2017 Seller Summit in Florida recap & trip report (got to meet the President of Nepal)

Hey folks,

So I just finished speaking at (and listen to other speakers) at the Sellerssummit in Florida, Fort Lauderdale. 

I was invited to speak about importing from China or to be more exact how to find the right supplier in China. 

Steve Chou, the host of the mywifequitherjob.com podcast and organizer of the event had invited me to speak and while it would be such a long trip I decided to go because I knew I’d learn a ton and meet amazing people. 

Before I get into the key takeaways from the Sellerssummit for me I wanted to share a few impressions with you from a personal side. 

This was a long trip for me – I took off on a Saturday morning and arrived on Sunday evening +12hours time difference so in total the trip was over 36 hours. 

That is also because I stopped in Sri Lanka to hang out in Colombo for a few hours before heading to Abu Dhabi, New York and finally Miami. 

Why was this such a long trip? Well to be honest with you I prefer laying flat and since I don’t want to pay for business class I used a lot of miles. 

Why do I fly business class? Not many people know this but I am extremely scared of flying and being in cramped spaces. 

When I mean extremely scared I mean the slightest turbulence or bump in flight would send my heart rate to 180bpm for half an hour. 

This “fear” all began in 2005 when I flew from Hong Kong to Germany and my plane had to land for an emergency landing in Kathmandu, Nepal because of severe turbulence. 

Since then I hate (or am scared) of flying and sitting in business class, having more space (I am also quite tall – 6’2) relaxes me and somewhat eases my fear. 

You would think that flying at least twice a month for the past 12 years would get me over that fear but it doesn’t. 

So anyway, I was prepared to take a long trip as long as I can relax. And some people might think flying business class is crazy expensive when it’s actually not. 

If you look long enough in advance, make use of mileage and credit card programs you spend less in business as in economy. I usually pay less or the same for my ticket than those in economy. 

So I ended up spending over 120,000 miles but only 260$ in taxes and fees for my return trip flight. Which also meant I had to hop onto 4 different planes to get to Miami. 

Call me crazy but I’d do that every time as opposed to a direct 14 hour flight in a cramped space. 

So anyway, I left Bangkok on Saturday morning on a 3 hour flight to Srilanka and was checking out a few sites in Colombo sine my stopover was 10 hours. 

I had quite a surprise at the start of the trip when I learned that the President of Nepal was sitting one row in front of me. There was tight security on the plane but I was able to shake the hand of the President of Nepal 🙂 

The president of Nepal

I just wasn’t allowed to take any photo with her so I snapped a few from my seat. 

I went to the Galle Face hotel in Colombo after I landed in Sri Lanka and was having lunch there, working a bit and enjoying the view from the terrace of the hotel. 

Arriving in Colombo, Sri Lanka

Tuk Tuk’s everywhere

The Galle Face hotel in Colombo

My flight was bound to leave at 10PM so I made my way to the airport around 7, worked a bit more and chilled before boarding the flight to Abu Dhabi. 

I boarded the 4 hour flight and slept the entire way. I then had a 4 hour layover and transit in Abu Dhabi before boarding for my flight to JFK. This was a 14 hour flight and I was really glad (& excited) because for this flight Etihad uses their A380 plane. 

I did meticioulus research before booking this flight and made sure that I get to try their “business class studio” again which is by far the best business class in the skies.

Lots of space for the 14 hour flight.

Their A380 even has a bar in the middle of the plane. 

The bar on the A380 to New York

So I took a few snaps, had some wine and slept for the next 7.5 hours. I think I’ve never slept that long on a plane. 

Looking “fresh” after 7.5 hours of sleep 😀 (not)

Arrived in New York JFK on Sunday early morning and made my way to the another terminal for my final flight to Miami. I didn’t do much in Miami for my days there as I was mostly working in the hotel and walking around in the area. 

I had a webinar with Augustas Klygys on how to build a brand (which you can find here: http://augustaskligys.com/how-to-build-a-true-brand/), podcast interview and lots of emails to conquer before the conference. 

