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

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 Amazon01:11 Importance of planning and careful consideration in the pivot process01:37 Introduction of Michael Tona, an entrepreneur and e-commerce enthusiast02:25 Michael Tona's background and journey to seven-figure Amazon sales03:41 Comparison of the challenges and advantages of retail arbitrage and wholesale04:26 Time spent sourcing in retail arbitrage vs. wholesale05:17 Utilizing extra time for self-prep and online arbitrage06:18 Importance of vetting suppliers in the wholesale space08:00 Characteristics of a good supplier and red flags to watch out for10:40 Building relationships with suppliers and the importance of trust11:57 Vetting suppliers: LLCI N and tax certifications13:20 Step one: Research and understand the business model14:26 Step two: Get LLCI N and tax certificates15:12 Lucrative categories: consider price, margins, and return rates17:55 Beginners should start with low-risk categories19:36 Consider shipping costs and methods for larger quantities21:07 Storage and prep: space, systems, and working with prep centers22:11 Pivoting from OA to wholesale: start small and go wider on ASINs22:51 Residential address challenges and non-partnered carrier options23:46 Choosing between cheaper or quicker pallet pickup options24:07 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/@TonaFBATwitter: @TonaFBAInstagram: @TonaFBAConnect 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.Subscribe here: https://bit.ly/3qZwUaFNot Another eComm Podcast By Seller Snap- helping sellers optimize their Amazon store through smart algorithmic repricing.Seller Snap offers all Amazon sellers a 15-day free trial - find out if we are the right repricer for you and your Amazon store. Visit https://www.sellersnap.io