In order to appreciate the fine art of growing a real and sustainable business on Amazon we need to peer into the mind of the top 1% of Amazon sellers and think like they think.
- For the purpose of this instruction let’s call these top 1% sellers “Power Sellers”.
- For the purpose of instruction let’s call every other seller an “Average Seller”. Average Sellers would include and order of Arbitrage seller or Wholesale/Private Label Seller.
- For the purpose of instruction we will call all manufacturers, brands and distributors “Vendors”.
First let’s outline the mind of the Average Seller…
- Average Sellers may live in fear because they’re not quite sure of the dynamics of the laws governing the sale of the items they acquire.
- Arbitrage sellers are specifically selling the goods of brand owners without permission.
- Average Sellers know that they don’t have permission so they live in fear that a Brand Owner or Amazon may take some kind of punitive action against them
- Average Sellers spend a lot of time sourcing product, especially arbitrage sellers. They spend so much time that they hit a cap and can’t grow past a certain point.
- Average Sellers do not have a commercial address because the thought never occurred to them to get one or they think it’s too expensive, etc.
- This massively reduces their ability to acquire goods in a growth oriented fashion
- Average Sellers create artificial boundaries for themselves that don’t really exist…
- They tell themselves that setting up a company is too hard.
- They don’t get a resale tax certificate because they think it’s too hard.
- They never call Vendors to buy products directly because they think it’s too hard or they don’t know what to say, etc.
- Instead they settle for continuing to buy Vendor goods without permission through Arbitrage or even worse through liquidations, etc.
- Average sellers are 1 infringement claim away from losing their Amazon selling privileges (this is why they live in fear).
- They don’t know how to appeal claims because they don’t know how to use 2 special laws (designed to protect them) to their advantage.
Now let’s outline the mind of a Power Seller…
- Power sellers have no fear because they know the laws that are designed to protect their interests and they know how to use the law to protect themselves against any and all claims.
- They know how to easily gain permission to sell all the goods they acquire
- They sell all Vendor goods with confidence in any marketplace.
- Power Sellers don’t spend much time sourcing because they buy and sell the same products over and over again.
- This allows them to scale their operation for unlimited growth
- Power Sellers set up “Storefronts”. These are commercial receiving addresses set up to receive goods from their Vendors.
- Some have a “real store” with foot traffic but most DO NOT
- They simply set up a commercial receiving address at UPS or Pak-Mail or rent the service of a warehouse to “receive” for them, rent a shelf in a consignment shop or any other physical store, or use an Amazon prep/pack facility, etc.
- Their commercial address allows them to get past the “brick and mortar” requirement of most vendors.
- Most vendors require a commercial receiving address and are not explicit in requiring “foot traffic” (aka physical, walk in the door customers).
- Power Sellers know that it’s nobody’s business (not Vendor’s or Amazon’s) how they run the physical activity of their business or conduct their internal business operations… They operate without FEAR!
- Power Sellers do not construct artificial boundaries. They set up their company or DBA, get their resale tax certificate and make simple communications to set up accounts with Vendors.
- Power Sellers do not sell any Vendor goods without permission.
- They know arbitrage is a dangerous game so they don’t play it.
- Power Sellers understand that no Vendor can restrict them from selling their legally acquired goods in any marketplace.
- Amazon intimately understands this as well even though it may not seem so.
- Power sellers are able to buy and sell merchandise from any Vendor and sell it on Amazon (or any other marketplace), without FEAR.
- They easily get past any brand restrictions on Amazon and commonly sell merchandise with limited competition as a result.
- They never fear suspension from Amazon because the know how Amazon operates from a legal standpoint
- They know how to appeal and win all claims that may arise from their selling activity
- They use very simple communications to gain vendor permission to sell their products on Amazon
- They easily access thousands of new SKUs by sending the same email to new prospective vendors
- They place a bunch of simple hooks in the water
- Most of what Power Sellers buy is considered a replen
- They buy the same products over and over again
- They spend a very small amount of time sourcing
- They spend less time and make more than the average seller
- They have confidence in their ability to seek a new brand, set up an account with that brand and then sell that brand on Amazon.
- Even if the brand owner does not allow Amazon sales!
If you want to play like a Power Seller then check out my Buy and Sell Any Brand on Amazon (even if they’re restricted) Course.