as quickly as possible. However, if I were to decide to hire an additional person or anybody, I think that would be the approach definitely to take particularly for items that you can project are going to do well. Like for example, if just hypothetical, if you knew that the CoComelon dolls they’re going to come out on Netflix. The show is gonna come out on Netflix. And be like, okay, I really see this doll doing super well on Amazon. I could create that listing ahead of time before somebody else does, or it can create right away a bundle listing with the CoComelon doll and the CoComelon bus, and really take advantage of that hype. You gonna have a first-mover advantage. You gonna have the visibility that others won’t and you can really capitalize and leverage that.
– This well like the wholesale model, it’s a totally different mindset. Like never thought about that. Like I would have been thinking how am I going to source my new product? How am I gonna make my listing better? How am I gonna make my PPC better? But wholesale, they’re just like what’s the next best thing? How can I make a bundle better? How can I get my product? Just a totally different mindset which I think is great because that’d be hard but that’s probably why I don’t do wholesale. Because I’ll do private labeling and I got wholesale, I got two different things going on. It’s probably why I don’t do it.
– No, that’s all good. Yeah. I feel like if you dabble into the different marketplaces and decide which is right for you, that’s what you should go with, honestly.
– Yeah. I’m fascinated by this model though. Like I mentioned, I’ve been testing out a little bit of some things here just to diversify from private label. I mean one of the benefits of private label is you account for all the sales there. You own the buy box, no one else is really going to get on it. If it’s a popular product you just ship in bulk and they just keep selling and typically your margins are better. It’s great. The downside is, is if that product sucks or it doesn’t perform or competition creeps in you’re sitting on a load of inventory that you can’t move. And Kris and I could talk all day about all these stories that we have but wholesale is this like a big numbers game. It’s more of like a scattershot approach where it’s like one thing might work well one doesn’t but they all kind of even out. It seems like where you’re just throwing a bunch of options out there and it’s so interesting. What do you do to win the buy box? Are using repricers? Is there a real thorough system that you in-place, employ for that, or how’s that look on your attacking the buybacks?
– Yeah. Yeah. So I do use a buy box. I use Aura. I have no affiliation with them but I’m looking to try some other ones out. That’s just the one that I sort of tried. And then I just stayed with and I can tell you right away if you just started out, you can use the Amazon repricer. It’s super basic but it’ll get the job done for I don’t know few 10, 20, 30 listings. If you do monitor the listings yourself using the Amazon repricer that should be totally sufficient. Now with that said, when you’re scaling up and you have like, let’s say a hundred listings, then at that point, it’s going to be harder for you to keep track every single time price update happens or something else happens on the listing. So that’s when you really should decide to, in my opinion, move over to a repricer that’s more advanced. So Aura just happens to offer some advanced capabilities and you can create a bunch of different rules. And I still go in pretty consistently to check on things to bring prices down to elevate prices, but there are different ways that you can move it around to really make it to your advantage. But I’ll tell you this, once you get an advanced repricer, you’re going to start seeing an increase in sales almost instantly. Within the first couple of days, it will be an instant increase. That’s the usual trajectory anyway. I’m sure you can’t guarantee your results for everybody. But the usual trajectory is when people employ more advanced repricer, you’re going to see an instant increase in sales. And then over time, it’s going to level out because other people will notice and other people’s repricers will notice. So then they’re going to make the relevant changes necessary on their end also. But I certainly, definitely recommend repricers. And if we go more in-depth, I’m happy to recommend a bunch of different tools to start with also.
– Yeah. I want to switch a little bit on the… Like you’re doing wholesale, we do private label and then Dustin probably this happens where, we’ll get like random emails from like people who say, hey we want to wholesale your product on Amazon. It’s like I’m selling to myself. Why would I do that? So I’m sure there’s like a processor there has been some training where they’re like here’s a bunch of sellers on Amazon and just blast them out with emails and make this webpage that makes it look like you’re a professional distributor. And then when they check you out, they’ll… Is that how this works? Is that what I’m getting at is people just blow me up and are trying to squeeze my products out of Amazon.
