It’s where you buy productsfrom distributors of brand name name brand, popular name brand products You buy ’em lowand sell them higher That’s kinda the verysimple way to explain it but this is a veryhighly requested video I get asked thisall the time Beau, what Like, what iswholesale again? Or how is this differentthan private label? What you’re doing is FBAor, how does it work? So in this video, I wannaexplain to you about what I do what I like to callas online retail Some people alsorefer it as wholesale and sometimes get the twoa little mixed in between How it’s different thanthe other business models and answering all yourquestions about that So, first off, what is wholesale? So, what I actuallydefine wholesale is People kindaget this confused Wholesale is when you areselling at wholesale, alright? What I would say I’m actually a retailer, I’m not a wholesaler I’m not a distributor I’m a retailer, so I actually callwhat I do as online retail But some people call the businessmodel of what I do wholesale because we’re buying atwholesale and selling it retail But what people, I would say, usually refer wholesale as is where you’re buying directlyfrom small to medium-sized brands at wholesale, and thenselling it for a little more So, that’s whatwholesale really is What I do specifically, which is very similar what I call asonline retail is where I’m buyingfrom distributors what you call middleman, wholesalers, distributors of big name brand products Like, the same suppliersthat Costco, Walmart Macy’s, GameStopwork with A lot of people will be like, okay Beau, well wouldn’t be buyingdirectly from the source buying directly from Hasbro, or Mattel, or Apple All these like, brandsthat you’re selling wouldn’t it just make senseto buy directly from them? Not always If you look at Walmart, Costco, Macy’s, GameStop This is why I call it online retail, ’cause I’m doing what all those big boxstores do, like that is, they don’t buy direct from thesource of who manufactures it How the online retailbusiness model works is, you have manufacturers, also known as brands So, like Hasbro manufacturestheir own goods You know, Mattel, Samsung, Sony, PAW Patrol, Star Wars, Disney They are the brands whomanufacture the goods and then they sell directly todistributors, or wholesalers or what I liketo call suppliers So they’re the middleman Now, why does online retail, wholesale need a middleman? Well it’s very simple, right? The middleman, their goaland objective is to buy in massive quantitiesto drive the cost down Bill Gates explainsthis in his book Business @ theSpeed of Thought Why Microsofthad a middleman help them actually lowertheir cost and sell more You know, it’s because a supplierdoesn’t sell just to Amazon sellers They sell to eBay sellers, they sell to brick and mortar stores So if they have like, 10, 000 units If they can sell 8, 000 to a bunchof brick and mortar stores like big box stores, like Walmart, Costco and the rest toAmazon sellers allows them to buy in massivequantities, drive the cost down A good example is, I’m actually was sourcing products from like, this water distributor And they told methat like if I would go buy directlyfrom the manufacturer it would cost me likean extra 5x more So anyway, that’s how it works You have manufacturers, suppliers and then you’re the Amazon sellerbuying from those suppliers So how is it differentthan private label? Private label, where most peoplekinda hear about Amazon and get it confused withFBA ’cause they think that FBA equalsprivate label on Amazon FBA is just afulfillment method It’s different in thesense that you are not actually havingto create up listings With private label, you createa listing from scratch You actuallytake a product that may already besold on Amazon but you make it a little differentso you make up your brand and try to make it different In online retail, you’re sellingproducts that are already on Amazon So if it has 400 reviews you’re selling on to that sameexact ASIN, and you’re just Your goal that you wanna dois just buy it at a low price So what I like to say is, in What I do in online retail, you make money off the buy So off buying itat a low price And then in private label, you make money off of selling it high and, really selling it So like, getting peopleto the listing getting people to buy it, increasing the conversions running the right marketing ads, getting ranked in SEO So, that’s kinda themain differences I would say onlineretail is more of like you make moneyon the buy In private label, you’re making money on sell Because with the name brands, they’re sold at the right price There’s MSRP, there’s MAP pricing things that are alreadystructured there It’s just gettingat the right price Because if you can buy it low, then you win Am I still doing FBA?Yes FBA is not necessarilya