3 Mistakes New Wholesale Sellers Make
Published on: December 1 2022 by Bryan Guerra
3 Mistakes New Wholesale Sellers Make
Table of Contents
3 Mistakes New Wholesale Sellers Make
| startTime | durationTime | text |
| 00:00:00 | 00:00:05 | so let's tok about three mistakes that |
| 00:00:02 | 00:00:07 | new wholesale sellers make |
| 00:00:05 | 00:00:08 | now number one is placing too large of |
| 00:00:07 | 00:00:10 | an order |
| 00:00:08 | 00:00:12 | and in a previous lecture we've actually |
| 00:00:10 | 00:00:15 | toked about how placing too |
| 00:00:12 | 00:00:17 | small of an order continuously can be a |
| 00:00:15 | 00:00:18 | red flag and a bad thing as well right |
| 00:00:17 | 00:00:21 | so obviously it goes without saying you |
| 00:00:18 | 00:00:23 | don't want to keep placing small orders |
| 00:00:21 | 00:00:24 | but when you're starting and when you're |
| 00:00:23 | 00:00:26 | a new seller and you're just ordering |
| 00:00:24 | 00:00:28 | wholesale for the first couple times |
| 00:00:26 | 00:00:30 | it's a different ballgame okay so |
| 00:00:28 | 00:00:32 | placing too large of an order when |
| 00:00:30 | 00:00:33 | you're starting out can be a huge |
| 00:00:32 | 00:00:34 | mistake okay |
| 00:00:33 | 00:00:36 | i get it trust me when you find a |
| 00:00:34 | 00:00:38 | profitable product that's selling a lot |
| 00:00:36 | 00:00:40 | of units per month it's super |
| 00:00:38 | 00:00:42 | exciting although when you're new you |
| 00:00:40 | 00:00:44 | might not see some of the red flags on |
| 00:00:42 | 00:00:46 | that product okay now obviously a great |
| 00:00:44 | 00:00:48 | way to understand these different things |
| 00:00:46 | 00:00:50 | that could go wrong is to watch some of |
| 00:00:48 | 00:00:52 | the wholesale tutorials in this course |
| 00:00:50 | 00:00:53 | specifically obviously in the module |
| 00:00:52 | 00:00:56 | that you just went through right |
| 00:00:53 | 00:00:58 | although the best way to understand is |
| 00:00:56 | 00:00:59 | not to simply watch the tutorials it's |
| 00:00:58 | 00:01:01 | actually to watch the tutorials |
| 00:00:59 | 00:01:04 | but then go out and source products |
| 00:01:01 | 00:01:06 | yourself so you can learn by doing okay |
| 00:01:04 | 00:01:08 | so that said don't place too large of an |
| 00:01:06 | 00:01:11 | order when you're starting out |
| 00:01:08 | 00:01:12 | instead place a smaller order and test |
| 00:01:11 | 00:01:13 | it out so you |
| 00:01:12 | 00:01:15 | can see for yourself what goes right and |
| 00:01:13 | 00:01:17 | what goes wrong right |
| 00:01:15 | 00:01:18 | now if you if your product is extremely |
| 00:01:17 | 00:01:20 | profitable |
| 00:01:18 | 00:01:22 | and it sells quickly then great |
| 00:01:20 | 00:01:24 | congratulations you just |
| 00:01:22 | 00:01:26 | sourced your first profitable wholesale |
| 00:01:24 | 00:01:27 | product and now you can replicate |
| 00:01:26 | 00:01:29 | it and source more products with similar |
| 00:01:27 | 00:01:31 | indicators that look |
| 00:01:29 | 00:01:32 | like it if it's not as profitable as you |
| 00:01:31 | 00:01:34 | thought though or it doesn't sell as |
| 00:01:32 | 00:01:35 | quickly or maybe other competitors jump |
| 00:01:34 | 00:01:37 | on the listing |
| 00:01:35 | 00:01:39 | or any number of other things |
| 00:01:37 | 00:01:41 | potentially go wrong then again |
| 00:01:39 | 00:01:43 | congratulations right that's not a |
| 00:01:41 | 00:01:44 | failure it's just experience and it's |
| 00:01:43 | 00:01:46 | feedback |
