Internet Mastery Accelerator 3

Internet Mastery 3 – “Everything Wholesale” was an extraordinary event. Make sure to get your ticket now for IM Accelerator 4 before the price increases!

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Unfortunately there was a technical issue with the recording for session #1. The keynote slides used for session #1 are as shown below. Unfortunately without a recording there would be no cliff notes from session 1.

Wholesale Business Fundamentals

• Understanding Wholesale vs. Retail
  • Wholesale involves buying in bulk from a distributor or manufacturer.
  • Retail involves selling individual products to the end customer.
  • Sellers on platforms like Amazon, eBay, Poshmark, Macari, Etsy, Walmart, Shopify, or WordPress are considered retailers.
• Supply Chain Model
  • The end customer purchases from the retailer (seller).
  • The retailer purchases inventory from a source, which can be a retailer, distributor, or manufacturer.
  • Distributors are often referred to as wholesalers and act as intermediaries for manufacturers.
  • Manufacturers and distributors can sometimes be the same entity.
• Wholesale Process Overview
  • Purchase from a distributor in large quantities.
  • Receive inventory at home or a prep center.
  • Label and prep products.
  • Send products to Amazon for fulfillment.
  • The goal is to buy in large quantities to achieve a low enough price for profitable resale to the end user.

B2B Opportunities and Consumable Products

• Business-to-Business (B2B) Sales on Amazon
  • Significant B2B activity occurs on Amazon and other online platforms.
  • Focus on products suitable for businesses, such as office supplies and cleaning supplies.
  • B2B sales allow for selling in bulk and offering volume discounts.
• Target Sectors for B2B
  • Healthcare
  • Education (e.g., school supplies, summer camp materials)
  • Government
  • Commercial (approximately 50% of the breakdown)
• Consumable Product Strategy
  • Identify products that are regularly consumed and require repeat purchases.
  • Example: Insulin pen needles, which are consumable and purchased in bulk by health practices.
  • Example: Urinal screen deodorizers, which are bought in multiples by businesses like bars, restaurants, and movie theaters.

Private Label and Own Brand Development

• Sourcing from Manufacturers (Alibaba)
  • Alibaba is a platform for finding manufacturers, not a wholesaler.
  • Allows for creating a private label product with custom branding and packaging.
  • Offers potential for endless supply and better pricing compared to branded wholesale.
• Profitability Example (Insulin Pen Needles)
  • Cost per piece from manufacturer: 2.2 cents.
  • Cost per box of 100 pieces: $2.20.
  • Selling price on Amazon: $12.97.
  • Net profit per unit: $4.76, representing a 216% ROI (before shipping).
  • Shipping costs for light items like needles are marginal.
• Benefits of Own Brand
  • Higher profit margins.
  • Reduced reliance on a single platform like Amazon; products can be sold on Walmart, eBay, and a dedicated website.
  • Builds a saleable business that can be resold for a higher multiple of annual sales.
  • Provides a recession-proof opportunity by diversifying sales channels.
• Product Idea Generation
  • Focus on finding a product idea first, then reverse-engineer to find a supplier.
  • Use existing product categories (e.g., diabetic supplies) to identify related items for a product line.

Amazon Listing and Authenticity

• Listing a New Private Label Product
  • Required elements: product name, photo (can be temporary), UPC code, title, description.
  • Crucial Step: List the item on Amazon before placing any orders to check for category or product restrictions.
  • Category restrictions are generally easier to overcome or are auto-ungated (e.g., Health and Household is not gated).
  • Brand restrictions apply when trying to sell an established brand’s product without proper authorization.
• Addressing No Sales Velocity for New Brands
  • New brands will have no existing sales history or recognition.
  • Strategies to build traction:
    • Sponsored advertising on Amazon.
    • Utilize the Vine program by giving away 25 units for free to generate reviews.
    • Encourage friends and family to purchase to boost initial sales rank and reviews.
• Authenticity Claims and Alibaba Sourcing
  • Problem: Buying unbranded products from Alibaba/China and attempting to sell them on an existing Amazon listing for a branded product.
  • Reason for rejection: Even if the physical product is identical, it is considered inauthentic because it does not carry the brand and packaging expected by the buyer from the original listing.
  • Solution: When sourcing from Alibaba or similar platforms, always create a new, unique listing for the private label product. Do not list it on another brand’s ASIN.

Business Registration Requirements

• For US Wholesalers:
  • A registered business (e.g., LLC).
  • An Employer Identification Number (EIN).
  • A sales tax ID.
  • Prime Corporate offers free business registration (state filing fees apply).
• For International Sourcing (e.g., China):
  • These documents are not required when buying directly from manufacturers in China.

