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Made $6,900 Importing From China and Reselling on eBay.

Anything related to sourcing or importing products.

JasonR

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How does one create their own brand/privately label with products that they import from Alibaba? Is it as simple as asking if the supplier is able to slap your logo on the product?

Yes, it is that simple.

However, how much value are really adding by doing that? I just got off the phone with @LightHouse and we were talking about this.

So many people looking to sell on Amazon (and off of Amazon) merely import something from Alibaba, get their logo stitched on it, and throw it on Amazon.

There's an Amazon / importing gold rush happening right now.

Most of the guys making the best money are supplying shovels and pans for that gold rush. Look at all of the Amazon software out there.

Yah, that's easy. It's still a lot of work - but how much value are you REALLY adding?

Yes, you can make some money (and in some cases, a LOT of money).

But in the end, you are doing what everyone else is doing - the easy thing. The stay at home mom who makes $2000 from importing from China and selling Amazon.

If you don't add any real value to your branding or product, how long do you expect to last?

If it's easy, don't expect to make a lot of money.

Maybe you can make some money in the short run, but you will be driven out of the market if you don't have large competitive advantage.
 
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Tehcasa

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As of the age of 16 I started importing directly from Chinese manufactures (through Alibaba). During the course, I was a failure. I didn't break even, I was scammed once and I had no clue on how to find reliable suppliers and profitable products to sell.

Before I go on, many people ask me "did you use your own money to start-up your own import venture". My answer is: Yes. I scrubbed dishes like a crazy old lady, cooked bread and oysters like no tomorrow and scrubbed toilets with my bare hands in a restaurant I worked at for no longer than one year.

As of today, I've made close to $7,000! I know it may not seem that much, but I started importing at the same time I had school.

My process on importing is simple. FIND, BUY & SELL!
Of course it's not going to be as easy as it sounds. But the more questions you ask me, the more you'll be better off in your start-up journey.

For now, I have stopped importing mainly because of starting year 12 and putting all my time into that for necessary purposes. Please don't rant onto me about dropping out of high school...

As a small success, I want to give back to the Fastlane community. If you have any questions related to importing from Alibaba and reselling via eBay. I'm your man. Personal Message me if you like!

Pat
 
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Tehcasa

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What is your process for identifying a successful product on Alibaba to resell on ebay?
Good question. I found these "perfect products" through four main websites:

1. Amazon Movers and Shakers - which identifies the biggest gainers in sales rank compared to twenty-four hours previous. I found products that had approximately 1000 reviews. If it was greater than this, the product was more likely to be saturated (too many sellers and not enough buyers. Or if it was less than 1000 by a lot I wouldn't really waste my time.

2. Kickstarter - Which is a global crowd funding platform. It helps bring creative projects to life. This specific page displays the most successful projects of ‘product design’ which have been 100% funded. Sometimes the product isn't out on the market yet, even if its 100% funded so don't get your hopes up if you think you've found the best product to sell.

3.Trendoriginal - This is another great resource for finding products.

4. New Movies - This was my favorite medium out of them all. I'm a regular movie watcher, and the amount of products/novelties that are created from movies is enormous! New movies = New TRENDY products on the market

My tip overall: Look for the newest, strangest, weirdest, and most trendiest products out! Even if you haven't heard of the product before, or you think the product is bizarre, go for it.

This was just half of the puzzle done.

Next I checked if the product was available on Alibaba. And from this (If it was available) I moved over on to Terapeak which is a market analytics tool that provides importers with product intelligence. I used this whenever I wanted to know if my product was selling or not. It provided your search with results that indicated the average price, average shipping cost, start price, listings and most of all the sell through ratio on eBay. All the results are essential to know, but for start-ups the sell through ratio is the most important parts of finding the "perfect product".

It essentially tells you if your product is selling or not. For example, if the sell through ratio was 30% it would be quite low and therefore you wouldn't want to buy the product. However if the product was around 46% or greater it’s awesome to buy. This is because the product isn't saturated which means that there is a lot of buyers and not enough sellers. Then I would move onto profit margins. I would answer this question: Is this product giving me x2 return for what I purchased it for or more? If it is a little bit under your x2 return that's fine, as long as you make profit during your start-up journey.
 
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JonnyC

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What would you do in the instance that your product is so small and simple that there really isn't a lot of room to play with in terms of adding your own value to it?

