Ask me anything about eCommerce (Ongoing)

[biophase]

I tried google, I was having trouble finding anything that looked legit. Maybe I'm just being lazy, not trying to be though. I asked because I trust that I can count on the forum's answer.. Not really 100% sure what to even type into google for this to be honest.

Just get a google voice number and forward to your cell phone.

 

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[biophase]

Hi,

I started importing just recently (setup a LTD. company just a couple of months ago after reading this and Ecom_man threads), I just have a quick question.
I received my first shipment a couple of weeks ago from a Chinese supplier, value around 600$ via Fedex. Once arrived I had to provide Fedex with the payment details so they could charge VAT/Duty Tax, which turned out to be around 200$
Today I received my first order from a supplier from Pakistan, value also around 600$. I noticed that he declared only 135$ as value on shipment and DHL only charged my around 40$.

My question is, once I prepare the book-keeping file for my accountant at the end of the year and he will pass the detail to the Tax office, will they wonder why on a purchasing transaction of 600$ I only paid 40$ taxes? Or once is done is done and should be up to Fedex/DHL to verify?

Thank you for your help!

Your accountant will not care. Duties varying depending on the country of origin and the product imported.

 

[biophase]

I plan on selling one of the niche accounts later on is the reason. Did you have to create a new company or can you use the same?

Then you should create a new LLC, company, new bank accounts, etc...

 

[Dicky Dee]

Then you should create a new LLC, company, new bank accounts, etc...

Do you know if thats mandatory in order to get another seller account or can i create the new company, bank accounts etc a bit later on when sales are coming in with the new niche?

Thanks for the quick response.

 

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[Jake]

Do you know if thats mandatory in order to get another seller account or can i create the new company, bank accounts etc a bit later on when sales are coming in with the new niche?

Thanks for the quick response.

Operating multiple seller accounts: Operating and maintaining multiple Seller Central accounts is prohibited. If you have a legitimate business need for a second account, you can apply for an exception to this policy. From the bottom of any page in your seller account, click Contact Seller Support. Select Your account, then select Other account issues.
In your request, provide an explanation of the legitimate business need for a second account. To be considered for approval, you must have the following:

1. An account in good standing with excellent Customer Metrics
2. A separate email address and bank account for the new account
3. No intention to sell the same products or services in both accounts
4. Intention to sell in entirely different categories
5. The inventory sold in each account must be different

https://www.amazon.com/gp/help/customer/display.html?nodeId=200414320

Google is your friend

 

[Ross Morgan]

Just get a google voice number and forward to your cell phone.

Didn't know this existed! Thank you Bio!

 

[Canuker]

Thanks for the thread Bio.

When is it okay to compete on price?

I work for a sub-trade, and recently found out that we pay a ridiculous amount for some of the supplies we use every day. Upon seeing some invoices I quickly checked Alibaba and found that one of the products has a 1,500% (give or take) mark up, with some of the other products also having very large mark ups. Let me re-emphasize that we use these products every single day and they have huge margins ($60-$400 profit a piece). We pay ridiculous price's for theses items because they come from large reputable brands. However, these particular product's are completely non brand dependent. They are bare bone simple tool's that have one job to do and are about as complicated, and as brand dependent, as a coat hanger. It's just that no one is offering a more cost effective solution.

I smell opportunity.

I'm in the fortunate position of working for the largest company in this particular sub trade in my city, and I also have a good relationship with my boss. I have samples on the way and plan on sitting down with my boss, showing him a side by side comparison of the products and offering him a favourable price.

Here's my problem: I always read people preaching about the importance of not competing on price. But in my specific situation I see this as the only way to position myself, seeing as the big boy brands charge so damn much. After all, why would my boss (and other similar companies) ditch their beloved big boy brands for a no namer charging the same price? They wouldn't...or at least I doubt they would. I see this price competition as my entry point in the market where I can then start to build a reputation and add more products at a premium price.

The goal is to test drive these private label products with my company then set up an e-commerce site and use, with the use of FBA, start expanding to other companies, then cities, then provinces. There are almost an infinite amount of products I can add in this niche once my brand has some authority. This isn't a very sexy trade and I'm confident that with some good direct marketing, good copy, and quality products that I can quickly position my self as the quality, affordable , Canadian alternative to the expensive american brands that currently run this niche.

