This episode critically analyzes Pattern, a major Amazon reseller, to uncover its business model strengths and weaknesses. It challenges the sustainability of pure wholesale/reseller models on Amazon in favor of direct-to-consumer and value-added services. Operators will learn about the evolving Amazon landscape, the impact of rising fulfillment costs, and strategies for multi-channel growth beyond just Amazon.
Key takeaways
Pure wholesale and reseller models face significant headwinds on Amazon; consider transitioning to a direct-to-consumer (DTC) or value-added service model to ensure long-term viability.
Analyze the risks and capital requirements of carrying inventory, especially in a volatile marketplace like Amazon, and explore strategies to minimize obsolescence and overstock.
Focus on delivering true value beyond just reselling products through services like marketing, brand building, and data analytics to differentiate your e-commerce offering.
Investigate how Amazon's 1P dynamics are shifting and tailor your strategy to benefit from, or at least adapt to, these changes impacting third-party sellers.
Factor rising fulfillment costs into your pricing and business strategy to maintain profitability across Amazon, Walmart, and Shopify.
From Amazon selling to running a premier e-commerce services agency that helps brands grow on Amazon, Walmart, and Shopify, Nectar Co-founder Jason Landro sparked a controversial topic about Pattern, the largest reseller of products on Amazon.In this episode, learn why Jason thinks pure wholesalers/resellers will go extinct as well as the strengths and weaknesses of Pattern’s business model. Episode Notes:00:15 - Jason Landro Introduction01:00 - Jason’s Background01:40 - Pattern’s Business Model03:10 - Pattern’s Weaknesses08:55 - Risk of Taking on Inventory 11:00 - Pattern’s Strengths 12:35 - Selling Direct 16:00 - 1p Dynamic Change 18:50 - What Adding Value Means 20:10 - Pattern’s Valuation 22:25 - Rising Fulfillment Costs 25:30 - Final Thoughts LinkedIn: linkedin.com/in/jasonlandro Website: thinknectar.com Related Post: When Our Amazon Sales Shrunk, Our Profits Grew $2M+
Frequently asked about this episode
What does this episode say about amazon & marketplaces?
Pure wholesale and reseller models face significant headwinds on Amazon; consider transitioning to a direct-to-consumer (DTC) or value-added service model to ensure long-term viability.
What does this episode say about dtc strategy?
Analyze the risks and capital requirements of carrying inventory, especially in a volatile marketplace like Amazon, and explore strategies to minimize obsolescence and overstock.
What does this episode say about supply chain & operations?
Focus on delivering true value beyond just reselling products through services like marketing, brand building, and data analytics to differentiate your e-commerce offering.
What does this episode say about finance & fundraising?
Investigate how Amazon's 1P dynamics are shifting and tailor your strategy to benefit from, or at least adapt to, these changes impacting third-party sellers.
What does this episode say about amazon & marketplaces?
Factor rising fulfillment costs into your pricing and business strategy to maintain profitability across Amazon, Walmart, and Shopify.
