Pivoting to Wholesale on Amazon: A Roadmap for Success with Successful Seller Micahel Tona!

Not Another eComm Podcast

Michael Tona shares his experience and insights on transitioning from retail arbitrage to wholesale on Amazon. He explains that while retail arbitrage can be a profitable strategy, it becomes more challenging and time-consuming as the market gets more competitive.
Wholesale, on the other hand, offers the advantage of buying products in larger quantities directly from manufacturers or authorized distributors, making replenishing easier and more efficient. Michael emphasizes the importance of vetting suppliers and building strong relationships with them. He also advises beginners to start with lower-risk categories and take their time to scale their business.
Topics & Timestamps:
00:08 Introduction to the topic of pivoting to a wholesale strategy on Amazon
01:11 Importance of planning and careful consideration in the pivot process
01:37 Introduction of Michael Tona, an entrepreneur and e-commerce enthusiast
02:25 Michael Tona's background and journey to seven-figure Amazon sales
03:41 Comparison of the challenges and advantages of retail arbitrage and wholesale
04:26 Time spent sourcing in retail arbitrage vs. wholesale
05:17 Utilizing extra time for self-prep and online arbitrage
06:18 Importance of vetting suppliers in the wholesale space
08:00 Characteristics of a good supplier and red flags to watch out for
10:40 Building relationships with suppliers and the importance of trust
11:57 Vetting suppliers: LLCI N and tax certifications
13:20 Step one: Research and understand the business model
14:26 Step two: Get LLCI N and tax certificates
15:12 Lucrative categories: consider price, margins, and return rates
17:55 Beginners should start with low-risk categories
19:36 Consider shipping costs and methods for larger quantities
21:07 Storage and prep: space, systems, and working with prep centers
22:11 Pivoting from OA to wholesale: start small and go wider on ASINs
22:51 Residential address challenges and non-partnered carrier options
23:46 Choosing between cheaper or quicker pallet pickup options
24:07 Michael Tona discusses the challenges of working with Amazon Partnered carriers.
24:44 Ian Kaneshiro compares the convenience of working with Amazon to the hidden costs of cheaper options.
25:13 Michael Tona shares a frustrating experience with delayed pick-up by Amazon Partnered carriers.
26:33 Michael Tona emphasizes the importance of convenience in choosing Amazon over other retailers.
26:57 Michael Tona advises taking time and caution when pivoting and expanding business.
27:47 Michael Tona warns against comparing oneself to larger sellers and advocates for networking.
28:17 Ian Kaneshiro highlights the importance of planning and having a roadmap.
28:41 Michael Tona emphasizes the value of networking and gratitude towards mentors.
29:14 Ian Kaneshiro thanks Michael Tona for sharing his expertise.
Connect with our guests:
YouTube: https://www.youtube.com/@TonaFBA
Twitter: @TonaFBA
Instagram: @TonaFBA
Connect with our host:
Ian on LinkedIn: https://www.linkedin.com/in/iankaneshiro/
Ian on Instagram: https://www.instagram.com/iankaneshiro_
Stay connected with Seller Snap:
Website: https://www.sellersnap.io/
LinkedIn - https://www.linkedin.com/company/seller-snap-inc./
Instagram - https://www.instagram.com/sellersnap.io/
Facebook- https://www.facebook.com/sellersnap.io/
Full video episodes are always uploaded on YouTube.
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Not Another eComm Podcast By Seller Snap- helping sellers optimize their Amazon store through smart algorithmic repricing.

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