Next Steps

• Customer Support will:
  • Post the Prime Corporate link in the group.

Business Entity Building and Exit Strategy

• Focus on building a business with a clear exit strategy.
  • E-commerce businesses typically sell for 3 to 5 times annual sales.
  • A consumable product is crucial for higher business valuation and easier scaling.
  • Businesses with intellectual property are more attractive to buyers than retail arbitrage or wholesale models.

Operational Guide for E-commerce

• Product Sourcing:
  • Manufacturer/Supplier: Identify wholesalers, distributors, or manufacturers.
  • Logistics and Transport:
    • Prep Center: Used for products not manufactured by the seller.
    • Direct to Amazon: Possible if manufacturing own product and printing FNSKU barcode directly on packaging.
• Inventory Management (for own manufactured products):
  • Weekly Inventory Check: Log into Amazon weekly to assess remaining inventory.
  • Ordering: Order enough units to cover the next week’s sales, aiming for 45 days of inventory.
  • Shipping Labels: Generate shipping labels using Prep From Home for better pricing (or Seller Central for higher cost).
  • Supplier Communication: Email shipping labels to the manufacturer, who then ships directly to Amazon without additional prep.
• Long-Term Vision: The process aims for operational freedom, where weekly tasks are minimal once the business is established.

Wholesale Sourcing Strategy (US-based Distributors)

• Niche Down: Focus on specific categories, subcategories, and brands.
  • Example: Video Games -> Nintendo -> Switch.
• Ungating Process:
  • Brand-Specific Invoices: One invoice for a specific brand (e.g., Nintendo Switch) can ungate multiple products within that brand/platform, even if the specific product is not on the invoice.
  • Check Restrictions: Not all products within a brand are restricted; some may be listed without prior approval.
• Finding Wholesalers:
  • Google Search: A primary method for finding suppliers.
  • AI Tools: Utilize AI platforms like Gemini, ChatGPT, and Claude for supplier research.
    • Gemini: Provided a list of 25 suppliers with contact info in a chart format, but struggled with direct CSV download.
    • ChatGPT: Provided a list of 19 suppliers, some of which were not dedicated video game wholesalers, but offered a direct CSV download.
    • Claude: Considered the most effective, providing a list and direct CSV download with comprehensive details.
  • Consolidate Lists: Combine and deduplicate supplier lists from various AI sources into a single spreadsheet.
• Wholesaler Application:
  • Apply Broadly: Apply to all potential suppliers (e.g., 20+ from the compiled list) as applications are typically free and do not require immediate orders.
  • Initial Order Expectation: Be prepared for initial orders between $1,000 and $2,000 once approved.
  • Video Games as a Starting Niche: Recommended due to being lightweight, easy to ship, high sales volume, profitability, popularity, and effective invoices for ungating.

Leveraging Amazon Affiliate Program with WordPress

• WordPress Website: Build a website using WordPress.
• Amazon Plugin: Install an Amazon plugin on the WordPress site.
• Automated Product Display: Input a seller ID into the plugin to automatically display all Amazon listings on the website.
• Amazon Associate ID: Sign up as an Amazon Associate (affiliate) and integrate the Associate ID into the plugin.
• Dual Income Stream:
  • Earn from own product sales on Amazon.
  • Earn affiliate commissions from Amazon for referring traffic from the website.
• Expanded Affiliate Earnings: Earn a percentage on all items purchased in a customer’s Amazon shopping cart, not just the specific product referred from the website.
• No Inventory Required: This model allows earning without holding any inventory.
• Curated Content: Feature own brand products alongside other top-selling products (found via tools like Spy Rivals) on the website to maximize affiliate potential.

Future Training and Events

• Upcoming Internet Mastery Accelerator #4: Scheduled for 5-6 weeks from now.
  • Topics: Listing items (including bundles and own products), multi-channel fulfillment (eBay, Walmart, own website with Amazon’s multi-channel), and strategies for gated items.
  • Cost: $200 during the event, increasing to $300 afterward. Includes replays and 200 prep credits.
• Dedicated Events:
  • An all-day event on the proper way to list items not currently on Amazon.
  • A full-day event on affiliate marketing.
• Event Schedule: The current 2.5-day event is the last of its kind in 2026. All future events from 2027 onwards will be held on the Internet Mastery at Sea Cruise Conference.

Action Items

• Customer Support will:
  • Host an all-day event on the proper way to list items not on Amazon.
  • Host Internet Mastery Accelerator #4 focusing on listing items, multi-channel fulfillment, and gated items.
  • Host a full-day event on affiliate marketing.