On Wednesday I made my way to Fort Lauderdale which is about a 50 minute drive from Miami and checked into the hotel to chill for a day before the conference started. 

Arriving in Fort Lauderdale

The line up for the summit looked like this: 

As you can see these are some of the biggest guys in the industry. Among them: Steve Chou, Greg Mercer from Junglescout, Scott Voelker from the Amazing Seller, Jeff Cohen from Sellerlabs, Bernie Thompson, Michael Jackness, Brian Johnson from PPC Scope and yours truly 🙂

Collecting my badge for the conference.

And we are getting started!

Steve Chou talking about how he runs his eCommerce store.

Create give aways or games like Steve Chou does with this “wheel spin” to collect email addresses.

Super important – the 4 pillars of a successful online store.

I am off to a good start 🙂

Scott Voelker is talking about how to launch your product in 2017

Just finished my speech and answering some questions.

Heading for dinner with Franz from Sellics (Marketplace Analytics) & Mike

Last session (ask me anything) and it’s a wrap!

With Greg from Junglescout and Carla at the networking event.

I definitely wanted to hear some of the other speakers and tried to sit in on as many sessions as I could. After the 3 day event I wanted to sum up my key-takeaways for you:

1) It is not too late

I am sure you hear it’s overcrowded, difficult to launch a product and stand out from the crowd. But that’s not the case if you have the right strategy. The potential of the market is so huge that there’s space for everyone. 

And the best part is that all the tools that you need (that many of us sellers didn’t have years ago) are available on the market. If you are looking to find a product, exact ranking, sales volume of a product you want to sell then use JUNGLESCOUT. If you want in-depth profit analysis, inventory management, keyword ranking optimization use SELLICS. If you want to research trends go use GOOGLE TRENDS. If you want to find product ideas outside of tools use one of my favourite sites KADAZA.

If you’re unsure with the process in China check out my blog. If you need launch strategies check out Scott’s podcast and recent launch strategies (https://privatelabelclassroom.com/product-launch-list-building-replay) There’s so much more out there that helps you grow or start your business. 

2) There are tons of other product launch strategies out there

Whether you are just launching your first product or your 10th product. You don’t need to worry about “can’t use reviewers anymore”. There are lots of strategies that actually work better than anything else. 

Just 3 months ago I tested a new launch strategy which admittedly takes time and effort but now I don’t have any PPC costs anymore. All my traffic to my listings is organic. Most importantly build a mailing list. With a mailing list you can kick start the launch of your new product – every time. You can also run give aways on your Facebook, Instagram or own website. The strategies are endless.

3) eCommerce is only growing and growing

Jeff Bezos is now the second richest man in the world and I think that says it all. eCommerce’s share in all of the retail business is only 8% at this moment. Imagine the growth potential. 

If you are concerned that the market is overcrowded don’t worry. There’s space for everyone. Perhaps not the 50th French Press but if you have a unique product and service proposition you too can make it in this market. 

4) Finding a product is not as important as actually pulling the trigger

I’ve seen it over and over again. People find a product which in my opinion is pretty good and then just before placing the order to the supplier they find excuses after excuses why the product all of a sudden isn’t a winner anymore. 

Granted, you need to do your research into numbers, demographics and market demand but you can overanalyze everything. As Scott Voelker says – Just take action! 

5) Amazon is working hard on getting Chinese factories onto their marketplace

You need to up your game and customer service. More and more Chinese sellers are coming to the marketplaces and Amazon is helping them. See the video here at around 2.27minutes: https://importdojo.com/importdojo-brand-evolution-branching-out-into-other-sales-channels-part-four-of-the-puzzle/

Amazon wants to offer the best prices to their customers and they do so by bringing in the actual manufacturers. However we have one definite advantage – customer service and unique product or service proposition. Two years ago I said “dont’ worry for now” over here: https://importdojo.com/chinese-sellers-on-amazon-dont-worry-for-now/ But now is the time to really step up your game. Here’s a breakdown again on how you can compete with the manufacturers:

