This episode dives into the evolution of an Amazon seller's journey, from private label to retail arbitrage, wholesale, and ultimately to a brand-direct model. It highlights the challenges and lessons learned across these different approaches, emphasizing the importance of adaptability and understanding market dynamics to build a sustainable Amazon business. For ecommerce operators, this episode offers a realistic perspective on generating revenue and scaling on Amazon, advocating for direct brand partnerships as a more stable and strategic path.
Key takeaways
Starting with private label on Amazon in a saturated market requires significant differentiation beyond basic product criteria; generic items won't cut it.
Retail and online arbitrage can provide quick revenue and proof of concept but are not scalable long-term due to sourcing limitations and operational headaches.
Wholesale can be a viable path, but be wary of gray market products and tightening Amazon supply chain regulations; direct brand relationships reduce risk.
Targeting smaller brands (under $5M annual revenue) with clear pain points on Amazon offers a significant opportunity for 3P sellers specializing in brand direct partnerships, as larger accelerators often overlook this segment.
Attending industry events like Expo West is crucial for discovering new brands and understanding market trends, especially for identifying suitable partners for direct brand engagement on Amazon.
Develop a compelling pitch for brands that demonstrates your expertise in Amazon strategy (ACOS, TACOS, listing optimization) and how you can improve their existing presence, drawing on past private label or wholesale experience.
Focus on obtaining exclusive agreements with brands to avoid competition and build a more sustainable, defensible business model on Amazon.
If you're dealing with consumer packaged goods, especially food items, pay close attention to packaging durability for shipping. Many great products aren't suited for Amazon's logistics.
Continuously evaluate and be willing to shift your business model as market conditions and platform rules (like Amazon's) change to stay competitive and mitigate risks.
Cajua and Josh have been selling on Amazon since 2017. They started with private label and also tried each of the popular models, including Retail Arbitrage, Online Arbitrage, and Wholesale Distribution.Now they focus on being a brand-direct growth partner (aka an Accelerator) for small brands. They've generated millions in revenue for their brand partners, host the Ecom Unlimited Podcast, and help run The Wholesale Network. A community for people growing their wholesale businesses on Amazon. You can connect with them on their social platforms here. Episode Notes:
00:09 - Meet Kaja and Josh from E Comm Unlimited
01:30 - Starting with eBay flips, YouTube, and private label
02:38 - Early private label lessons from a crowded product launch
03:20 - Finding a better opportunity with bat boxes
04:27 - Early sales, COVID inventory issues, and bootstrapping limits
05:31 - Moving into retail arbitrage
06:19 - The Goodwill book flip that proved arbitrage could work
07:16 - Shifting from arbitrage to wholesale
08:09 - Why online arbitrage was hard to scale
08:55 - How supply chain issues led to brand direct
09:56 - Why smaller brands create strong Amazon opportunities
10:16 - Using SmartScout to find overlooked brands
11:26 - Expo West and trade show opportunities
13:15 - Finding brands with clear Amazon pain points
14:40 - Common brand objections to Amazon sellers
15:42 - Building relationships at trade shows
16:46 - Why timing and follow-up matter
18:24 - Educating brands on Amazon supply chain issues
20:18 - DTC brands and Amazon confusion
21:30 - Why smaller brands may need brand-direct partners
22:06 - Why consumables remain exciting on Amazon
23:24 - Why Amazon is still growing despite seller fatigue
24:37 - The skills sellers need to win today
25:40 - Why trade shows keep sellers excited
27:04 - The Wholesale Network and brand-direct education
28:32 - Where to find E Comm Unlimited Related Post:Top 5 Ways to Increase Reviews on Amazon Products Podcast:
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What does this episode say about amazon & marketplaces?
Starting with private label on Amazon in a saturated market requires significant differentiation beyond basic product criteria; generic items won't cut it.
What does this episode say about founder & leadership?
Retail and online arbitrage can provide quick revenue and proof of concept but are not scalable long-term due to sourcing limitations and operational headaches.
What does this episode say about supply chain & operations?
Wholesale can be a viable path, but be wary of gray market products and tightening Amazon supply chain regulations; direct brand relationships reduce risk.
What does this episode say about dtc strategy?
Targeting smaller brands (under $5M annual revenue) with clear pain points on Amazon offers a significant opportunity for 3P sellers specializing in brand direct partnerships, as larger accelerators often overlook this segment.
What does this episode say about amazon & marketplaces?
Attending industry events like Expo West is crucial for discovering new brands and understanding market trends, especially for identifying suitable partners for direct brand engagement on Amazon.