Wholesaler Vetting and Application Process

• Prioritize application over vetting:
  • Apply to wholesalers first.
  • Vet only those who approve the application.
• Vetting steps for approved wholesalers:
  • Verify address via Google Maps:
    • Input the wholesaler’s address into Google Maps.
    • Confirm it is a legitimate business (storefront, warehouse), not a self-storage unit or residence.
  • Assess website professionalism:
    • Ensure the website appears professional.
    • Check for product consistency (e.g., a video game wholesaler should not also sell protein powder and tea).
  • Review customer feedback:
    • Be cautious of websites with a high volume of five-star reviews in a short period (e.g., 20,000 reviews for a seven-month-old site).
    • Conduct due diligence, as AI-recommended suppliers are not automatically five-star.
• Contacting wholesalers:
  • Online forms:
    • The easiest, fastest, and best method if available on the website.
    • Avoid emailing if a form exists, as it may suggest a lack of understanding.
  • Email:
    • Use for websites without an application form.
    • Suggested script: “Hello, I am a retailer located in [location] and am interested in opening a wholesale account. Please let me know what you need from me. I look forward to hearing from you.”
  • Phone calls:
    • Acceptable if an application is not approved.
  • In-person:
    • Historically effective but less so in 2026 due to declining trade shows.
    • Good for local businesses or referrals.

Negotiation Strategies

• Handling “We don’t work with Amazon sellers” objection:
  • Never lie about selling on Amazon.
  • Ask “why”: Understand the wholesaler’s specific reasons (e.g., bad experiences, price undercutting, direct competition).
  • Propose alternative selling channels:
    • Offer to sell products exclusively on a personal website, not on third-party platforms like Amazon, eBay, or Walmart.
    • Build a relationship by demonstrating sales volume and business capability through the personal website.
    • Later, inquire about selling clearance or overstock items on Amazon.
  • Leverage a personal website: A personal website becomes crucial for brands that do not want products sold on Amazon.
• The Objection Cycle:
  • Ask: Request to buy from the supplier.
  • Receive “No”: Do not stop at the first “no.”
  • Agree and ask a question: Acknowledge their objection (e.g., “I understand you don’t sell to Amazon sellers, that makes sense to me. However, can I ask you a question?”). Use “however” instead of “but.”
  • Offer a solution: Provide a solution to their objection (e.g., “Would I be able to sell your products if I didn’t sell them on Amazon, but only on my own website?”).
  • Be patient: Wait for their response.
  • Repeat: If the answer is still “no,” reiterate understanding, offer another solution, and ask another question.
  • The cycle continues until a “yes” is received or the vendor stops providing reasons for their refusal.
• Confidence through information:
  • Conduct thorough research to understand the market and other suppliers.
  • Knowing that a supplier is one of only a few in the US, or that others are selling their products on Amazon, provides leverage.
• Strategic questioning:
  • Employ questions like, “When would now be the best time for me to start selling your products on Amazon?” to subtly influence responses.

Pricing and Discounts

• Understanding wholesaler pricing models:
  • Per-unit pricing: Requires buying a minimum number of units (e.g., 24, 48 units, or a case). This can be problematic if sales forecasts (e.g., from Spy Rivals data) indicate lower demand than the required purchase quantity.
  • Dollar volume pricing: Requires spending a minimum dollar amount (e.g., $1,500) regardless of the specific product mix. This is preferred as it allows for more flexible purchasing of various items to meet the total volume.
• Tiered discounts:
  • Most suppliers offer tiered discounts based on purchase volume, but they often do not volunteer this information.
  • Always ask about tiered discounts after an account is opened.
  • Discounts typically range from 10% to 25% off the already discounted wholesale price, based on units purchased or money spent.
  • Understanding these tiers helps set long-term goals, even if the highest tier is not immediately achievable.
• Profit calculation:
  • Profit is primarily determined by the buying price, not the selling price.
  • Securing better buying prices through volume discounts significantly increases profitability.

Mark Leas’s Business Update

• Current revenue: Approximately $930,000, aiming for $1 million.
• Amazon account challenges:
  • Currently experiencing “Amazon hell” with an upcoming interview on 2/24 to verify identity and invoices.
  • Similar to a previous experience where Amazon requested a death certificate to verify a deceased account holder.
• Jerky product supply issue:
  • Unable to obtain more jerky product due to a fire at the supplier’s plant.
  • The supplier is attempting to use other locations for smoking and packaging but has not yet resumed supply.
  • Mark and Susan have an agreement to sell the brand’s jerky, not a private label.
  • Consideration for private labeling with other manufacturers faces high upfront capital requirements.
• Business split:
  • Approximately 40% wholesale and 60% retail arbitrage.
  • Wholesale volume increases in Q4.
  • Retail arbitrage remains a significant part of the business, especially for consistent reorders.
• Retail arbitrage reorders:
  • It is possible to find products from retailers like Target and Walmart that can be consistently reordered, contrary to the common belief that clearance items are one-time purchases.
  • Success lies in identifying specific niche products.