  • Improve your product quality based on reviews
  • Pay a little more for better quality and regulations-compliant products
  • Develop your own products and packagings and make them exclusive for you on Amazon
  • Build or grow your brand with cross product selling and larger assortments
  • Build or grow your audience (Facebook, mailing lists etc.) and be ahead of the Chinese competition
  • Build relationships with suppliers for the long term and become one of their largest customers so that they don’t have to sell on Amazon themselves

6) Building an eCommerce business and brand is not complicated. It just takes time

Many of the speakers at the conference started where you are today. Today they run 7-9 figures eCommerce businesses. When you asked them how they did it they all answer in the same way. 

Step by step and it just takes time. You just have to focus on building a brand and diversifying as much as possible. Not just sell products on Amazon but also branch out into other channels.  

7) Social Media & Influencer marketing will be the No.1 traffic source to come (already is in my opinion)

There were a couple of speeches on how powerful Social Media and Influencer Marketing is. PPC and general paid advertisement is great but expensive. 

If you start your social media platforms now or continue to grow them you’ll have a launch tool that works every time. 

8) Outsource & automate as much as possible. 

I sat in the talk of Bill D’Ambrossio and I was baffled by how much you can automate and focus on the one thing you should be doing – devise your companies future and strategies. 

A year ago I was doing pretty much all of my tasks myself. I just couldn’t let go of some tasks and I thought only I can do them. I was wrong. I now have several VA’s and permanent employees that handle my daily tasks. And I can focus on the most important part of the business – working on things that make money. 

9) Retargeting – don’t miss out on your customers

I realized I am missing out so much on customers that visit my store and listings. With Facebook or retargeting tools you can now easily retarget your customers. 85% of first time visitors don’t buy from you. The majority never returns. 

But with re-targeting you can catch a lot of customers. It’s not just Facebook retargeting with lookalike custom audiences but also catching emails of visiting customers to your own website. Have a pop up window with some give aways or a coupon code or anything that lets you catch the visitors emails. These are essential things you should be doing (including me). 

Wrapping up

The best part for me personally was the last day when all the speakers got together in a private room and discussed their wins & struggles. 

Everyone of us had 15 minutes to speak and share their tricks and strategies as well as ask for advice. 

I was sitting amongst people that do 8 to 9 figures a year (working on mine :)) and was getting advice from top level people in the industry! This was the best Mastermind I’ve ever been to. 

Obviously I had to share some of my secrets as well and I think people were surprised by a product launch strategy that I developed in the last 3 months (which I will soon reveal).  

Getting and sharing advice with the big guys 🙂

If you are interested in the speeches given at the Summit here’s a link to a virtual pass. The recordings will be up in a few days:

http://sellerssummit.com/members2017/virtual-pass/?ap_id=importdojo

I hope this gave you a bit of insight from my trip, what the trends in the Amazon world are and what’s to come 🙂 

I got back two days ago to Asia and I am currently fighting a massive jet lag. On top of that I am heading to a conference in Berlin, Germany tonight (http://amzcon.de/). If you are around say hi 🙂

Let me know what you think in the comment section. 

We got this! All the best and happy sourcing,

Manuel 

Is Amazon FBA still feasible?

We are giving away our eBook on how to build a brand titled “From Zero to Hero” Building (over 123 pages). If you ask yourself why we do that please read until the end 🙂

Every so often I get an email from a reader if this business model (Amazon FBA) is still worth it. Or if you can honestly make money selling on Amazon on in eCommerce for that matter…. 

Well, it is very likely that I don’t know you and your capabilites and dedication to work. If a friend asks me that same question and I’ve known him for years I can tell right away if he is going to make it or not.

It all depends on a person, his skills and his work ethic. But don’t be fooled by so many “gurus” out there telling you that you can make 10,000 within 4 weeks. That’s just lying to you to get to your hard earned cash.

So I can’t answer a complete stranger if he is going to make it . Yes of course you can make it but it takes time, efforts and money to build. 

