Ask me anything about eCommerce (Ongoing)

[Rigged]

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[Ryacol]

Not Bio but to chime in. Amazon will let you have 2 accounts if they do not sell in the same category. You'll need separate bank accounts and email addresses and to request approval.

I was hoping to sell completely different products in the same category but as per their rules it's a no go =(

Thanks for the reply Jake, that clears things up!

Presumably you aren't limited to two accounts then either, so if you find success in 3 separate niches they'll allow you to have a third account too, and so on?

 

[Jake]

Thanks for the reply Jake, that clears things up!

Presumably you aren't limited to two accounts then either, so if you find success in 3 separate niches they'll allow you to have a third account too, and so on?

I didn't bother looking past step 2. Possibly

 

[Janetriever]

What if a customer orders 2 products which are from different suppliers? How do you go about that? (Talking about dropshipping)

 

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[biophase]

What if a customer orders 2 products which are from different suppliers? How do you go about that? (Talking about dropshipping)

You place an order which each dropshipper to send each product to the customer. ?

 

[Wisith]

Since you've been in the scene for years now, do you still use a freight forwarder? If so, do you pick one that is local to you?

My final sample is coming in this week, and I'm planning on going with my first order as agreed with the manufacturer. The samples were easy as they were small so they came in a bubble envelope. I'm still frantically thinking about the logistics of having the first order shipped to me.

I plan on contacting a local freight forwarder to me because I don't want to goof anything up. Any input/advises will be appreciated.

Thanks, man!

 

[ZMan26]

@biophase thanks a lot for this thread, its awesome.

I have a question, It might not concern you but when I talk to the manufacturers at ali-baba and I ask for 1 sample with my logo and of the final product its always a problem for them.

They say they can only ship the "generic " product [ whatever unbranded item it is ] and the shipping cost is extremely high.

How do you deal with that ? I dont want to see the product without my logo first, I want to see the final product thats why im ordering a sample... am I missing something ?

 

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[biophase]

Since you've been in the scene for years now, do you still use a freight forwarder? If so, do you pick one that is local to you?

My final sample is coming in this week, and I'm planning on going with my first order as agreed with the manufacturer. The samples were easy as they were small so they came in a bubble envelope. I'm still frantically thinking about the logistics of having the first order shipped to me.

I plan on contacting a local freight forwarder to me because I don't want to goof anything up. Any input/advises will be appreciated.

Thanks, man!

I'm still using a freight forwarder. Can't imagine why I would stop using one. I don't know how to do any of the import paperwork. Mine is not local. That shouldn't matter really, but it would probably be a plus.

 

[biophase]

@biophase thanks a lot for this thread, its awesome.

I have a question, It might not concern you but when I talk to the manufacturers at ali-baba and I ask for 1 sample with my logo and of the final product its always a problem for them.

They say they can only ship the "generic " product [ whatever unbranded item it is ] and the shipping cost is extremely high.

How do you deal with that ? I dont want to see the product without my logo first, I want to see the final product thats why im ordering a sample... am I missing something ?

I'm sure they can make your final product if you are willing to pay for it. Sometimes they will only send you a sample of the final product after you make a production order. This is because they need to procure the parts to make you product, especially if it's custom. They aren't going to be able to order just one custom part to make your sample. But if you are willing to pay more for that 1 custom part, then they would be able to make it.

 

[Wisith]

I'm sure they can make your final product if you are willing to pay for it. Sometimes they will only send you a sample of the final product after you make a production order. This is because they need to procure the parts to make you product, especially if it's custom. They aren't going to be able to order just one custom part to make your sample. But if you are willing to pay more for that 1 custom part, then they would be able to make it.

Agreed.

I'll put in my 2 cents since I'm going through this myself.

I had two manufacturers sent me their samples. The samples were pretty much free, but shipping is expensive...which I didn't mind. I'm sure they get tons of inquiries so you need to show that you're serious about this. I got both samples 2-3 days after they were sent. These were the generic pieces they have laying around. I made note on what to improve upon. I emailed both manufacturers back with details. Manufacturer A said they can do it, but my first order would have to be at least 2000 pcs. Manufacturer B said they can also do it, but first order was 500 pcs. Manufacturer B was going to be a bit more expensive, say $6 per pc instead of $4.50 per pc from Manufacturer A.

I proceeded to work with Manufacturer B. I told them I want to make sure the final sample is of my specs before they make the 500 pc batch. They agreed. They asked for me to pay 30% upfront to get the mold working for the sample. I paid the 30%. The remaining will be paid when I approve the final sample.