| 00:01:44 | 00:01:48 | you just learned a lot about what could |
| 00:01:46 | 00:01:49 | go wrong and now you'll know all those |
| 00:01:48 | 00:01:51 | things for the future for your next |
| 00:01:49 | 00:01:53 | products and at |
| 00:01:51 | 00:01:54 | at worst honestly it'll probably take |
| 00:01:53 | 00:01:56 | you a little bit longer to get your |
| 00:01:54 | 00:01:57 | money back so you'll have a slight cash |
| 00:01:56 | 00:01:58 | flow issue |
| 00:01:57 | 00:02:00 | because it didn't sell as fast as you |
| 00:01:58 | 00:02:02 | wanted but you'll still get the majority |
| 00:02:00 | 00:02:03 | of your money back so it's not like |
| 00:02:02 | 00:02:05 | you're out those products right |
| 00:02:03 | 00:02:07 | when i say things that can go wrong on a |
| 00:02:05 | 00:02:09 | wholesale listing usually |
| 00:02:07 | 00:02:10 | usually it just means your profit isn't |
| 00:02:09 | 00:02:12 | as high potentially |
| 00:02:10 | 00:02:13 | as you expected but you're still |
| 00:02:12 | 00:02:14 | somewhat profitable or you're breaking |
| 00:02:13 | 00:02:17 | even |
| 00:02:14 | 00:02:18 | or your items don't sell as fast as you |
| 00:02:17 | 00:02:20 | expected them to |
| 00:02:18 | 00:02:22 | and so your cash flows tied up for a |
| 00:02:20 | 00:02:22 | little bit longer than you expected |
| 00:02:22 | 00:02:24 | right |
| 00:02:22 | 00:02:26 | so even if it's you know a lot of things |
| 00:02:24 | 00:02:27 | can go wrong with listing right but even |
| 00:02:26 | 00:02:28 | if it's one of these things or a couple |
| 00:02:27 | 00:02:30 | of them |
| 00:02:28 | 00:02:31 | it does not mean it's horrible and |
| 00:02:30 | 00:02:33 | you're going to lose all your money it's |
| 00:02:31 | 00:02:34 | just an indicator of |
| 00:02:33 | 00:02:36 | hey this is a potential red flag so i |
| 00:02:34 | 00:02:38 | should avoid it in the future right |
| 00:02:36 | 00:02:39 | so when you're starting out do not place |
| 00:02:38 | 00:02:42 | too large of an order |
| 00:02:39 | 00:02:44 | test and learn you will get better now |
| 00:02:42 | 00:02:44 | the second thing that can go wrong |
| 00:02:44 | 00:02:47 | obviously |
| 00:02:44 | 00:02:47 | that the mistake that wholesale sellers |
| 00:02:47 | 00:02:50 | make |
| 00:02:47 | 00:02:52 | is not understanding every cost okay so |
| 00:02:50 | 00:02:53 | the total amount that you'll be spending |
| 00:02:52 | 00:02:56 | on every product |
| 00:02:53 | 00:02:58 | is not just the cost of the product and |
| 00:02:56 | 00:03:01 | the cost of the shipping okay |
| 00:02:58 | 00:03:02 | so it's again not just the cost of the |
| 00:03:01 | 00:03:05 | product |
| 00:03:02 | 00:03:07 | and the shipping okay it's also amazon |
| 00:03:05 | 00:03:08 | fees so make sure and this is if you're |
| 00:03:07 | 00:03:09 | watching any of the tutorials that i've |
| 00:03:08 | 00:03:10 | done |
| 00:03:09 | 00:03:12 | you will have done this right you are |
| 00:03:10 | 00:03:14 | going to use either the fba calculator |
| 00:03:12 | 00:03:16 | that amazon provides you for free |
| 00:03:14 | 00:03:17 | we're going to download the free amz |
| 00:03:16 | 00:03:20 | scout plug-in which |
| 00:03:17 | 00:03:22 | is a an fba calculator and an fbm |
| 00:03:20 | 00:03:23 | calculator so you should be calculating |
| 00:03:22 | 00:03:25 | your amazon fees right |
| 00:03:23 | 00:03:27 | but always remember that your amazon |
| 00:03:25 | 00:03:28 | fees are also a potential cost when you |
| 00:03:27 | 00:03:29 | sell it it doesn't matter if you're |
