Quit my Job. Starting My First eCommerce Business.

[sle3pyguii]

Hey everyone.

Just a brief intro of myself:

- 25 Living in Los Angeles with family.
- Turned in my 2 weeks notice (last day is first week of June).
- This'll be my first time working with eCommerce and for myself.

My progress so far:
Product 1: General product in a general category. There's nothing really niche about it. The top sellers in this category seem to focus on cheap material/cheap price.

Plan for product 1: Test product. Upped the quality. Use this to get acquainted with the process more than anything before moving onto doing my real product (product #2). Not really expecting to sell too many of these.

Product 2: Niche product in a niche industry. The product in the industry has 5 competitors listing a similar product. 3 of them have the exact same product, made of the cheaper materials. 1 has a unique design. 1 has a unique design AND uses high quality materials.

My plan for Product 2: Real Product. Will be a minor modified design change to the general item, and use high quality materials.

Product 1 should be coming in today (2 sample pieces).

Product 2 should be coming in a few weeks (5 sample pieces).

Rookie mistake: didn't ask about other shipping options. I was wondering why I got charged $80 for shipping and it's because they are using DHL and doing express. I'll know better next time around.

 

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[seamles]

Good luck from a fellow LA-er!

 

[ShadowX]

Hey good luck! I'm starting eCommerce soon too, maybe we can help each other out

 

[sle3pyguii]

Got my package from DHL today.

The sales rep at the company packed it REALLY well. Listed weight on DHL was significantly more than the actual weight...not sure what that's about. I'll speak with the manufacturer again about the packaging if I decide to order more of these.

Did a quick quality check and everything came out a lot nicer than I expected. I have no complaints at all about it. Once I get home, I'm going to do a full quality inspection on the product.

My plan for the weekend is to - get my Amazon account set-up
- figure out the packaging for the samples (this may be a test, but if I list them and they actually sell...then I'd like to be prepped for that).
- get a light box for product photos.
- I've researched similar products, and a smaller (same material, about half the size) of this goes for $25..so I'm assuming going with $30 isn't too farfetched.
- List it on Craigslist for $30. Don't expect it to sell, but I've got nothing to lose. I can also practice my copywriting on there.

Goals for next week:
- Get my product photos done.
- Have my shipping boxes ready.
- List on Amazon (if I get approved that quickly...fingers crossed).

 

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[sle3pyguii]

So yesterday, I posted my dry-run product on Amazon.

I haven't gotten my light box set up yet, so I used stock photos for the listing. They suck, but it'll do for now until I can get actual photos up (which is hopefully tomorrow or the day after).

I'm holding off on posting on CL, as I want to see if these have potential to sell on Amazon first.

Had some fun with my copy. Decided to mess with it on Amazon, so we'll see how that works.

I also learned that I have about 2 weeks of downtime. My 2nd product (the one I want to focus on) will come in a few weeks time, and now that my dry-run is posted...I don't really have much to do. So I'm going to keep researching and looking for products during this time.

Rookie mistakes #2: Not calculating things like fees and associated fees before buying an item. Because my product weighs so much, I forgot about shipping costs and things of that nature. I realized I can't make as much profit on my dry-run even if it sold, so I know what to look out for now.


Goals for this week:
- Get my photo box done and photos completed ASAP.
- Find new products. Dry-run product was 5 lbs per item. I've realized that that's way too heavy, so it's not worth it as the profit from it won't amount to much later. I'll focus on lighter products from now on and do my due diligence better.
- Sell something of mine (probably my bluetooth headphones LG Tone headset) to get capital to start trying Craigslist flipping.

 

[Voracity]

Just curious about this:

"... get capital to start trying Craigslist flipping."

Are you doing this to fund purchasing your main product/offering? Or does it relate to your main idea?

 

[sle3pyguii]

Just curious about this:

"... get capital to start trying Craigslist flipping."

Are you doing this to fund purchasing your main product/offering? Or does it relate to your main idea?

Flipping would be to fund the eCommerce. If, for whatever reason, I run out of money, I will need a way to get that seed money. Hopefully though, it doesn't come to that.

That and I don't really use these things so I might as well make some money off of it.

 

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[Voracity]

Thanks, was just curious. I agree that selling things you don't need is a great way to stay liquid.

Keep rocking on!

 

[sle3pyguii]

Something interesting happened today. I was expecting for my last day of work to be next week, but my company said I can leave today.