business model It just stands forFulfillment by Amazon where it is a fulfillmentof my products So, you can be doingarbitrage and be doing FBA You can be doing private labeland then be doing FBA You can be doingwholesale and do FBA You can do online retailand be doing FBA The one thing you can’t bedoing FBA on is dropshipping Because dropshippingis a fulfillment method not necessarilya business model For example, I can workwith my suppliers and my supplierscan dropship for me But I don’t do it becauseI have to be doing FBM on that So then, the disadvantage ofdoing FBM is I’m not doing Prime So I’m not favoringAmazon’s algorithm Those are the biggest issues, and then the costs are higher So, I’m still doing FBA So I buy from my suppliers, this is how it works I will make an order withsome of my suppliers that can be locatedin the United States I don’t work with suppliersthat are overseas due to the fact thatthere’s copyright issues So if I go buy from aChinese Hasbro supplier They could legallysell me counterfeits but I could not legallygo sell them online It’s legal for China ’causethey don’t have copyright laws You know, Canada Canada, for some reason, you guys don’t have parities But, you’re not allowed to do that, but you guys have copyright The European Union, they got copyright So, I buy fromdomestic suppliers And then when I buy from them, I wanna make sure it’s scalable and I’m workingon my business So I will have them ship toan Amazon fulfillment center So then, Amazonreceives them and then ships directlyto my consumers So, in the private label essence, you typically buy from China China ships in the US, US in the fulfillment centers So what’s kinda the main thingwith this business model? I know if you’redoing dropshipping the main thing isfinding stuff that is had a different price and getting, kind of arbitraging a little bit Arbitrage, the mainthing in that is finding the rightproducts that actually you can buy low, sell high in And the main thingin online retail So again, to recapthe definition I see the definitionof wholesale as you’re buying directly fromsmall to medium-sized brands It’s fine And then what I do is justa little branch right off of that is online retail, where I’m focusingon big name brand products Like, big ones Some people can still referit as wholesale, that’s fine But anyway, the main thing inmy business model is suppliers So, you know, ’cause youcan think all day long Like, what’s the bestproducts to go sell You can learn marketing and ads, listing optimization, that’s fine But at the end of the day, if you don’t have the right suppliers and if you don’t havethe right products from those suppliers, then you’ll lose I like to say suppliers first, then product second because People also say, oh, it’s chicken or the egg Like, okay, well They’re like, Beau, you know, I can’t find any good suppliers because you’ve been doing thisfor such a long time Like, do you understandthat I used to Like, when I started my business, I wasn’t doing anything and I was pretty young So if like, I can do itat a young age that gives you no excuse to like, be able to do it yourself If you’re looking to go like, find the right suppliers and have the righteducation to your business Because suppliers are, like the main importance for it but it’s not everything You still need to understand like, how to look at a product Like, how to look atthe history behind it because pricescan go up and down So you wanna be in thoseconsistent sources of inventory Understanding how tocommunicate with suppliers I would say it’s like, the 80-20 rule where it’s more important on how youactually know how to operate suppliers Understanding how to getungated in Amazon because one big part of, you know, doing wholesale, online retail as well is that you’re gonna be restrictedin brands and categories So, if you’re workingwith the right suppliers they can actuallyget you ungated and approved, unrestrictedin those categories But if you’re looking tohave the right education you know, findingthe right suppliers I actually put togethera free 4-day training where you can actuallygo with all of that So, it breaks downto 4 days where You know, day 1, I’m goingover the business model and also product research You know, day 2, I actually goover about like, finding suppliers Day 3, I go over aboutungating, getting approved And day 4 is reallyabout scaling and a bunch of miscellaneousin between there But anyway, if you’relooking to learn about that you can click thelink down below or you can go toonlineretailmastery.
com to get access tothe 4-day training But if there’s any other questionsabout, you know, online retail or wholesale, or whatever you have be it comment them down belowand I’ll be answering your questions But, have a good day, and I’ll see you in the next video.