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Ask me anything about eCommerce (Ongoing)

biophase

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Hey Biophase, amazing thread. my question is, How much thought do you typically put into packaging for your products?

I just ordered a test order of a product I am wanting to sell, and it's a cheap product, and I think the thing that can set my product apart from the competition is the packaging (one example is they are normally sold individually, I am thinking about selling in pairs or maybe even 3 to a box). But this is a product targeted towards women, and feel as though the product I am selling and the customers I am targeting may care more about the packaging than say a target audience of 50 year old men. What are your thoughts?

Bundling and packaging are two totally different things.

Bundling is where you offer more quantities of your product.

Packaging is what the product arrives in.

So I'm not sure your exact question as you interchange the two.

But in general, when you are selling online, the customer doesn't see the packaging at all, so it doesn't play into the sales unless you specifically have a photo of its packaging. However, once the product arrives, the customer may or may not notice the packaging. I don't put alot of time into my packaging, but I put just enough time and money for the packaging to look like it could be on a product shelf at Walmart. I don't sell high end products so this may be different if you are trying to market your product as high end.
 
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Hi guys!

After finishing the Millionaire Fastlane last week, I immediately thought of Amazon FBA -- have been wanting to try it out for at least half a year. However, after I digged deeper I found out that some people think the game has become too competitive and more capital intensive now. Moreover, Amazon cracked down on incentivized reviews in October so it's harder to launch a new product. On one forum, I was even advised to stay away from Amazon.

Right, an early bird catches the warm (and it was the case I suppose) but I still think I'd like to give it a try. If you were to start from scratch with Amazon FBA in 2017, what would your strategy be? What about marketing costs/product launch costs? Would you spend time looking for a product to put your label on and ship or would you rather spend time changing/inventing a product to differentiate yourself because the competition is too tough?

Jungle Scout has promised to do another collaborative launch soon. I'm interested what they'll come up with.

I'd really really appreciate your help!
 
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biophase

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On one forum, I was even advised to stay away from Amazon.

Right, an early bird catches the warm (and it was the case I suppose) but I still think I'd like to give it a try. If you were to start from scratch with Amazon FBA in 2017, what would your strategy be? What about marketing costs/product launch costs? Would you spend time looking for a product to put your label on and ship or would you rather spend time changing/inventing a product to differentiate yourself because the competition is too tough?

Jungle Scout has promised to do another collaborative launch soon. I'm interested what they'll come up with.

I'd really really appreciate your help!

That's actually great that people are saying to stay away from Amazon. Those are usually people who are chasing money and not trying to build a business.

My strategy would be to provide a quality product at a good price. There's actually no need to launch or market much any more. Why? Because in the past, your quality product would get overwhelmed with all the people giving away crap and getting reviews that your product would need some help to stay afloat.

Now that that is all in the past, your quality product will eventually come to the top without much pushing.
 

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Do you ever worry about the control aspect of being on Amazon?

For example when I first started selling i noticed that my FBA fees suddenly increased. This was around the time of their price increase in feb 2016( I believe). They claimed that my product was heavier then it actually was resulting in higher fees. I fought with them for over 2 weeks on this providing proof that it was not that heavy. Eventually they changed the weight in the system but my fees didn't go back down! Not a good feeling, especially when you were chasing money and selling an Amazon perfect product. Nonetheless a perfect example of lack of control.

It is what it is though as Amazon is a fantastic platform and their fees are worthwhile for their trustworthiness to the customer and huge amounts of credit card in hand traffic.

Have any thoughts on this or experience with issues yourself with lack of control?
 
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biophase

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Do you ever worry about the control aspect of being on Amazon?

For example when I first started selling i noticed that my FBA fees suddenly increased. This was around the time of their price increase in feb 2016( I believe). They claimed that my product was heavier then it actually was resulting in higher fees. I fought with them for over 2 weeks on this providing proof that it was not that heavy. Eventually they changed the weight in the system but my fees didn't go back down! Not a good feeling, especially when you were chasing money and selling an Amazon perfect product. Nonetheless a perfect example of lack of control.

It is what it is though as Amazon is a fantastic platform and their fees are worthwhile for their trustworthiness to the customer and huge amounts of credit card in hand traffic.

Have any thoughts on this or experience with issues yourself with lack of control?

I wouldn't say that I worry about this, but I am aware of it all the time. It's just something I deal with and understand. It's part of doing business on Amazon.
 

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biophase,
Nice thread! Couple more months and it will be a 2 year long AMA.

My question is a little different than others.

I own a couple of e-commerce businesses selling physical products, each with seven figure sales. I also do a small amount of sales on Amazon (low six figures). Most of the sales are direct on my sites (on purpose).

I'm at a point where I have cash to invest (million+) and traditional lenders willing to lend as needed.

