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biophase

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Hello biophase,

First of all thanks for doing this.
I would like to ask you what you think about outsourcing especially when starting out?
You said that you improve your products yourself and let your manufacturer produce it.
Do you hire a designer or do you make the drawing yourself?
Do you let someone else do the CAD animation if necessary?
Do you hire web developers and graphic designers to build your ecommerce stores (or do you use a shopsystem with template or program yourself)?
Do you take product photos yourself or do you hire professional photographers?

My situation is like this: I am just starting out and dont have that much money to invest (I invest everything I got).
I could hire a professional photographer now to make my product photos or I could invest in equipment and learn photo skills and do it myself.
Wouldnt be that expensive because tutorials/guides are free at the internet and I can borrow a high quality cam from a friend and so on.
I am just wondering what you think about that? Better to learn a skill you need for your ecommerce business or hire a professional who does it for you?

Thanks in advance.

I still do everything myself. So I draw stuff on paper, hire a fiver guy to make it look nicer. I haven't had to do any CAD animation. I build all my own ecommerce stores, I buy templates and modify them.

I take all the photos myself. Back in 2010 I knew nothing about photography. I took a few courses and now I have a full studio at the warehouse. As you can probably tell, I am a hands on person. I do all my own photo editing. The only thing I outsource are logos because I am not that creative.

I don't mind learning skills. I know people here like to outsource because time is money, but you can ask me about any aspects of my business and I know it inside and out.

Oh, the other things I outsource are payroll, taxes and importing stuff. I know nothing about customs and duties and ISFs.
 

biophase

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So after my 20 minutes of research (This post wasn't hypothetical.. I actual did the searches and then posted what I was thinking) I found that I know even less about knives then when I started.

This is a PHENOMENAL thing and I think drives home the point of why @biophase 's process is superior to just finding shit on amazon and alibaba and then importing that.. Barrier to entry. Most sellers are not going to even do the 20 minutes of research I just did.. They're going to find something that's selling on amazon, find it on alibaba, change the logo, and import/sell the exact same thing that 48 other guys are selling. With a bit of research you'll be able to stand out from the competition and sell a better product.

***But my question is***

How do you determine when you've researched enough? Do you spend weeks researching how to make the best knife? Do you buy books and spend months on knife forums to become a knife expert?

Thanks for the post. It was a great example of the process. So guess what... if you emailed a few people in China now, you can at least talk intelligently about a knife.

When you get 2 quotes back of the same looking knife and one is using metal rivets an the other is using silver plastic ones, you will actually know what they mean. Whereas before, you probably would have just glossed over that fact and picked the company that gave you a cheaper quote.

I think you will know when you have researched enough. Think about it, you are launching a business. You just did 20 minutes of research. How much research do people do before opening a restaurant, or buying real estate. How much knife knowledge would you have in 3 days?

Then go on Amazon and look at the top selling knives. Read the reviews, especially the 1-2 star reviews. The reviews should mean much more to you now. Find out why some knives are shitty and see if you can fix them. Maybe people like heavier handles? lighter handles?

Also, another thing to do is to research how each knife is used. I have a kitchen set of knives but I use whichever one is clean. I have no idea what the big knife is used for vs the skinny knife. They all cut apples fine. :) Once you know why something is designed the way it is, you will understand it alot better.

I'd probably keep going until I found a new to improve the knife. I don't know how or what it will be, but it has got to be possible!
 

DrkSide

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I still do everything myself. So I draw stuff on paper, hire a fiver guy to make it look nicer. I haven't had to do any CAD animation. I build all my own ecommerce stores, I buy templates and modify them.

I take all the photos myself. Back in 2010 I knew nothing about photography. I took a few courses and now I have a full studio at the warehouse. As you can probably tell, I am a hands on person. I do all my own photo editing. The only thing I outsource are logos because I am not that creative.

I don't mind learning skills. I know people here like to outsource because time is money, but you can ask me about any aspects of my business and I know it inside and out.

Oh, the other things I outsource are payroll, taxes and importing stuff. I know nothing about customs and duties and ISFs.
I like that I am not the only one here that operates like this.