– So there are so many, so many situations that should be considered in this process. So let me just take it a step back. When you’re in the wholesale game, a lot of the questions that are always asked consistently is okay, do I need a website, do I need a storefront. Those are the general two big ones. Like, how am I going to stand out? So to answer in both cases depending on the wholesaler, you may not need either, frankly. Is it better to have them? Yes. In my opinion, it is. Because one thing that I noticed that wholesalers really want and brands and distributors really want is to ensure that you’re diverse. So if Amazon shuts you down, you have another platform to lean on. Whether it’s another platform online or if it’s in the brick and mortar space. Or if you have a contract with the military for example, that you’re going to consistently put out 50,000 masks or whatever sent to them. So that’s a common question altogether. So when you’re approaching these brands, having a website we’ll definitely put a face to the name and also puts you at an advantage over somebody that doesn’t. And spare you from dealing with the question that’s ultimately going to come, is like, oh, do you guys have an online presence we could take a look at or something like that? So, yeah. That’s one thing I wanted to mention. The other thing is I did a little private label myself. And to your point, what I noticed was people were reselling my items on eBay. Now I’m like, you know what I mean? So part of me was like, wow, I was super upset by that. I was like, wow, my brand is being tarnished all over the internet now. What am I supposed to do? The other part is like, listen they’re still paying me full price. My ranking on Amazon is still going up. I’m still getting visibility. So it’s like, there are definitely benefits and drawbacks in both cases. But yeah, in terms of what the general trajectory of wholesale sellers is, is that they’re going to try to have these pieces in place so when they’re reaching out to brands and distributors there’ll be able to showcase themselves in a particular light.
– Yeah. Makes sense.
– The first time you do it, I was speaking of private labeling sellers is the first time you do see your product somewhere else, you’re like, what the heck is going on? Why are they selling my product on eBay for double the price?
– And I was pissed. I was like, what the heck. Then I was like, wait. Okay, keep buying I don’t care.
– You gonna buy it from us to get it so.
– One thing that Kris and I have talked about also in the past is if there’s a brand out there, like let’s say there’s a local soap maker in town and they’re not on Amazon. But you’re able to go talk to them and say could we exclusively distribute your products on Amazon? We’ll make your listings, we’ll do that. And now you’ve got this product that you could launch on Amazon that’s not yours. Is that something that you’ve done? Anything like that as well?
– Yeah. That’s an amazing question. So I haven’t done that specifically. So I’m happy to give you insight into how that’s done. Because I essentially know about the best ways to sort of make that happen. Would you like me to go more in-depth on that?
– I would love to know the best ways.
– Okay. Okay.
– For sure.
– Yeah. Yeah, no, definitely. So basically the process would look a little like this. If you identify a soap company, for example, like you mentioned, a soap brand that you really want to start selling. Those back to my concept of providing value upfront. So A, I would look at their listing. This is just one scenario. I would look at their listings all over Amazon, and by the way, there are now software’s that you can literally see a brand’s older listings. You can see them on Amazon. I think again, no affiliation, but I think SmartScout is one that just released that particular tool. Like you can literally look at a brand, see older listings on Amazon in one shot. Maybe Helium 10 does that too but you can see them all in one shot. And you can go through them and you can check how optimized or not optimized that they actually are. And when I talk about optimization, I’m talking about do they have all of their images that Amazon allows for? If they allow for 12 images are all 12 there because you bet that Amazon is going to feature those listings that have everything optimized more so than those that don’t. Is the product description optimized, are the keywords optimized, is the title optimized. And what optimize means there’s actually a way to know something is optimized. Amazon appreciates lifestyle images or they did in the past. They appreciate the video. Do those product listings have any of those elements attached to them? Is it just keyword stuffing that you’re throwing a bunch of keywords together in hopes that somebody identifies your product or is it more organized? Did you have somebody actually thoroughly look through it and craft an appropriately placed listing? So there’s various ways that you can immediately see if a brand needs help. So if you’re approaching them you can immediately say, okay, I saw your listings guys, they’re just not performing well at all. Or they don’t look well at all rather. And here’s some of the optimizations that I can do for you off the bat to get things going. Another thing that you can actually do is you can run data on their listings. You can hire somebody from Upwork, Fiverr, online jobs that pay each wherever else for a small fee. It’s all relative, but it’s a small fee and they will literally create a PowerPoint for you with the data that you want and the data that you don’t even know about. Whether that’s how many times the keywords are being searched for certain product listing or the rankings or a variety of other things. They can have a PP, a PowerPoint presentation ready for you which you can go and provide directly to the brand upfront. Now on the flip side, if you already have that brand and you already have a working relationship with them you can go more in-depth about becoming an exclusive partner. You can literally say, okay, this is another thing that you can do. You can literally go to a website like MerchantWords, which is relatively cheap. It used to be very often used by private sellers. Presumably, it’s still is you can get a coupon code I think it costs like $9 a month. There’s even gives you like a free trial I think for like a couple of days. But what you would do is depending on the products that you’re looking at, like let’s say you’re looking for soap, you can type in ‘soap’ in MerchantWords. It’ll spit out a ton of different keywords. And it’ll also spit out how often those keywords are searched. So you can provide so much valuable data to the brand off the bat that they’ll be able to utilize. And then of course the other thing and the other place that you can get a lot of data is through PPC. You create an automatic PPC campaign for the brand and you’re going to get a ton of keywords sent out. You’ll see which ones are converting. You’ll see which ones are being clicked on but not converting. And again, data at your disposal that the brand does not have access to and maybe doesn’t even know about. So you can totally approach them with just a full breadth of products and opportunities for them that it will be hard for them to say no to.
