Derek FBA

$10M sold on Amazon and Walmart via wholesale model

[Derek FBA @DerekFba]

How to start Amazon wholesale in a few steps:

1. Open your LLC and get an EIN

You want to open your LLC in a business friendly state. If you are in cali, register in Wyoming, etc. This will save you the $600+ annual filing fees.

[Derek FBA @DerekFba]

Other benefits of having a warehouse:

✅ Sleep easier knowing you have quality control and someone can't steal your inventory
✅ Lower per unit costs allowing you to sell lower cost / high volume items
✅ Many wholesale companies and brands won't sell to you without one

[Derek FBA @DerekFba]

People seem to think that having a warehouse with staff is like an 8-5 job requiring you to be there all day.

This couldn’t be further from the truth.

I have two warehouse locations, one is 50 miles away.

I have competent managers overseeing both operations.

[Derek FBA @DerekFba]

Meaning I almost never have to show up to them.

They ship FBA and 100’s of FBM + Walmart orders per week.

It’s taken time to develop but by hiring good people, trusting them, and delegating I now have my own prep centers with lower prep costs than if I outsourced it.

[Derek FBA @DerekFba]

By taking both present and future business expenses this month instead of in January, I am shaving tens of thousands of dollars off my taxable income.

Obviously I’m not a tax expert, this isn’t tax advice and always consult a CPA. 😅🤣

[Derek FBA @DerekFba]

Here's a list of items I've purchased in the last month for the business which will also reduce my taxable income for the year:

1. New computers for staff and myself ($4k)
2. Water dispensers for the office ($400)
3. Annual software subscriptions instead of monthly ($1k)

[Derek FBA @DerekFba]

More business expenses taken this week that will reduce my tax bill:

1. Prep center invoices
2. Uline invoices
3. Freight invoices
4. CPA invoice

Paying future expenses by tomorrow will reduce your tax bill. Just make sure your cash flow supports it.

[Joe Pompliano @JoePompliano]

Today I learned Stanley is a 110-year-old company that went from doing $70 million in sales in 2019 to $750 million in sales this year solely because of this water bottle. That’s incredible.

[Derek FBA @DerekFba]

Post Christmas sales depression is officially here. 😂

[Derek FBA @DerekFba]

Over 300 merchant fulfilled orders due out today. 😯

[Derek FBA @DerekFba]

I think non-chocolate FBM meltables like candy are generally more profitable through the “meltable offseason” due to less saturation. Most meltables actually decrease in price with more FBA offers from Oct-Apr months.

[Derek FBA @DerekFba]

@mooreflippin Shipping is around $70 per pallet where I am.

[Derek FBA @DerekFba]

@mooreflippin Over 500 boxes is $0.60 at Uline w no sales tax.

[Derek FBA @DerekFba]

@Cristianpolo01 @Jimbob777675 @mellayella423 That means if he started with $25k he’s turned it into $46k

[Derek FBA @DerekFba]

One thing I love about wholesale is I’m not married to a product. Once it isn’t profitable anymore I just dump it and move on after setting up my price alerts on keepa. Usually it rebounds after a while.

[Derek FBA @DerekFba]

Can someone let me know / screenshot these Generic and misbranded violations on Amazon? How are you resolving them?

[Derek FBA @DerekFba]

@SerendipityOA @BenAmzn

[Derek FBA @DerekFba]

@Jonah_FBA Do you have the option to acknowledge the violation instead of appealing it with invoices?

[Derek FBA @DerekFba]

@eazyyyyyLad12 @amzncynthia @Joeyrwheeler72 https://t.co/ePLJNfgBiP

[Derek FBA @DerekFba]

@AdamChudy S&L was $7 and under maybe 2 years ago so even $10 is still pretty good. Sucks when you’re building brands around the $12 price point though.