The other day there was a newsletter on how many sellers after a year are still actively selling. The numbers were quite surprising. 

I don’t have the link anymore but I think only 30% are still in the game after a year. 10% of those actually make money. So it depends a lot on your dedication, product selection & general attitude towards “making it”. 

On top of that Amazon is constantly changing their TOS and making it more difficult for the “little guy” to suceed. 

Just a few days ago they have closed down the brand registry program. See the screenshot here:

From what I hear they will open the program again in early May and will then only accept sellers who have a trademark registered. 

Rumours are that if you have been accepted into brand registry before this change you will be “grandfathered” in. Meaning you should be ok. But this is just speculation, I couldn’t confirm this. 

More and more Chinese sellers are coming to Amazon and they most likely all have a trademark on their brand. 

So if you are just starting out and want to test a product and this business model it will be difficult to protect your “brand”.

We will have to wait and see what Amazon will do in May when they release the news on whats happening. 

Hence my constant appeal to my readers to build a brand.

But to answer your question in general, is Amazon FBA still feasible – YES absolutely. Even I was sceptical 3 years ago and you know what? It turns out, as long as you have a long term strategy, unique and innovative products or ONE rockstar product to carry your brand you will make money and stand out of the crowd.  

And building your brand does not stop on Amazon. What I really want to drive to you is that you need to branch out into as many sales channels as possible. Yes selling on Amazon will be essential but not the only thing you should do. It is a great way to kickstart your brand BUT and It has never been easier to build a brand.

Yes, it takes a very long time but building your brand is creating true and lasting value that you own. This independence is crucial and the best time to have started this would have been last year… the second best time is now.

Two weeks ago I released a new course on brand building which has been received very well and if you are just starting out and as a thank you for being my loyal reader I’d like to give you our Brand Building eBook (From Zero to Hero) which we just released for free!

If you aren’t registered on my site yet for a free membership please do so now: https://importdojo.com/pricing/  

Just click on the link and choose “Free Membership” – IT’s 100% free!

Go check it out and download it. I would also love to have your feedback on this eBook. 

Ps.: If you are an existing ImportDojo member, you will find this eBook in your Members Area 🙂 

All the best and happy sourcing,

Manuel

Existenzangst or fearing for one’s existence

Totally off topic today but I feel like sharing this famous German paranoia. In German we have a saying which is called “Existenzangst” and literally means being afraid of loosing your livelihood. 

Meaning you are constantly afraid of loosing your job, income, running out of money and ending up on the street. It’s ridiculous but ever since I’ve become an Entrepreneur I have this almost every day.

I admit, I too am scared (or anxious) and worry all the time so I wanted to get to the bottom of this. Am I the only one feeling like this? Let me try to get this off my chest. 

What’s the worst that could happen to me today? I am really just typing as I go and put out my thoughts. 

I really want to evaluate my very own situation and if you also have these "existence fears” feel free to do the same :) 

Lets take a look:

  • Amazon business tanks (30% of my income) 
  • Sourcing & Retail business tanks (30% of my income) 
  • Online courses, workshops, ebooks (20% of my income) 
  • Coaching, consulting (10% of my income) 
  • My eCommerce store tanks (10% of my income - just started)
  • All podcast & other interviews magically disappear and no one ever hears of me from tomorrow on (no income but leads and subscribers to my blog) 

Lets look at it in more detail: 

