Richard and I sat down for our weekly ‘cup of tea’ catch up last week.
For more than two hours, we talked about all things eCommerce, FBA, Shopify, DTC, and – of course – Amazon aggregators.
The conversation, as always, turned to our many and varied video calls with Amazon sellers over the previous 7 days.
From this, we concluded two things.
Connecting to so many like-minded individuals continues to be our single most favourite aspect of this business.
A very clear trend is now developing between the type of businesses that attracts Amazon aggregators, and the ones that the vast majority of buyers pass on.
This leads me to the purpose of today’s blog post.
Don’t run out of stock
Let’s face it.
Moving inventory around the globe has been particularly challenging this year.
And if you’re still playing catch up from those heinous Amazon restock limits from 2021, you are not alone.
But here’s the deal.
If you want to sell your Amazon business in 2022 and, more importantly, achieve the maximum valuation, you absolutely must get a handle on your stock.
Let me explain:
Since the beginning of January, nearly 400 Amazon FBA and Shopify sellers have contacted us through this website.
Of the 400 businesses, 10% were under the revenue and / or margin thresholds required by Amazon aggregators.
And the rest?
70% were rejected in the first round.
Of this 70%, at least half were extremely attractive businesses but for one thing.
Most, if not all, of the brand’s top-selling ASINs were consistently out of stock.
The financials, as a direct result, just didn’t hit the mark.
Get some perspective
Now I know what you’re thinking.
‘Not running out of stock’ is easier said than done.
And of course:
When you’re deep in the Amazon trenches, dealing with a myriad of daily headaches, it is hard to gain perspective.
But there is an answer.
One that does not involve more inventory spreadsheets which, in our experience, have been the downfall of many of the sellers we have spoken to.
It sounds simple. And it is.
Over the course of our 8 long years running an Amazon business, Richard and I subscribed to countless tools, software, and professional services.
Yet when it came to managing inventory, we both went down the rabbit hole of bespoke spreadsheets.
Wasting thousands of revenue in the process.
With the benefit of our shared experience, I make just one recommendation for you.
Before closing down your computer today, consider taking a few hours out to research inventory software.
Because moving over to a more automated stock control could make or break your Amazon business this year.
Amazon aggregators love it when you’re seen to be proactive with process improvements.
Particularly when they directly benefit the bottom line.
Take action today, and stop the rot of zero inventory.
Oh, and if you’re feeling lazy and don’t have the time to research, our favourite inventory management tool is RestockPro (no financial affiliation!).
Like its sister software – and original gangster – FeedbackFive, RestockPro kicks butt when it comes to helping you run your Amazon business.
Both products featured prominently in the success of our own FBA businesses and come thoroughly recommended.
Right, that’s it for another week.
Here’s to a productive Friday.
This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.
To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.
You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.
Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.