KT Hustles, as he calls himself, says he’s got an Amazon store that profits about $100k per month. He started out buying name brand products from retailers like Bed Bath & Beyond and Walmart, listing ’em on Amazon at a markup, and then shipping the products out himself once someone ordered.
Even though he built that up to about $60k a month in sales, as you can imagine, it was nonstop work.
The writing was on the wall, right next to that mural of Kobe.
“There’s a few reasons the online arbitrage business model is harder to scale,” KT explains. “When you’re ordering from these websites, sometimes you receive order cancellations or limits to how many products you can buy.”
“Versus the wholesale business model where you can make large purchase orders from distributors. You know, you can make a $30k purchase order with just one phone conversation. And these large distributors tend to have more stock than your typical retailer,” he continues.
“That’s why I transitioned into wholesaling. This business model allows me to generate about $100k+ in profits every single month.”
“And I only work about 20 hours a week doing this. But obviously in the beginning I had to work a lot.”
“Now, keep in mind, I only started doing this about a year and a half ago. So you can have very fast success with this, as long as you stay consistent and follow the right steps.”
Alright, cool, so what are those steps, right?
Introverts aren’t gonna like this.
It’s a lot of picking up the phone and calling these brands, these distributors, negotiating, trying to work out large purchase order deals, KT says.
In fact, a typical day for him, in the early stages, was basically him pacing around the crib four hours a day while he talked to these peeps on speakerphone.
Then he’d spend the next two hours of his day scanning catalogs these companies would send him, trying to draft out orders. Just going through manually, making sure he didn’t miss anything.
The next day, KT would hit the supplier back and submit his order for enough inventory to last him a month or two.
Since he was ordering so much, he’d try his best to get it at a 5-10% discount. Even if they said no, he’d go through with the order, just to get his foot in the door, build that relationship, and then, over time, hopefully they’d cut him some slack.
And they did. It’s just human nature. Once you’re cool with somebody, you trust ’em, they’ve placed a lot of orders with you, you’re gonna start hooking ’em up.
Which is why, with wholesaling name brand products on Amazon, your margins get better as you scale. With every other model, they get worse. These days, KT’s able to see returns as high as 40-60%.
So the goal is to spend a large amount of money, consistently, with one or two companies; not to spend a little, infrequently, with a buncha different companies. Or else you’re always gonna be paying a premium.
And if that’s the case, savvier competitors will eat your lunch, hand you the wrappers, and ask you to throw ’em in the trash – alongside your business.
But anyways, after all that, KT still had to prep packages, label ’em, and ship ’em off to Amazon.
When it was all said and done, his typical workday was a good 8-10 hours of monotony. So you better be prepared for that if you wanna get to his level one day.
Then, when you’ve got enough profit coming in, you hire employees and let them take over. That’s what KT’s done.
So now he’s got a lot more freedom.
Check out his Lightning Reselling training and his Amazon FBA Advanced Wholesale Coaching Program to learn more.
Cost isn’t listed publicly.