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Dan Meadors and Dylan Frost’s Wholesale Formula Review – What is Reverse Sourcing Wholesale?

July 5, 2023

The Wholesale Formula by Dan Meadors and Dylan Frost is an Amazon selling course that teaches you how to make money online with Amazon FBA using a process they call Reverse Sourcing Wholesale. Reverse Sourcing Wholesale is bypassing wholesalers and buying products at wholesale price directly from manufacturers. Companies like Amazon and Walmart do exactly that.

The problem with Amazon FBA is that you need to have the capital to invest in inventory before you see any revenue. You also have to spend money on unpredictable paid ads so that you can generate more traffic, but it's not as simple as it may seem. There is a lot of leg-work that needs to be done before you see any return on investment. This makes it difficult to run this business long-term. 

Local lead generation pays you a predictable income each month using free traffic on Google instead of paying for Google ads. You get to own your digital properties and dictate what you'll get paid each month. 

Wholesale Formula Review: Pros and Cons

Pros

Dan and Dylan teach you how to build repoir with brands and how to talk to them properly so you can sell wholesale for them on Amazon..The goal is to help you start a profitable Amazon selling business.

Private Facebook group for added coaching and support. 

Live coaching calls each week.

Dan and Dylan have generated over $36 million in sales on Amazon.

The over 5300 students that have joined The Wholesale Formula have made over $1 billion in sales on Amazon.

Cons

You can't binge the course. Entire modules are drip fed; no click-by-click guidance in the first two modules

The step-by-step guidance is mediocre.

Several sections in this course seem to be incomplete or surface-level.

You don't learn how to run PPC ads to promote your products

Refund Policy:

30-day, no-questions asked, 100% money-back guarantee

Training:

5 modules with 90+ training videos; They provide spreadsheets, email templates, cheat sheets, calculators and checklists.

Group:

The Wholesale Formula Alumni Facebook group

Origin:

Dan started selling on Amazon in 2011. In 2014, Dylan joined him and now are 7+ figure entrepreneurs. They started the Wholesale Formula in 2017.

What is the Wholesale Formula cost?

The Wholesale Formula cost is $2,497. You have the option to pay $997 for three months if you cannot pay the full price. You have lifetime access to The Wholesale Formula after paying for it. The course opens once per year but currently, enrollment is closed.

Is The Wholesale Formula Legit?

The Wholesale Formula is legit because they teach a business model that works in 2024. There are many students within the program who have become successful Amazon sellers. You can make hundreds or thousands of dollars with The Wholesale Formula. According to JungleScout, most Amazon sellers make at least $1,000 per month and the super-sellers make more than $100,000 per month. 

What is the Difference Between Reverse Sourcing Wholesale and Retail Arbitrage?

The difference between Reverse Sourcing Wholesale and retail arbitrage is that you buy products at wholesale prices directly from suppliers. With retail arbitrage, you visit retail stores like Walmart and Costco, buy products and resell them on Amazon. Retail arbitrage is the easiest way for someone to get started with Amazon FBA.

What are The Wholesale Formula Reviews?

The Wholesale Formula reviews are presented as online blog reviews from OutLook India, The Selling Guys, Full-Time FBA, and more. There are also YouTube course reviews from channels like Internet Marketing Reviews by Aaron Chen and Renae's Homestead. Overall, some Wholesale Formula reviews are positive and others are not in favor of the program. 

What is The Wholesale Formula Reddit?

The Wholesale Formula reviews on Reddit are mostly positive, with the only general issue being the cost of the course. This comment was made by someone who says they joined The Wholesale Formula over 5 years ago and has built a 7-figure wholesale business. 

What are The Wholesale Formula Complaints?

The Wholesale Formula complaints are the following.

  • Expensive course.
  • Enrollment is only open once per year.
  • Some over explaining of the course material's more basic steps.

What is The Wholesale Formula PDF?

The Wholesale Formula PDF is a digital document Dan and Dylan share for free that shows you how to use their formula to find profitable products. The 3 factors of finding an outstanding product are shown below. 

  1. Amazon is not selling the product themselves.
  2. Price is under $20.
  3. There are over 3 sellers for that product.

There is also a page where you can download PDF for several lessons within each model.

What is The Wholesale Formula Affiliate?

