A major Amazon wholesaler just went bankrupt as Nike and other brands crack down on third-party sellers. The speaker bought a private-label brand called Maverick for $190,000 and grew monthly profit from $6,000 to over $50,000 in three years, reaching a $2 million valuation. Private-label ownership is the path to a scalable, sellable business.
Well, trending news in my space, which is e-commerce, specifically Amazon FBA, is that there's this big Amazon wholesaler that is going out of business, declaring bankruptcy, to the point where court is requiring them to liquidate all of their assets at their warehouse. Which brings me to this point: if you are going to focus on Amazon FBA primarily, do not focus on retail arbitrage and wholesale. And look, if you don't have enough money to start private label right now, fine, do it for a couple months, make some money. But once you have enough money to actually make your own private label product, do it. Because yes, you can make quick money with retail arbitrage and wholesale, but you're always going to be scared that something is going to change. Because like this week happened again, Nike is reaching out and saying that they're only going to sell directly to Amazon and they're Now Amazon is sending emails to anybody selling Nike products that they are no longer allowed to sell that brand. And it can literally happen with every single brand out there. So if you, if you actually have a private label business, that's your intellectual property, right? You can go ahead and wholesale your own products to other people. And ultimately you get that delayed gratification, which is such a cheat code in life. That you are building a brand that you can exit in the future. You see, I bought an Amazon FBA brand, a private label brand by the name of Maverick, and I purchased it for $190,000, and I scaled it in just 3 years. It was making $6,000 per month when I bought it. It is now making over $50,000 in net profit every single month and is valued close to $2 million now. Right? So that's the power of having your own private label product, because you can't do that with wholesale or retail arbitrage. And if you even try to, there's always going to be bumps in the road that require you to have so much stress, lose even more hair than I will. So take that piece of advice, listen to Unc.