I've looked at a lot of potential acquisitions and a number I keep circling back around to are decent size Amazon sellers with branded lines. Ones where the net is $500K-$1 million. Asking prices are normally 3.5-4 X EBITDA.

I'd be interested to hear your thoughts on such acquisitions. Would you ever do it?

Pros: low employee count, no need for warehouse, geographically flexible (this point is the most important - when looking for businesses to acquire, finding ones with net incomes above $500K within 1-2 hour drive can be difficult even in densely populated areas)

Cons: risk losing Amazon access, risk competition deploying better products (this risk exists in any business, but can be much swifter on Amazon), risk of competition direct from manufacturers

If anybody wonders why someone would buy when they already have the experience to build - speed. I'd rather just buy a proven concept and grow it.
 

biophase

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biophase,
Nice thread! Couple more months and it will be a 2 year long AMA.

My question is a little different than others.

I own a couple of e-commerce businesses selling physical products, each with seven figure sales. I also do a small amount of sales on Amazon (low six figures). Most of the sales are direct on my sites (on purpose).

I'm at a point where I have cash to invest (million+) and traditional lenders willing to lend as needed.

I've looked at a lot of potential acquisitions and a number I keep circling back around to are decent size Amazon sellers with branded lines. Ones where the net is $500K-$1 million. Asking prices are normally 3.5-4 X EBITDA.

I'd be interested to hear your thoughts on such acquisitions. Would you ever do it?

Pros: low employee count, no need for warehouse, geographically flexible (this point is the most important - when looking for businesses to acquire, finding ones with net incomes above $500K within 1-2 hour drive can be difficult even in densely populated areas)

Cons: risk losing Amazon access, risk competition deploying better products (this risk exists in any business, but can be much swifter on Amazon), risk of competition direct from manufacturers

If anybody wonders why someone would buy when they already have the experience to build - speed. I'd rather just buy a proven concept and grow it.

Just curious, in your ecommerce stores are you selling your own branded product? If so, why are your Amazon sales so low? Is it because you haven't concentrated on Amazon? Do self-fulfilled?

I think you underestimate the speed you can build a brand on Amazon.

If I were you, I'd take $500,000 and start from scratch on Amazon vs. paying $3-$4M because you can get to $500k net very fast.
 
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acerseller

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Just curious, in your ecommerce stores are you selling your own branded product? If so, why are your Amazon sales so low? Is it because you haven't concentrated on Amazon? Do self-fulfilled?

I think you underestimate the speed you can build a brand on Amazon.

If I were you, I'd take $500,000 and start from scratch on Amazon vs. paying $3-$4M because you can get to $500k net very fast.
Combination of others products and my own, but mostly my own branded products.

I've always concentrated off Amazon because I got started before Amazon ever offered selling on its site and I self fulfill (my products don't work well with FBA.)

I send all traffic to my own sites and don't work on Amazon - I just fulfill orders as they arrive.

Based on your comments I'll stick to buying other sites with strong on site sales and hire some new staff to refocus on Amazon with our existing items and new ones.
 

biophase

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Combination of others products and my own, but mostly my own branded products.

I've always concentrated off Amazon because I got started before Amazon ever offered selling on its site and I self fulfill (my products don't work well with FBA.)

I send all traffic to my own sites and don't work on Amazon - I just fulfill orders as they arrive.

Based on your comments I'll stick to buying other sites with strong on site sales and hire some new staff to refocus on Amazon with our existing items and new ones.

I would identify the products of your brand that would sell well by FBA. Then send them to FBA and see what happens.

Curious, why you say your products don't work well with FBA. Are they too low priced? Are they too big or heavy?

Do you have 100% of your brand listed on Amazon, even if self fulfilled?
 

acerseller

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I would identify the products of your brand that would sell well by FBA. Then send them to FBA and see what happens.

Curious, why you say your products don't work well with FBA. Are they too low priced? Are they too big or heavy?

Do you have 100% of your brand listed on Amazon, even if self fulfilled?

Core business is in perishable products - a blessing and a curse (lots of repeat business, high barrier to entry, but difficult to store and ship).

I only list about 50% of available on SKU's and in our marketing materials for Amazon customers we stress the availability of additional varieties via direct ordering.
 
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What are your thoughts on building a brand on social media then creating a product to sell on amazon to people already familiar with your brand, rather than putting your product out on the market hoping that customers find it. Build brand - sell vs sell - build brand. @biophase
 

AubreyJ

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I apologize if this question has already been asked, but I don't believe it has-

How do you find a new product/Niche? Is it from searching through amazon and just finding products that you can improve? Are they products that you use in your day-to-day life that you know you have issues with and you know you can make better? or is it just through browsing through sites like Alibaba?
 

biophase

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What are your thoughts on building a brand on social media then creating a product to sell on amazon to people already familiar with your brand, rather than putting your product out on the market hoping that customers find it. Build brand - sell vs sell - build brand. @biophase

Yes, definitely brand outside of Amazon. You can brand first and then sell, or do both at the same time. I try not to rely on Amazon rankings to sell my products. I want people coming into Amazon searching for them.
 