So if you were going to launch a new brand would you start with Amazon, your own store, or a combination of both?
 

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Any recommendations for someone whom is starting out with around $1k capital. Would you do drop shippping, private label?
 

SeanyHang

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Any recommendations for someone whom is starting out with around $1k capital. Would you do drop shippping, private label?

When you walk into a phenomenal thread and see that a new user asked what type of business to start with a monetary limit.

guy-opening-door.gif


My thoughts are with you, dear friend.
 

biophase

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I like that I am not the only one here that operates like this.

So if you were going to launch a new brand would you start with Amazon, your own store, or a combination of both?

I would go Amazon first, then open your own store in about 3-6 months.
 

biophase

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Any recommendations for someone whom is starting out with around $1k capital. Would you do drop shipping, private label?

I would go Amazon with $1k. You just need to improve the right product. I would not do dropshipping or private label. You would not have enough money to do those effectively.
 

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Ok, so action guide. Would you recommend saving 5k minimum, picking 1 product to start with. Read everything you can about it, how its made, different materials, best selling in that section, worst selling. Spend a good month or so just understanding everything about it. Then get a CAD design done up and send it to a few Chinese manufactures and get some feedback before proceeding further? I'm sure its a zillion times more complicated then that, I just wanted to get a general direction.

Thank you for taking the time out of your business to help us.
 

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Bio - how often do you have to deal with Amazon's "control issues"?

I have to say, I've been selling on Amazon now for about 2 years and I'm not going to lie - I've been considering throwing my hands up at it. I'm ALWAYS fighting SOME sort of battle with Amazon over frivolous, silly things that are out of my control.

I have a product right now, for example, that was selling wonderfully for 1.5 years now. One of my first products. It has 132 reviews on it, 4.5 stars. The product is good - maybe not "great" but considering it was like my third product ever it's pretty spiffy. I actually got it selling really well recently with some refocused effort on it and what happens? A SINGLE complaint from ONE customer about it being 'inauthentic' and BOOM - listing locked. This is my own brand and I'm the only seller.

I call support, they say it's not within ther power to look into it, that I have to email some other department. So I email some other department - no responses. It's been over a month now. More support chats, no help. More emails - no response.

I deal with stuff like this regularly with Amazon. It seems there's no end to it. I put out one fire and another pops up a few weeks later. And I don't even have a ton of products and I run a fairly legit and high-customer-service business.

So do you deal with this often? Are you always fighting uphill battles with amazon support or am I just seriously unlucky with this?
 

PopEmersen

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I was pretty disappointed when I saw this in the new Amazon TOS. I was planning on and getting excited for trying out a blast service to see what it could do for my rankings.. I have a buddy who used one a few months ago and is now #1 in his category (not a sexy product at all - but there ARE plenty of competitors that he blew out of the water). I'd still love to try a blast but I think I'll wait and see how the dust settles and what the real consequences for using such services are.

Which company did he use?
 

RisingStars

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I still do everything myself. So I draw stuff on paper, hire a fiver guy to make it look nicer. I haven't had to do any CAD animation. I build all my own ecommerce stores, I buy templates and modify them.

I take all the photos myself. Back in 2010 I knew nothing about photography. I took a few courses and now I have a full studio at the warehouse. As you can probably tell, I am a hands on person. I do all my own photo editing. The only thing I outsource are logos because I am not that creative.

I don't mind learning skills. I know people here like to outsource because time is money, but you can ask me about any aspects of my business and I know it inside and out.

Oh, the other things I outsource are payroll, taxes and importing stuff. I know nothing about customs and duties and ISFs.


Thanks for your great answer! :)
 

biophase

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Ok, so action guide. Would you recommend saving 5k minimum, picking 1 product to start with. Read everything you can about it, how its made, different materials, best selling in that section, worst selling. Spend a good month or so just understanding everything about it. Then get a CAD design done up and send it to a few Chinese manufactures and get some feedback before proceeding further? I'm sure its a zillion times more complicated then that, I just wanted to get a general direction.

Thank you for taking the time out of your business to help us.

