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Reselling on Amazon: How to Work with Big Brands

October 15 2021 10:04
Winnie

Finding products to sell on Amazon is a straightforward process. However, it can get tricky if you want to sell another brand’s products. We recently talked with an official representative of big musical brands on Amazon to discuss what it is like to resell items from major brands on the platform.

His name is Amar and he is the founder and CEO of a consulting company based in New Delhi, India. He has been in the eCommerce industry for the last six years.

His company started by providing backend services to companies in the United States that sold over a million dollars of products each month. Some of the backend consulting services his business offers sellers include guidance on:

  • What to purchase

  • How much to purchase

  • When to do research

  • When to do price research

  • Graphic designs

  • Creating product listings

  • Accounting

After four years of providing these services to successful companies in the US, Amar’s business started its own eCommerce venture in India. They have since partnered with some major brands in the Indian eCommerce space. And now, they are expanding, even more, to have about 20 warehouses in all of India.

Amar’s experience on Amazon

Amar has been selling on Amazon for the past six years. His company is an official online reseller of major brands. They purchase directly from these companies and their online partners so there is no middleman.

In addition to selling on Amazon, Amar provides a lot of services to help companies sell more and stay competitive on Amazon. Their company features a team of educated professionals who are well-trained in eCommerce. 

What types of products does Amar sell?

When Amar originally started selling in the United States market, his business’ main products were musical instruments. Over time, the company started adding items in the toys category to its catalog.

To source musical instruments to sell on Amazon, Amar worked with major brands and manufacturers to resell their products. Some of these companies include Yamaha, Casio, JBL, Pioneer, and Denon.

They became official resellers for all these brands in India. This gave their Amazon business wholesale prices for these branded products and the ability to sell them on other third-party marketplaces, provided they follow all the brand’s rules.

How does Amar find suppliers and get products?

Amar takes a hands-on approach to find suppliers for his Amazon reselling business. He says that he has connected with many of the brands that his business partners with today at in-person events.

One of these events is the National Association of Music Merchants (NAMM) conference. It’s a big, international trade show that takes place once a year. All the major brands for music instruments come and participate. 

Amar says they would attend NAMM to approach brands and get in touch with people. That’s how he grew the business and met his main contacts, including Yamaha.

He says it’s been a good experience working with those brands so far as they are very professional. It does come with some challenges though as they are very strict about minimum advertised price (MAP) and other policy violations. 

Tips for communicating with major brands 

One of the most challenging aspects of finding products to resell on Amazon is knowing how to communicate with brands. Major brands have a reputation to maintain and only want the right sellers to offer their products.

Amar says that knowing how to communicate with brands can help your business land the partnerships it needs to get the products to be successful.

Here are some tips for communicating with brands:

  • Have a face-to-face conversation: Try to meet in person or over zoom if possible. It makes you seem more professional.

  • Find the proper contact: Finding the right person to talk to can help your business

  • Have a plan of action: You can make your business stand out by showing the brand

  • Learn about the company: Make the effort to learn about the brand before reaching out to them. They will take you more seriously and will be more likely to partner with you.

  • Find ways to streamline the process: When talking to the brand, see if there are any ways they can help make product sourcing easier. See if they’ll ship items directly to Amazon for you.

By following these steps, you will make your business more attractive to brands. Don’t be deterred if one or several brands turn you down. It’s part of the process. When you reach out to enough companies you will eventually find good partners for your business.

How to resell branded products on Amazon

1. Product research and sales estimations

The first piece of advice Amar has for Amazon sellers is to conduct product research and estimate sales before launching your product. With detailed product research, you can make sure that you understand your potential market inside and out.

Sales estimates help provide an accurate idea of how profitable your business can be, allowing you to plan more accurately.

Amar uses the various AMZScout tools to estimate the potential sales for his products. With the Pro Extension, he can pull up the stats for any product or niche to see its estimated monthly sales. He can then use this information to forecast his own sales if he were to gain a similar share of the market.

2. Use Amazon FBA to streamline logistics

The next tip is to use the Fulfilled by Amazon (FBA) service to handle order fulfillment for your Amazon orders. Amar says that when he first started selling on Amazon in the United States, they would have the reselling products sent to their own warehouse. They would then fulfill orders from their warehouse when customers made purchases.

Over time, he says they began to integrate Amazon FBA into their fulfillment operations to handle some of the orders. For their India business, all orders are fulfilled using the FBA model.

With FBA, you can offer your buyers fast and reliable shipping without needing to worry about the details of handling these yourself. Plus, your products can become eligible for Amazon Prime, helping to attract more customers.

3. Promote your products

Promoting your products is a great way to get more visitors to your listings. When selling in the United States Amazon marketplace, Amar says his business spent a lot on advertising campaigns. Doing so helped him increase sales and get more exposure in a competitive market.

In India, he says his business does not need to rely as heavily on paid advertisements. Instead, they have focused on their highest selling products and increasing the number of visitors they receive through organic traffic.

From Amar’s experience, we can see that both paid and organic marketing can play a big role in helping you sell more products on Amazon. 

4. Business automation

Amar says that one of the biggest challenges he faced in the early years of selling on Amazon was the amount of manual work required to keep things moving. He says that it was simply not viable if they wanted to scale the business.

So, he decided to automate as much as possible. Doing so made business processes smoother. In the past, everything was manual. Now they streamline various processes online using automation software and other new technologies.

Amar’s parting tips for beginners

To Amar, innovation is key. He says to just keep innovating everything if you want your business to grow and be successful. 

He says, doing everything manually is not right for your business. It consumes your time so then you don’t have any time left to make money. Instead, you should make all possible processes automated so you can focus your core energy on what matters — finding new opportunities and conquering any challenges your business may face.