  • I am live on 3 Amazon market places and even if one tanks I still have 2. And I am not even live on many other sites that have third party selling (Lazada, Jet, Sears etc.) 
  • All my satisfied customers and potential leads that I built in over 3 years disappear tomorrow. I have many repeat sourcing clients who are very happy, how likely is it that they all disappear? 
  • I am currently live in 5 retailers, some re-order every month or so. I am even working on more retail customers. 
  • I have courses live on 5 platforms. Some with coaching, some without. How likely is it that they all get removed? Especially on my own site…
  • No one ever thinks my opinion or expertise counts and doesn’t book coaching with me anymore. I have built a reputation (I hope :) ) for being an expert in my field and I rather provide value than sell something just for the money.  Those that really know me well know thats true. So I guess that is very unlikely to happen. 
  • Just started with 1 eCommerce store (Outdoor & Garden category) and it’s going well so far. eCommerce is the future so even if I loose this I can build another store quickly. 
  • I gave about 30 podcast interviews, 4 or 5 actual print magazine interviews, 10-15 online blog guest posts, I spoke publicly at conferences and videos are available on that. Even so, I could start all over again and build my reputation from the scratch. 
Even though some of the above may be possible to happen but it is very unlikely that they all happen at the same time right? So what am I really worried about? Guess I am just another human :) 

Lets say one of these 30% income streams tanks. I still have 70% of my income and need to find a new way to make up for the missing 30%. 

Since I will still have 70% of my income & I’ll  actually be in a comfortable situation. And I would just have to increase workload for a few months. 

Lets just say all of this happens at once. It is not the end of the world. I still have some savings and my health. While I don’t really like the idea of going back to a job I have over 3 years where I ran multiple business and built income streams from the scratch. 

I’ll likely go apply for a job at a retailer's buying office (Amazon, Walmart) here in Hong Kong and on top of my 17 years of retail experience I now have 3 years of running my own business, a best seller book about importing from China and a round of online courses, interviews, public speaking that I can add to my CV. So I am pretty sure that I will find a job again. And that’s really worst case scenario.

Then again lets take another scenario. Let’s just say I lost all my income streams but I still have saved up lets say 50,000US$ from all these ventures. Would I immediately look for a new job? Probably not. Reason being that I have yet to travel the world and see things. Not that I haven’t traveled yet but I haven’t really TRAVELED yet. I mean hiking the Pacific Crest Trail in the US for 6 months, going to Machu Picchu in Peru, living on a beach hut in Brazil for a year and so much more to do. And the best thing is when you travel on a budget or do what’s called “Geo Arbitrage” you don’t need much. Don’t know what that is? Geo Arbitrage is when you live in Thailand (or anywhere else where you have low living costs) for 500$ a month on the beach eating seafood and drink coconut water all day. Obviously if I would have a child, a car, a mortgage etc. things would be different and I’d have to get a job pretty quickly. But again - it’’s not the end of the world.

Think of the time that you worked for yourself as a time out in where you enhanced your own skills, tested your leadership abilities and hopefully had a lot of fun doing it. And you’ve added things to your CV. You didn’t really take time off for 3 years doing nothing, you tried to build something. And that’s worth something when you sit at an interview. I am pretty sure that will get you the job. 

But lets not get ahead of myself, I work hard every day so that I can keep doing what I am doing. And I guess you are too :) 

My message today I guess is that we should all stop worrying so much. It isn’t as bad as it looks like. My second message today and I keep saying this to everyone - DIVERSIFY

Just by looking at what I wrote I again realized myself how important it is to have different income streams. AND it is another reminder to build even more income streams. 

An income stream that is bigger than 30% is actually worrying - unless you make millions anyway :) 

Back in the day when I worked for the lighting manufacturer one of our biggest clients (a very large DIY store) went belly up. Over 500 stores (thats big for Germany) closed over the next couple of months and suppliers (the company I worked for) weren’t going to see any money anytime soon. That customer made up over 70% of the companies turnover. Thankfully the management saw this coming and invested into hiring sales staff and building more clients. But it was still a big loss for the company. Anyway, just a small story but same principle. Build more income streams and you don’t have to worry all the time. 

If you have these fears once in a while sit down and look at what you’ve built already since you joined the entrepreneurial world. 

Copy my thought process above and see where you stand. Look at what you have already accomplished. Let me know in the comment section, I am really curios to know if I am the only one feeling this way :) 

Even if you are just at the beginning and scared of the path in front of you, if you never try you’ll never know and you’ll miss out - I promise :) 

All the best to us in 2017 and happy sourcing!

