Many clients of ours are interested in transitioning from OA to wholesale, but there are some who are interested in the opposite – transitioning from Wholesale to OA. But sometimes, people are surprised when they start changing over and see how different things really are.
While it’s always a good idea to try something new (it could work out extraordinarily well!), we wanted to outline some of the pros and cons so you know what to expect when transitioning from Wholesale to OA.
Cons:
- Reconciliation is harder
- Your orders may come with slightly different UPCs, or you may not be able to tell from the description if what you ordered is what you received. This happens a
- Some stores, like Walmart, Target, and Best Buy, do not like OA sellers and are keen to cancel your order if they suspect you are a reseller (Even though reselling is legally allowed)
- The gating/ungating process.
- Amazon may require documentation such as packing slips, or even permission from some companies, to resell. You may also be required to purchase a minimum amount of units in order to sell a certain product
- Therefore, you may have a lot of returns
- If you either cannot get ungated, or cannot figure out if a product is what you ordered.
- Sourcing products that sell well for you and are easily available/fulfillable can be difficult
- Popular items can be competitive,
- OA can be more expensive at prep centers
- This is because the large amount of skus, combined with the low quantity per sku, makes more work for our entire team.
However, do not be discouraged! Many people make the transition successfully, and there are many pros as well.
Pros:
- Trying new things to see what else can sell, without a huge commitment
- Maybe you sell Toothbrushes wholesale, but you’re interested in working with pet products in the future. You can start with OA to see what pet products work best for you before having a large batch of untested items manufactured.
- Because there is not a big commitment, if a product does not do well, you can move on.
- Sell out of your inventory, or return it, and don’t order more of a product that is not working for you.
- You can dabble in more seasonal items.
- Sell beach towels, party products, wedding favors, winter gloves or boots, shovels,… the possibilities are endless!
- Supplement your income while waiting for the next Wholesale or Private Label order to be manufactured.
- Keep the income coming!
Have you ever made a similar transition? How did it work out for you, and do you have any tips for other sellers?
Comments are closed