Ask me anything about eCommerce (Ongoing)

[Walter Hay]

Thank you!
I think right now I have watched so many videos, and gathered lots of information; though I've learned a lot about private label I am stuck trying to figure out a profitable product and really hesitant to buy yet another service as I recently lost a whole chunk of money (2500) in a guru course that did not deliver value expected. I am still trying to understand how to choose products but have lots of questions, like should I set up a website in advance, should I just place a very small order to begin with, where and how to get traffic, do I really have to spend time learning every aspect (feels like it would take forever), things like adwords, seo, keyword stuff, these are a foreign language to me...and would it be smart to hire someone who is good at these things to help ramp up this part?
My vision is to brand a product and know my market.
I want to source from China, but for some of the organic products I want to find local good quality manufacturers for higher quality and less shipping costs, but not sure where to find them.
So far all i have is a logo and am stuck in product research. I am communicating with suppliers in China to understand what total costs would be, in a way I feel l should just jump in, but worried about my choices since I recently wasted money on that course (developing sales skills course). I like risk taking but don't want to pick the wrong product either. I know I should find a way to get clearer in my head but just feels like chaos and messy at the moment. I already sell used books on Amazon so I understand that side of the platform, but don't find reselling books very scalable and do not make much selling books. So although I'm excited to start PL, am a bit fearful. Is there still a good market on Amazon, or is it saturated?

Any clarity would be greatly appreciated.

I might be able to help with a couple of aspects to your questions.

First, when you refer to organic products, I hope it does not mean that you are considering importing cosmetics or anything that goes on the skin or is taken internally. If so, don't even consider buying from China.

Recently a number of US pharmaceutical companies had to recall a blood pressure medication that they were having made in China. The problem was that it was contaminated with a carcinogen! There have been too many cases of recalls of China made foods, cosmetics, and pharmaceuticals over the years.

If you are talking to suppliers in China, are they manufacturers or traders? Don't believe anything you read on B2B sites such as Alibaba and others. You can get some help from my AMA:
GOLD! Sharing my lifetime experience in export/import. Product sourcing specialist.

Yes you should start with a small order, and don't be fooled by the widespread myth that you have to buy huge quantities.

Walter

 

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[EasternMerchant]

I might be able to help with a couple of aspects to your questions.

First, when you refer to organic products, I hope it does not mean that you are considering importing cosmetics or anything that goes on the skin or is taken internally. If so, don't even consider buying from China.

Recently a number of US pharmaceutical companies had to recall a blood pressure medication that they were having made in China. The problem was that it was contaminated with a carcinogen! There have been too many cases of recalls of China made foods, cosmetics, and pharmaceuticals over the years.

If you are talking to suppliers in China, are they manufacturers or traders? Don't believe anything you read on B2B sites such as Alibaba and others. You can get some help from my AMA:
GOLD! Sharing my lifetime experience in export/import. Product sourcing specialist.

Yes you should start with a small order, and don't be fooled by the widespread myth that you have to buy huge quantities.

Walter

Thank you Walter!

No, absolutely do not intend on ordering anything consumable from China! I appreciate the link to your previous post, I will study it, and look forward to your valuable contributions. I want to chronicle my journey as others have done. I think there comes a time, you gotta just do it. I am going to stop looking for a personal coach to hold my hand on this and do like MJ, learn as I go...trust myself to figure it out as the problems/challenges arise because otherwise from where I'm sitting right now, the task appears to be daunting! Step by step...hard to do when your'e EAGER to get going!!!

 

[EasternMerchant]

What would you consider to be a small order? Most of the suppliers I have spoken to have offered minimum orders of 500, and when I negotiate a lower MOQ, they raise the cost per unit much higher.

 

[EasternMerchant]

I might be able to help with a couple of aspects to your questions.

First, when you refer to organic products, I hope it does not mean that you are considering importing cosmetics or anything that goes on the skin or is taken internally. If so, don't even consider buying from China.