I would talk to a Chinese manufacturer before you do any CAD drawings or design changes. You need to talk to them first and see what they can do and how much it costs. You don't want your changes to make the product cost double or triple.
 

biophase

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Bio - how often do you have to deal with Amazon's "control issues"?

I have to say, I've been selling on Amazon now for about 2 years and I'm not going to lie - I've been considering throwing my hands up at it. I'm ALWAYS fighting SOME sort of battle with Amazon over frivolous, silly things that are out of my control.

I have a product right now, for example, that was selling wonderfully for 1.5 years now. One of my first products. It has 132 reviews on it, 4.5 stars. The product is good - maybe not "great" but considering it was like my third product ever it's pretty spiffy. I actually got it selling really well recently with some refocused effort on it and what happens? A SINGLE complaint from ONE customer about it being 'inauthentic' and BOOM - listing locked. This is my own brand and I'm the only seller.

I call support, they say it's not within ther power to look into it, that I have to email some other department. So I email some other department - no responses. It's been over a month now. More support chats, no help. More emails - no response.

I deal with stuff like this regularly with Amazon. It seems there's no end to it. I put out one fire and another pops up a few weeks later. And I don't even have a ton of products and I run a fairly legit and high-customer-service business.

So do you deal with this often? Are you always fighting uphill battles with amazon support or am I just seriously unlucky with this?

I have not had any of these issues. Maybe I have been lucky. But I am also in very noncompetitive niches.
 

MJ DeMarco

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Tagged GOLD. Thanks @biophase for the new AMA and stepping up to the plate with some awesome answers!
 
G

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So do you deal with this often? Are you always fighting uphill battles with amazon support or am I just seriously unlucky with this?
I deal with it quite often. I had two of my product taken down for months. I exchanged a lot of messages with Seller Support and the most annoying now thing was that in 90% of cases they responded with unhelpful generic email template. I had a copyright infringement claim against one of my product (it turned out that a generic product name everybody used was trademarked). After discussing the case with the attorney that filed the claim and meeting all of their demands it took Amazon over a month to reinstate my listing.

I guess it's a cost of doing business on Amazon.


Sent from my iPhone using Tapatalk
 

biophase

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In your opinion, how would you define a competitive niche vs noncompetitive?

You can usually tell by the quality of the Amazon listings on the first 2 pages if a niche will be competitive or not. You can tell if the other sellers went to Amazon school. :)
 

ddall

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Bio - how often do you have to deal with Amazon's "control issues"?

I have to say, I've been selling on Amazon now for about 2 years and I'm not going to lie - I've been considering throwing my hands up at it. I'm ALWAYS fighting SOME sort of battle with Amazon over frivolous, silly things that are out of my control.

I have a product right now, for example, that was selling wonderfully for 1.5 years now. One of my first products. It has 132 reviews on it, 4.5 stars. The product is good - maybe not "great" but considering it was like my third product ever it's pretty spiffy. I actually got it selling really well recently with some refocused effort on it and what happens? A SINGLE complaint from ONE customer about it being 'inauthentic' and BOOM - listing locked. This is my own brand and I'm the only seller.

I call support, they say it's not within ther power to look into it, that I have to email some other department. So I email some other department - no responses. It's been over a month now. More support chats, no help. More emails - no response.

I deal with stuff like this regularly with Amazon. It seems there's no end to it. I put out one fire and another pops up a few weeks later. And I don't even have a ton of products and I run a fairly legit and high-customer-service business.

So do you deal with this often? Are you always fighting uphill battles with amazon support or am I just seriously unlucky with this?


I've had a listing blocked as well, once for title violation (this was easily corrected by an amendment) and a second product went under manual review. I had no idea why, was selling 40 units plus a day at $59 each so was not to happy. Ultimately it was revealed the item was flagged by a negative review. Yes, a negative review, left in the seller feedback area, flagged a manual review. The looked at all the items in the warehouse and advised I needed to write a letter detailing how I was going to correct the problem (which I was never made aware of). The product I might add had a 4.7 rating at the time.
So I start writing the letter, and as I'm compiling my argument in detail, I have the 1 star feedback removed as it was a product review placed in seller feedback area (which is for shipping speed, etc)...anyway that instantly unlocked the entire thing. Listing was frozen for a week. Never submitted the letter.