Manuel 

7 weeks case study update – I am out of stock

I have a problem. Well its more of a luxury problem. Don’t get me wrong, I am not complaining 🙂

I have sold 1008 pieces of my French Coffee Press and am out of stock after only 7 weeks.

How did this happen? 

If you re-call my last blog post (https://importdojo.com/case-study-how-i-went-from-zero-to-7000us-in-10-days-in-one-of-the-most-competitive-amazon-niches/) I was doing about 8-12 pieces organically after my initial launch.

After about 5 weeks I was doing around 20-25 pieces a day 

and in the last 2 weeks I was doing between 35 to nearly 50 pieces a day!!!

IMG_4359

I contribute this to the following factors:

  • My listing and photos are better than the competition
  • My product is superior to the competition
  • Great copywriting does matter
  • 79 reviews within 5 weeks  
  • Launch tactic and tools used 

So now I’ve been out of stock for nearly a week already and my ranking has obviously dropped significantly. The good news is I have 1 shipment (208 pieces) that will be arriving this Friday. Unfortunately it is only 208 pieces that the supplier had in stock for me. 

As soon as I saw that I am heading towards 30 pieces a day I ordered another 2500 pieces that are being produced right now but I have to send it in via Sea otherwise it gets too expensive. Also I will not do any give-aways or PPC until my 2500 pieces nearly arrive, otherwise I am running out of stock again. Luxury problems like I said 🙂 

Alright, numbers:

Start of the project: 17th of November 2015 (Chinese New Year added nearly two months to my production) 

End of the project (launch): 12th of April

Length of the project: ~5 months. It can be done in less time (2-3months) especially if you don’t forget to place orders before the Chinese New Year  

Total order value of product: 4500$ (1000 pieces at 4.5$) 

Total cost of inspection, photography, layout and packaging: 949$

Total cost of shipping: 2650$ (~900KG by Air – thats 2.94$ / per kilogram) 

Total cost: 8099$

Update numbers after 7 weeks:

Units sold: 1008 pieces

Returns, units broken: 12 pieces (1% return quote) 

Profit made after PPC, give aways & others: ~8400$ 

My estimate profit when I started was around 12,000$. So I am short about 4,000$ but I am not not complaining. 

I’ve taken these 8400$ and re-invested them in my 2nd (208 pieces) & 3rd (2500 pieces) re-order. 

Meaning that the following orders are pure profit because I covered my initial investment (8099$) and nearly covered my 2 & 3rd re-order. 

Conclusion of this case study

It’s been 6 months since I started this project and I thought its time to give you a recap of what has happened, what went well what didn’t and where I can improve.            

The fact that the Chinese New Year (CNY) was in between and that I have not worked full time on this project has delayed my project. 

If I would have focused on this project from the start and work more than the 1 hour per day I could have shipped out before CNY and would have had a total of 3 months from the start until launch of the product. Since I am aware of most things that need to be done for this project it is easy for me but if you are a beginner I estimate that from finding a product until shipment/launch you can do this in 4 months.

Now onto the things that went well and some that didn’t work well.

One thing that caused a long delay was my mistake in paying the wrong beneficiary for the sample payment. That delayed my project for nearly 2 weeks.

So make sure that you check all banking details when you make a payment. I also lacked the motivation in the beginning because I had so many other things and other products going on. That delayed my product for 2 months. Why? Because I won’t ship out before CNY. So make sure of the timelines when you want to launch a new product and be aware of Chinese holidays.  But I will explain in a little bit why this actually doesn’t bother me so much. Another thing that didn’t go so well was the misunderstanding on the extra filters that I wanted. 

Apparently I didn’t make myself very clear to the supplier on this point. Also the fact that I wasn’t able to get a price reduction bothers me a little bit but I can’t complain too much because every other modification that I wanted was accepted from the supplier even though I have a small order quantity.

