Hello,
I’ve been selling for almost a year, primarily in the grocery and health & personal care categories. Unfortunately, my results have not been very good, and I’m trading at almost a break-even point when I take into consideration expenses like VAT, accounting, reports, and various programs.
I would love to hear about your successful experiences and any advice you might have on how to succeed in the UK wholesale model.
Thank you!
Are you doing FBA or FBM too? I think with FBA only in UK is becoming more and more difficult for sellers as UK is not that big as US so deliveries are easy. So FBM sellers make every listing FBM and FBA sellers don’t have margins. Even FBA sellers don’t have patience to sit on a price where everyone getting few pens but they sell on break even or in loss.
For FBA sellers only way forward is to work on to get exclusivety or go for across border.
Have you gone brand direct?
The most important thing is having a good supplier. Everything else is irrelevant if you can’t make a profit. Now, the skills and connections required to find that supplier are another matter. Then, there’s a boatload of other issues, like dealing with Amazon, accounting, and so on.
Vat is not an expense or what?
It isn’t if you are VAT-registered as you can reclaim it but it is if you are not.
It’s just a matter of finding the right approach. You might need better suppliers, better products, and more knowledge about analysis. When did you start selling on Amazon? Why don’t you consider Private Label instead of Wholesale? In Wholesale, profit margins are shrinking day by day due to increased competition. I can assist you with this, as I have experience with Amazon. I also have a supplier whose invoices are accepted by Amazon.
Try private label instead, it’s good for the UK market. Wholesale would be better in other markets like the USA, UAE, etc.
Why do you assume PL is better? I think PL is a waste of time.
Not a waste of time, if done with proper strategy. You deal with a lot of violations in wholesale models, and it’s really difficult to handle these Seller Support jokers. Private Label takes time, but it’s worth it.