Recently a number of US pharmaceutical companies had to recall a blood pressure medication that they were having made in China. The problem was that it was contaminated with a carcinogen! There have been too many cases of recalls of China made foods, cosmetics, and pharmaceuticals over the years.

If you are talking to suppliers in China, are they manufacturers or traders? Don't believe anything you read on B2B sites such as Alibaba and others. You can get some help from my AMA:
GOLD! Sharing my lifetime experience in export/import. Product sourcing specialist.

Yes you should start with a small order, and don't be fooled by the widespread myth that you have to buy huge quantities.

Walter

 

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[Walter Hay]

What would you consider to be a small order? Most of the suppliers I have spoken to have offered minimum orders of 500, and when I negotiate a lower MOQ, they raise the cost per unit much higher.

It is reasonable to expect to pay more for a smaller order, but only a moderate amount. See my earlier post March 28, on this thread: GOLD! - Ask me anything about eCommerce (Ongoing)

Let me know if you need more help.

Walter

 

[EasternMerchant]

Walter,
What would you consider to be a small order? Most of the suppliers I have spoken to have offered minimum orders of 500, and when I negotiate a lower MOQ, they raise the cost per unit much higher.
Thank you so much for your time!

 

[Walter Hay]

Walter,
What would you consider to be a small order? Most of the suppliers I have spoken to have offered minimum orders of 500, and when I negotiate a lower MOQ, they raise the cost per unit much higher.
Thank you so much for your time!

I recommend telling the supplier that you want to place a trial order. I think 20 pcs would be a good start, or up to 50 if you can risk that much.If you haven't yet identified yourself to them as the owner, you can say that your boss won't allow you to place a full order until a trial has been done.

Walter

 

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[Patrickg]

Quick question on first orders: do you see the first order being profitable? I am having pretty good response from the market. 9 - 5 star reviews so far , hit my daily goal of 10 units, on Wednesday.

But with PPC I'm barely squeezing out a profit. This is the first order so I was just curious if most people make money on first run.

Thank you.

 

[Jimmy999]

How much of a functional differentiation is enough for FBA? For example, adding a carry bag, or offering a different size. These are small, yet easily replicated changes.

My concern is that once you start ranking high enough, you're painting a target on your back. You could've made 100 changes, but unless you've patented, these will eventually be copied, and the only differentiation is the level of service you provide, quality listing and the first mover advantage.

Am I correct in saying that after a certain period of time, it's no longer what your product offers that the competition doesn't, but what does your brand offer? What is the USP. This is what will make you stand out from the rest?

 

[Guest931Xfjyx]

How do I find a product to sell?

I realize I should remember CENTS and should be PULLING rather than PUSHING, but I'm still having trouble finding a product. Could anyone give me some advice on this?

I've actually started a business before -- about no longer than a year ago.

The business I started was a huge waste of money and I barely sold any of the product I had. Spent about a good $10,000 total and barely made any sales. I just ended up throwing away all of the product I had as it was just sitting and expiring in my house. Was a disaster.

I know the product you choose to sell is important. I've also learned a lot since that failure.

How do I go about choosing a good product to sell? Could anyone give me some direction? Again, I realize I should remember CENTS and should be PULLING rather than PUSHING -- but again, alas, I am still having trouble find a product.

I'd appreciate anyone's help with this.

Cheers!

 

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[Walter Hay]

How do I find a product to sell?

I realize I should remember CENTS and should be PULLING rather than PUSHING, but I'm still having trouble finding a product. Could anyone give me some advice on this?

I've actually started a business before -- about no longer than a year ago.

The business I started was a huge waste of money and I barely sold any of the product I had. Spent about a good $10,000 total and barely made any sales. I just ended up throwing away all of the product I had as it was just sitting and expiring in my house. Was a disaster.

I know the product you choose to sell is important. I've also learned a lot since that failure.

How do I go about choosing a good product to sell? Could anyone give me some direction? Again, I realize I should remember CENTS and should be PULLING rather than PUSHING -- but again, alas, I am still having trouble find a product.

I'd appreciate anyone's help with this.

Cheers!

I think one of the worst mistakes and probably the most common one, is to search statistics in order to find high demand products. The obvious consequence seems to escape most people, i.e., the more people that are selling large quantities of a product, the more and fiercer will be the competition.

If you can find products that are not currently on the market in the country where you want to sell, you could be off to a good start. After locating such a product you need to do product validation, and this can be done with a small order.

People often ask where they could find such products. Well, I make suggestions on this in my importing book, but a more broadly based suggestion is to search in countries outside of China.

Poor margins are usually caused by one of two factors:

1. Very strong and entrenched competition. This can be avoided by following my suggestions above.
   
2. Poor buying skills. This has to be remedied by learning.

You will find lots of hints about 2, in my AMA
GOLD! Sharing my lifetime experience in export/import. Product sourcing specialist.

Walter

 

[shaun tan]

Does everything Biophase said still apply? Are people still selling on amazon and making profit or has the game changed? I read the first few pages and I didnt realize it was made in 2015

 

[Longinus]

Does everything Biophase said still apply? Are people still selling on amazon and making profit or has the game changed? I read the first few pages and I didnt realize it was made in 2015

I'm using this method and making about 25-30% pretax profit including all costs. Most sellers (especially Chinese) still want to sell a lot and fast and that probably goes for all business and will remain like that. Although I must say there are more competitors with better listings since I started 2 years back.

 

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[biophase]

Does everything Biophase said still apply? Are people still selling on amazon and making profit or has the game changed? I read the first few pages and I didnt realize it was made in 2015

I had to go back and read what I wrote in 2015. Everything still pretty much applies. It's more competitive of course, but the foundation of selling on Amazon still revolves around a good product choice and building a brand.

 

[David4431]

I would say that biophase’s method is even more relevant today as the amazon landscape gets even more competitive. If you simply look for products to arbitrage then you will be in trouble as others find it and jump in. Profits will erode and there won’t be much you can do about it if you’re selling the same exact product as the next guy. You will only have some pricing power if you have a better differentiated product and/or brand.


Sent from my iPhone using Tapatalk

 

[yomtov]

This is the process that many people follow. But I don't follow this process at all because you are not adding any value. As an example, say that you found that kitchen knife sets sell for $50 on amazon and that you can get them for $15 in China. You look on amazon and there are 15 people selling these kitchen knives at $50. You find the supplier making their kitchen knives and you put a red handle with your logo on them and sell them for $50 on Amazon. So what did you really do? Nothing. You created another kitchen knife set on Amazon that looks like 15 other ones except with a different color handle.

What I would do is see what I can change about the kitchen knife set. Here are things that you can do to improve the kitchen knife set:
1) Use a better quality blade
2) Use a better quality handle
3) Improve the knife block
4) Use a different combination of knives
5) Add more knives
6) Add a butcher block cutting board
7) Add a money back guarantee
8) Change the blade shapes

Imagine if you did 2-5 of these things. How do you think your listing will stack up compared to the original 15 listings? What if your cost ballooned to $25 and you still listed your knife set at $50. Do you think that you would sell more units? Do you think that you need to giveaway sets for free reviews? No, in this case, people will find your knife set and buy it because it is better when compared to the other sets out there.

Hi, I know it s a old message but just a question:when you want to make improvements on the product do you ask it directely to the same supplier where you have found the original product? If so, I guess there is a moq which is really important, right? so a lot of expenses to test the market.

Thank you for your answer and sorry for my poor english.

regards

 

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[biophase]

Hi, I know it s a old message but just a question:when you want to make improvements on the product do you ask it directely to the same supplier where you have found the original product? If so, I guess there is a moq which is really important, right? so a lot of expenses to test the market.

