Tag: marketing 360

New training on Why More Amazon Sellers Are Turning To Retail

Are you an Amazon seller who is only selling their products online? If so, then perhaps you should know that more Amazon sellers are turning to retail chains for an additional revenue stream and it’s for very good reason! I’m not saying though that these sellers are no longer on Amazon. In fact, they are still very much working on growing their eCommerce brand. The difference is that they are now diversifying their efforts–something that you should really consider looking into. 

There are several reasons why Amazon sellers are venturing into retail. Some reasons include generating more revenue, ensuring that their company is stable and proficient for future business deals and if they ever want to sell their business, retail chain distribution is an important exit strategy! So, while they are growing their Amazon business, they are also opening up more opportunities for their business! 

To learn more about this topic, check out my latest training video!     

(For those of you who prefer to read this content, transcription is included as well below!)

Wishing you so much happiness and success.

Karen Waksman, Retail MBA

Transcript For Video Listed Here…

So let’s talk about why more Amazon sellers are turning to retail. Reason number one: they are looking for more revenue to generate. Why do I say that? Because people don’t quite understand how large a retail order is. You can make millions and millions of dollars with just one retail chain store account. I have clients who literally sell on Amazon or on their website or whatever it is. And then open up a retail channel by basically selling to a retailer like say TJ Max or whatever and they make millions of dollars off that one or two retailer accounts. It happens all the time.

And so as you’re growing as an Amazon business, don’t you want to generate more revenue, more opportunity for your company? And if you’re going to go after another distribution strategy, why not pick the one that’s going to create the biggest return on investment. And big retailers have a lot of money and opportunity for you. So definitely one of the reasons why Amazon sellers are turning to retail is because they want to make more money.

Another reason why Amazon sellers are turning to retail is because they want to sell their company one day. And they know smartly that if you try to sell your company and only have all your money flowing through Amazon that can backfire on you when you’re dealing with investors. Because investors want a business that’s sound, that’s not going to go away if some sort of algorithm changes, or something happens with a site like Amazon where they decide not to sell your product anymore for some reason. All of your money is tied to that one account. So they’re always going to look for a company that diversifies. So diversification is very essential to the success of a person who is trying to make success with that purchasing company and so forth.

So basically, you open up one, two, three additional retail chain store accounts, like say Walmart, or Macy’s, or Home Depot or whatever it is, and you also continue to sell on Amazon. Your business is going to be worth between 1 and 3 point per retailer increase. How can I say that? I did an interview with a mergers and acquisitions expert. This person sells companies and they’ve been doing it for 40 years. Basically what I was told, and again, there is no exact science to this. It does depend on a lot of other factors. Don’t quote me on this. But what I was told was every additional retail of distribution that you add, like a major retail account, can increase the valuation of your company at least one point. So you open up two or three accounts, it can be tremendous to your business. When I say point, I mean percentages and so forth.

 So it can be many millions of dollars when you’re selling your company. A lot of people understand that they can sell their Amazon business today but if they add retail account, they can actually grow the valuation of their company. So you definitely want to consider going after retailers as soon as possible so that when you do sell your company, it actually works out to the best of everything.

 Another reason why Amazon sellers are turning to retail, is because they understand that if you open up retail accounts, these big companies are going to buy your products on a massive scale. And not only will that generate more revenue and so forth, but what it does is it actually solidifies you with your manufacturer. So currently, a lot of people are buying products from a manufacturer, say China or whatever, Korea, wherever it is. And what’s there happening there is that you’re not getting the best prices or whatever because you’re not buying huge quantities of your products.

Some of you are but a lot of you guys are still struggling with getting the best possible manufacturer price for your products. But when you start selling to retail chains in your business gross, and you’re also buying 10,000, 15,000, 50,000, 100,000 unit of your products, trust me the manufacturers will fall in love with you. And not only that, but there’s a lot of room for negotiations because suddenly you can discuss getting price breaks. 

So not only will your price go down because they’re buying quantity, but also that helps all of your other businesses. So I don’t see why anybody wouldn ’t consider going after retail chains as well as currently and consistently selling in Amazon because it just helps your businesses as a whole. Imagine getting the price down on your manufacturer cost significantly simply because you worked out something with your manufacturer because you’re buying so many more quantity and units and so forth. I see that happen all the time.

Final reason why Amazon sellers are turning to retail now is because Amazon is changing a lot and they’re constantly evolving. When I started selling this program and teaching people how to get products into stores and so forth, I was dealing with mostly inventors and product creators and so forth. But then Amazon kind of blew up and it was kind of wild west. People were making millions of dollars on Amazon and selling whatever products. And they were doing so phenomenally well on Amazon and it was just a wild west for everybody. Everybody was making money.

And I’ve seen a shift over the years. From not a lot of people making money on Amazon to like lots and lots of people. Since then it has changed. So now there’s more competition than ever. Everybody’s copying each other, people are stealing listings, there’s a tremendous competition. There’s a lot going on and Amazon’s increasing their fees.

It’s turning into kind of a scary thing for Amazon sellers who are making money on Amazon and now are trying to like keep an established brand, business and grow, and also deal with the price changes and so forth. So on the one hand, it’s a great business. On the other hand, it’s very overwhelming for them.                    