– We talked to so many brands, like every… That’s when I talk to so many brands sales a day that are just trying to get started, or they’re like, hey, I need to get my sales better and they have like one or two images. And their titles are very short and bullet points may not even exist. And they, they need help with Sellozo and am like, it’s just not there yet. You’re just not there yet. This is where it’d be like, hey just go call or let’s go talk to the wholesale guys and let them take care of it. You’ll just sell the pro those sorts of them wholesale. They’ll do all the other stuff for you. And then just have a relationship with them because they’re going to do it the right way. But trying to teach it and get the brands to put the time and effort into doing it, they don’t know how much time. They’re like I don’t know how to do it in an image, I don’t know how to get titles. And then they realize they have to put in hours and hours of work. And they’re like, I don’t want to do it. So this is where if you’re a brand out there and even your listings are awful just go find some wholesalers that contact them. Because they’ll do it for you.
– Go do it.
– Yeah. I would love to.
– I’m glad you broke that all down because that was in theory would be my approach to trying something out is I was going to look to find products that actually didn’t even exist on Amazon yet. Something that hadn’t even listed or you could tell that they didn’t make the listing. Like someone else bought their product and was trying to arbitrage it or something on Amazon-
– Has a TIFF old image.
– Yeah, exactly. Or you can’t zoom and it’s super tiny. But yeah, I can see the angle you’re coming at is the value you’re bringing is like, look I’m going to distribute it. Your sales are going to increase if we get it on Amazon and I’ll take on the burden of making your listings look good and getting you all the things that we do to help things sell. That brings up a point you touched on advertising. How much are you advertising as a wholesale? So, I mean, the advertising is like an enormous part of private label sellers’ journey. But they’re typically a lot of wholesalers. I mean, that’s, that’s the advantage of wholesaling is you can jump on a listing that’s already ranked pretty high. So how does advertising fit into your strategy?
– Yeah, that’s an amazing question. And I totally agree that you know, with private label I mean, people really think that, okay, a private label I’m going to get a product. I’m going to send it to Amazon. It’s going to start selling and I don’t have to pay for anything else. No. No. The marketing is like 90% of it. Like you’re really, otherwise, your margins are going to be so slim at the end of the day, you’re going to be losing money. But anyhow, relative to the wholesale model in particular in how I utilize it is I literally have several different auto campaigns and manual campaigns set for a very very small cost per click. Like smartest seller talks about it. The 2%, rather 2 cent strategy which is literally an automatic campaign, all your products 2 cents a click with a five to $10 budget for the day. And let me tell you that alone will increase your sales and it’ll also help you stand out from the competition and give you more placement where your competition isn’t. I’ve literally provided this strategy to like five different people. And all those times it has contributed greatly to an increase in sales almost instantly.
– Go ahead, Dustin. I know you are itching.
– Yeah. So when anybody comes to Sellozo, that’s the first campaign that we set for them. But nobody knows about it. And we call it a low bid catch-all campaign. And I don’t think we’ve ever seen one not be successful. You’re setting yours lower. I’ll typically do ones like 5 cents or 7 cents or something like that, but I do it for, I mean I’m a private label and I run all these complex campaign structures but I have one catchall campaign always running with all my products in it. And it’s amazing how well they perform. But like you mentioned, when you’re getting the buy box, now all of a sudden your ad may trigger, show your product higher than all the other people that are selling on your listing. And you get more sales than them.
