Scale Your Amazon Business via Licensing Products

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Will Tjernlund joins us to talk about Licensing Products Deals.

Will loves MMC fighting and really enjoys it.

The Bad Boy brand used to be a surf brand but moved into MMC as a brand.

Will and his brother were approached by a private equity firm over two year ago to take on selling this brand. Nothing happened.

Two years later Will gets called by the CEO of Bad Boys brand who wanted him to promote the brand and sell on Amazon (not knowing of the previous contact).

  • The company owns the name ‘Bad Boy’ and ‘Bad Girl’ on any product
  • They have a different licensee in 40 different countries
  • The sales are doing very well across the world
  • They were looking for a licensee in US and Canada and Will was it
  • Will buys a pack of boxing gloves from Pakistan for $10 and marks up to $11.95 to cover the licence fee for Bad Boy
  • Launched 2,400 SKUs in the last 34 months
  • Moved them from a Magento store to Shopify store with Amazon fulfilling
  • Has a nominated manufacturing plant in China, licensee prior to Will passed down the contacts for factory etc.
  • Have hired an R&D team to make the best boxing gloves you can make and sourced a factory and then send them on for licensee’s to use

Infrastructure of Licensing deal

  • Will is in control of manufacture, distribution, shipping logistics
  • The shipping is handled by Flexport
  • Will had assistance in the first month from the Licensor
  • Are launching everything from scratch
  • Mailchimp account is sending emails to different categories each week sending people to the Amazon account

¬†Fulfilled by….?

  • Can’t send in all stock or they would get hit by long term storage fees
  • Lots of product come in 5 sizes and 5 colours
  • Sending in 5-10 units into Amazon to test what sells at what velocity
  • Spent $160k on stock
  • Doing $20-30k per month so far in sales

Ingesting into Amazon

  • Organizing all the SKUs has been a nightmare
  • Half of the products were up on Amazon but will wrong data or UPCs
  • Reed runs a huge spreadsheet to manage and organise the SKUs and fix anomalies

Use the 80/20 Rule

  • Fix the most likely sizes and colours that will sell and get those up first
  • The obscure stock is still in the warehouse next door and not in Amazon yet
  • This old or strange stock might not sell well

The Contract

  • Deal is fairly simple
  • Pay certain percentage on the manufacturers cost as a licensing fee
  • Contract is for 3 years
  • If Will hits certain numbers they cannot automatically terminate the contract after year 3
  • It is automatically renewed if they hit these targets
  • Will has to come up with 12 designs a year to maintain innovating the brand
  • Used 99 Designs and sent over to Bad Boy and they looked at 50 designs and chose only 2 that were good enough

Mailing List and Social

  • The mailing list is owned by the brand passed on by the brand
  • Facebook has 120,000 likes, Instagram has 20k and Newsletter has 24k
  • Started sponsoring MMA podcast
  • Sponsoring MMA Champion fighters – the Bad Boy Fighters
  • Now looking at off-Amazon marketing
  • Only working as Will is into MMA and so knows where the fans are
  • Looking at REDDIT as a marketing area
  • Looking at blanket coverage for the Brand like Blue Apron – you hear it everywhere
  • Podcast sponsorship is like $50 per episode so worth looking at

How to get a Licensing Deal

  • Licensing Trade Shows
  • A bunch of brands are there and you can pick and choose between them
  • Look at the brand’s Amazon presence and how you could make it better
  • Pitch that you know ecommerce and Amazon to the brands
  • Easier with the Big Brand years of establishment to get into Brick and Mortar stores

Established Brand

  • Having the Bad Boy brand that is established Will is bringing in new products
  • Just introduced a Soap with Bad Boy branding on it and looking at other avenues that the brand enables
  • Will would love for all 500 fighters across MMA to send out the same messages working together with their 15m followers
  • Get them to do this every week Tues and Thurs
  • This could bring in a lot of money for the fighters and promote the Brand extensively

Final words

  • Will is learning as he goes and the Licensing world is a whole different world to Amazon
  • Licensing can be a very complicated world
  • If you have a US brand then you might just license it to a Seller in Europe or other territories


  • Goat Consulting
  • williamtjernlund@gmail.com
  • @wtjern – Twitter and Instagram
  • facebook/tjernlund