Attached is the picture with a brand I have scored a exclusive contract with.
My question is that I need advice on how to answer to this email. I understand that less sellers are better for me and that it is easier to control the market price versus other sellers.
Please advise.
Thanks,
Phong
This sounds too me like they don’t understand how Amazon works. There is no reason to have different sellers to cover different regions because Amazon will distribute the product to their warehouses across the country.
In addition, the number of sellers selling a brand is not important for marketing. It is in fact easier with one seller because you can trust all of your data more and do not have to coordinate with other sellers on campaigns.
What I am much more concerned about is the opportunity. Are they asking you to invest $60,000 in a product that has never been on Amazon? It sounds like the brand is new to market and they have immediate sales expectations. There should be zero expectations. There can be no guarantee of success with a brand new product.
It also sounds like they have money problems which seems like a red flag to me.
Thank you for the response Keith,
You’re right about the Amazon distribution system if it was FBA. He is talking about FBM in this case. In 2018 there was approximately 37% of amazon users that do not have FBA and were buying FBM. I do not believe having more sellers using FBM in different locations would make too much of a difference, as long as there is the opportunity to buy FBM is there is what really matters in my opinion.
I have already signed an exclusive contract and they have one product. I was inquiring about a future product that is adding value to the single product of theirs I’m selling now.
We’ll have a meeting by the end of August to see where we’re at and how to best improve the sales performance and value of the brand.