On a side note, despite the high volume of sales I pulled that product once I ran out of stock as I plan to get it completely redesigned from the ground up which is going to cost a lot but I know I can make something just fantastic and the demand is there. Laving a lot of money on the table, was a tough choice but have to gear up other products for Christmas.

Also, with this knife analogy, Im actually somewhat involved in this space and I will say it is ruthlessly cut throat (pun intended) and unbelievably saturated. I blink and the space is filled with new entrants giving all their product away.
 

napier

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Biophase,

First, thank you for this AMA you have provided a wealth of information.

I am assuming since you have been in this game for some time that you have established contacts with various overseas manufactures? For someone just getting started in the world of ecommerce do you recommend just contacting suppliers through sites like Alibaba? Do you use any U.S. manufactures? I know this has been talked about in several other threads, but I wanted to get your take on it.
 

biophase

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Biophase,

First, thank you for this AMA you have provided a wealth of information.

I am assuming since you have been in this game for some time that you have established contacts with various overseas manufactures? For someone just getting started in the world of ecommerce do you recommend just contacting suppliers through sites like Alibaba? Do you use any U.S. manufactures? I know this has been talked about in several other threads, but I wanted to get your take on it.

I don't think that being in the game a long time does anything for you in terms of relationships. You always have to look for new factories and such. The factory you've been using for 4 years cannot make everything that you need. I do use alibaba alot. I just go with the email and get samples and the back and forth. I actually went to China and have now met with all the factories that I'm using. The only manufacturer I haven't met yet is in Pakistan and I'll probably never meet them.

I don't use any US manufacturers because they just can't make the products I want at a low enough price to compete.
 

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You can usually tell by the quality of the Amazon listings on the first 2 pages if a niche will be competitive or not. You can tell if the other sellers went to Amazon school. :)

Extremely interesting response. So does this mean that you don't mind products/niches that have a lot of sellers as long as those main sellers have listings you know you can blow away? I personally have been using Jungle Scout to do product research just to give me a general idea of the competition.

I've been trying to come up with product ideas lately that solve pain points - and thus I sit in front of my computer and just think "uhhh...COUGHING! YEA COUGHING SUCKS!" and then do an amazon search for "coughing" and see what long tail keywords/ products show up... From there I find products that look like I may be able to PL (at this point just in a "me-too", sense) after searching and drilling deep and maybe looking at seller accounts to see what products they're selling. Basically I'm trying yours and @Vigilante 's approach to finding products rather than looking at amazons top 100, movers and shakers or ebays top selling items to find goods. I'm doing this because I completely agree with you guys that the top selling products that are also cheap and light are wayyyyyyy too saturated and competitive now... I'd rather find something that not EVERYONE is after for a quick buck.

So anyway while I was doing one of my searches, I came across backseat organizers. I hadn't seen one before and I thought that they were pretty nifty! They definitely solved a pain point for parents who have to deal with their kids crap all over the place in their cars. If I wanted to go all out in true @biophase fashion I could figure out which fabrics and materials are going to be the most durable so they don't rip if the child really messes with it. I could make it not smell like shit (on one of the products there were several 1 start reviews that said the material STUNK). I could also figure out a way to make them more efficient with pocket placement and maybe secret zipper pockets. Maybe you could put a mirror on it - whatever there's tons of ways that you could modify this product to make it unique to you if you take more than the 10 seconds I just took to brainstorm random differences.

But then I typed in "backseat organizers" in amazon in the "ALL" category and found this.
YsweDSP.jpg


Now 987 sellers is enough to scare me off. I honestly wouldn't even try messing with this product.. But then lets take a look at Jungle scout.

2n0LlrE.jpg


This search is filtered by the Sales rank.. I like that they're all pretty low relatively speaking.. And I also like how most of them dont have THAT many reviews. The two top guys have 914 reviews and 447 reviews which I don't love (especially that 914) but I think I can manage to get more than 100 reviews which might boost my rank somewhere near these guys... Still I don't like this product much becuase there are too many sellers.