So now my plans have changed. My 2nd product samples were supposed to come right after I left the company, but since I now have about a week and a half of downtime, my plans have changed. I've also realized that down-time. I'm so bored and have nothing to do while I just wait...

On a side note, I found two other product ideas that I believe has potential. I'm thinking about testing demand via landing page + paid Stumbleupon ads.

Also, for my dry-run product, I'm thinking of just throwing it up on CL and recouping my money. But I'm going to sleep on it so I don't do anything rash.


Goals for this week:
- List my bluetooth headphones on CL to start my flipping experiment.
- Contact manufacturers to see if the new product ideas are possible.

 

[sle3pyguii]

Last Week:
- I listed my bluetooth headphones, but no takers. I'm going to rewrite the ad.
- For the 2 potential product items I had: one of them had LOTS of competitors already after doing more due diligence, while I'm still looking for manufacturers for item 2. Will place both on the sidelines and work with them accordingly, but they won't be my primary focus.

How I found a potential product item thanks to lazy sellers:
- I found a 3rd potential item I would like to try out. No prototyping necessary. Great margin (100%+) I was searching through DHGate/Alibaba and the item is being sold on Amazon by multiple sellers. HOWEVER, the reviews on Amazon for the item is low (average 2 stars among 6 sellers) because of a non-item issue (set-up is difficult, shipping problems, wrong colors). 90% of the complaints are direct results from things that can be fixed without spending more than a few second per item. The people that got through the set up seemed to like it and were giving on average 3.5 to 4 stars. I've contacted 4 suppliers and plan on ordering samples sometime this week.

Goals for this week:
- Relist headphones and my Intuos4 Wacom Tablet.
- Negotiate with suppliers of new item and order 20 samples (2 different colors, 2 different designs, so 5 per unique item to see what sells).

Current Idea Count: 4
- 1 that I'm waiting samples for.
- 1 that I am waiting to negotiate with suppliers.
- 2 on the sideline.

 

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[jazb]

Did you really have to quit your job to start this business?

 

[BHall]

I think a better question would be: "Will you walk us through the thought process and strategy behind quitting your job?"

 

[sle3pyguii]

Did you really have to quit your job to start this business?

I think a better question would be: "Will you walk us through the thought process and strategy behind quitting your job?"

So there were a few huge things that made me quit:

So the background is that I was at a startup where my company was backed by an investor who wanted to make apps. He had no idea what to make other than putting together a team (myself and 2 others) and telling us to make whatever we wanted. Our investor was also the CEO of his own company, which is how he funded our startup.

Our startup was basically bleeding money from our investor to the tune of $6,000 a month (he isn't close to a millionaire so it was a pretty good chunk of his money) because none of our products succeeded, so he thought it'd be a better idea for us to start making something for his primary company. In doing so, they no longer needed marketing (which I was in charge of). My role was REALLY uncertain. They basically didn't need me anymore, so I quit. I didn't feel good about being paid to literally sit there and do nothing for 8 hours a day at this company, since I knew our company was hanging by a thread. I was literally on these forums, Reddit, and Facebook at work. I didn't even have to hide it because everyone knew I had literally no work to do.

I was also very burnt out with the company because the company was no longer what I signed up for. All of the projects that we've created at the startup were shut down 1 month after beta launch by our investor and manager because they thought if a project doesn't have linear user growth and break the 2,000 user mark within the first month, it's not worth it to continue. So while I was at the company (I was there for a year), we developed about 8 different apps/websites.

I'm 25, live at home, don't really go out, and my debt is minimal. I saved up enough that I could survive about 6 months with the money I saved. I figured this would be the best time to do this, so I quit.

 

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[jazb]

Just realised i am an idiot and that we have discussed this over skype (didn't see your username!!!)

 

[sle3pyguii]

Just realised i am an idiot and that we have discussed this over skype (didn't see your username!!!)

Hahah. Not a problem. I was wondering why you were asking since it was in the chatroom.

 

[SYK]

've also realized that down-time. I'm so bored and have nothing to do while I just wait...

You're starting a new business which you want to be your future livelihood and you have NOTHING to do?!

Here's a few things I'd consider... read relevant books/blogs, practice writing copy, put together a marketing/PR plan, research competitors, start building a website, learn a new skill that'll be valuable to your business. Or you could just keep doing nothing...

 

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[sle3pyguii]

You're starting a new business which you want to be your future livelihood and you have NOTHING to do?!