Some ideas:
  • make it with a better material
  • package it in a premium box
  • make it part of a bigger kit
  • make it in a range of different colors or designs to give people options
  • make a new product based on it
  • make it bigger
  • make it smaller
  • make it lighter
  • make it heavier
  • make it transparent/see through
  • build a brand based around it through a website, social media, influencers
  • add an instruction booklet with comical step-by-steps and ideas on creative uses
  • price it really high
  • price it really low
 

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Just to add for the persons replying with interest in this thread, all I ever see on this topic are suppliers overseas. SERIOUSLY, there are dozens, if not hundreds of warehouse distributors and suppliers in your own town/city. Google them, give them a call, walk in, ask for a product list. We seem to have forgotten how effective traditional business will always be, even in this modern age of technology.

You can get product lists from local suppliers, set up a website, and promote the hell out of it. Work directly with suppliers, and this face to face system might also get you a margin account as a start up business, which will help you ALOT!.

Perhaps i will also start a thread on this soon, to keep peoples heads out of the "outsourcing cloud".
 

Tehcasa

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Thanks for starting the thread.

What was your process for finding reputable suppliers?
Do you order in bulk and store the products yourself, package, and deliver all by hand?
What's your process for finding a product to sell?
How does the selling on ebay part work out for you. I used to do that a bit here and there and made a few hundred dollars when I was 17, I always felt that ebay was difficult to sell on though due to the influx of items constantly being listed.. I remember paying a dollar here and there to constantly relist shit.. and having some inventory never sell. How does that play out for you?

I've been asked the question regarding "the process for finding reputable suppliers" a lot, so here is a small summary of what you should know.


WHAT YOU NEED TO KNOW!


ALIBABA'S DIFFERENT CLARIFICATIONS:

GOLD SUPPLIER:
Is a company who pays for a yearly membership to host their store on Alibaba. This also allows the supplier/company to have premium benefits. The number one rule is to ALWAYS this button as it ensures that you are buying from a verified supplier. Also, the number on gold symbol represents how long the company has been on Alibaba. The longer the better your chances are of finding a verified supplier.

ONSITE CHECK:
I
nforms you that the supplier’s company premise has been checked by Alibaba.com staff to verify onsite operations exist there. Again, this box should ALWAYS be selected before you search for a product.

ASSESSED SUPPLIER:

This highlights that the supplier has been assessed by Alibaba’s third party inspection companies. This Feature is another way to certify that your supplier is verified.

ESCROW SERVICE:
Is a safe payment method to use when purchasing goods on Alibaba. The service will hold your payment until the order has been processed. The payment will be released to the supplier upon your confirmation. Although this feature seems important to select, I highly recommend that you only use PayPal to purchase your goods on Alibaba seemingly because it’s one of the safest ways to transfer money without having to share financial details.

E-CREDIT LINE:
Paying a supplier through credit. I highly discourage this because you may have to give out your financial details to a supplier. Entirely, I wouldn’t bother selecting this button when you are searching for your specific product.

ONLINE:
This means that the supplier/company has sales representatives in real time ready to chat with you about the product you want to purchase. Another note to add is to buy ONLY from suppliers who are ALWAYS online. You always want “on the spot clarification” when you are researching your products. It is inevitable at sometime that most suppliers on Alibaba will be offline. This is due to the different time zones between your country and China

RESPONSIVE RATE:
Informs you that the sales representatives are active and will respond quickly to your inquiry. The responsive rate of a sales representative should range from 20% to 100%. This figure can be illustrated below. In doing so, you will save a lot of time.

Acceptable responsive rate
Even if a company has a responsive rate over 40% they may use an automatic program to greet you when you open a real-time conversation with them (chat now)

CHINA MAINLAND:
This is another important clarification to note. You ALWAYS want to purchase from China (Mainland) manufacturers. Most other global manufacturers like India increase the chances of scam.

LISTINGS:

Also, another important part to add to your notes is that a company usually has more than one of the same product listings. For example, the above diagram shows two listings which are exactly the same product from the same company. Companies do this for publicity of their product. If they are seen more than once, a viewer may believe that they exclusively provide that product to consumers.

FOB PRICE:

Simply means Free on Board or Freight on Board. FOB idolizes which party (buyer or seller) pays for shipment and loading costs, and/or where responsibility for the goods is transferred.