Thank you for your answer and sorry for my poor english.

regards

Yes, you can go ask them. Usually it's a change that they can make. The testing the market part I don't agree with. I mean you should be fairly confident that your change is an improvement. If the product is already selling, the improved version should sell too right? It's only where you mess up and don't actually make an improvement that people want where you will run into problems.

 

[Departed]

Hey @biophase
First of all, thank you for doing this! Learned a ton from your posts. And I know you could be relaxing on the couch, instead you are helping us here by sharing your knowledge.

I will hopefully launch my first product in the next couple of weeks (on Amazon US). It is not just some product you can simply buy on Alibaba and change the color. I have invested a lot of time and basically created something new by completely changing an existing product. I read your post on how difficult it has become to sell on Amazon. Hence, my decision to totally change the product and create something new. But I feel, this is not where "it ends". You also have to stick out with your product listing or your listing should at least communicate the unique features etc in a clear way. Otherwise, there is no sense in making those features in the first place.

I still have some time before the launch and I am already working on the product listing. I have looked into copywriting and read a couple of books (Breakthrough Advertising, Scientific Advertising) .

Here are my questions/problems:

1. Are you writing your product description yourself? Or are you hiring anyone? Are you using any particular "style"?
2. Would you say that the bullet points (only) job is to (positively) describe your products? Or would it also be a good idea to include "marketing technique" (as in direct marketing)? For example, stating things like "This product will reveal 3 secrets that .... don't want you to know. "We discovered blabla." Or even asking questions "Do you want to live a better life?" <-- Again, just (simple) examples from the top of my head.
3. Do you know (and can you share links to them) any product listings which you think have very good copy?
4. Do you know of any resources (books, videos) that focus on this topic (Amazon Product listing) specifically?

My main problem is that English is not my first language (I am also not US-based). It is difficult for me to even write this post. So, you can imagine how much more difficult it is to write a top-notch product listing that is converting. I will either write my own product description and then search for a proof-reader on Upwork or I was thinking to just hire a copywriter directly. But I don't want to work with just anybody (e.g. someone from Fiverr or Upwork). On the other hand, I don't want to spend too much money before I have even one sale....

Thank you. Looking forward to hearing your views!

 

[Guest931Xfjyx]

I realize you're American so this problem doesn't apply to you, but I figure you might know more than I do about it.

What sort of products should I sell on Amazon if I do not live in America? I was born in America, and I have lived in America all of my life but I am immigrating to Canada fairly soon and will be attempting to take as much action as possible on an e-commerce business there after I move.

What do you know about selling on Amazon as a Canadian, if anything? Should I even sell on Amazon as a Canadian? Should I even sell online as a Canadian? I've read that profits or something is different, do you have any idea what is different? I know you make not be a professional in e-commerce as a Canadian but honestly anything you know or could advise certainly helps.

Cheers man!

Best wishes.

 

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[Blackman]

Happy new year everyone and props to Biophase for this amazing thread on e-commerce, as well as the PART 1 of the original thread. Can't put a price on the amount of info in here.

I've got a question about the communications with potential suppliers on Alibaba, specifically. I normally send them an inquiry using Alibaba's contact form and try to keep the conversation within Alibaba, just for the sake of being organized and having everything in one place.

However, I noticed a lot of suppliers ask me to add them to WeChat/Whatsapp/Skype, although I'm not a fan of that, and would rather communicate via Alibaba or worst-case, via email.

Is there any disadvantage of not using mobile apps for supplier communications? Arguably, some suppliers would prefer to communicate outside of Alibaba to potentially scam you, but I currently pay using Paypal anyway, so this argument is irrelevant for me.

I know Paypal is not perfect, but it's clearly better than blindly sending money via Western Union or similar services to someone you haven't dealt with before.

I see this as a serious business and would rather sit down at my desk in front of the PC and carefully go through all the communications, than play around with apps on my phone like a 12-year old...

Call me old school, but that's how I look at it, especially since I'm still in full-time employment and don't really have the time to go through my phone every half an hour to see if anyone has replied.

