Importing products from countries to re-sell other than Asia

[OzzieRob]

Many forum members here i can see import from Asian countries (mostly China) to re-sell products on ebay/Amazon.

With increasing competition in the last few years i now diversify the countries that i buy products from and find there is less competition.

Many of the products i used to sell on ebay would cost $5 a piece and sell easily for $100 but now with fierce competition my sales have been killed as they caught onto what i was doing. Mostly from Chinese sellers and other small businesses.

I still sell the same products but with slight modification so the margins are quite good again, however, i now pay 6 times the buy price that i was used to paying.

Are there any of you out there that import from other countries succesfully from other countries besides Asia to re-sell on ebay/Amazon?

Cheers
Robert

 

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[juicemania]

Many forum members here i can see import from Asian countries (mostly China) to re-sell products on ebay/Amazon.

With increasing competition in the last few years i now diversify the countries that i buy products from and find there is less competition.

Many of the products i used to sell on ebay would cost $5 a piece and sell easily for $100 but now with fierce competition my sales have been killed as they caught onto what i was doing. Mostly from Chinese sellers and other small businesses.

I still sell the same products but with slight modification so the margins are quite good again, however, i now pay 6 times the buy price that i was used to paying.

Are there any of you out there that import from other countries succesfully from other countries besides Asia to re-sell on ebay/Amazon?

Cheers
Robert

You really should check out @Walter Hay 's thread here. He talks about importing from countries outside of Asia and gives a TON of other helpful info on importing/exporting as well.

 

[OzzieRob]

I hear you Juicemania, thanks. Walter Hay is a great thread as i read through it last week.
I'm just curious how many forum members already import succesfully from other countries besides Asia?
More like a hands up rather than how to do it as i already import from various countries other than the US.
I may re-read Walters'thread again though as i may see something i missed.
Specifically i am seeking wholesalers in the US for products.
The last time i bought was a few cases of electronics from B&H Photo which was great but didn't last.
The retail prices in the US are almost at wholseale prices compared to Australia although with the fluctuating US dollar
this could be changing.

Cheers
Rob

 

[Walter Hay]

I hear you Juicemania, thanks. Walter Hay is a great thread as i read through it last week.
I'm just curious how many forum members already import succesfully from other countries besides Asia?
More like a hands up rather than how to do it as i already import from various countries other than the US.
I may re-read Walters'thread again though as i may see something i missed.
Specifically i am seeking wholesalers in the US for products.
The last time i bought was a few cases of electronics from B&H Photo which was great but didn't last.
The retail prices in the US are almost at wholseale prices compared to Australia although with the fluctuating US dollar
this could be changing.

Cheers
Rob

I have written on this subject in my AMA thread, but I would like to comment on your previous experience in buying retail in the US and selling retail in Australia.

Even with the Aussie dollar at 5 year lows, that is not something you should give up on. Look at the retailers' sites and compare with wholesale in Australia. If you buy retail when there is a genuine sale you can do even better. Also, when you buy retail from an authorized supplier in the US, that should entitle you to sell the brand under Australia's parallel import rules. (NOTE: This is not legal advice.) This could make you very competitive.

I have seen products bought at retail in the US and landed in Australia at about 1/4 to 1/3 of retail there.

But... for readers in the UK, the same sometimes applies there. Products sold retail in Australia will sometimes cost no more, landed in the UK, than UK wholesalers charge.

It all amounts to arbitrage, but having lived in 4 different countries and traveled extensively in others, I have seen the possibilities.

Not long ago I visited a very small retail store in a back street in Beijing and saw men's suits for US$38. His buying power was zilch! A few days later I was in Birmingham UK and saw a large retailer advertising those exact same suits as a huge special. The price was equivalent to US$150.

Now you won't find those small Chinese shops advertising online, but you will find retailers in Australia, UK, other EU countries, and USA doing so. If you are happy with opportunity profits, this could be a way to go.

 

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[OzzieRob]

Thanks for the info. Walter...Yes, in the beginning of my business startups on the internet i did NOT had any success importing retail products from US retailers even after buying licensed distributor products at wholesale prices although i did have some small success with refurbished electronics at retail for short while.

These days i import products directly from manufacturers in various countries including China although i am not familiar with the US marketplace except for buying my office supplies at much better prices than Australia.

I am aware that if 99% of internet Entrepreneurs are doing the same thing it is a signal to do the opposite.

Cheers
Rob

 

[Walter Hay]

Thanks for the info. Walter...Yes, in the beginning of my business startups on the internet i did NOT had any success importing retail products from US retailers even after buying licensed distributor products at wholesale prices although i did have some small success with refurbished electronics at retail for short while.

These days i import products directly from manufacturers in various countries including China although i am not familiar with the US marketplace except for buying my office supplies at much better prices than Australia.

I am aware that if 99% of internet Entrepreneurs are doing the same thing it is a signal to do the opposite.