| 00:03:28 | 00:03:31 | selling fba |
| 00:03:29 | 00:03:33 | or fbm so make sure you run your |
| 00:03:31 | 00:03:35 | products through an fba calculator |
| 00:03:33 | 00:03:36 | and calculate those fees okay again it |
| 00:03:35 | 00:03:38 | is also |
| 00:03:36 | 00:03:40 | potential prep center fees if you're |
| 00:03:38 | 00:03:41 | using a prep center now everybody's not |
| 00:03:40 | 00:03:43 | gonna be using a prep center |
| 00:03:41 | 00:03:45 | a lot of people especially if you're in |
| 00:03:43 | 00:03:47 | the us or if you're ordering wholesale |
| 00:03:45 | 00:03:48 | products to another specific marketplace |
| 00:03:47 | 00:03:50 | you know directly you're going to be |
| 00:03:48 | 00:03:51 | ordering directly from the wholesale |
| 00:03:50 | 00:03:53 | supplier |
| 00:03:51 | 00:03:54 | into fba right a lot of people will be |
| 00:03:53 | 00:03:56 | doing that right |
| 00:03:54 | 00:03:57 | now if you're placing a test buy you |
| 00:03:56 | 00:03:58 | might be ordering it to yourself first |
| 00:03:57 | 00:04:00 | and then shipping it in |
| 00:03:58 | 00:04:02 | so that's another thing to consider |
| 00:04:00 | 00:04:03 | another potential shipping cost |
| 00:04:02 | 00:04:04 | but the majority of people are not going |
| 00:04:03 | 00:04:06 | to be using prep centers although for |
| 00:04:04 | 00:04:08 | the people that are outside the us and |
| 00:04:06 | 00:04:10 | selling on the us marketplace |
| 00:04:08 | 00:04:11 | or for the people that are in the us and |
| 00:04:10 | 00:04:13 | just want to not really get their hands |
| 00:04:11 | 00:04:15 | dirty but they want you know |
| 00:04:13 | 00:04:16 | product inspections on certain products |
| 00:04:15 | 00:04:17 | you might be considering using a prep |
| 00:04:16 | 00:04:19 | center |
| 00:04:17 | 00:04:21 | so if you are obviously remember that |
| 00:04:19 | 00:04:23 | that's also potential fees for every |
| 00:04:21 | 00:04:24 | product now it's gonna depend prep |
| 00:04:23 | 00:04:25 | senator prep center |
| 00:04:24 | 00:04:27 | and this is something that we've covered |
| 00:04:25 | 00:04:30 | obviously in other lectures right |
| 00:04:27 | 00:04:30 | but if you're using a prep center then |
| 00:04:30 | 00:04:32 | your theme |
| 00:04:30 | 00:04:35 | could be anywhere from 50 cents to like |
| 00:04:32 | 00:04:36 | two bucks a product so make sure |
| 00:04:35 | 00:04:38 | that once you identify the prep center |
| 00:04:36 | 00:04:40 | that you're using and what the prep |
| 00:04:38 | 00:04:41 | center's fee is per product |
| 00:04:40 | 00:04:43 | that you calculate those fees into your |
| 00:04:41 | 00:04:46 | potential profit margin |
| 00:04:43 | 00:04:47 | understand every cost okay so remember |
| 00:04:46 | 00:04:48 | to factor these things in when you're |
| 00:04:47 | 00:04:50 | sourcing and |
| 00:04:48 | 00:04:52 | also keep an eye on potential return |
| 00:04:50 | 00:04:54 | oriented items is something i didn't |
| 00:04:52 | 00:04:56 | really tok about a lot because i don't |
| 00:04:54 | 00:04:58 | potentially source a lot of these things |
| 00:04:56 | 00:05:00 | for wholesale on amazon but i wanted to |
| 00:04:58 | 00:05:01 | hit it home because a lot of you know if |
| 00:05:00 | 00:05:02 | i don't say it |
| 00:05:01 | 00:05:04 | and you know then i can't hold people |
| 00:05:02 | 00:05:05 | accountable for not knowing it right so |
| 00:05:04 | 00:05:08 | i want to hit it home |
| 00:05:05 | 00:05:10 | avoid potential return oriented items |
