8 Figure Amazon Seller Steve Simonson


Steve Simonson is an 8 figure Amazon Seller with us talking about the trump tariffs, his ideas around negotiating with suppliers and how mitigating against the on-going USA and China trade war has helped his business weather this storm.

  • Shipping 150 containers a week
  • Been doing ecommerce a very long time
  • Reached into multi-channel
  • Team is managing around 125-150 containers a month
  • Maybe 300 containers in the order process
  • Just customs takes 3-5 people
  • Marketing and other parts with different teams

Trump Tariffs

  • Import tariffs on product imported from China to reduce people buying from China to hurt them
  • Not ideal for Amazon Sellers
  • Made a couple of strategic moves to prepare for it – some right moves, a few have gone wrong
  • Looked to mitigate it for section 201
  • What can they buy in USA, CAmbodia, Vietnam
  • Massive parts of manufacture are still in China – see this as chest thumping from Trump and China to strike a better deal

Mis-steps

  • First one was tariffs on big industrial things – most people didn’t notice
  • Hit a bunch of stuff with Sept’s section 201 tariff
  • First phase hits Friday and then January 1
  • Immediately bought a bunch more containers to beat the 15% Jan tariff
  • Had massive inventory for 3 months as Trump delayed the tariff in the end
  • Then got a little complacent perhaps
  • Steve did not anticipate this escalation in recent weeks going to Section 201 being full 25% and going after a further 300 billion worth
  • China is also ratcheting up so expecting more pain to come for an Amazon Seller
  • Hoping it gets resolved in the next 2 weeks or it could go nuclear
  • Have over the last year moved a lot of the supply-chain to avoid it

Share the Pain with Manufacturers

  • A major hit to margins eaten up by this tariff
  • This could have wiped out your margins as an Amazon Seller
  • Steve implores Sellers to have margins to begin with
  • Several factories in CHina that are desperate to keep buyers and they will take the tariffs hit and get China gov subsidies
  • Time to go an re-negotiate where you can to make it a more fruitful long-term relationship by them sharing this pain

Trade Cold War

  • Must consider risk mitigation going forwards
  • Very complex issue and not going away any time soon
  • A trade cold war

Negotiating Terms

  • You need to be buying enough volume to generate leverage
  • Need 4 things
    • Peg the currency at a point where you agree on the price
    • Always get terms – speak to Steve in London
    • Product liability from the manufacturer (not an easy one)
    • Ask for Help on tariffs, anti-dumping or counter-weighting duties
  • These are the main components along with quality and time

Seller Sessions Live in London

  • Steve is coming to London
  • Traveling coach for a good price
  • Love entrepreneurs and helping them out and hanging out
  • See you there

Make your VOTE count!

Your community needs you!

We will be in touch shortly with further details. Don't for get to share this page with the community.

Share This
%d bloggers like this: