Akan Yürekli is the chairman and founder of Akan Yürekli A.Ş., the brand that carries his personal name. He tells us how he grew his dropshipping business into a multi million dollar business.
In 2015, I decided to start selling on Amazon. At that time, I was working in a textile factory and only had $1,000 on my credit card. However, by 2016, I was able to quit my job because I was already making a good profit selling on Amazon.
Since then, my business has grown to a turnover of $2.1 million per month turnover, and my top product generates about $260k per month. I am now an official distributor of a number of electronic brands including Razer, Logitech, Corsair, JBL, Jabra, and Hyperx on Amazon in the UK, US, Canada, Italy, Germany, and Australia.
I started out as an average Amazon dropshipper, but now I am the chairman and founder of AKAN YÜREKLİ E-TICARET OTOMASYON SAN. VE TİC A.Ş, a company that operates on both B2B and B2C models. My B2B sales turnover last year exceeded $47m.
How does the wholesale business model work?
Wholesale serves as a connection between brands and their clients. I buy products in bulk from manufacturers and resell them on Amazon. This way everyone can benefit. Brands get to expand their market reach and sellers get access to popular products.
The difference between private label and wholesale is that you don't need to spend money promoting the brand because the brand owner has already done so. While the profit margin is low with wholesale products, you don't need to spend much on advertising.
Specifics of selling electronic products on Amazon
Sellers are often hesitant about entering the electronics category on Amazon, but there is nothing to be afraid of. If you are an authorised brand dealer and the products you sell are original, you can be confident because if you receive a return you can buy a new product from the technical service. Products in the Electronics category are easier than clothing providing you wrap the original product. When you sell original and quality brands, the return rate is typically very low.
The challenges I faced
Navigating the path to success was far from a straightforward journey. Challenges arose that tested my resolve and ingenuity, but ultimately they became steppingstones towards growth.
- Account suspension: When I started out on Amazon, my business was suspended. In my first store, I was selling using Dropshipping but it was closed due to trademark infringement because I was not authorised to sell those brands.
- Brand rejections: Collaborative efforts with established brands were met with rejection, pushing me to refine my approach.
- My first product failure: The reason my first product failed was that I entered trending keywords but couldn't compete with other sellers due to my low budget.
- Time-consuming research: The product research process demanded a significant amount of time as there are thousands of brands and niches, and I was inexperienced.
Each challenge was a catalyst for learning, adaptation, and innovation. These experiences not only bolstered my business acumen but also ignited my determination to succeed. As I reflect on these hurdles, I am eager to share the insights and strategies I've gathered along the way.
What helped me improve the process
To help you avoid making the same mistakes I made, I'll share these tips based on my personal experience:
1. Product research and automation
Before incorporating special research tools, I conducted by own manual product research. However, after discovering AMZScout, our business approach was transformed, making our product analysis more efficient and significantly boosting our volume.
One key feature that sets AMZScout's tools apart is its detailed competition analysis and sales history within each list analysis. This not only offers insights into competition levels, but also clarifies each product's demand and profit opportunity. First, I entered AMZScout's training and followed their guide on product research.
We kickstarted the process with initial research in the Product Database. We filtered our search by:
- Electronics | Computers | Accessories category
- High-priced products (minimum price $40 due to Amazon's commission structure)
- Minimum 1,000 reviews to gauge customer feedback
- Ratings above 4.5
- List quality score of at least 75
By applying these filters, we could consistently identify products with high selling potential.
2. Communicating with Brands
Finally, in order to finally get each brand's approval, we developed adware and presented this to the brands for free. I assured them that their products would be sold more effectively by using it.
This idea was great: the brands agreed, but not before they all tested the software for six months. Once they were satisfied with my software, they gave me a distributorship.
To connect with brands, I started by reaching out to the distributor of each brand in my country and gave them the opportunity to use my adware for free on Amazon. In return, I asked him to connect me with the brand owner. The distributor in my country also did an initial test run of my software and then contacted the brand owner to mention me. He asked the brand owner if her could share his contact information with me before doing so. I secured my first brand distributorship using this information, and then I bought more brands onboard by using that first brand as a reference.
3. Keyword research
After my first product listing, instead of using the trending keyword, I entered more niche keywords and less searched keywords with lower competition. I then tried to get comments on these words, and I was successful.
At my company, we also provide automation services to individuals and organisations producing private labels in Turkey. We start by analysing the market for our customers' brands by using the market analysis, and then we do a competitive analysis. Next, we identify their product and then find the necessary keywords by using the AMZScout keyword search.
Final thoughts
In reflecting on my Amazon journey, I'm amazed by how my initial dream of owning a car has been transformed. Today, thanks to Amazon's opportunities, I can afford luxurious cars every month if I so desire. But my vision has also shifted beyond personal success.
My new dream is to guide young individuals toward their own Amazon journeys, empowering them to start their own entrepreneurial journey. Looking ahead, we're eager to expand our brand franchises and venture into new markets. This journey has taught me the power of evolving dreams and the potential for growth through dedication and hard work.
Copyright 2023. Featured post made possible by Akan Yürekli.