Interesting story focuses on 28-year-old Ryan Grant, a young entrepreneur who has figured out Business 101: Buy low, Sell High.
Ryan has figured out how to make millions by looking for items in clearance aisle at local Walmart or Target other stores and selling them on Amazon. According to an article in CNBC:
It seems too easy to be true that you could make millions by raiding the clearance aisle at your local Walmart or Target and then selling your haul on Amazon. But that’s exactly what 28-year-old Ryan Grant is doing.Only four years after quitting his accounting job in Minneapolis, Minn., to flip purchases full-time, his business is making well into the six figures in profits per year.
“I was putting in about 10 hours per week and I was making in the ballpark of $1,000 per month,” he recalls. Once he was able to make the same kind of money reselling on Amazon as he had made at his accounting job, in September 2013, he quit. More about Ryan in his words (link):
I am 28 years old and from a small town in southeastern Minnesota. I went to college at Winona State University where I graduated in December 2011 with a double major in Accounting and Business Administration and a minor in Management. I obtained a job in the accounting field working in downtown Minneapolis right out of college.
I worked at this position for a little over a year and a half before I decided that it was time to create my own future and decided to step away from my job.
The key is the scale of operations: Ryan says the business is on track to top $8 million in total sales by the end of this year. Selling a few dozen items during a weekend trip may net you a few bucks but to rake in $8+ million, you need to hustle and buy-and-sell a lot more!
Amazon has also realized the global potential to engage a seller ecosystem. The ecommerce giant has also been recruiting a global network of franchisees and small-suppliers (ref: What is the Amazon’s franchise program? How do I become a Franchisee? )
A recent New York Times article highlights how “Thousands of Indian sellers have shipped bedding, jewelry, kitchenwareand clothing to Amazon warehouses to serve bargain-hunting Americans.” (Amazon, in Hunt forLower Prices, Recruits Indian Merchants):
Americans shopping on Amazon.com this holiday season may find that the best deals for popular gifts like leather shoes and luxury bedding are coming from an unexpected source: Indian merchants.
Amazon, always on the lookout for ways to lower prices, has been aggressively recruiting Indian vendors to sell their goods directly on the e-commerce giant’s American site. At least 27,000 Indian sellers have signed up since Amazon began the outreach two years ago. They range from giants like the Tata Group, a conglomerate that hawks its Titan watch line on the site, to smaller firms like The Boho Street, a peddler of vegan tapestries, incense and handcrafted copper mugs.
While Amazon.com has sellers hailing from many countries, India and China are the two most important places for Amazon to recruit new merchants, since both nations are sources of cheap manufactured goods.