I get some people who aren't in the business of selling on Amazon
have a very scarce mindset
And they're like, Beau, Amazon's on every single product
Alright, so this morning, I wasn't playing the piano
but I was near the piano on a call with actually a supplier of mine
And I was kinda vaguely trying to like
tell him I wanted to buy out his business
or like, make this huge partnership
But we were talking a little bit
and he was kinda explaining how, you know, Beau
Like, 'cause this is literally our first conversation
He's like, you should also
Like, don't just work with me 'cause I'm gonna start working with him
and just buying products from him
He's like, go also work with other suppliers that are
And he was literally naming off his competitors
And he started naming off his competitors
and he was like, oh yeah, I know
sometimes XYZ company may have a better deal
on us than this product
But in another day, we may have a better deal on this
Like, we may do really good on this type of goods
but then they may do that
So he was very, had a huge abundant mindset
I was like, you know what
Like, there's a lot of business to be done
I get a lot of complaints from
Or, not a lot of complaints
I get some people who aren't in the business of selling on Amazon
have a very scarce mindset
And they're like, Beau, Amazon's on every single product
Like, well, first off, let's
like, bring up some facts and numbers
Amazon is roughly 40% like, Amazon
The sales that happens on amazon.com
Amazon themselves is about 40%
58%, it's been closer to 60% above
this year is from third-party sellers
And if you take up
Like, you know, Amazon also sells Kindles and their Fire stuff
and all these goods
Like, that's, like, you count that in that box as well
But here's why Amazon wants more third-party sellers
and has third-party sellers
So Amazon got started off by selling books themselves, right?
And they wanted to be the everything store
selling everything and anything
But then they realized, okay, for us to do that
we need to be really good at one category
They started with books
And when they actually wanted to expand
they started to try to make partnerships with retail stores
who are already selling goods
One retail store that you probably know of, Toys R Us
In the early 2000's, Amazon made a deal with Toys R Us
They're like, okay
'Cause Amazon realized that for us to sell
every single product that's imaginable on the internet
we can't do it ourselves
That we're one company, but there's so many different connections
there's so many different distributors and suppliers that
it's not possible for us, you know, Amazon
Like, they tried to do it, and they probably could do it
but they couldn't do it effectively
There'd be too many issues with pricing
there'd be way too many resources
They're like, you know what
we're just gonna be a customer service company
We're just gonna provide the right value to customers
Provide, you know, the right site
And then we'll allow sellers to do it
So they started off with retail stores
It worked out okay, and then it didn't work out too great
They had a bunch of lost inventory
So then they're like, okay, fine
Then actually, in, later in the 2000's and like
early 2010, they actually made partnerships with distributors
I actually have a relationship with a supplier of mine
who was a big shot
Like, they were huge
They were, at one point
they were doing like 90-something million dollars a year
And their main business was actually selling to Toys R Us
a couple of big box stores
And they also had a huge portion of their business for like
two years straight off of selling on Amazon
And Amazon, how it used to be
that you would actually sign an individual contract
with Amazon and you as a seller
And the individual contract would actually explain your fees
So the fees weren't the same for everyone
So, this distributor, they were telling about how they
used to not have like
They would have like, $1.50 or like, $2 less than everyone else
So like, you know, if you're selling products that are like, in the
$25 and less range
If you can make $2 more than everyone else
that can be the difference of like, selling a product
'Cause then it could just be $2 less than everyone
And then everyone else is out of business
So, they later figured out that when they partnered with distributors
Like, they weren't the best on selling direct-to-consumer
They were not the best on handling like, what sells best to retailers
They were really good with logistics
They were really good with like, the, getting the inventory
But they weren't really the best at managing
both sides of their business
So they're like, you know what, it works for eBay, let's try it
Let's have, open up to third-party sellers
So now, the goal, intent of a third-party seller
is to be able to go find products
So me, as a third-party seller, my intentions and what I do everyday
is find profitable products
So now, if you look at
Let's say, or just one supplier sells on Amazon
Let's go back to the story
that I had a conversation with my supplier today
That they told me
Literally, them themselves
They told me to go source from their competitors
whatever you wanna call 'em
People that are in the same exact supplier as them because
Suppliers sell like, there
Like, there could be a video game supplier, right?
And there could be 10 other video game suppliers
that are similar to them
He was literally telling me to go buy from those other ones
So let's go back to the story
If there's just one distributor selling on Amazon
the issue with that is they're not comparing pricing
They may be, not be able to go sell certain products
because it's not making enough profits
When in reality, they should be putting their focus on
selling to retailers
who may be able to go profit elsewhere on that
They could be selling on eBay or Amazon or other marketplaces
And now, as me, as a retailer
you know, a third-party seller
I can work with multiple suppliers
who have access to all the types of deals
So now, Amazon's whole goal is they want the most amount of inventory
So it's kinda, think of the chain or whatever you wanna call it
You have manufacturer who can manufacture a set amount of products
Then a distributor carries not only
like, one brand of a manufacturer's products
they also carry a bunch of different brands, products
And then a retailer works with many different suppliers
So now they're carrying so many different types of brands
So that's really the main reason why
Is, a seller can go find so much more inventory
And like, as Amazon partnering up with third-party sellers
you know, there can be so many more sellers and just one Amazon
So Amazon, they're just one company
A distributor can go and be one distributor
But when there's hundreds of thousands of sellers who are then
trying to go find all the different types of products
So there's like 500 million products on Amazon
It's not possible for one distributor to own 500 million products
or Amazon themselves to sell 500 million goods
So, that's practically the reason, and I think it's good
You know, it's good to have a fair market
'Cause people are incentivized to grow, so people improve over time
If Amazon was the only seller, in my opinion
they wouldn't be too incentivized to like, have the best products
They would not be incentivized to come out with the best goods
Now with the manufacturer and the brands knocking the door
saying, hey, can you come out with better products?
Yeah
So, make sure to subscribe to this YouTube channel
I'll be dropping more information and tips about selling on Amazon
If you want to learn how to sell on Amazon
by selling name brand products
I actually just came out with a free 4-day training
where I cover, you know, the business model
how to find suppliers, how to do the right product research
how to get ungated in brands and categories
and also how to scale to the next level
Is, go to my description on YouTube
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where you can get access to a 4-day training
where I just go, just create content for 4 days
So anyway, make sure to subscribe
Have a great day, and I'll see you in the next video