MINIMUM ORDER QUANTITY:

This is how many units of the product you will have to buy in one order. The above supplier has an MOQ of 1000 Piece/Pieces. Never buy this amount during the early stages of your importing venture. You will always want to negotiate with your supplier to reduce the MOQ to a smaller quantity.

PAYMENT METHOD:
At first, buying direct from Chinese Suppliers over the internet can be overwhelming. The major concern is money transfer requests. ALWAYS use PayPal when transferring money to a supplier. It is the safest way to pay for goods without sharing financial details. Ideally, a Alibaba company will have it stated if or not they accept their payment through PayPal.


USE ALIBABA'S TRADE MANAGER!!! search it on google
The trade manager will be used significantly throughout your importing stages. It is the lifeline of connecting you with a supplier in a real time conversation

To start conversations with the supplier click “chat now”. Your Alibaba trade manager will load
up and a real time chat with a sales representative will appear.

Chinese sales representatives don’t like buyers who are mean and disrespectful and so you should always behave in a respectful manner while talking to them.

Getting on the good side of a sales representative will be as simple as this:
-Talk about your life in general. For example, your lifestyle in Australia.
-Ask why “China is a good destination to travel”.
-Have manners. For example, thank you for your time, I appreciate your service or you’re the best.

Most suppliers will be able to understand and write in English, but you will find out that some won’t. Don’t deal with these sorts of suppliers because communication is GOLDEN in finding the right product.

The main goal to have a long term relationship with a supplier is to maintain trust. I encourage you all to set up a Skype account and to ask the supplier to talk to you through there instead of the trade manager. Skype’s interface is much more user base friendly and it’s easier to track your messages after a long period of time.

--

I always tested my products first by buying a few samples to see how they could sell. From this I determined if they were good to buy in bulk. If yes, I would purchase around 20 and from there I would buy a much larger quantity. The product would come straight to my door via the courier agency that was assigned to me. I would list the product myself on eBay and as soon as someone purchased one of my products I would go to the post office myself and send it off. Not all the time I did this, when I had heaps of products selling I would buy bulk satchel packs instead of going to the post office and send the products off to the nearest post box (which was 100% faster and more efficient).

How I find products to sell? Well, if you go to the first page of this post, you will see my response already answering this question. It is just a small summary of how I would go about finding products to sell.

As for the eBay part, It is quite ok. eBay now offers I think its still (occurring) 80 free listings every month? I'm not 100% sure on that. But that helped me a lot. Not much extra costs except for the tax of each product I sold. And influx? This will depend on the product you buy. Not all products are heavily listed on eBay. When you see my old response on this posting on "finding profitable products to sell" you will see that the products I found were new and trendy. Products that are not over-saturated!

Hope this helps. pm if you want to join my skype group full of new start-up importers.
 
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Walter Hay

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I heard about this, that it is a great opportunity. There is a course "Amazing Selling Machine", it is about this. Buying from alibaba and selling on Amazon. I want to try out this too.

I have a few questions:
- Where do yo store the products? (Amazon has the option to even store your products, you dont even have to see what are you selling)
- What was you initial investment? How products did you buy, how much did you spend on them?

And to contribute a little to this thread feel free to visit the link below to spot the best products to sell on Amazon:
http://profitspotlight.com/ (Opt-In required but it gives you instant acces)

And, in order to store your products on Amazon while you are selling, read here:
http://services.amazon.com/fulfillment-by-amazon/benefits.htm?ld=NSGoogleAS
For UK and EU: http://services.amazon.co.uk/services/fulfilment-by-amazon/how-it-works.html
I found this post as a result of checking out recent posts on this part of the forum.

I can't understand how people can pay $5,000 for a course that supposedly teaches how to import, (as well as how to sell on Amazon,) but provides no helpful advice on how to source and how to import.

All they teach on the subject is: "Go to Alibaba to find products to buy." Today I dealt with an inquiry from a person who has ordered 50,000 items in his first order and had not the slightest idea what is involved in shipping them from the supplier to his delivery address.

That is the kind of result I so often see when people claiming to be experts give such off-the-cuff advice after charging a huge amount for their wisdom.
 

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Daniel M.

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Yeah I agree that can work. Tons of competition. I'd want to be selling around $20 though, not like some of these people selling cases for $5.

