I have a one month old supplements listing on Amazon USA and I’m doing USD 30K sales with 15 percent net margin. The listing is doing better than expected and I expect to grow it further in coming months.
There is a party that wants to buy my stock in bulk from me and sell on Amazon USA and Canada - basically become my reseller. I’m new to this and not sure about what to do. Can you please guide on the following:
what are the pros and cons of this?
Can I ask the interested party to sell on Amazon Canada only? Will there be a legal contract in such cases? How does it generally work?
If the party really wants to sell on Amazon USA (market where I’m selling as well), how would it affect my personal listing? Would it have any positive/negative affect?
Appreciate your guidance and detailed response on this. Thanks!
Pros of selling bulk stock to a reseller: Quick cash influx, potential for increased distribution. Cons: Loss of control, potential brand dilution. If selling to a reseller, legal contracts are crucial; specify regions and terms. If they sell in your market, potential competition; consider pros/cons and negotiate terms.
@Nilesh However, DO NOT grant them any authority to use it. What they will do is once you “approve” them they will go to China or India and source it their for less money. Nothing you can do now, NEVER give any one control of your IP.
I agree with @skeeter. Once you sell your product to someone else, you never know what will happen. What your customer could do, is send the product to China to have it re-manufactured for them in large quantities and there is nothing you will be able to do afterwards, since they will have valid invoices from you and proof that they purchased off you. They will be able to sell the product forever and cheaper than you.
Maybe a specific category with posts like this and your reply would benefit others. That is something that is not considered until after the fact and the damage has been done.
