OPERATORS E137: Wholesale has the potential to ruin your business
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Oct 29, 2025 The discussion kicks off with the dilemma of brands joining Amazon—balancing customer reach against potential price wars. Next, the hosts evaluate the high stakes of wholesale, weighing the benefits of partnering with giants like Costco and Walmart against the risks posed by smaller retailers. Finally, they tackle the allure and challenges of opening physical stores, debating the potential for enhanced customer experiences against the complexity and costs involved in retail operations.
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AI Matching Makes SKU Tricks Less Reliable
- Amazon now uses AI matching across SKUs, so distinct SKUs no longer fully prevent matching.
- That evolution increases chaos and raises the need for proactive channel management.
Prioritize Costco, Target, Walmart
- Avoid chasing wholesale outside the ‘Big Three’ unless throughput and margins clearly justify it.
- Evaluate financial risk: bankrupt retailers can leave you unpaid and inventory unrecoverable.
Bankruptcy Left Supplier With Unpaid AR
- A brand with millions in AR was left unpaid when a retailer went bankrupt and liquidated inventory.
- That exposure can seriously damage or ruin supplier businesses.