I would be very weary if they cannot show me what my final product will look like before mass producing it personally.

 

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[ZMan26]

I'm sure they can make your final product if you are willing to pay for it. Sometimes they will only send you a sample of the final product after you make a production order. This is because they need to procure the parts to make you product, especially if it's custom. They aren't going to be able to order just one custom part to make your sample. But if you are willing to pay more for that 1 custom part, then they would be able to make it.

Biophase, thank you for your reply mate !

I actually improved a product that costs me 5-6$ a unit, and intend to sell it.

It isnt " revolutionary " like the products you're selling ( I mean there are products like it ) but mainly by big brands that sell for at least twice the retails price that I will sell it for.

The thing is I wanted a product like this and thought " I dont wanna pay 35-40$ for that, just because it has lets say NIKE on it... "

So lets say they sell something like that for 35-40$, and I will sell it for 19.95$ with my brand on it, and it will actaully be the same quality if not better because I did read reviews and even use a product like that myself so Im improving it to the MAX.

Do you think ill be able to compete in amazon with the big boys while I offer a very similar product to theirs, in just around 50% of their price ?
your thoughts would be appreciated )

and again thank you so much, you dont understand the value you're giving out here, god bless !

 

[biophase]

Biophase, thank you for your reply mate !

I actually improved a product that costs me 5-6$ a unit, and intend to sell it.

It isnt " revolutionary " like the products you're selling ( I mean there are products like it ) but mainly by big brands that sell for at least twice the retails price that I will sell it for.

The thing is I wanted a product like this and thought " I dont wanna pay 35-40$ for that, just because it has lets say NIKE on it... "

So lets say they sell something like that for 35-40$, and I will sell it for 19.95$ with my brand on it, and it will actaully be the same quality if not better because I did read reviews and even use a product like that myself so Im improving it to the MAX.

Do you think ill be able to compete in amazon with the big boys while I offer a very similar product to theirs, in just around 50% of their price ?
your thoughts would be appreciated )

and again thank you so much, you dont understand the value you're giving out here, god bless !

I would be pricing it at $35-$40. Maybe you start at $20 to get some sales, but ultimately, if your product is the same or better, there's no reason why it should not sell for the same or more than others. In your case I would probably start at $29.99 and move prices up as your rank higher.

 

[ZMan26]

I would be pricing it at $35-$40. Maybe you start at $20 to get some sales, but ultimately, if your product is the same or better, there's no reason why it should not sell for the same or more than others. In your case I would probably start at $29.99 and move prices up as your rank higher.

Just because I thought ppl usually trust a product that says " NIKE " or " ADIDAS " more than " Zman sports " ?

What do you think about my margins ? price of a unit is around 5$ not including shipping ( each product is around 2 LBS ) ?

When I get this product im going to market this sh1t out of it im just not sure it will compete with those big guys yet im afraid because they're brand name is so strong...

But if I do decide to go with it... then its youtube videos, spamming FB twitter and basically dominating the internet, lol

 

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[biophase]

Just because I thought ppl usually trust a product that says " NIKE " or " ADIDAS " more than " Zman sports " ?

What do you think about my margins ? price of a unit is around 5$ not including shipping ( each product is around 2 LBS ) ?

When I get this product im going to market this sh1t out of it im just not sure it will compete with those big guys yet im afraid because they're brand name is so strong...

But if I do decide to go with it... then its youtube videos, spamming FB twitter and basically dominating the internet, lol

Well it will depend on your niche and the brands you are going up against. Nike, Coke, Apple would be pretty big. But other medium brands you will have a chance. What niche or category are you in? Your margins are great even at $20, but at $30 would be fantastic.

 

[Wisith]

Hey Kenric,

I know you've been in the game for a while. I just have some questions over your journey since I'm relatively still a newbie in this.

1. Did you use Alibaba since you first started in the late 2000s? How has contacting manufacturers changed since then since there are now quite a few platforms you can use?

2. Have you ever need to file a charge-back of some sort due to a deal gone wrong? I know you said that any money you send overseas is money you're willing to part with. Just curious to hear if you have any stories such as you're ordering another typical order with Company X, and they stopped replying to your email and such.

3. How do you deal with the culture gap (if you do at all)? This may be a weird one, but I'm weary about being too straight forward to the point that I may appear like an a-hole to the manufacturer. I also don't want to appear weak to them. My manufacturer is slacking a bit on making my sample due to unforeseen circumstances. It's throwing off my plans a bit.

Thanks as always!

 

[JAMES-L67]

Hi @biophase
First off thanks for taking the time to respond to all our questions! Would be a huge effort.