I just spent four days going through the top 100 list and doing keyword research. Narrowed it down to 165 products. Need to automate this like yesterday.


Very good. I agree that you should sell good quality products instead of cheap trash.

Oh, and there is another REALLY cool thing.
On alibaba you can find retailers who offers you the opportunity to rebrand the product. You can send the design for your product and you can sell your own self-branded cases. That's really great I think, I will definitely try this out.
 

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I want to disagree on OP's disagreement on phone cases.
Smart phone cases, specifically for the Galaxy S5, were the second set of items I sold on my eBay store. I started with a batch of 5, and they sold in less than a week. I then ordered 25 from a bad supplier and ended up selling all of them within three weeks, but about 7 of them ended up being returned or refunded. Once those all sold, I ordered a batch of 24 from another supplier (same style cases) and he gave me free DHL shipping at a better price. I sold all 24 in two weeks, with one return.

Mind you the price per case from Aliexpress was about $2 and I sold them each for $18-$23. I made a good profit and was able to compete with other sellers selling the same type of case.

I do want to add though, that I noticed a major increase in sales when I started offering better shipping than the other sellers. It may also help that I was selling phone cases that were branded (but I admit, not authentic).
 

Walter Hay

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...maybe cos there's more moola in the teaching:woot:

Why do these Guroooo's who claim to make guzillions on amazon sell 5K programs...then up-sell ya to more expensive programs, well emm...maybe, just maybe cos they are the real fastlaners?:embarrased:
I have read the "success story" written by one such guru, written when he was only getting started in trying to sell an eBook about how to make a fortune by importing and then selling on eBay. (He now favors Amazon). The risky methods he used were so amateurish that I felt sorry for anyone who paid the few dollars he charged for his book, which itself was amateurishly written and full of fluff.

Since then he has partnered with an Internet Marketing expert who is much sharper, and the pair have been selling a course for big bucks based on his original story, but now slickly written and even more slickly presented.

It is that slick presentation that sucks in the punters. The high price proves that it must be a good program - right?

So why do they make those claims? Could be because they know that "there's one born every day."

Please note that I am not identifying any person or course. I am generalizing, because the practice is widespread. I have written about one individual who may have no connection with any course currently being offered.
 

Ap0110

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Some ideas:
  • make it with a better material
  • package it in a premium box
  • make it part of a bigger kit
  • make it in a range of different colors or designs to give people options
  • make a new product based on it
  • make it bigger
  • make it smaller
  • make it lighter
  • make it heavier
  • make it transparent/see through
  • build a brand based around it through a website, social media, influencers
  • add an instruction booklet with comical step-by-steps and ideas on creative uses
  • price it really high
  • price it really low

Thank you sir!
"add an instruction booklet with comical step-by-steps and ideas on creative uses"
You just gave me an idea :) amazing.....
 

fhs8

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Firstly, stop trying to make false accusations. I live in Australia, so the exchange rate is totally different to the US + they did not initially ship this good internationally due to regulations. Yes I was selling for $70. There were numerous sellers selling for this price in Australia at the time. This was years back when I was selling them, and I wasn't selling the 2.0, I was selling the original Bug A Salt.

They may be $15 now... I haven't checked since. At the time however they were approximately $29.84 a unit to buy on Alibaba.

There was no Chinese manufacturers selling on eBay in the initial stage. Again, please get your facts right.

If you have any more questions I'm more and happy for you to personally msg me.


Ok because your post made it sound like this was a recent win. It would've been good if you've mentioned that you've made $6,900 over the course of a few years.

As of today, I've made close to $7,000!

If it took you a couple of years to make $6,900 and god knows how many hours (I'm guessing at least 500 hours) then why are you accepting questions like you're fastlane? You're not fastlane. There was no Chinese manufacturers/Chinese people selling on Ebay in the initial stage but there sure is now. What matters is today not five years ago. If you can't hire someone to do your work then it's a job not a business.

A sum of this total was from counterfeits. I was popping profits $90-100 per unit sold.

Also margins are higher for counterfeited goods but it carries the risk of getting a lifetime ban by PayPal / Ebay so it's not a reliable long term solution. So for all we know you could've done much worse had you not counterfeited anything.
 