Here's a few things I'd consider... read relevant books/blogs, practice writing copy, put together a marketing/PR plan, research competitors, start building a website, learn a new skill that'll be valuable to your business. Or you could just keep doing nothing...

Definitely. I guess I'm just being lazy. It hasn't hit me yet that I'm actually doing this. It feels like I'm going to go back to work tomorrow.

 

[adoredunchin]

So instead of building your own e-com shop at work (because you had nothing to do anyway) and beein more or less paid to do so, you quit your job to start a e-com shop and earn nothing. Did I get this right?

 

[sle3pyguii]

So instead of building your own e-com shop at work (because you had nothing to do anyway) and beein more or less paid to do so, you quit your job to start a e-com shop and earn nothing. Did I get this right?

Yep. That's the simplified version of the story.

 

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[adoredunchin]

Go read thick face black heart. Get your old job back. Then read Vigs stuff (everything is good but for you his Job-posts are important). Get that ecom shop running. AND then quit your job.
Anyway I wish you good luck

 

[sle3pyguii]

Go read thick face black heart. Get your old job back. Then read Vigs stuff (everything is good but for you his Job-posts are important). Get that ecom shop running. AND then quit your job.
Anyway I wish you good luck

I was actually contemplating keeping my job for quite a while. But I came to the decision with the stipulation that if I can't turn a decent profit before my cash reserves run out, I'll go back to a job and try it again on the side.

Thanks for the advice though! I know it sounds utterly stupid that I quit my job to try to do something that I have no experience with, but I felt like this was the best thing to do for right now.

 

[ZCP]

Then let's see some progress!! What action will you take today?

 

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[atro]

This all sounds pretty exciting and it seems that your bills are very minimal, best of luck in this venture! I'll be watching the thread to see what comes next.

 

[sle3pyguii]

Nothing out of the ordinary this week.

On Craigslist:- Posted both my products at what I found was the average used price for both. For the headphones, I got one buyer that contacted me. I contacted him back about the place to meet, but he never responded so that fell through. No hits on my art tablet yet. I'm going to try to list again but in a nearby city.

My Samples:I talked to my supplier and the shipment should be here by mid-week next week. I saw some of the pictures of the samples they sent and from what it looked like, the materials and design weren't what I asked. The material I asked for was leather, but the picture made the product look like fake leather. There was also a minor design difference on what I wanted and what the picture showed. Again, I'll reserve judgement until I get the product. I've got backup suppliers also, so if worse comes to worst, I'll contact them.

I still believe this is a good product and a good niche, as there are only 2 dominant players on Amazon and Ebay for this, it's very light, and the margins are quite good. This isn't a home-run sales product, but I can easily bat a consistent single or double with this.

My Competition:
I did a lot of research on my competition this week and it seems like for me to take them on will be to customize more and brand ASAP. Neither of the two biggest players branded their products and are using the basic Alibaba products. They both are eBay powersellers, but don't seem to have as big of a storefront on Amazon, which tells me that they're probably more focused on eBay. I'm going to exploit this and try to use that to my advantage.

I'm also thinking about including a little trinket with every purchase. But I have yet to think of something small that'll provide value to the consumer that also won't destroy my potential margins.

One of the two also has a walk-in store-front, and that gave me an idea (not walk-ins) on how to better the customer experience with the brand.

Hopefully, I can come back with an update with some good news next week.

 

[sle3pyguii]

Got my samples today.

Mistake: Miscommunication on both sample quantity and sample material.

Edit: THANK GOODNESS FOR SAMPLE ORDERS


I'm close to moving on from this supplier.

1. The product looks like what I ordered, but it actually isn't. One of the problems with the product that I found stems from the construction of the product. The actual product I wanted wouldn't have this problem, but because this company decided to make it their own way, it's causing problems both in functionality and aesthetically.

2. I decided to put one or two of these through simple wear and tear tests, nothing that should've damaged the product, but lo and behold...the product became compromised.

I want to only sell products that bring value to a customer, but if I sell this product as it came, it'd be completely the opposite of that. I'll bite the loss as it isn't much.

New to do list:

- Contact supplier about this and see if it was just a mistake.
- Find new suppliers.
- Continue finding new products.

 

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[Bigguns50]

@sle3pyguii good moves man. I'd dump that supplier too. If they're messing up on a small order you can't trust them with a big order.