Would be great to know your thoughts on this.

Thanks

 

[biophase]

Happy new year everyone and props to Biophase for this amazing thread on e-commerce, as well as the PART 1 of the original thread. Can't put a price on the amount of info in here.

I've got a question about the communications with potential suppliers on Alibaba, specifically. I normally send them an inquiry using Alibaba's contact form and try to keep the conversation within Alibaba, just for the sake of being organized and having everything in one place.

However, I noticed a lot of suppliers ask me to add them to WeChat/Whatsapp/Skype, although I'm not a fan of that, and would rather communicate via Alibaba or worst-case, via email.

Is there any disadvantage of not using mobile apps for supplier communications? Arguably, some suppliers would prefer to communicate outside of Alibaba to potentially scam you, but I currently pay using Paypal anyway, so this argument is irrelevant for me.

I know Paypal is not perfect, but it's clearly better than blindly sending money via Western Union or similar services to someone you haven't dealt with before.

I see this as a serious business and would rather sit down at my desk in front of the PC and carefully go through all the communications, than play around with apps on my phone like a 12-year old...

Call me old school, but that's how I look at it, especially since I'm still in full-time employment and don't really have the time to go through my phone every half an hour to see if anyone has replied.

Would be great to know your thoughts on this.

Thanks

I try to stay on alibaba until I chose the manufacturer to go with. They always try to move you to other communications. I don't think it's to skirt the payment or other shady stuff, I think it's to get a leg up on the other companies they are competing against. If they can communicate with you faster and more often and keep you from logging into alibaba, they have better chances of getting the order.

 

[biophase]

Hey @biophase
First of all, thank you for doing this! Learned a ton from your posts. And I know you could be relaxing on the couch, instead you are helping us here by sharing your knowledge.

I will hopefully launch my first product in the next couple of weeks (on Amazon US). It is not just some product you can simply buy on Alibaba and change the color. I have invested a lot of time and basically created something new by completely changing an existing product. I read your post on how difficult it has become to sell on Amazon. Hence, my decision to totally change the product and create something new. But I feel, this is not where "it ends". You also have to stick out with your product listing or your listing should at least communicate the unique features etc in a clear way. Otherwise, there is no sense in making those features in the first place.

I still have some time before the launch and I am already working on the product listing. I have looked into copywriting and read a couple of books (Breakthrough Advertising, Scientific Advertising) .

Here are my questions/problems:

1. Are you writing your product description yourself? Or are you hiring anyone? Are you using any particular "style"?
2. Would you say that the bullet points (only) job is to (positively) describe your products? Or would it also be a good idea to include "marketing technique" (as in direct marketing)? For example, stating things like "This product will reveal 3 secrets that .... don't want you to know. "We discovered blabla." Or even asking questions "Do you want to live a better life?" <-- Again, just (simple) examples from the top of my head.
3. Do you know (and can you share links to them) any product listings which you think have very good copy?
4. Do you know of any resources (books, videos) that focus on this topic (Amazon Product listing) specifically?

My main problem is that English is not my first language (I am also not US-based). It is difficult for me to even write this post. So, you can imagine how much more difficult it is to write a top-notch product listing that is converting. I will either write my own product description and then search for a proof-reader on Upwork or I was thinking to just hire a copywriter directly. But I don't want to work with just anybody (e.g. someone from Fiverr or Upwork). On the other hand, I don't want to spend too much money before I have even one sale....

Thank you. Looking forward to hearing your views!

1) I write it myself and it's not that great IMO.
2) Again, in my opinion, pictures and bullet points is what most people look at. I actually only look at photos when I'm buying. I don't know if you can use that type of copy in the bullets. I certainly don't.
3) Sorry none come to mind
4) I would listen to podcasts about this specifically

 

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[biophase]

I realize you're American so this problem doesn't apply to you, but I figure you might know more than I do about it.