New Initiatives

• Internet Mastery Podcast:
  • A new program is being developed, similar to the “Team Up Tuesdays” interview format.
  • The goal is to film 40 podcast episodes featuring interviews with Accelerator list members.
  • The podcast will cover challenging topics and different perspectives.

Action Items

• Customer Support will:
  • Send an invite to Mark Leas and Susan for the first Internet Mastery podcast episode within the next 10 days.
• Mark Leas will:
  • Participate in the Internet Mastery podcast interview after 2/24.

Wholesale Analyzer Overview and Strategy

• Wholesale Analyzer pricing is now $3.99 and $5.79 for three months of NAD.
• The tool is in beta, and any bugs will be fixed.
• It is considered the single greatest tool for wholesale product sourcing, automating manual lookup processes.
• To use, upload a CSV file containing product data, with at least one UPC code column.
  • A sample CSV file for download will be added to the platform.
• The analysis process takes approximately 7-8 minutes for 1895 items.
• Data displayed is similar to Spy Rivals or BOLO search, indicating selling status (green) and profitability (red).
• Key data points include net profit, ROI, buy box, ASIN, rank, category, subcategory, and number of sellers.
• The data shown in the demonstration was four months old, so it is not 100% accurate for current market conditions.
• Filtering Strategy:
  • Set a minimum ROI of 30% for wholesale products.
  • Filter by rank, initially less than 100,000, then refined to less than 75,000.
  • Prioritize sorting by rank (best-selling) over profit, as all items meet the minimum 30% ROI.
  • Inventory Strategy: Go wide rather than deep; split purchases across five to eight products instead of buying many units of a single product, even if it sells quickly.
• Wholesale Analyzer significantly reduces time spent on manual product research, eliminating the need for extensive copy-pasting and checking for profitability or Amazon presence.
• The search function for specific brands (e.g., Nintendo) needs to be fixed.
• Product Examples:
  • Adam’s Venture: Potential deal with a buy price of $14, selling for $30, and 20 units/month. Negotiating the buy price to $11 could yield a 32% profit.
  • Flipper the Pets Friendly Edition: Profitable with a 45% profit ($9 profit per unit) and 8 units/month sales.
• The refresh function re-analyzes the uploaded catalog with real-time data, saving the hassle of re-uploading the same file.
• It eliminates products not found on Amazon from search results.
• Recommendation is to upload new catalogs weekly (e.g., Mondays) to ensure updated data.

Wholesale Process and Ungating

• Wholesale Sourcing Steps:
  1. Get application approved.
  2. Vet the wholesaler.
  3. Obtain product catalogs.
  4. Determine volume discounts, preferring dollar volume over units.
  5. Upload catalogs into Wholesale Analyzer.
  6. Utilize the generated Spy Rivals data for analysis.
• Professionalism for Applications:
  • Using a professional email address that matches the website domain name increases the chances of wholesale application approval.
• Ungating Process:
  • Only the wholesaler’s invoice is required for ungating products.
  • Do not provide additional information like box labels or shipping addresses if they differ from the invoice, as this can lead to rejection.
  • When submitting an invoice, ensure the “bill to” address matches the Amazon account’s address on file, and the “ship to” address can be the prep center’s address.
  • To prove invoice authenticity, provide a paper trail including screenshots of the initial email, attachment, and the invoice itself (both screenshot and PDF).
• Wholesaler Competition:
  • Avoid buying from or competing with distributors/wholesalers who also sell on Amazon, as they can always undercut prices.
• Spy Rivals Data Interpretation:
  • Monthly sales figures from Spy Rivals indicate how many units you will sell, not the total market sales.

Internet Mastery Events

• IM Accelerator 5.0:
  • The price will increase from $199 to $299.
  • Current attendees receive the early bird price.
• Internet Mastery Live Event:
  • Scheduled to take place in Boca in two weeks.
  • Attendees are asked to confirm their attendance (in-person or virtual).

Action Items

• Customer Support will:
  • Fix the search function within Wholesale Analyzer.
  • Add a sample CSV file template for download within Wholesale Analyzer.
  • Add a suggested template for download inside Wholesale Analyzer.
• Bob and Tammy Lewullis will:
  • Get tickets for Accelerator 4.