One of the risks of having just one supplier that is a significant portion of your revenue is that they can stop selling to you, and this week, that is exactly what happened to us.
Just shy of one year ago, we signed an exclusivity agreement with a supplements supplier and over the last year, that one account represented a whopping 40% of our gross profit. On January 21st, they called us to say that they were taking their Amazon sales in-house, and our gross profit is going to drop by about 32%.
So what happens when your largest supplier calls you and tells you they are not going to renew their contract?
You work up a plan to source new brands at a faster rate, that’s what!