| 00:05:08 | 00:05:11 | like clothing for example or breakable |
| 00:05:10 | 00:05:13 | products those are two of the ones that |
| 00:05:11 | 00:05:15 | are most prevalent so clothing can be |
| 00:05:13 | 00:05:17 | return oriented because |
| 00:05:15 | 00:05:18 | for example if you're sourcing like a |
| 00:05:17 | 00:05:20 | bunch of different sizes |
| 00:05:18 | 00:05:21 | well people that are especially when |
| 00:05:20 | 00:05:23 | they're shopping on amazon |
| 00:05:21 | 00:05:25 | they might shop and buy like a small but |
| 00:05:23 | 00:05:26 | then realize that they're a medium right |
| 00:05:25 | 00:05:28 | so they return the small |
| 00:05:26 | 00:05:30 | and then obviously if they return the |
| 00:05:28 | 00:05:31 | small and they don't categorize the |
| 00:05:30 | 00:05:33 | return correctly |
| 00:05:31 | 00:05:34 | then you might be out that item and you |
| 00:05:33 | 00:05:35 | might be losing out on that money right |
| 00:05:34 | 00:05:37 | so that's why |
| 00:05:35 | 00:05:39 | i avoid clothing when i'm sourcing a lot |
| 00:05:37 | 00:05:40 | of times wholesale specifically for |
| 00:05:39 | 00:05:42 | amazon |
| 00:05:40 | 00:05:43 | you can source wholesale for ebay posh |
| 00:05:42 | 00:05:44 | micro mercari obviously or things like |
| 00:05:43 | 00:05:46 | that |
| 00:05:44 | 00:05:47 | because those aren't as very easy to |
| 00:05:46 | 00:05:49 | return but just keep in mind that a lot |
| 00:05:47 | 00:05:51 | of people source clothing on amazon |
| 00:05:49 | 00:05:54 | with the intention of hey i'll just |
| 00:05:51 | 00:05:55 | return it if it doesn't fit me okay |
| 00:05:54 | 00:05:57 | so different size things like that |
| 00:05:55 | 00:06:00 | different shoes different clothing items |
| 00:05:57 | 00:06:02 | a big return oriented item on amazon |
| 00:06:00 | 00:06:04 | obviously breakable products that's also |
| 00:06:02 | 00:06:05 | another return oriented item |
| 00:06:04 | 00:06:07 | uh that goes without saying right |
| 00:06:05 | 00:06:08 | because it can break in shipping so |
| 00:06:07 | 00:06:10 | these are things to think about when |
| 00:06:08 | 00:06:11 | you're sourcing just keep them in mind |
| 00:06:10 | 00:06:13 | okay |
| 00:06:11 | 00:06:15 | these are almost always bad wholesale |
| 00:06:13 | 00:06:17 | products to sell on amazon |
| 00:06:15 | 00:06:18 | because of potential returns and even if |
| 00:06:17 | 00:06:20 | they're still profitable make sure you |
| 00:06:18 | 00:06:21 | account for potential return issues here |
| 00:06:20 | 00:06:23 | and there |
| 00:06:21 | 00:06:25 | and losing profit that way but like i |
| 00:06:23 | 00:06:27 | said i just want to hit this home so |
| 00:06:25 | 00:06:28 | if you can you know if all else fails |
| 00:06:27 | 00:06:29 | avoid clothing |
| 00:06:28 | 00:06:31 | and different sizes if there's different |
| 00:06:29 | 00:06:32 | sizes on the listing if not then you're |
| 00:06:31 | 00:06:34 | fine |
| 00:06:32 | 00:06:36 | and if you can avoid breakable products |
| 00:06:34 | 00:06:38 | avoid those as well |
| 00:06:36 | 00:06:40 | now the third mistake that new wholesale |
| 00:06:38 | 00:06:41 | sellers make is treating buying from |
| 00:06:40 | 00:06:44 | suppliers like |
| 00:06:41 | 00:06:44 | every other online transaction for |
| 00:06:44 | 00:06:46 | example |
| 00:06:44 | 00:06:48 | if you shop on amazon and let's be real |
| 00:06:46 | 00:06:50 | who doesn't then you'll obviously |
| 00:06:48 | 00:06:53 | understand that the customer has |