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biophase

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I apologize if this question has already been asked, but I don't believe it has-

How do you find a new product/Niche? Is it from searching through amazon and just finding products that you can improve? Are they products that you use in your day-to-day life that you know you have issues with and you know you can make better? or is it just through browsing through sites like Alibaba?

This is the million dollar question. It takes some deep digging to find good products. I can't tell you how to find products. That's something that we all have to search and find ourselves.
 

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Thank you @biophase for your huge contribution back into this community. This is my first post and I am very grateful to have discovered the book and this forum. Thank you @MJ DeMarco

After years of self-pity and action faking, I have begun make real moves and am in the process of having my design sampled with a manufacturer! My question is, at what point should I consider trademarking my brand name? So far I purchased the domain URL, created social media pages, and am in the process of setting up my amazon account.

Thanks as always.
 

biophase

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Thank you @biophase for your huge contribution back into this community. This is my first post and I am very grateful to have discovered the book and this forum. Thank you @MJ DeMarco

After years of self-pity and action faking, I have begun make real moves and am in the process of having my design sampled with a manufacturer! My question is, at what point should I consider trademarking my brand name? So far I purchased the domain URL, created social media pages, and am in the process of setting up my amazon account.

Thanks as always.

You can put a TM after your name right away and you have trademarked it. Yup, that's all you have to do. Look I just trademarked snugglebuttcake™.

Then after a few months in business you can apply for a trademark to make it a registered trademark.
 
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AllenCrawley

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My question is, at what point should I consider trademarking my brand name?
Sooner than later. I'd say once you make your first sale. My story as to what happened to me because I waited to register my mark is explained in my progress thread.

Edit to add:
You can put a TM after your name right away and you have trademarked it. Yup, that's all you have to do. Look I just trademarked snugglebuttcake™.

Then after a few months in business you can apply for a trademark to make it a registered trademark.
Yes, you can place ™ after the name but that won't stop someone from searching the trademark database, seeing the name is not officially registered and then registering the name themselves.
 
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Thanks guys.

The below is an exchange between the supplier and myself in regard to a quoted price of $600 for sample mold and $2000 for production mold. What is the difference? The language barrier makes it unclear.

If I am planning on producing, shouldn't I go straight to a production mold? Paying $600 and then another $2000 would be a little harsh. Also, are these prices negotiable in your experience? Thank you

"What is the difference between sample mold and production mold?"
"Sample mold is for making sample , only one carvity.
Production mold is for making production."
 

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"What is the difference between sample mold and production mold?"
"Sample mold is for making sample , only one carvity.
Production mold is for making production."

Sounds like for a production run they need a bigger mold that creates more than one unit at a time. A sample mold will only create one unit at a time which would be too slow at full production.

Sometimes a sample mold will be made of a different material that couldn't hold up to make thousands of u it's but is good for making one. I do t think this is the case in your situation because he said "one cavity" which makes it sound as if in full production the mold will need multiple cavities
 
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@biophase I have a few questions within field
I will be starting up an ecommerce business along with my sister here in the next couple months. I started doing some research, but I still have a few questions


-Is there a website to find the new products that will be hot in the market ?

-How do you find out how much you pay in shipping ? I dont want to buy a product just to find out the shipping will take all of your money up.
So lets say I buy the product from Alibaba for $1.5 a piece and resell it at $9 on amazon with free prime shipping, how does that work ? Do I pay for shipping ?

-Also when I buy the product I send it to the amazon wharehouse then they take care of all the shipping correct ?


-How do I brand my product ? Do I need legal paperwork ? Or do I just contact Alibaba and tell them to slap my logo on it ?


-What is better to buy from, Alibaba or Aliexpress ? How do I buy product without getting scammed ? What do I watch out for ?
 

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@biophase Can you briefly touch on the process of forwarding your product to the FBA warehouse, after doing your quality check and due diligence? I assume with huge shipments, you can't just drive to your local USPS. Is this a huge cost?

I will be making a progress thread shortly. Currently in the CAD process. (hiring a guy off fiverr)

Thank you!
 

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Hey @biophase ,

I've been selling 1-5 units everyday so far on google shopping ads. My CTR isn't bad (according to the research I did), but I was thinking about testing my price at a lower price to see if that will boost sales.