One thing that bothers me a bit are the high shipment costs of Air shipment. Reason being that the quantity is low and forwarders charge high premiums for small shipments. With my re-orders I will order a larger quantity and go by SEA and that should bring shipping down to 20% at least. Which will improve my margin in the end.  Also the fact that the supplier messed up on the product dimensions and weights and that I was paying 270$ more than planned is not ideal but it is what it is.

Another thing that I didn’t plan well for was the re-order. I am now out of stock for another week and I have to get my ranking going again. Once that ranking is up again I should receive my large re-order by Sea. I should have projected my sales velocity at an earlier stage and simple send in a large re-order right away after seeing first results.

What went well was definitely the communication with the supplier and the quality of his work and attitude towards working with my small quantity. I attribute that for meeting the supplier in person at the canton fair and my clear instructions when I first made contact with him. Subsequently I also promised him more business in the future ,which definitely makes him more eager to work with me. The initial sourcing results were also pretty good, all suppliers had good prices and decent MOQs. But the fact that my actual supplier had exactly what I needed and the fact that I met him in person made my decision easy.  

I am also happy with the artwork and photos. I admit I paid a premium price for the packaging and photos but I want quality work. So often I read from people in the FB groups that they hire someone on Fiver or Freelancer.com and the results are either bad or mediocre. Or the seller of the service disappears completely or doesn’t keep deadlines which can be crucial for your launch. Think about it, a great listing and photos will set up your product for the long term even if the initial investment is bigger. I could also book a cheaper inspection now but that’s not the way I do it. I want this product to be of high quality and I don’t want unhappy customers or give my competitors the chance to give me a bad review.

I may go with a cheaper inspection for re-orders which are less complicated. There are services I work with that charge 100$.

The fact that my shipment was delayed for more than 2 months because of the CNY  actually doesn’t bother me at all because this course should be for beginners on importing from China who are launching their first product. So you actually should take your time for all the different steps. Don’t hurry the process just to ship as fast as possible. I had two months to prepare my launch, perfect my listing and think about different strategies.  Also I think many of you are just starting out or doing this on the side. The one thing I suggest you is that you take you time, do the research and know the process when dealing with factories in China. Don’t just quit your job because you heard of FBA and do this full time. Have a capital on the side, maybe do this besides your full time job and once you have a couple of SKU’s running you can think about quitting your job. If you can’t invest 5-6000$ for your first product try ordering a smaller MOQ.

However I personally think 5000$ is the minimum budget one should have and I am not saying it can’t be done with a budget of 3000$ but you will likely be in a much more competitive field when choosing a product because a lot of people look for the same products because of their limited budget. Save that money you would spend on a weekend out with friends and put it into your budget. 

Now don’t get me wrong, I have spent quite a lot of money on photography, inspection and logistics. It can be done for less, that is for sure. I could get an inspection for 100$ instead of 309$. I could get photos for 100$ instead of 650$. And maybe that would work also ok and in time I can improve photos and other things. But I don’t see it as that. I see the initial investment important because it will set up my listing for good. Now obviously a lot of people will see this case study and might copy me so I will have a lot of competition, but that is not my point.

I normally wouldn’t disclose my product and therefore (if I don’t disclose my product) the steps that I have taken will make sure I have a high quality product, great photos and a money maker for the coming years. If I were to cut costs everywhere maybe because of budget reasons I would have to cut into quality of the product, leave out the inspection, poor product photography and more.

That puts my Amazon account, Best Seller Ranking and everything else in danger. I want to have a reputation of a quality product and satisfied customers, because in the long run that is what you need to grow your business. If I were to try this as a one time thing I might make some money quickly when cutting costs and then what? I have to start all over again with a new product because someone copied me and made a better product.

See the initial investments as a road to success and don’t think about the number too much. I am not saying you should pour money into suppliers and inspection companies or photography, these have to be reasonable and negotiated but don’t be too stingy with investments either.

I think the saying “want cheap? Then you get cheap!” plays a big role when buying in China and selling on Amazon. Do your research on services that you need for your product, don’t pay too much but not too less either just to save 100$ that will hurt your product’s performance in the long run. 