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Thanks for the AMA @Tehcasa. How do you price your products? Through auction or fixed price? And if it is fixed price do you base it off of average selling price + average shipping on Terapeak?
 

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Hi @Tehcasa, thanks for the AMA. This thread has very valuable information and I wanna give this a try. I had a couple questions after reading the thread, hope you can help with this:

Regarding your comment saying you bought a few at a time and then increased quantity as you saw each product work well, how hard is (or how did you do it) to find manufacturers with such a minimum order quantity? I keep scrolling and going through pages and they all have quite a bit of MOQs. 500 units is the smallest I have seen.

Also do any of the manufacturers on Alibaba (sorry, newbie question) dropship? If they do, how does one recognize them (or just need to ask?)?

Thanks in advance :)
You can always talk to the manufacturers regarding MOQ. Just tell them you're doing a sampling and that you need 50 units or so. If they are hesistant to let you order a very low quantity for samples, usually they're trading companies that must meet a MOQ themselves.

With regards to dropshipping, it won't make sense for you to go via that route from China. Shipping for 1 unit is usually much more than the product cost. Otherwise, those that do drop ship with free shipping use China Post which takes 20+ days to reach North America.
 
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mikeobi

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Wow you guys are right on value. E-commerce really is like the gold rush and if you you're just doing the simple importing OEM products and selling them on e-commerce platforms right out of the package for too long, some day you might get bodied out of the market or deal with heavy saturation. Really something I need to consider.
 
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Tehcasa

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Hi Tehcasa,

1) How long does it take between your first order of the first one item batch and starting selling a lot of them on Amazon? Do you get impatient?

2) What resources/articles/books/videos other than this thread did you find invaluable in starting your business?

3) What are the top 3 mistakes you see being made when you check other products, or that you did/were close to doing?

Regards, Jon

Hi John, here's my response.

1. The initial process of waiting for my first order was very frustrating as the courier took over 1 month. In this time I numerously contacted my supplier to see the progress of the shipment, however I was scammed. *This was my first ever shipment*!

After years of training and failing, I finally created my very own formula to import profitable products from reputable Chinese suppliers. As a matter of fact, I enjoy researching and analyzing products on the global market, hence this made the entire process much more enjoyable and entertaining in a way. (there's a lot of strange and weird products on the market).

I was never quite impatient with my orders, despite the time it takes to arrive to my destination, Australia. In the mean time of waiting, I just went on and did more research for my next product/order.

2. I rarely used resources to learn how to import, however, I highly discourage going to seminars without checking the background of the speaker. I've been to a few in my local area, and without a doubt they were just a sales pitch. A very expensive sales pitch, that went on for more than 3 hours. Again I reinforce, do a check of the host taking the seminar, see if the content on his sales page is "too over the top", and if it is, don't waste your time!

3.
  • Importing highly saturated products, which means that there are too many sellers and not enough buyers, e.g. iphone cases, clothing.
  • Importing bulky products is a NO GO as a startup importer - too much risk
  • Not researching your suppliers reputability, and not creating a professional framework to find profitable products
 

Minlaker

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As of the age of 16 I started importing directly from Chinese manufactures (through Alibaba). During the course, I was a failure. I didn't break even, I was scammed once and I had no clue on how to find reliable suppliers and profitable products to sell.

Before I go on, many people ask me "did you use your own money to start-up your own import venture". My answer is: Yes. I scrubbed dishes like a crazy old lady, cooked bread and oysters like no tomorrow and scrubbed toilets with my bare hands in a restaurant I worked at for no longer than one year.

As of today, I've made close to $7,000! I know it may not seem that much, but I started importing at the same time I had school.

My process on importing is simple. FIND, BUY & SELL!
Of course it's not going to be as easy as it sounds. But the more questions you ask me, the more you'll be better off in your start-up journey.

For now, I have stopped importing mainly because of starting year 12 and putting all my time into that for necessary purposes. Please don't rant onto me about dropping out of high school...

As a small success, I want to give back to the Fastlane community. If you have any questions related to importing from Alibaba and reselling via eBay. I'm your man. Personal Message me if you like!

Pat
It has been about a year now since your original post, how has your business progressed? Would you care to share a few of the products you started with? Great post, thanks for sharing your experience.
 

JDawg

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Hey man, thanks for doing this AMA.

