Wholesale negotiations with brands

Many Amazon sellers register a company, hoping to be able to work directly with brands or major suppliers. Unfortunately, the vast majority of established brands are very hesistant against Amazon or eBay resellers. If you are thinking about approaching brands and offering a cooperation, I would like to share with you this piece of advice prepared by a seasoned US-based Amazon seller, who agreed to have his knowledge published on our website.

Here is his story:

“Why shouldn’t we start with negotiations?” – we thought and started. With a thousand of brands. Directly. And I’m not joking: we hired professional negotiators and went through the list from A to Z with them.

And now I can confidently say that only 6 brands out of 1000 gave us the go-ahead to sell on Amazon. At the same time, such brands, in general, either sell poorly or are not even put up for sale. The rest 994 agreed to cooperate through the official website and retail store.

Surely you have heard about the companies, which own several brands? And it would seem that this is it – a few birds with one stone – but no: the brand that sells well on Amazon – they do not allow selling on Amazon, and the one that sells poorly – is allowed. But even in this case, most likely, after reaching impressive sales, you will cease to be interesting to the company.

Well, in the end – a life hack: how to end negotiations with a cool brand? It’s simple! Say the code word “Amazon” and they hang up at the same moment.

Now I propose to dream a little, do you mind?

Sit yourself in a comfortable leather chair of the head of a large company, whose employees, 100 times a month, are approached by different people with a request to sell their goods on Amazon.

You – the CEO – take a sip of your coffee and sigh heavily. These guys, who are eager for cooperation, do not offer you anything new at this stage, and therefore do not represent the slightest interest for you.

What would make the CEO of a cool brand leave his coffee and think about cooperation?

1. A new market for their goods.

It is absolutely always arouse interest, because a new country, a region, a niche website or store – a new peak in the brand profit.

2. Compliance with premium.

It is quite logical that L’Oréal will not want you to place their product in the category “Horns and Hooves”, where you still sell rubber slippers from Zoe and fishing rods from Jack (all characters are fictional and any coincidences are accidental).

3. “Making history since 1996”.

An important stage is also the presence of the company’s history, impressive turnover (preferably a million) and a well-deserved reputation with such business review services as DNB, Yellow pages, Better Business Burreau etc.

4. Everyone is crazy about loans.

Even if you have solid capital, the brand will not want to work with you if you cannot boast of a large credit limit (for example, such an eligible match as Johnson & Johnson will not want to date you until you put the $ 500,000 on the table).

Because if you want to spend money on expensive courses from a mega-trainer who promises incredible profits after registering a company, it doesn’t look like it does on an advertising banner.

The company is the tree that will begin to bear its first fruits a few years after its registration.

The company requires a personal approach, and even better – a personal presence in the country where you want to do business, because you can’t catch big fish over the phone.

But let’s not despair, there is light at the end of this tunnel. There are a large number of offline “brick” businesses that are quietly making their business and haven’t heard about the Internet. They shouldn’t be discounted as they have been business customers of these brands for decades and receive the best deals from them.

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

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