Do you have any recommendations for testing the price? The products that show up on the ads next to mine have a big range, as cheap as $10 to $38. My product is currently at $30 flat. I was thinking of changing it to $2X.99 to see the difference.

Thanks
 
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biophase

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@biophase Can you briefly touch on the process of forwarding your product to the FBA warehouse, after doing your quality check and due diligence? I assume with huge shipments, you can't just drive to your local USPS. Is this a huge cost?

I will be making a progress thread shortly. Currently in the CAD process. (hiring a guy off fiverr)

Thank you!

I receive the shipment from China. I usually open up one box and one package, inspect it to make sure it is to par. Then I make a shipment in Amazon's seller central website, print the labels and put them on the boxes and Fedex comes and picks them up.

Cost is fairly cheap as you get to use Amazon's Fedex rates.
 

biophase

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Hey @biophase ,

I've been selling 1-5 units everyday so far on google shopping ads. My CTR isn't bad (according to the research I did), but I was thinking about testing my price at a lower price to see if that will boost sales.

Do you have any recommendations for testing the price? The products that show up on the ads next to mine have a big range, as cheap as $10 to $38. My product is currently at $30 flat. I was thinking of changing it to $2X.99 to see the difference.

Thanks

I would just lower the price. Not sure why you would think about it so long. Just lower it and see how sales do.
 

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@biophase, Thanks for this thread. Reading it, taking notes and saving myself from some pitfalls before I begin. It is very much appreciated.

One question though; shipping costs; Amazon is interesting as shipping costs are embedded in their cost to you as a seller. My product A would retail at $14.99, and I will take away $8 in (nett) profit. If I would sell through my own ecommerce store, shipping it through USPS would be $17, making it unmarketable. How to do see the difference in shipping costs between Amazon FBA and those products sold though your own website? I assume your shipping costs are higher than Amazon's?

How to negotiate better shipping fees through USPS, UPS or FEDEX? My sales figures at first would probably not qualify for a discount with these carriers.

Thanks in Advance,

Steve_O
 
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biophase

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@biophase, Thanks for this thread. Reading it, taking notes and saving myself from some pitfalls before I begin. It is very much appreciated.

One question though; shipping costs; Amazon is interesting as shipping costs are embedded in their cost to you as a seller. My product A would retail at $14.99, and I will take away $8 in (nett) profit. If I would sell through my own ecommerce store, shipping it through USPS would be $17, making it unmarketable. How to do see the difference in shipping costs between Amazon FBA and those products sold though your own website? I assume your shipping costs are higher than Amazon's?

How to negotiate better shipping fees through USPS, UPS or FEDEX? My sales figures at first would probably not qualify for a discount with these carriers.

Thanks in Advance,

Steve_O

My first suggestion is to ship using UPS or FedEx. Why does it cost $17 to ship your product? Is it big and heavy? If that's the case Amazon would charge you more also.
 

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My first suggestion is to ship using UPS or FedEx. Why does it cost $17 to ship your product? Is it big and heavy? If that's the case Amazon would charge you more also.

Thanks, Biophase. No, it isn't. It is general standard, just 1-1.5Lbs. I went to my local postal center with the products and the cheapest quote they could give me is $17 through USPS. UPS online gives me quote for $14+ for UPS ground (4 day delivery).

I get that if you have volume, you can negotiate better rates, but I won't have that in the beginning. . I just don't get that with these rates, how anyone can make a decent margin selling $10-$20 products....
 

biophase

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Thanks, Biophase. No, it isn't. It is general standard, just 1-1.5Lbs. I went to my local postal center with the products and the cheapest quote they could give me is $17 through USPS. UPS online gives me quote for $14+ for UPS ground (4 day delivery).

I get that if you have volume, you can negotiate better rates, but I won't have that in the beginning. . I just don't get that with these rates, how anyone can make a decent margin selling $10-$20 products....

Is that USPS priority mail? maybe try a flat rate box or padded envelope.

You should call UPS and get an account setup. Not sure if you can negotiate rates or not. But your cost should be under $10.

I still think us postal is the cheapest way to go.
 
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Is that USPS priority mail? maybe try a flat rate box or padded envelope.

You should call UPS and get an account setup. Not sure if you can negotiate rates or not. But your cost should be under $10.

I still think us postal is the cheapest way to go.
Thanks again, no it is their cheapest option available. Fedex quoted me $27. It won't fit in an envelope or small box. the packaging is 8"x3.5"X1.5". I'll give them a call because I think I am doing something wrong here.
 

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Thanks again, no it is their cheapest option available. Fedex quoted me $27. It won't fit in an envelope or small box. the packaging is 8"x3.5"X1.5". I'll give them a call because I think I am doing something wrong here.

Hmmm... That name is awfully close to mine... Don't be dragging me through the mud or anything. :)
 

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