Success Story: How To Become A 7-Figure Seller On Amazon

Faridun Asrorov embarked on his Amazon journey in 2018 with an initial investment of $3,000. Today, his company boasts an impressive annual revenue of $2,500,000. He recently shared his experiences and valuable insights with the Seller Assistant team, offering tips that can benefit both newcomers and seasoned Amazon sellers. How can a birthday cake help negotiate better prices with suppliers? Why is it unwise to fix what’s already working? And why should a successful Amazon seller consider eBay, Walmart, and Shopify?

How to Start in Online Arbitrage

The 36-year-old wholesaler Faridun Asrorov began his journey on Amazon 6 years ago. At that time, he was living in Moscow and searching for online earning opportunities. He stumbled upon a YouTube ad for the Practical PRO online university, which offered training on selling on Amazon. It was here that Faridun discovered Seller Assistant—a tool he still relies on today. The automation it provides when sourcing products on Amazon can be crucial. Сalculating all potential payments, taxes, taking into account nuances and restrictions can be challenging on one's own. But Seller Assistant displays all product information directly on the Amazon page.

Faridun admits that the initial phase was challenging. He faced significant difficulties with order fulfillment, with one in three orders being canceled.

— Suppliers were often confused by the different billing and shipping addresses. Thankfully, my English skills allowed me to call the stores and confirm orders and addresses.

Additionally, his prior experience in an international chemical company gave him a solid foundation in sales processes, market dynamics, and negotiation skills.

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The Path to Wholesale: Partnerships and Investments

After about 1.5 years in online arbitrage, Faridun realized he was ready to advance to wholesale. He began seeking partners and reached out to acquaintances for investments, presenting his business model.

— Amazon selling in the USA looked exciting and promising. In online arbitrage, I found opportunities with astonishing margins. I had a product—a sports water bottle—that I bought for $9 and sold at its peak for $110. The model worked well. Americans, as we know, are willing to spend on their desires. My partners were impressed and agreed to invest.

Faridun entered the wholesale business with an amount ranging between $60,000 to $70,000. His team initially focused on supplements and home goods but ultimately concentrated on the Pet Supplies and Home & Garden segments, including pesticide sales, which require special permits.

— Getting a permit is straightforward if you have a local company. The process is simple, and there’s plenty of information online. But be careful: these are hazardous products, and mishandling can lead to serious issues. It’s best to take a course to understand the restrictions and regulations.

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Personal Presence: How Moving to Texas Transformed the Business

While Faridun successfully managed his business in the USA from abroad, his annual revenue had reached a million dollars. However, in order to move forward, he needed to take the next step. In 2022, he relocated to Texas with his family.

— Starting a business and achieving decent revenue from abroad is certainly possible. But, being on the ground, changes everything. You gain a better understanding of the local mentality, see how the system operates from the inside, and begin to establish personal connections with suppliers. This is crucial in the USA business. Without a physical presence, trust is hard to build. Emails are nearly ineffective—suppliers receive hundreds of them daily from all over the world. Phone calls work better, but nothing beats personal relationships.

According to Faridun, profit margins in wholesale are relatively low, with many sellers in the field. There’s no exclusivity; one buyer operates in one region, another in another. Personal relationships can lead to better terms.

— That’s why the month after moving to Texas, I made it a point to meet suppliers in person. Now we have lunch together, exchange gifts—little things like bringing a birthday cake for a manager can make a significant difference. It fosters a better relationship, leading to better prices and credit terms.

Speaking of credit, suppliers in the USA often provide products on credit.

— I remember my surprise the first time I encountered this practice back in 2019 when we were involved in online arbitrage. One of our popular products was Ivermectin for horses. We found a store selling it for $2 while we sold it for $10. Naturally, we wanted to purchase larger quantities. I contacted the supplier, shared our documents, and received a price list. I ordered the products and awaited the invoice. A week later, I inquired about the invoice, and they said, ‘I’ll send it later; you can pay in 30 days after delivery.’ I was shocked!

In the USA, if you meet the supplier's documentation requirements, they often grant you a credit limit. This credit limit allows you to use a certain amount of money for a specified period.

— Currently, our credit limits range from 30 to 90 days, depending on the supplier, with the amounts reaching into the hundreds of thousands of dollars.

Own Warehouse and Expanding Opportunities

Wholesalers deal with large volumes of goods, and Faridun's team manages orders independently. They operate a 4,000-square-foot warehouse in Houston. In this facility, they handle not only Amazon orders but also those from their Shopify store, as well as eBay and Walmart.

— eBay is great for clearing out returns and excess inventory. Walmart, on the other hand, is quite interesting, as it's a new and promising platform.

Having their own warehouse significantly reduces costs; however, Faridun's team continues to utilize prep centers. 

