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I have an opportunity to buy directly from a manufacturer who will allow me to officially rep their products on Amazon if I spend $500,000/year. They are all MAP. They have enough of a selection (over 1000 skus) that there are enough ranked items with dec

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I have an opportunity to buy directly from a manufacturer who will allow me to officially rep their products on Amazon if I spend $500,000/year. They are all MAP. They have enough of a selection (over 1000 skus) that there are enough ranked items with decent quantity and quality of reviews to choose from. Amazon is selling roughly 1/4 of the items. Total number of other competitors per listing is within reason. My cost is approximately 50% of MAP. The average cost per item is $50. Yay or Nay on this deal and why? Let’s say the deciding factors don’t have to do with coming up with the money or fear of suspension.

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If you look at the 3/4 items that AMZ does not carry and those have good rankings, I would go for it. I like the relatively high ASP. I wonder if you can negotiate with them that AMZ would not carry further items, otherwise, every time an item would start selling well, they will take over….

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I would want exclusive rights no selling to Amazon included other than that I would look at your business cash flow and see if this is doable I personally would not want to extend more than 30 percent of available capital to one company

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