My question for you is this:

• What factor/idea/strategy has been the most influential to your success in Ecommerce?

Would love to hear your thoughts on this!

Thanks,
James

 

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[ZMan26]

Well it will depend on your niche and the brands you are going up against. Nike, Coke, Apple would be pretty big. But other medium brands you will have a chance. What niche or category are you in? Your margins are great even at $20, but at $30 would be fantastic.

Thats the thing, nike, under armour, these guys are in the market.

I dont want to compete, I want to DOMINATE the niche ...

Thats why I want a better item, and a lower price...

I'm ordering my first piece, and ill update on my progress... thanks for all those tips man, last question -

What is the process you're going through when looking for products to improve ? how do you choose products ?

I realize you cant give all your secrets, but whatever you can tell us that will NOT harm your business, will be awesome .

Thanks for everything !

 

[Wisith]

Thats the thing, nike, under armour, these guys are in the market.

I dont want to compete, I want to DOMINATE the niche ...

Thats why I want a better item, and a lower price...

I'm ordering my first piece, and ill update on my progress... thanks for all those tips man, last question -

What is the process you're going through when looking for products to improve ? how do you choose products ?

I realize you cant give all your secrets, but whatever you can tell us that will NOT harm your business, will be awesome .

Thanks for everything !

I doubt you can dominate any market being a new comer on a limited budget...

There's no shame being 'just a player' in the field, IE Reebok pulled out of the basketball arena since Nike got that on locked (yes, they still have retros, but no new models). They jumped into the Xfit arena a couple of years ago and focused on that.

I'm not sure what you're trying to do, but if you're trying to compete with Nike and Under Armour, etc. then I'm guessing you're in the active arena. I'm going to guess you don't have the budget to make sneakers, so I'm going to assume you are making apparel of some sort. If you're going that route, pick a cool name and get some people to endorse your stuff and go from there. See: http://shop.livefitapparel.com/
They are heavy on social media and my body building friends rock the hell out of that brand.



In regards to your question to Bio, it would behoove you to spend time to read through the entire thread. I did that and took notes as I went along. This is one of the first things he said:


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.

 

[biophase]

Hey Kenric,

I know you've been in the game for a while. I just have some questions over your journey since I'm relatively still a newbie in this.

1. Did you use Alibaba since you first started in the late 2000s? How has contacting manufacturers changed since then since there are now quite a few platforms you can use?

2. Have you ever need to file a charge-back of some sort due to a deal gone wrong? I know you said that any money you send overseas is money you're willing to part with. Just curious to hear if you have any stories such as you're ordering another typical order with Company X, and they stopped replying to your email and such.

3. How do you deal with the culture gap (if you do at all)? This may be a weird one, but I'm weary about being too straight forward to the point that I may appear like an a-hole to the manufacturer. I also don't want to appear weak to them. My manufacturer is slacking a bit on making my sample due to unforeseen circumstances. It's throwing off my plans a bit.

Thanks as always!

1) Not much has changed for me. Still contacting new suppliers through alibaba. Still in contact with my old suppliers through email and skype.

2) There's really not much you can do if a company in China decides to screw you. You can try to get your money back if you paid with paypal, but it's probably pretty hard. With a wire transfer I'd just kiss it goodbye. It's a risk of doing business. I never wire over more than I'm prepared to lose 100%.

3) I'm pretty straightforward. I don't make alot of small talk. I'm usually all business when I talk to them. Alot of them want to have long conversations. I don't mind that, they just need to be competent when it comes to the product and work.

 

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[biophase]

Hi @biophase
First off thanks for taking the time to respond to all our questions! Would be a huge effort.

My question for you is this:

• What factor/idea/strategy has been the most influential to your success in Ecommerce?

Would love to hear your thoughts on this!

Thanks,
James

Hi James,

Basically it's all about making a good product at a good price. If you can do that, it will sell itself. As I talked about in the Fastlane Summit. Here's an example, of a good product. 1 review on Amazon, #1 new release in a competitive market. I did not need any fake review groups or discounted sales.

 

[biophase]

Thats the thing, nike, under armour, these guys are in the market.

I dont want to compete, I want to DOMINATE the niche ...

Thats why I want a better item, and a lower price...

I'm ordering my first piece, and ill update on my progress... thanks for all those tips man, last question -

What is the process you're going through when looking for products to improve ? how do you choose products ?

I realize you cant give all your secrets, but whatever you can tell us that will NOT harm your business, will be awesome .

Thanks for everything !