And so a lot of the reasons why Amazon sellers are changing to retail is because with retail a lot of your Amazon sellers competitors don’t know how to sell to retail chains. They literally have no clue how to call Walmart or how to get them to buy or how to talk to Macy’s and so forth and get their products in there. Because it’s just not something that most people know how to do. So again, a lot of top Amazon sellers I work with, they are all coming to me because they really understand that it’s going to be a great time to focus on retail while everybody else is focusing on trying to keep their space on Amazon with all the competition and so forth.

Not saying to stop Amazon in any way, but you definitely want to leverage what you’re doing currently and start working on the retail front to also balance out your business. Make sure that you kind of get front placement and so forth. And it’s great to go get your competition and so forth because you will know more than the average person if you start selling to retail chains. Because I’m telling you most of your competitors have no clue how to get to stores.

So anyways, I hope that provided value for you. If you want to learn exactly how to approach and get your products to the shelves of retailers like Home Depot, Macy’s, Kroger Grocery Store, CBS, GNC, Walmart, Walgreen, whatever it is for you. You definitely want to take a look at our training system and a yearlong coaching program. It’s called Retail MBA. You can take a look at our information at retailmba.com. We have free content and all sorts of information on the topic so you can get a feel for what we’re up to. Or definitely explore getting your products to the stores.

We have a step-by-step, fool-proof plan on how to get your product to the stores. And we have been teaching this for almost a decade now and I’ve been using this methodology for almost 2 decades on getting products to the stores. It’s very powerful stuff and if you’re interested on learning how to do that for your business, we work with so many Amazon sellers and we’d love to support you.

Again this is Karen Waksman, Retail MBA, and you could take a look at the link below retailmba.com and sign up to one of our free trainings and or explore one of our programs. We’d love to support you. Thanks so much!

So you’ve built a successful eCommerce Product…Now what?

Now that you’re successful with your eCommerce product online, the next step that you should consider taking is to get your product into big box retailer chains! Why? Well, it’s very simple. When you diversify your efforts, you get a wider audience and a bigger opportunity to make your product even more successful!

eCommerce is undeniably a great platform to sell products, but when you look at retail chain stores like Walmart, you can see that brick and mortar stores are still here to stay. And it’s still a very good and lucrative place to sell products. That’s why instead of just focusing one way to sell your product, why not open up your business to another revenue stream?  You don’t want to miss the opportunity you can get when you become a distributor especially to top retail chains!

Therefore, if you want to learn more about what to do next with your eCommerce product, watch my new training video!

(For those of you who prefer to read this content, transcription is included as well below!)

Wishing you so much happiness and success.

Karen Waksman, Retail MBA

Transcript For Video Listed Here…

So you’ve built a successful eCommerce product. Now what? I work with product companies across the globe on how to get their products in the stores. And I work with eCommerce sellers, at least on Amazon. Many of them have approached me over the years simply because they realize that selling online is phenomenal but now they need to diversify their efforts. They want to eventually sell their company. And they know that they can’t just focus on one channel, one distribution strategy, in order to succeed with their business. So a lot of them have been coming to me to learn about how to get their products into stores because they realize that one chain store order can 10x or even 100x  their business.

And that is really a big deal. If you’ve already kind of been top of your space in eCommerce, now is the time to shine in retailers. The person who shops in Amazon is not the same person who shops at Macy’s. The Amazon seller, the eCommerce seller, might not be the person who shops at Home Depot. Some customers like to buy products online. That’s probably you. That’s probably why you’re doing so well in eCommerce. But I’m here to tell you the rest of the planet purchases in very different ways. Some buy online, some buy in physical stores and so forth. So if I were you and from all of my experience with working with all these companies across the globe who are doing tremendous volume online, I would consider exploring retail chains.

Again, because you could 10x or 100x your business by opening a few retail chain store accounts. I have clients who open up say retailers like Walmart and they make millions of dollars with that retail chains. I have other clients who sell products to TJ Max or some other different types of retailer and they make millions of dollars as well. They don’t give up their ecommerce business. They continue to grow and they leverage their success to get their products distributed either online with these retailers or in their physical stores because again, these retailers have millions upon millions of people come to their stores or their website every year.

That’s just another revenue stream, another distribution strategy. So if you’ve built a successful ecommerce product business, you’d definitely want to consider going after retailers like Walmart, Macy’s, Home Depot, Best Buy, Kroger Grocery Store, or whatever it is for you because there is over 90% of all physical products are being sold in brick and mortar stores. That is currently fact online. You can do your homework, you can do diligence. There’s a tremendous opportunity in ecommerce but physical stores are definitely still here to stay for a while. You definitely want to leverage that if you’re selling so well online. Physical stores would love to have you.

So if you want to learn how exactly to approach, pitch, or sell, either online retailers or physical stores, take a look at our website retailmba.com. We provide free content and information on how to approach, pitch, and sell to these guys even if you have zero sales experience, zero buyer relationships, and so forth. We give you the tools and strategies to generate revenue to products as quickly as possible with other distribution strategies. That is exactly what we do that’s why we are so successful with a lot of the top ecommerce sellers today. So definitely take a look at our site. We have free content explaining what we do and we’d love to support you.

Again, this is Karen Waksman, Retail MBA. I hope that provided value for you. Please be on the lookout for additional content that we create. We’re constantly here creating content and videos to help you at your success. So definitely subscribe and keep in touch with us. Thanks so much!