| 00:06:50 | 00:06:55 | all the power you can return anything |
| 00:06:53 | 00:06:57 | you want on amazon for free |
| 00:06:55 | 00:06:59 | you can for example complain and get |
| 00:06:57 | 00:07:00 | refunded to amazon right |
| 00:06:59 | 00:07:02 | you can claim lost packages and get |
| 00:07:00 | 00:07:02 | refunded even when they've been |
| 00:07:02 | 00:07:05 | delivered |
| 00:07:02 | 00:07:05 | you can literally insert almost anything |
| 00:07:05 | 00:07:07 | there |
| 00:07:05 | 00:07:09 | and if you're an amazon customer you can |
| 00:07:07 | 00:07:10 | get away with it right |
| 00:07:09 | 00:07:12 | and this means as customers were |
| 00:07:10 | 00:07:13 | conditioned to feel like we're in the |
| 00:07:12 | 00:07:15 | power position |
| 00:07:13 | 00:07:17 | and and because of this we take our |
| 00:07:15 | 00:07:19 | relationships with sellers for granted |
| 00:07:17 | 00:07:21 | and with stores for granted right |
| 00:07:19 | 00:07:22 | after all the customer is always right |
| 00:07:21 | 00:07:24 | right |
| 00:07:22 | 00:07:25 | we've all heard that saying right and so |
| 00:07:24 | 00:07:27 | it's not just amazon it's a bunch of |
| 00:07:25 | 00:07:28 | different things that and |
| 00:07:27 | 00:07:30 | a bunch of different retail and |
| 00:07:28 | 00:07:33 | e-commerce sites that function this way |
| 00:07:30 | 00:07:34 | and so we all are kind of conditioned to |
| 00:07:33 | 00:07:36 | be this way right hey we're the customer |
| 00:07:34 | 00:07:39 | we have the power |
| 00:07:36 | 00:07:40 | but do not approach buying wholesale |
| 00:07:39 | 00:07:42 | like this okay |
| 00:07:40 | 00:07:43 | buying wholesale products is less about |
| 00:07:42 | 00:07:46 | using wholesale companies |
| 00:07:43 | 00:07:48 | as you know our store or sellers and |
| 00:07:46 | 00:07:48 | approaching it as a simple business |
| 00:07:48 | 00:07:50 | transaction |
| 00:07:48 | 00:07:52 | just like you would purchase something |
| 00:07:50 | 00:07:53 | on amazon for example |
| 00:07:52 | 00:07:55 | because it's more about forming |
| 00:07:53 | 00:07:56 | relationships more about |
| 00:07:55 | 00:07:59 | building rapport with companies in your |
| 00:07:56 | 00:08:01 | specific sales reps and establishing |
| 00:07:59 | 00:08:03 | long-term connections okay |
| 00:08:01 | 00:08:04 | by doing all these things and focusing |
| 00:08:03 | 00:08:06 | more on these things it will result in a |
| 00:08:04 | 00:08:07 | better buying experience for you |
| 00:08:06 | 00:08:09 | long-term |
| 00:08:07 | 00:08:11 | and cheaper prices and better future |
| 00:08:09 | 00:08:13 | deals obviously which benefits |
| 00:08:11 | 00:08:14 | your business okay if you instead |
| 00:08:13 | 00:08:16 | approach wholesale transactions like |
| 00:08:14 | 00:08:18 | every other purchase |
| 00:08:16 | 00:08:20 | you won't do your business any long-term |
| 00:08:18 | 00:08:20 | favors because you won't be building any |
| 00:08:20 | 00:08:22 | trust |
| 00:08:20 | 00:08:24 | any rapport with that specific company |
| 00:08:22 | 00:08:26 | and they will be less likely to |
| 00:08:24 | 00:08:28 | do you favors or drop prices and |
| 00:08:26 | 00:08:31 | continue working with you |
| 00:08:28 | 00:08:32 | in the future or giving you exclusive |
| 00:08:31 | 00:08:35 | products or exclusive deals so |
| 00:08:32 | 00:08:36 | remember these things these are three |
| 00:08:35 | 00:08:39 | mistakes that new |
| 00:08:36 | 00:08:39 | wholesale sellers make |