I think you should concentrate on the competing portion before the domination portion. Does Honda sell more cars than Lexus? Yes. Does Honda compete or dominate against Lexus? No, because they aren't in the same ballpark. Nobody compares them.

Does Mercedes compete against Lexus? Yes

Who do you want to be? Honda or Mercedes, when mentioned against Lexus?

 

[ZMan26]

As I said, what "im trying to do " ( no ones trying btw im doing it )

Is getting a product that is better then what they make, in a lower cost because their product is too expensive and theres no "lower ticket " items in the same category.

and I totally disagree with the "budget" thing.

Lets say im buying socks and rebranding them, each sock costs me 2$ after shipping and I have 5000$ for this project.

Do I care if Nike has 100M in their bank? absolutely not... its irrelevant, its not like they're going to take the 100M and put it all on their socks in amazon ads or

Besides im gonna be laser focused on 1 product and they're all over the place...

I think you should concentrate on the competing portion before the domination portion. Does Honda sell more cars than Lexus? Yes. Does Honda compete or dominate against Lexus? No, because they aren't in the same ballpark. Nobody compares them.

Does Mercedes compete against Lexus? Yes

Who do you want to be? Honda or Mercedes, when mentioned against Lexus?

Thats EXACTLY when im going to do, be HONDA vs LEXUS.

Thats why my price point is lower, as I said as the beginning

I know you said you dont look at the "best selling " list because thats what most people do [love your advice about that ]
You also said you dont use any software [ correct me if im wrong ]
does that mean your manually/ randomly go through amazon looking for products to improve?

thanks again mate

 

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[biophase]

Thats EXACTLY when im going to do, be HONDA vs LEXUS.

Thats why my price point is lower, as I said as the beginning

I know you said you dont look at the "best selling " list because thats what most people do [love your advice about that ]
You also said you dont use any software [ correct me if im wrong ]
does that mean your manually/ randomly go through amazon looking for products to improve?

thanks again mate

Honda vs Lexus, isn't exactly dominating Lexus, but anyway it's a good goal. But you could be leaving money on the table with your pricing. I would launch and adjust it accordingly.

And yes, I just browse around and look for products that I can improve upon within my niche or category.

 

[Wisith]

1) Not much has changed for me. Still contacting new suppliers through alibaba. Still in contact with my old suppliers through email and skype.

2) There's really not much you can do if a company in China decides to screw you. You can try to get your money back if you paid with paypal, but it's probably pretty hard. With a wire transfer I'd just kiss it goodbye. It's a risk of doing business. I never wire over more than I'm prepared to lose 100%.

3) I'm pretty straightforward. I don't make alot of small talk. I'm usually all business when I talk to them. Alot of them want to have long conversations. I don't mind that, they just need to be competent when it comes to the product and work.

Thanks. In regards to 3. I asked because the culture is different for sure. I'm placing my first order that's only about $2k in value with a Chinese manufacturer and the communication is great...I email them, they'll reply ASAP, but I have to follow up with deadlines. IE if I was promised pictures of samples would be shown by Thursday then I would have to ask for them on Thursday. Understanbly I'm just a small fish so they probably take care of the larger accounts first. Just a different experience overall than I've had with companies in the states so just wanted to get your thoughts on it and don't want to outcast myself as a jerk or a 'softie'.

 

[MotiveInMotion]

I completely agree that it's time to be in Amazon. Get in, private label, build the brand, and in my opinion sell and get back in!

I say this because it completely violates the commandment of control, and it's important to have some control IMO. If (unlikely) Amazon just shuts you down, everything is gone because your house is on their land. However, the upside potential of Amazon right now is seriously insane

 

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[MotiveInMotion]

Let's assume Amazon and FBA is our sales channel.

Do you prefer to use PPC advertising, or do you prefer organic growth when starting a new store, or adding SKUs to an existing store?

If you use PPC ads, are you using Amazon's? Google AdWords? Both, or something else entirely?

Amazon's PPC is the easiest on earth.

Step1. Turn on "broad match" and run every keyword

Step2. Pick keywords that convert well and get clicks

Step3. Set up a new campaign and run the profitable keywords, always looking to decrease ACoS (avg. cost per sale)

 

[Wisith]

Hey Kenric,

What are your thoughts on heavy items with FBA? I ask because I recently found a complimenting item for my niche. It's probably the size of a mini-fridge so even to get the orders from China would have to be via sea. Just want to know if you've tried any heavier pieces at all and your thoughts on it.