I want to only sell products that bring value to a customer

Absolutely. And as a consumer, I don't want to buy crap stuff. If I'm happy with your product and service...well...I'll be part of the 80/20 rule and buy again.

One thing I've noticed as a consumer: When I've purchased a product I really love...sometimes I never, ever hear from that company again. So....they never give me a chance to buy again. Big mistake.

Keep pushing !

 

[sle3pyguii]

So here are some quick updates:
1. The supplier told me this is how they make their product. If I change the design, It'd basically be an entirely new model and they need a new mold for it. So I decided to cut the supplier. Looked for more suppliers, but with considering the pricing I'd have to put, these margins are too small to do anything with. So I'll be moving onto a new product, while keeping this one on hold.

2. I need to be smarter with which products and samples I order. I've already gotten burned by a few suppliers already with their crap products. Although my bank account isn't depleting much yet, I need to be a lot smarter so I can stretch it out as much as possible. So now I'm doing A LOT more research about my market and item before I place it on sale. I have a small pile of crap products in the corner of my room now to remind me how much crappy some suppliers can be.

3. Dropshipping. I was reading through a lot of the veteran threads recently and I was a bit intrigued by this model. It seemed like a good way for me to train on someone else's money (sort of). I haven't given up my desire to do full eCommerce, so I'm still looking for product. Right now I'm in the process of getting my DBA and resellers license so I can sign up my suppliers. I've already got applications from suppliers and so all I need to do is fill it out after my paperwork and licenses come in.

Some things I've learned:

PHONE CALLS AREN'T THAT BAD. I remember my first call to a supplier, I was so nervous about what to say and how I'd come off as I'm just a small business compared to their larger clients. After speaking to a few suppliers, although the nervous feeling didn't fully go away, the fear of rejection and making calls did. It became SO MUCH EASIER to call. Sure I'm still nervous, but I can hold a professional and confident conversation now about what I want. If I can make a phone call now, I will. It feels much more personal and is a hell of a lot quicker to get answers and results.

COMBINING BUSINESS MODELS: I honestly don't know why it never occurred to me that I can combine some business models together. While I was going through products, I found a great niche market for both dropshipping and eCommerce. If I were to ever want to pursue a dropship/ecomm business, this market would allow me to do so. Obviously, the higher ticket items ($200+ items) would be dropshipped, but the accessory items that come with them are marked up quite well and can be manufactured for pretty cheap. It's pretty amazing really.

For my Craigslist, I've been getting very few hits on it. And the hits are much much lower than it should be. Some people were offering me half of what the price is on eBay. I'm going to hold off on Craigslist until about a month before uni starts again. That way, I can sell it to art students.

 

[sle3pyguii]

Had my phone call with Jack today.

It was totally awesome. He gave me ideas and tips on what to do and how to do them.

I asked him about my current dropshipping idea, and he gave me some advice about it. Long story short, I'm back to square one. It's not that the dropshipping model itself is bad. It's just that after thinking like how Jack does, I don't see this as having much potential. Even as a beginning business, it would've hit a ceiling way too fast.

This time around though, I plan on finding and testing ideas like how he recommended.

In a way, this thread could now be called: Post-JackEdwards Call Progress Thread.

 

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[Luke1213]

Have you thought of Amazon for selling your headphones and other stuff? You can sign up for a free account at seller central and list your stuff via Amazon. It doesn't cost money to sign up but Amazon will take out a fee for listing but you'll hit a wider audience and won't be lowballed like people on craigs. You can either ship your stuff to Amazon and they will pack it and ship it for you for a nominal fee (FBA) or you can ship it yourself (FBM). The learning curve isn't that bad either. Their is countless posts and numerous threads on this forum explaining how to use Amazon or Ebay to sell your stuff.

 

[sle3pyguii]

Have you thought of Amazon for selling your headphones and other stuff? You can sign up for a free account at seller central and list your stuff via Amazon. It doesn't cost money to sign up but Amazon will take out a fee for listing but you'll hit a wider audience and won't be lowballed like people on craigs. You can either ship your stuff to Amazon and they will pack it and ship it for you for a nominal fee (FBA) or you can ship it yourself (FBM). The learning curve isn't that bad either. Their is countless posts and numerous threads on this forum explaining how to use Amazon or Ebay to sell your stuff.

I actually never considered Amazon. Not sure why, but it never occurred to me to try to sell it there. Thanks for the tip!