What sort of products should I sell on Amazon if I do not live in America? I was born in America, and I have lived in America all of my life but I am immigrating to Canada fairly soon and will be attempting to take as much action as possible on an e-commerce business there after I move.

What do you know about selling on Amazon as a Canadian, if anything? Should I even sell on Amazon as a Canadian? Should I even sell online as a Canadian? I've read that profits or something is different, do you have any idea what is different? I know you make not be a professional in e-commerce as a Canadian but honestly anything you know or could advise certainly helps.

Cheers man!

Best wishes.

I really don't know. I suppose you could make a living in Canada but there is less volume. But the good thing is there is less competition. I'm about to launch my stuff into Amazon.ca.

 

[Smuggo]

I also have a question.

I am living outside America, UK or any country that has an Amazon. Do you know anybody who succeed in eCommerce without Amazon and who isn't from US? Or maybe there is a way to sell on Amazon from another country?

I am wondering if this mine of wisdom also applies to other countries.

 

[biophase]

I also have a question.

I am living outside America, UK or any country that has an Amazon. Do you know anybody who succeed in eCommerce without Amazon and who isn't from US? Or maybe there is a way to sell on Amazon from another country?

I am wondering if this mine of wisdom also applies to other countries.

There are many people that sell on Amazon USA that don’t live in the USA.

 

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[MoneyDoc]

I'm Canadian and I sell on amazon.com and amazon.ca.

The volume on amazon.ca is lower ONLY in certain categories...

You can create a 25k-50k/month business on amazon.ca the same way you could on amazon.com.

 

[Tommo]

There are many people that sell on Amazon USA that don’t live in the USA.

From your new icon I guess you got the McLaren

 

[Tommo]

Hi Biophase.
The MOQ on the product I want is 12000. They sent me samples and of the 3 lots of samples I got theirs was the best quality. They are not the manufacturers i think but so far I cannot find the original manufacturer so I don't mind the premium cost. I asked for 200 items and told them if/when my venture is a success I would order lots more and enjoy a continuing relationship with them as per Walter Hays advice. They asked how many more I would order if I am a success. I could order 1000 next time and I hate lying.
Have you been in a similar situation and how did you handle it?This is a Chinese company.

 

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[biophase]

Hi Biophase.
The MOQ on the product I want is 12000. They sent me samples and of the 3 lots of samples I got theirs was the best quality. They are not the manufacturers i think but so far I cannot find the original manufacturer so I don't mind the premium cost. I asked for 200 items and told them if/when my venture is a success I would order lots more and enjoy a continuing relationship with them as per Walter Hays advice. They asked how many more I would order if I am a success. I could order 1000 next time and I hate lying.
Have you been in a similar situation and how did you handle it?This is a Chinese company.

I never promise anyone anything. They probably get promises like that from people all the time. Nobody ever asks how much I'm going to order anymore. I don't know if it's because these companies on alibaba are vetting me by typing in my websites or searching Amazon. Once they get my logo or insert card information I'm sure they google it. I know I would.

If anyone ever asks how many I would order, I just say I don't know. When they ask for the MOQ, I just tell them how many I want. I won't move my MOQ up if it doesn't make sense. Remember, this is a business so your orders have to make sense. If you can get 1000 for $5 and 2000 for $4, but you can only sell 1000, then what good is the extra 1000 pcs to you even at $1 off?

 

[Tommo]

I never promise anyone anything. They probably get promises like that from people all the time. Nobody ever asks how much I'm going to order anymore. I don't know if it's because these companies on alibaba are vetting me by typing in my websites or searching Amazon. Once they get my logo or insert card information I'm sure they google it. I know I would.

If anyone ever asks how many I would order, I just say I don't know. When they ask for the MOQ, I just tell them how many I want. I won't move my MOQ up if it doesn't make sense. Remember, this is a business so your orders have to make sense. If you can get 1000 for $5 and 2000 for $4, but you can only sell 1000, then what good is the extra 1000 pcs to you even at $1 off?

Just sent you some rep for the advice.
Thank you.