– Exactly. And not to mention that from that data that you’re paying pennies for you can extract so much more data. You can actually, I’ll give you guys one other tip and like everybody listening, one other tip. If you’re looking at the data from your PPC auto campaign, you can literally find search terms associated with the product that you’re promoting. And then literally go down that rabbit trail through the other products particularly if you’re doing online arbitrage or if you want to find more wholesale products. Listen if you’re selling a particular brand of toothpaste if you’re selling Colgate, and you’re running an auto campaign for it you better believe people are also searching for Sensodyne and other kinds of toothpaste as well but you might not even know Sensodyne exists. And you’re like, okay, what Sensodyne. Let me check this out. And guess what? It’s another toothpaste brand that you could potentially either wholesale or, you know, arbitrage.
– Perfect. Perfect.
– Oh my gosh. I’m fascinated by this model.
– I know. I know
– So many ways to go about it. Yeah.
– Can we, can we get you back on sometime in the future and just because I’ve got about 2000 more questions.
– Yeah, please. I would love to man. I’d love to guys.
– As we wind up, I want to know what a typical day is like for Greg. You got wholesale going on. What’s a typical day like? You wake up, you have check inventory, what’s all that look like?
– Yeah. Look, I don’t know any seller that doesn’t look at their Amazon seller app like a hundred times a day. Some people try to avoid that and they try to take a different approach for that but that’s what I’m doing most of the day. The rest of the time I guess when I wake up, definitely looking at my Amazon sales for sure. Or lack thereof, sometimes it’s not always going to be a green day. There’s no question unless the game stop, I guess. And then Too soon? I don’t know. So yeah. So basically I wake up, I reach out to my virtual assistants. I have a couple that are sourcing distributors for me. I also overlook their results to see what they’ve actually found or not found and see how we can improve those processes. And then separate from that, a lot of it involves continuing the process of seeing the Excel sheets of the distributors I currently have. Seeing where we can maximize additional revenue from whether it’s the same items or if I’m sourcing those same Excel sheets I could see other opportunities or I reach out to them and be like, okay you guys are bringing your sales or closeouts today, things like that. Other times, I’m going to spend time sifting through some of the other wholesalers that I have laying around. Because part of the game like I said is really a numbers game. So if I’ve already mastered one distributor or one wholesaler and I have these virtual assistants working behind the scenes to find me thousands more, I’m going to have those thousands laying around ready for me. So whether I’ve already been approved with them or still need to reach out to them, that’s what I’m going to be focused on as well. Looking at some of the other wholesalers that I already have and seeing, okay, like can I get something out of their catalog that’ll help me scale up. And really looking for ways to consistently scale either with the brand, the wholesaler, or myself. And that’s looking at other marketplaces. I don’t only sell on Amazon. I mean, I sell on eBay or Mercari, Poshmark and just seeing the different places where. You can really get as much visibility in eyeballs as possible because that’s at the end of the day really what’s going to drive at least in my case drive a lot of my new revenue and repeat customers and things like that. So yeah. I mean, those are sort of, some of the elements that I focus on daily and making sure that the processes are still effective day in and day out. It’s like the Gary V strategy about putting yourself out of business daily. That’s kind of like what I think about consistently?
– It’s good stuff.
– Love it. I love it. Well, anybody listening right now? How can they get in touch with you if they want?
– Yeah, definitely. Definitely. You can always reach my Facebook, that’s totally fine. But separate from that, I’m definitely active on Instagram. My Instagram is e-commercemensch, M E N S C H . E-commercemensch. Separate from that. I am on Clubhouse. I’ve been doing quite a few, events every week or so. So definitely find there as well and you can get additional information there also. But yeah, I’m always available. Happy to help anytime I can. And I had an amazing time with you guys today. I appreciate it immensely you guys have-
– Oh, you’re coming back for sure. You already made the list.
– Yeah. Thank you, God. Let’s go.
– Like I said, we have lots more questions but I mean, this has been valuable so valuable for the people that are listening and watching just that information. So we will get you back on for sure. So everyone who wants to reach out, get in touch with Greg go find him on all of his social channels that he mentioned. Maybe we’ll all be in the same clubhouse. It’s going to be fun. I’m going to definitely turn on my notifications when you’re in a room, I’m going to come jump on. But anyway, thanks so much for coming on, everyone who’s listening. If you want to see more content like this you can follow our Facebook page the Sellozo Facebook page. You can follow the Sellozo channel on YouTube. You can follow us Sellozo on LinkedIn. We’re going live with our podcasts every day on all those channels. So turn on the notifications to see them live. Also, please find us on whatever podcast app you use. You can like and subscribe to our podcast. Leave us a review. We’re doing this every single day with awesome people like Greg. So Greg, thanks so much. We’ll get you back on and we’ll see everybody next time.