The Wholesale Formula Affiliate program is an affiliate program that pays you $1,498.50 per sale you generate. 

Who are Dan Meadors and Dylan Frost?

Dan Meadors is the co-founder of The Wholesale Formula and hails all the way from Corbin, Kentucky. He attended the University of the Cumberlands and got his Bachelors of Arts.

Dylan is from Middlesboro, Kentucky. In 2011, they worked at an online retail company that sold collectible card games. When the CFO of the company quit, Dan and Dylan were curious why. His reason was that he wanted to focus on selling products online. 

After their ex-CFO introduced them to retail arbitrage, they spent weeks learning how to make it work. For 4 months, they reinvested every dollar back into the business and quit their full-time jobs to do Amazon FBA full time. It all started with a credit card with a $600 credit limit. In their first 3 years of selling on Amazon, they were doing retail arbitrage, averaging $1 million in sales per year. In 2014, they decided on doing reverse wholesale sourcing. By 2016 and 2017, they were already making $11 million in sales on Amazon. 

 Today, they sell and coach The Wholesale Formula course and The Wholesale Formula Workshop, which is a 3-day virtual event where Dan and Dylan teach their formula for finding and selling products on Amazon. On The Wholesale Formula YouTube channel, they have many videos of student testimonials but haven't posted since 2021. 

What's included in The Wholesale Formula?

Here is what you'll learn in each module of the course.

Module 1 - Getting Started

This first module is where Dan and Dylan introduce you to the course layout, the business model, and what you can expect to learn. They teach you how to get set up with an Amazon seller account, which is called Amazon Seller Central, and how to ensure you have a wholesale account.

To get approved for selling wholesale on Amazon, you need an Amazon customer account or business email, valid credit card, ID, tax information, phone number and bank account. After you get set up, you can start making money. To start selling on Amazon, it is recommended you invest $1,800. Read my article on the Amazon FBA startup costs for more info. 

Module 2 - Product Analysis

They focused module 2 on helping you analyze what a profitable Amazon product is and how to tell if it's worth selling on Amazon. This module contains 10 training videos and you're also taught about the importance of the 'Buy Box'.

To find hot products for your Amazon wholesale business, you can use tools like Helium 10, JungleScout, SellerApp, and more. 

Module 3 - Scouting

In module 3, you learn about the 'TWF Scouting and Sourcing' system, which includes strategies called Leaf Sourcing, Amazon Filtering, and Super Targeting. 

Module 4 - Value Proposition

Dan and Dylan will help you make brands not think twice about working with you. It starts with creating your website, optimizing your listing, and more.

Module 5 - Sourcing

The final module is where you learn about sourcing products and suppliers. You are shown exactly what Dan and Dylan do to contact suppliers and negotiate the best prices with manufacturers so that you can maximize profits on every sale. 

Bonuses

  • VA Launchpad: Training course on how to hire and train virtual assistants that will help you scale your Amazon business.
  • Discounts on services such as JungleScout, Restock Pro, and Tactical Arbitrage.
  • 10+ hours of in-depth webinar replays
  • The Business Owners Playbook: This wholesale formula bonus will help you excel at everything a business owner needs to be good at, such as negotiating, hiring employees, and more.

What is The Wholesale Formula List of Suppliers?

The Wholesale Formula list of suppliers is Dan and Dylan's list of suppliers they use for their Amazon FBA businesses. They share this list with students to help them save time and stay on track. 

What is The Wholesale Formula Seminar?

The Wholesale Formula Seminar is an online training webinar where you learn to maximize your profits by identifying profitable products. This one-day event is also called the Wholesale Formula Live Workshop and costs $49.99.

The Wholesale Formula Testimonials

Aymeric Monello is a first-generation French immigrant who came to the United States in search of the American dream. After joining The Wholesale Formula program, Aymeric earned over half a million dollars in profit in only 3 years. He eventually sold his Amazon business for over $400,000.

Before joining the TWF program, Sean Elliott was paying himself $2,000 in his business. 6 months after joining, his income jumped from $2K, all the way to $5,000 per month. He gives credit to all the tips and strategies he learned from Dan and Dylan in The Wholesale Formula course for turning him into a successful Amazon seller.