Cheers
Rob

It is not uncommon for US wholesalers to quote prices above retail. Reasons vary, but protection of relationships with big retailers is one.

There is a US export magazine in which some advertisers seem to think that they can charge ridiculously high prices because the potential buyers looking there have no idea of selling prices in the US.

The same applies to some extent in China. There are plenty of opportunist traders on Alibaba pretending to be manufacturers and they not only quote prices higher than the manufacturers (because they have to add their margin), but they also quote big MOQs and they are not negotiable on those big numbers.

 

[OzzieRob]

Agreed Walter...i find it all comes down to tonnes of research and doing COSTING. That was somethng i was not very savvy at considering i had a degree in accounting and marketing.

In the beginning, i was so keen to import that i overlooked all the extra fees such as shipping, bank transfers, customs duty taxes and exchange rates.

Nowadays, i find the top sellers in a particular niche, obtain manufacturers prices and plug those numbers in a spreadsheet to see if it will be profitable or not. Works like a charm.

No need to worry about what prices you are paying if you plug those numbers into a spreadsheet first. Of course, this can sometimes be difficult depending on who you are dealing with but it is so important to get all those fees worked out first before you import.

Cheers
Rob

 

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[Walter Hay]

Agreed Walter...i find it all comes down to tonnes of research and doing COSTING. That was somethng i was not very savvy at considering i had a degree in accounting and marketing.

In the beginning, i was so keen to import that i overlooked all the extra fees such as shipping, bank transfers, customs duty taxes and exchange rates.

Nowadays, i find the top sellers in a particular niche, obtain manufacturers prices and plug those numbers in a spreadsheet to see if it will be profitable or not. Works like a charm.

No need to worry about what prices you are paying if you plug those numbers into a spreadsheet first. Of course, this can sometimes be difficult depending on who you are dealing with but it is so important to get all those fees worked out first before you import.

Cheers
Rob

I hope many others read this post of yours Rob. It is of the utmost importance to work out your selling costs before you place an order. I would like to add: Include in your costs such things as packaging for delivery to customers, postage, eBay or Amazon fees, and PayPal or merchant fees if you accept credit cards.

All of those costs can run away with your profits.

Regards,
Walter

 

[OzzieRob]

Definately all those fees too, lol. One other thing that i struggled with was once i reached the threshhold of $75K in ebay sales i had to register for GST here in Australia and that made me less way competitive with other sellers on ebay.

As i import most of my products from overseas, i have little GST to claim back so it did help to buy investment properties and negative gear them so i no longer pay tax at all.

So...spreadsheet number 2 was made to include GST and to my surprise half my products were no longer competitive.

Once again i am seeking to expand by importing more profitable products but from the US this time. It's a constant buy, hold, profit, re-invest, eliminate process but it sure beats working a 9-5 day job.

Weird thing is today i received a mail bag from a manufaturer in the US that was wrongly addressed to me instead of a neighbour and it contained plastic x-mas tree clips?? and is a fortune 200 company selling toolworks.

I always wondered how this guys down the road from me can build a massive mansion overlooking the ocean. Helps to know successful peoples suppliers, eh !

Cheers
Rob

 

[Walter Hay]

Definately all those fees too, lol. One other thing that i struggled with was once i reached the threshhold of $75K in ebay sales i had to register for GST here in Australia and that made me less way competitive with other sellers on ebay.

As i import most of my products from overseas, i have little GST to claim back so it did help to buy investment properties and negative gear them so i no longer pay tax at all.

So...spreadsheet number 2 was made to include GST and to my surprise half my products were no longer competitive.

Once again i am seeking to expand by importing more profitable products but from the US this time. It's a constant buy, hold, profit, re-invest, eliminate process but it sure beats working a 9-5 day job.

Weird thing is today i received a mail bag from a manufaturer in the US that was wrongly addressed to me instead of a neighbour and it contained plastic x-mas tree clips?? and is a fortune 200 company selling toolworks.

I always wondered how this guys down the road from me can build a massive mansion overlooking the ocean. Helps to know successful peoples suppliers, eh !

Cheers
Rob

That was stroke of luck. I had a similar experience once. Not only did the invoice show me who was supplying this major competitor, it also showed me that he was declaring ridiculously low false values for Customs and Tax. I knew one of the Customs guys well and just mentioned it in passing as I handed back the package. I wish I had been a fly on the wall when the competitor collected that parcel.

Have you tried www.thomasnet.com to locate suppliers in the US? It can be a slow process but worth it.

 

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[OzzieRob]

Odd coincidence indeed Walter ! I actually looked up the guy that i got the package for and he is selling x-mas clips which are for auto car parts.
Will need to get that package back to him today. The reason i opened it was it had his business name which was almost identical to mine and the posties got it mixed up with my business. Rep transferred to you for the thomasnet link.