Why manufacturers&wholesalers need you to sell on amazon,etc?

6 replies
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this always been on my mind. I been reading people going to trade shows etc and reaching out to wholesalers , distributors and manufacturers to create an account with them so they can sell their products on Amazon.

But why would they need us doing that? are not most of them already selling their own products on amazon themselves?
#amazon #sell
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  • Profile picture of the author itstrisha
    I have noticed this I guess but what can we do. Many people are selling their products on amazon.
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  • Profile picture of the author Deevoo
    Maybe because more accounts selling the same products can somehow move it faster.?I don't know how this works, I'm just speculating. I bumped this so maybe someone can share some insight.
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  • Profile picture of the author Fred Kimberly
    I agree with Deevoo that when more people are selling same product it multiplies the sales and of course increase their margins.

    Manufacturers and suppliers also offer OEM services so its easier for them to find the brands and private label sellers.

    When several sellers are selling a product, it helps the manufacturer to achieve the economies of the scale. It allows them to offer lower prices to their wholesale clients.

    All this activity ultimately leads to more profits and helps in expansion of their business.
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  • Profile picture of the author ezekielfaust
    Good question. Why aren't these manufacturers listing their products themselves and directly selling?
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    • Hi Ezekielfaust,

      Amazon is one of the most popular market place in worldwide, so comparing to this market place a manufacturer takes time to get popular with its quality products and service.

      Whereas all customers are aware of Amazon, so majority of the customers will prefer Amazon to purchase a product rather than finding out which manufacturer sells good quality product they need.

      Also, a manufacturer can research the product price, their competitor is selling on Amazon and offer good discount and lead time, as customers always would prefer to buy product at low cost and quick delivery.

      So believe this is may be a reason why manufacturers not listing their products themselves and directly selling.
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  • Profile picture of the author dave_hermansen
    These manufacturers may very well be selling their products on Amazon. If they are smart, they have a M.A.P. policy in place that does not let their retailers sell their products for less than them. The fees they pay to Amazon are almost certainly less than what they lose selling wholesale to retailers.

    While it is true that they may lose some money by competing with themselves against companies that they have to sell to for cheaper than an Amazon sale costs, the exposure their product gets when there are tons of ads for it on Amazon as well as the increased volume of sales are well worth it.

    The real question should be, "Why are the retailers only selling on Amazon?" They should not only have their own website, but they should be advertising their own website on additional channels, too.
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