After hearing positive things about the course, Dr. Karl Goldkamp invested and got started selling products in the Amazon marketplace. He found the weekly webinars valuable because Dan and Dylan's team showed exactly what they were doing on Amazon. After a week or two, Dr. Goldkamp made his initial investment back and currently makes thousands of dollars every month

Amazon Wholesale vs. Private Label

Many people debate which Amazon FBA business model is better between the wholesale model and private label. The following chart breaks down the differences.

             Wholesale
Private Label

Invest:

A minimum investment of $5K investment is needed to get started. 

As a brand owner, you have to deal with a higher initial investment. ($10K+)

Products:

You must order products in bulk and store them at a warehouse before any sales are made.

Once you order your products from a manufacturer, you brand them and then store them until orders are placed.

Workload:

Fewer variables to worry about. Focus more time on product selection and product promotion instead of all the aspects of scaling a brand.

Heavy workload. You call all the shots and decide how much your products will cost, which your marketing strategy is best, and more. Once you hire VAs, your workload can diminish, leaving you more time to build the business.

Profit Margin:

Lower profit margins than private label since you don't own your brand. You are selling others' products in bulk. 

You keep most of the profit from your online sales because you own your brand and you can later sell your brand for three to five times its annual revenue. If you grow a team to scale your business, you'll end up splitting your profits, though.

Ideal for:

People who don't want to create a brand and who don't have the money to compete against larger, already established brands.

People who have a talent for marketing, branding, who already have a following and who don't mind waiting 6+ months before they see a positive return on investment.

To learn about the what other options there are to sell products on Amazon, read my article on what the 10 different Amazon FBA business models are. 

Is The Wholesale Formula a Scam?

The Wholesale Formula is not a scam because Dan Meadors and Dylan Frost teach a business model that pays people hundreds and thousands of dollars each month for selling products. They provide support and tools for their students to make running their business easier and they teach you the methods that are currently working for them.

The Wholesale Formula Alternatives

Private Label Masters by Tim Sanders is the #1 Amazon FBA course and alternative to The Wholesale Formula. In the past few years, Tim has sold over $60 million dollars and is an active Amazon seller today. This course focuses on teaching private label to both beginners and experienced sellers. There are live weekly coaching calls and the Amazon PPC training is excellent. 

Price: Private Label Masters costs $5000.

More Info: Private Label Masters Review.

Wholesale Academy by Larry Lubarsky is the best wholesale coursed we've come across. Like Tim Sanders, he's an 8-figure seller who started wholesaling in 2012. In 2021, he made $15 million in sales. Once you join, you'll be given access to a private Facebook group for support, two live coaching calls by Larry each month, and 40+ hours of video content.

Price: Wholesale Academy costs $1,997.

More Info: Wholesale Academy review

marvin leonard

Wholesale Underground by Marvin Leonard is another solid Amazon wholesale course. You learn everything you need to know to get started as well as how to get more 5-star reviews and how to scale your profitable product listings to other platforms. Marvin is active in his private Facebook group and is available to help you if you're confused during your product research phase.

Price: Wholesale Academy costs $997.

More Info: Wholesale Underground review

To see a complete list of alternative courses to The Wholesale Formula, read my article on the 6 best Amazon FBA courses.

Can Amazon FBA still be profitable in 2024?

Amazon FBA can still be profitable in 2024 if you understand the amount of effort, time, and money it entails. According to JungleScout, 89% of Amazon sellers are profitable. The bad news is that every day, the number of Amazon sellers continues to rise with over 3700 new Amazon FBA sellers join each day. Reaching 6-figures in revenue is a reach, but if you want to make money, you must stay active. Amazon FBA is not easy because your success will rely on your ability to innovate, determine the right product, promote your Amazon products better than anyone else and how much you invest. These are all time-consuming and expensive things that need to be done if you are to see any return on investment.

As with other online business models like affiliate marketing, you can make money with Amazon FBA, but it doesn't provide you with the benefits of the local lead generation business model. 

Alternate Business Model that is Less of a Hassle than Amazon FBA

Local lead generation is less of a hassle than Amazon FBA and you earn a predictable income each month. You have more control in your business. Choosing a niche, ranking strategy, and who you work with is your decision to make. You also get to dictate how much money you make on each digital property. 

You earn a passive income because there's no need to keep looking for the next best product like you do with Amazon FBA and there's no need to split test any paid ads. To learn more details about this business model, check out the local lead generation coaching program.

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