It seems like you had some initial success with importing, so I'm curious to know why you gave it up completely? I understand that you enjoy the coaching aspect of starting a new importing business, but why not do some coaching and build your importing business as well?

Note - this is coming from someone who runs a importing business, goes to school full-time, and works almost full-time. :)
 

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Hey man! I'm very impressed from your achievements!
As I saw you started in the age of 16. Right now I'm 16 years old too. I want to start my own E-Commerce business and start Importing/Exporting things and earn money. I don't have any special knowledge in this issue. May I ask you to give me some advices that can help me start my own eCom business?

I got pretty nice knowledge of Wordpress system and some marketing knowledge (SEO, SMM). My problem is that I don't sure in myself. Like- I'm starting project and losing my motivation after few weeks of dealing out with problems.
I'll really appreciate your help man.

Thanks in advance,
BeLarge.
 
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Tehcasa

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Hey man! I'm very impressed from your achievements!
As I saw you started in the age of 16. Right now I'm 16 years old too. I want to start my own E-Commerce business and start Importing/Exporting things and earn money. I don't have any special knowledge in this issue. May I ask you to give me some advices that can help me start my own eCom business?

I got pretty nice knowledge of Wordpress system and some marketing knowledge (SEO, SMM). My problem is that I don't sure in myself. Like- I'm starting project and losing my motivation after few weeks of dealing out with problems.
I'll really appreciate your help man.

Thanks in advance,
BeLarge.
It's great to see you're starting as early as I did. It's hard to respond to a question regarding motivation, but this could help.
1. Having someone who influences you day by day, any siblings in this area of work (entrepreneurship)? If not, we're here for you online.
2. Making yourself motivated. You can create this by asking yourself "Why you started in the first place".
3. Using motivation from other inspirational speakers/movies/books.

I see motivation being a big deal in any line of business, that's why I think "it's great to do what you love", however this isn't the case for everything you do. You need to feel uncomfortable, and by means of this don't just be lazy and do same routines everyday. Get out of your comfort zone and explore different business ventures. It will change your life exponentially.

As with advice with starting out as an importer, you can PM me anytime mate.
 

Tehcasa

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The official bug-a-salt 2.0 sells for $39.95 however your website claims to have sold them for at least $70 which doesn't make much sense. Also did you include packaging and shipping costs?

Not only that but bug-a-salts from China are $15 on Ebay. Why would you pay $29.84 a piece?

Sorry but I don't believe you. Also selling counterfeits do risk getting banned and it's very hard to get a seller account on PayPal or Ebay once banned. Why would you sell an imports course? Wouldn't that cause more competition to compete with you? Why would you want that?

The manufacturer that you're buying from is selling directly on Ebay or at least people there sell on Ebay. How are you going to compete with that? Margins will be thin.
Firstly, stop trying to make false accusations. I live in Australia, so the exchange rate is totally different to the US + they did not initially ship this good internationally due to regulations. Yes I was selling for $70. There were numerous sellers selling for this price in Australia at the time. This was years back when I was selling them, and I wasn't selling the 2.0, I was selling the original Bug A Salt.

They may be $15 now... I haven't checked since. At the time however they were approximately $29.84 a unit to buy on Alibaba.

There was no Chinese manufacturers selling on eBay in the initial stage. Again, please get your facts right.

If you have any more questions I'm more and happy for you to personally msg me.
 
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Okraz1

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Good on you for taking action and creating shit man but $6900 isn't a lot and you made it mostly from selling counterfeits and now you are marketing your "success" like a financial guru who hasn't actually done the walk. Still good job though, you're ahead of most.
 

Tehcasa

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What is your preferred method of shipping? Do you offer free shipping or is your shipping calculated upon checkout?
I always offer "free shipping". The uttermost way to satisfy price savvy consumers on the internet is by "saving money" for them. A lot of the time consumers turn to free shipping as the quickest way to cut their final costs. I just find it beneficial for me and the consumer, feel free to PM me if you have any more questions.
 

Tehcasa

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What were your sales channels? Amazon? Ebay? Local?
eBay.
Thank you for sharing your experience with us. What was your initial interactions with suppliers and manufacturers like?
In the beginning I was hell skeptical. I believed all the possible myths and risks associated with buying from Chinese suppliers like, fraud, scam, etc. But I took the risk and gave it a shot.
 

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