— There are suppliers with geographic exclusivity, which means we sometimes need to send orders to specific prep centers. At the same time, we also accept orders from other prep centers.

Faridun plans to expand the services offered by his warehouse and reach out to more sellers. If you are interested in collaborating with his team, you can find his contact information at the end of this article.

Six Years on Amazon: Tips and Tricks

Faridun has been in the Amazon business for six years. He has transitioned from online arbitrage to wholesale and eventually opened his own warehouse in the USA, accumulating substantial experience and knowledge along the way. We asked him to share some of the most valuable advice that could benefit both newcomers and seasoned sellers.

— The main piece of advice is to calculate everything carefully. You need to keep track of margins, taxes, shipping costs, and so on.

In this regard, Faridun finds the Seller Assistant tool quite helpful. Faridun first came across this all-in-one tool during his Amazon courses.

— We’ve been using it ever since, and my team is already trained to use it. I appreciate the localization and user-friendly interface. I’ve noticed that Seller Assistant has added many new tools and features lately. We want to try out the VPN by Seller Assistant. While VPN isn’t very relevant in the USA, my team is based in the CIS and India, so it will be useful. We also plan to test the Price List Analyzer. Sometimes suppliers send over these massive price lists! It's impossible to check them manually.

In addition to unit economics, Faridun emphasizes the importance of personal connections for securing the best deals.

— For online arbitrage, I have a little hack. Contact the store's customer support and ask if they have any discounts or coupons available. They often have internal offers that not everyone knows about.

Another piece of advice from Faridun is to stick with what works. He recalls a time when his team was purchasing supplements through a supplier's store, receiving 600 to 1,200 units without any issues.

— But then I wanted more. I reached out to the brand and asked to buy wholesale since I was already purchasing a lot. They asked why I was buying so much. I honestly admitted that I was selling on Amazon. The response was a firm ‘no.’ The brand then contacted Amazon, and our account was shut down. There’s a concept called status quo. If something is working well, it’s better not to change it.

Interestingly, Faridun notes that Amazon has changed its approach to working with brands. Previously, if there was an infringement request, a seller could be removed from the listing. Now, as long as the product was purchased legally and all documents are provided, Amazon allows its sale without issues.

Selling on Amazon: Challenges and Opportunities

It wouldn't be accurate to say that selling on Amazon has become easier. The platform is constantly evolving, introducing new rules that sellers must adapt to.

— This year has been especially challenging for us. Fees have increased, and the distribution process has changed—now products need to be sent to multiple warehouses. Storage costs have risen as well. It's crucial to meticulously determine the volume of goods to ship. If you send too much, you get fined; if you send too little, you also get fined. There are times when a supplier runs out of stock or there are delays, which lowers your in-stock metrics. The next time you send inventory, you face penalties.

The cost of shipping has skyrocketed. Previously, sending 5-6 pallets would cost around $2,000. Now, the same shipment can run up to $5,000. Even removing inventory from warehouses has become prohibitively expensive. Yet, Faridun remains calm.

— Yes, prices will go up, but they will rise for everyone. These changes affect all sellers, not just us. Is it worth getting upset with Amazon? It has become a platform that can do whatever it wants because we are all dependent on it.

Faridun emphasizes that this dependency extends to both sellers and buyers.

— Americans have developed a habit of shopping on Amazon. We buy something from Amazon every day at home! When I was working in online arbitrage in Moscow, I thought that when I came to the USA, I would never order from Amazon because everything seemed so expensive here, and there are cheaper alternatives. But that’s not the case. Shopping on Amazon is simple. You open the site, order, and receive your delivery the next day. You don't want to spend half an hour or an hour searching for the same item elsewhere and then wait another week for delivery.

Despite these challenges, Faridun encourages newcomers not to shy away from entering the Amazon marketplace.

— Amazon is applying stricter rules for all, not just for you. As they say, it’s a level playing field. From here on out, it’s up to you to decide how to play on this field. Yes, selling on Amazon has become more complex. But when I started in 2019, those who taught us said it was easier in 2014. I found it easier in 2019 than it is now in 2024. Sellers who start today will tell others in 2030 how easy it was in 2024. So, give it a try.

Starting with online arbitrage is the simplest route. While margins in wholesale are not very high, substantial turnover can still lead to profits. However, the risks are greater.

— If you have a great idea, transition to private labeling because that’s where all the margins are. By the way, we are also developing in this area. But if you don't have a brand idea, you can definitely stay in online arbitrage or wholesale and still make good money.

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Conclusion

Do you want to test your skills on Amazon and achieve success like Faridun Asrorov? Try Seller Assistant. A free 14-day trial will allow you to explore all the platform's features and take your first steps in the business.

Link to Faridun Asrorov's community with a free training course:

https://www.skool.com/sell-on-amazon-and-walmart-5400

Link to Faridun Asrorov's prep center:  

www.arbprep.com