For those that have been around the Amazon world, or even just the making money online world, for any period of time have most likely heard of Todd Snively. Todd has been making money online since 2002 and has trained over 6,000 students on the advantages of using Wholesale Distribution to make money online.
With so many ways to make money with just Amazon as a business model, we asked Todd why it is he feels so strongly that everyone should start with wholesale distribution.
"The short answer is risk. It is, by far, the least risky way to create online profits. There are not as many moving parts as with other business models like "Private Label" for example, and it gives the budding entrepreneur a real chance at success. They can choose to scale up the wholesale model, or reinvest their profits in riskier, higher reward models." - Todd Snively co-founder of Expert University.
Many people get confused with the differences between wholesale and retail/online arbitrage. Arbitrage is simply taking advantage of pricing inefficiencies in the marketplace and trying to capitalize on those inefficiencies by buying low in one marketplace and selling higher in another. Without getting into all of the gory details, understand that this model is against Amazon terms of service in several ways, and is just flat out very difficult to scale and have any level of sustainability.
Whereas, buying from established wholesale distributors, you have the opportunity to order in quantities that allow for nice profits, and the ability to reorder, all from the comfort of your home/office, rather than running around to every Big Lots in town trying to buy up one time discounted items.
The hurdles with wholesale distribution are:
1. Finding suppliers that will work with you;
2. Finding profitable products from those suppliers; and
3. Minimizing the affects of competition.
When Todd began helping others over five years ago, he quickly recognized that there were many Amazon sellers located outside of the United States that were having trouble opening up accounts with wholesale distributors. While there really isn't a valid reason for a wholesaler to avoid working with Amazon sellers located outside of the US, the fact of the matter is that many of them will not open an account for someone located outside of the US.
It was for this main reason that Todd invented the Wholesale Buying Club. He wanted to make it easier for people to have access to wholesale products to resell on Amazon. Eventually word got out that you could purchase hundreds of thousands of brand name products to resell profitably on Amazon, from a single location and the Wholesale Buying Club began getting members from not only all over the world, but from within the United States as well, simply due to the convenience factor and the fact that Todd was passing his volume and buy down discounts along to his members.
For more information about the Wholesale Buying Club, please click here.