Amazon has undoubtedly changed the way consumers and business owners buy products. Thanks to the e-commerce giant, competition among sellers have never been fiercer. To stand out from the crowd and compete with Amazon, you need a strategy:
- A plan for identifying key buying trends that your target audience is most likely to search for in the broad category of your product niche;
- A plan for negotiating attractive wholesale prices with manufacturers who can meet demand at cost;
- And a strategy for packaging up your product, so it’s ready to ship via Fulfillment Centers.
If you are looking to sell products online instead of relying on Amazon as an intermediary, then you’re going to want to read this article.
Here we’ll explain how to “buy then build ” products in a world of aggregators and how that strategy could help you succeed instead of faiing if you do decide to launch your own e-commerce store.
Table of Contents
What is “Buy then Build”?
Buying products from manufacturers is a tried-and-true strategy for launching an online store. But rather than relying on the goodwill of manufacturers who might be hesitant to sell to you for less than the retail price, it can be helpful to find a manufacturer who can produce low-volume products at a low cost. These types of manufacturers are known as “amalgamators,” and they have developed several ways to get products out of their factories and onto Amazon.
If you have the capital and the time to manufacture your own products, then this is clearly a strategy best suited for you. But if you are looking to launch a successful e-commerce store that will compete with Amazon, finding a manufacturer who can meet demand at cost is a necessary first step.
Why is “Buy Then Build” a Successful Strategy?
Amazon FBA, or Fulfillment by Amazon, is a great way to sell your products, but it’s not for everyone. If you have an idea that isn’t going to be profitable in the short term, or you’re looking for a more sustainable long-term business model, then this may not be the right fit for you.
However, if you want to use Amazon FBA to build up your brand and establish yourself as an expert in your field or even just get some extra cash flow on the side, then it can be a powerful tool.
To answer this question, we have to look at the various factors that go into making a business successful.
The first factor is scale: as you grow your business, you will need more space to store all of your products and inventory.
The second factor is risk: if you’re using an ecommerce growth agency, then there’s no risk if something goes wrong with your inventory. They’ll take care of it!
The third factor is cost reduction: buying from other sellers will save money on shipping costs, which can reduce operating expenses overall.
And lastly, there’s customer service: when you sell through an aggregator, there’s someone else handling customer support for you—and that means less time spent dealing with unhappy customers!
The main reason why “Buy Then Build” is so successful in Amazon FBA aggregators is that it forces sellers to put their best foot forward from day one. They are also called brand value accelerators. Sellers are asked to make sure their product descriptions are perfect, and their listings are optimized for maximum visibility from day one. This means that every listing looks professional at first glance and makes it clear that this seller has done his or her homework before launching his or her store out into the world!
Strategies for “Buy Then Build” at an Aggregator Marketplace
In order to find the right manufacturer, you’ll need to scan the available products at a number of different Amazon FBA Marketplace sellers. Start with a broad category, such as “pet supplies,” and see what types of products are listed. Scan your way down the list, looking for sellers who don’t list as many products in a given category as other sellers. Most likely, these sellers will be using distributors or wholesalers who are more cost-effective than the manufacturer you’re trying to partner with. Then, search each seller’s individual listing to see if their products are worth buying.
Should you launch your own e-commerce store or use an aggregator?
If you don’t have the capital to invest in the production of your products, then buying from a manufacturer who can produce low-volume items at a low cost is a great strategy for launching an online store. But once you have built your product, it might make sense to offer it in your own e-commerce store.
There are a number of advantages to launching your own e-commerce store, as we’ve discussed above. You can set your own prices. You don’t have to pay expensive fees to Amazon or other third-party marketplaces. You can add new features that you can’t add to an e-commerce store that’s hosted on Amazon.
This decision comes down to how much capital you want to commit to building your own products. If you have the capital, then you might want to consider launching your own e-commerce store.
On the other hand, an aggregator can be a great place to test demand for a new product before committing to making it. If you’re unsure which strategy to pursue, see if you can try both approaches to see which one works best for your individual business. One thing is certain: you’ll need to choose one strategy or the other, as there is no middle ground.
Conclusion
Amazon has undoubtedly changed the way consumers and business owners buy products. The e-commerce giant has both created competition among sellers and created a host of new ways for you to reach new customers. But rather than relying on the goodwill of manufacturers who might be hesitant to sell to you for less than the retail price, it can be helpful to find a manufacturer who can produce low-volume products at a low cost.
These types of manufacturers are known as “aggregators” and have developed several ways to get products out of their factories and onto Amazon. If you have the capital and the time to manufacture your own products, then this is clearly a strategy best suited for you.