The Importance of Building Relationships with Suppliers
Bob Schneck, the lead instructor at ALGO Online Retail, put together a new Youtube Video to explain the importance of building relationships with wholesale suppliers.
Suppliers are the heart and soul of your Amazon business.
Bob Schneck says to be a successful Amazon seller, you need to know how to order the right product and the right amount of products.
In the video, Bob Schneck tells ALGO students the first thing they should do when contacting suppliers.
Just have a genuine conversation with them! Tell them who you are, what you are doing, and what you are trying to accomplish.
Make sure you are doing what is best for your Amazon business. The first thing to ask a supplier is how much inventory they actually have.
It is important to know how much inventory they have as well as their minimum order quantity (MOQ).
The next thing to ask is if they are selling to other Amazon sellers.
These questions are crucial to ask when speaking with suppliers because it helps you decide the right amount of inventory to buy.
For example, say you have done the research and found a profitable product to sell. The supplier tells you the minimum order quantity (MOQ) is 200 units, but he has a total of 1000 units.
People may be tempted to only buy 200 because that is the supplier's MOQ. If the supplier sells to other Amazon sellers, then that leaves the remaining 800 units for them. This creates more competition for that product.
Bob Schneck likes to buy inventory that he can turn over in three months. That way after two months he can restock his inventory appropriately for the next three month period.
Bob also touches on negotiation strategies to lower the MOQ or have suppliers reserve inventory for you in the new YouTube video.
All of this stems from creating an authentic relationship with your suppliers. Do not be afraid to send them a thank you note, or a gift certificate to a nice restaurant.
You want to become their favorite buyer, so they give you priority on things like their new inventory.
Always continue to contact suppliers and add to your personal database.
Check out the YouTube video here.
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