Also, with your own branded items, do you go have custom packaging that says "Bio's brand boxing gloves", and www.biosbrand.com, etc on them? My items come in generic bags from China, but I'm looking at having another party make my custom packaging so the presentation isn't cheap looking. My concern is I'm not sure if Amazon would be OK with that since they don't want anything shown except their own UPC code.

Thanks, bud.

 

[biophase]

Hey Kenric,

What are your thoughts on heavy items with FBA? I ask because I recently found a complimenting item for my niche. It's probably the size of a mini-fridge so even to get the orders from China would have to be via sea. Just want to know if you've tried any heavier pieces at all and your thoughts on it.

Also, with your own branded items, do you go have custom packaging that says "Bio's brand boxing gloves", and www.biosbrand.com, etc on them? My items come in generic bags from China, but I'm looking at having another party make my custom packaging so the presentation isn't cheap looking. My concern is I'm not sure if Amazon would be OK with that since they don't want anything shown except their own UPC code.

Thanks, bud.

Heavy items with FBA are fine if you can make the numbers work. You are less likely to have any competitors because of it.

Yes, I brand my items with custom (mostly simple stickers, hangtags) packaging. Amazon is ok with it. Just look at the packaging on the things that you buy from Amazon. Do your Nike shoes come in a Nike box?

 

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[Willy]

Few questions for anyone to respond to:

1) How do I accurately predict selling volume on Amazon listings? Do the selling listings have a separate page with selling information? Currently, I typically base my estimate on the frequency of reviews. The problem is that about 80-90% of all the reviews I see are made by people who say, "I have received this product at a discounted or free rate for an honest review."

2) Any ideas for coming up with a brand name? I feel like I can make decent names, but I find it hard to find something specific enough to the niche yet broad enough in case I expand.

3) Is it still necessary or unnecessary to order samples from a few different suppliers to test each supplier out? I remember bio saying that he would just tell the factory what he wanted to improve; then, he would just do a small order of over 100 products.

4) Does alibaba.com show which manufacturers take PayPal? Also, is PayPal still the best way to initially pay a supplier to reduce the risk of scammers? What other payment methods do you think are good to use?

5) Any other good websites with importing information, where the goal is to improve products? In other words, I've found some websites that talk about importing, but many seem to appeal to lazier people and say, "Ride the wave! Piggyback on other people's listings!"

6) Do I need to have a registered company to sign up on Alibaba? I tried signing up for Alibaba, but it says I need a legally registered company. Is this a problem, or can I just message suppliers without an account and add my email address?

Thank you for still responding and keeping this active! With your help, I'm getting closer to my goals!

 

[Willy]

Few questions for anyone to respond to:

1) How do I accurately predict selling volume on Amazon listings? Do the selling listings have a separate page with selling information? Currently, I typically base my estimate on the frequency of reviews. The problem is that about 80-90% of all the reviews I see are made by people who say, "I have received this product at a discounted or free rate for an honest review."

2) Any ideas for coming up with a brand name? I feel like I can make decent names, but I find it hard to find something specific enough to the niche yet broad enough in case I expand.

3) Is it still necessary or unnecessary to order samples from a few different suppliers to test each supplier out? I remember bio saying that he would just tell the factory what he wanted to improve; then, he would just do a small order of over 100 products.

4) Does alibaba.com show which manufacturers take PayPal? Also, is PayPal still the best way to initially pay a supplier to reduce the risk of scammers? What other payment methods do you think are good to use?

5) Any other good websites with importing information, where the goal is to improve products? In other words, I've found some websites that talk about importing, but many seem to appeal to lazier people and say, "Ride the wave! Piggyback on other people's listings!"

6) Do I need to have a registered company to sign up on Alibaba? I tried signing up for Alibaba, but it says I need a legally registered company. That's kind of a problem because I'm 16, and I don't have a company. XD I've been running into some problems as a minor... For example, I'm going to have to register a company under my parents; will I be able to take over the owner title easily once I'm 18? I might just ask a lawyer who knows this stuff, lol.

Thank you for still responding and keeping this active! With your help, I'm getting closer to my goals!

Additionally, I would like some review on my process for making an improved product.

I will send a list of generic questions regarding OEM, cost of mold, and MOQ to about 10-15 suppliers. I will then choose 3-5 of these who I think have good products and are specialized enough for my product. I'm not sure whether to order samples from multiple suppliers, but I do know that I will be asking about the improvements I intend to make, especially the price, MOQ, and upfront payment for my improved designs.

I'll choose one of these suppliers that I think will be the best and pay the upfront to make a mold. Then I'll ask them to send a sample of the finished product to me. Finally, I'll get some feedback and test the product before I make a larger order.