I am a bit off on my initial calculations and profit projections (about 4000$ off) but I’ve added a couple of things and looked for the best so that decreased my profit. However I as I said I nearly covered both of my re-orders only with my profit. And I have no more photography or give away costs and that will certainly improve my margin. Keep in mind that your first product will not make you a lot of profit but the re-orders when launched successfully will.

Ok, so I am wrapping up here. I hope that this case study helps you to figure out the process in China and how you can apply my techniques to your own product. I have also learned that two of my students will launch the same product in Europe’s Amazon markets and in a few weeks I can give you some more results on the European market with this product

Looking back at this project I would call it a success. Here’s why:

  1. I have a product online that has quite some reviews already (mostly 5 star)
  2. No future investment needed (except re-order inventory)
  3. The product makes me 3,000$ a month minimum, possibly more.

Now onto YOU my loyal reader. Let’s assume you are still considering moving into FBA on Amazon. Imagine this was YOUR first project on Amazon and you are still employed. If you would have started this while working a full time job you could possibly quit your job now and have a guaranteed income of 3,000$ per month. If not, here’s a few scenarios what you could do with those 3,000$ extra:

  1. Escape the rat race and quit your job? Maybe not the safest decision but add one or 2 more products and you are good to go.
  2. Want to add additional income and keep your job? You’ve just added 3000$ to your monthly income.
  3. Want to go to tropical beaches on a holiday and not having to stay at budget hotels?  
  4. Want to send your kids to an expensive school? There you go. 
  5. Need more money to support your family? 

What I am trying to get to you today is:

“Focus on building a brand from the beginning. Keep this in the back of your head with everything you do. The majority of you just starting out has limited capital and can therefore not play around. So build better products from the beginning, have A+ photos and listings, great customer service and don’t be afraid to invest your money into higher priced and better quality products, be unique in what you do.

Look at this business not as a get-rich-quick scheme but rather see your investment as an opportunity to build your brand and in turn make more money in the long run (Do this as opposed to release and launching a product every week). Build it slowly and keep quality and focus in the back of your head.”

One last thing. If you are just starting out do not take your first profit and spend it on a Vegas weekend 🙂 

I hope that this case study has somehow inspired you to start your own business.

Be it on Amazon or other eCommerce (or offline channels)

If you are interested in the step by step video lessons (over 50+ video tutorials) and the other great parts of my course have a look at my Masterclass:

https://importdojo.com/importdojo-masterclass/

All the best and happy sourcing,

Manuel

https://importdojo.com/importdojo-masterclass/

Private labels & packaging differences

Private labels & packaging differences

 

Introduction

The obvious and most profitable way to create sales is a private label with a nice packaging.

In German we say “Eine gute Verpackung ist die halbe Miete” which literally translated means “ A nice packaging is half the rent” or in other words with a nice packaging you “win half the battle”.

Meaning that a nice packaging will convince your customers to buy your product by 50% already. That saying even goes when you are selling online and your customers won’t even see your packaging.

BUT say you sell online and your customer receives your item and he sees the nice packaging he sure will give a better review just because the packaging is nice already.

Note: Even if you sell online, you should put a picture (high resolution) or even a 3D-rendering picture amongst your product listing so that customers can see your packaging.

It is even easier if you sell offline (in retail stores). Just think about it, how often have you made a decision buying a product because the packaging was nice.

Look at Apple’s packaging.

Nice and clean, no fancy colors, UV coating (the logo and product), clear and to the point descriptions with high resolution photos. They got me, I buy their products also based on their packaging.

Now lets look at the different options in packaging’s.

 

Differences in Packaging

 

You basically have 3 options:

– Private label packaging (color box or white box with private label sticker)

– No name packaging

– White box

 

Private label packaging:

ImportDojo

Contact Info

18/F., Blk. B, Tung Luen Ind. Bldg. 1 Yip Shing St., Kwai Chung, Hong Kong

mail@importdojo.com

Copyright 2017 © All Rights Reserved