Then...

ZzWg0OB.jpg


I filter the next search by estimated revenue. I've heard jungle scout can be hit or miss with this - but regardless I like to use it as a tool just to give me a general idea. The main thing I don't like about this is that the two guys on top seem to be generating almost all the revenue.. 23k, 18k, and then the third is all the way down at 8k... That could mean that those top two guys are some name brand product that will be extremely hard to compete with even with a better product.

Finally.

6NBHCFE.jpg


I sort by seller. Amazon is simply a seller on too many of these products. I'm not comfortable with that. I'm officially out and looking for another product.




Now honestly.. the work that I just put in with brainstorming and jungle scout wasn't horrible at all. It took a few minutes of my time, yes - but now I know that I definitely don't want this item and believe it's competitive.

Biophase - do you not even bother with this research? Would you look at something like back seat organizers and just check the guys listings to see if you can make a better listing? 987 sellers is a LOT of sellers - but some of those listing on the first page are absolutely garbage and you can undoubtedly do better. My suspicions are that you wouldn't do this product for a variety of reasons - but I'm curious to know why.
 

VegasMan

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After you get a manufacturer to customize a product for you is there any protection from a competitor going to that same manufacturer and ordering your new product? Is copy-catting something to even worry about or do you just keep customizing and moving on?
 

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@SeanyHang I don't think 982 results is that competitive. What is not competitive for you? I do think that the sales amount is low - i'm not sure how accurate that is. merchant words say that the monthly search volume is around 154k.
 

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@SeanyHang I don't think 982 results is that competitive. What is not competitive for you? I do think that the sales amount is low - i'm not sure how accurate that is. merchant words say that the monthly search volume is around 154k.
My niche has 2k listings in the "all categories" search. However, the top 3 guys are doing 1k+ sales a month. When I was entering this niche, I told myself "I just need 10% of their combined sales and I'll be happy". Turns out, I get about 30% of their combined sales.

So my key determinant in entering a niche or not is that the top 3 listings (PL listings) are selling 3k+ units combined monthly.

So as Exclusives said Sean, <1k results is barely competitive.
 

DrkSide

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For inventory control I use Stitchlabs.
I have been looking at setting up Stitchlabs for my inventory control as I am going into other markets. It seems that it is the most recommended.

I saw that you are using FBA to fill item sales from your website. Is there any issues with Stitch updating the inventory twice as it sees the sale from your website and again after Amazon ships the item?

Also, for sales outside of Amazon are you having Amazon use non-descript boxes and tape for packages? (IE. no normal Amazon logos on boxes/tape)
 

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My niche has 2k listings in the "all categories" search. However, the top 3 guys are doing 1k+ sales a month. When I was entering this niche, I told myself "I just need 10% of their combined sales and I'll be happy". Turns out, I get about 30% of their combined sales.

So my key determinant in entering a niche or not is that the top 3 listings (PL listings) are selling 3k+ units combined monthly.

So as Exclusives said Sean, <1k results is barely competitive.

This is exactly how i do my research. As long as the top 5 or 10 total sales are over 3k units then I am happy to be another competitor. Just 10% of the combined sales will be equal to 10 sales a day.
 

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@biophase I'm intrigued on how you successfully set up other amazon accounts through completely different businesses and locations etc.

Does that mean you have them businesses actually running from different physical addresses or do you just use a different address on paper to get around amazon?

I was looking into the idea of separate amazon accounts by setting up completely different businesses but I know they can track your ip on logging in so I don't think it's possible to log into seller central from same location.



Sent from my D5803 using Tapatalk
 

OperationMyWay

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@biophase I'm intrigued on how you successfully set up other amazon accounts through completely different businesses and locations etc.

Does that mean you have them businesses actually running from different physical addresses or do you just use a different address on paper to get around amazon?

I was looking into the idea of separate amazon accounts by setting up completely different businesses but I know they can track your ip on logging in so I don't think it's possible to log into seller central from same location.



Sent from my D5803 using Tapatalk


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