Think FBA meets IceCreamKid's carpet cleaning post.

Is competing on price in this instance OKAY?

 

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[Wisith]

Hey Bio,

If you have several niches, ranging from say kitchenware to athletic shoes, what would be the benefit of having their own separate names as oppose to falling under one big name? If that sounded confusing, why not just call everything Biophase? Biophase pan, Biophase basketball shoes, etc.

I ask because I am in talk with manufacturers for two items in completely different niches myself.

Thanks as always.

 

[Canuker]

Hey Bio,

If you have several niches, ranging from say kitchenware to athletic shoes, what would be the benefit of having their own separate names as oppose to falling under one big name? If that sounded confusing, why not just call everything Biophase? Biophase pan, Biophase basketball shoes, etc.

I ask because I am in talk with manufacturers for two items in completely different niches myself.

Thanks as always.

I know you're asking Bio but I figure I'll give my two cents on this one.

This past month I've been doing A LOT of research on FBA. I've been listening to two different FBA podcasts religiously and I'm a part of three different FBA groups on facebook. I've also been using Asinspector to search products and also find profitable FBA sellers and scrutinizing their profiles to see what tactics they use etc...

Anyways, I've seen your question come up before.

The general consensus (and from what I've seen from profitable FBA sellers) is that your general seller name does NOT matter. So let's say you sell everything under the account name "Wisith Products Inc", that's fine. Feel free to sell in any Niche you want. From what I've seen buyer's don't care about your seller name. Most of them probably don't understand what FBA is and don't know that they aren't buying from an established brand. They usually don't know, or care that they are buying a private label product.

However...

You should give each niche a specific brand name. Maybe you call your kitchenware KitchenAce, and you call your running shoe's RunningPro. This is something I think matters. People don't want to be buying running shoe's from Betty Crocker just like they don;t want to be buying kitchenware from Nike.

Sell anything you wan't under your seller name but keep your niche brands separate.

 

[Wisith]

I know you're asking Bio but I figure I'll give my two cents on this one.

This past month I've been doing A LOT of research on FBA. I've been listening to two different FBA podcasts religiously and I'm a part of three different FBA groups on facebook. I've also been using Asinspector to search products and also find profitable FBA sellers and scrutinizing their profiles to see what tactics they use etc...

Anyways, I've seen your question come up before.

The general consensus (and from what I've seen from profitable FBA sellers) is that your general seller name does NOT matter. So let's say you sell everything under the account name "Wisith Products Inc", that's fine. Feel free to sell in any Niche you want. From what I've seen buyer's don't care about your seller name. Most of them probably don't understand what FBA is and don't know that they aren't buying from an established brand. They usually don't know, or care that they are buying a private label product.

However...

You should give each niche a specific brand name. Maybe you call your kitchenware KitchenAce, and you call your running shoe's RunningPro. This is something I think matters. People don't want to be buying running shoe's from Betty Crocker just like they don;t want to be buying kitchenware from Nike.

Sell anything you wan't under your seller name but keep your niche brands separate.

Thanks for your input. That was my concern. If you have different names for all product niches then you would have many Amazon accounts to ensure the names match up. I also have been studying this outside of this thread. I like Bio's approach because it seems organic. Improve a product and go from there.

From the other 'gurus', everything appears to be so cookie cutter. Go get some applications to look at rankings and make sure they're within X rankings. They push retail/online arbitrage so much, but I don't see that as the fastlane at all. You're just scanning stuff that would yield some money, still spending a lot of time from store to store.

Since we are on that topic...what are your thoughts on retail/online arbitrage, Bio? It is kind of disheartening that the 'gurus' discourage making your own stuff from the start and encourage going the RA/OA route first. I see it as a race to the bottom since it will become a price war with other sellers selling the same stuff as you.

 

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[Ross Morgan]

I have contacted several manufacturers about designing a product and I need to create a file for the design. I am trying to make a tool that normally is just a wrench into a ratchet wrench. This is my first time doing something like this and I wanted to know what recommended programs I should learn for making a design file?

 

[BlahBlahBlah]

Your accountant will not care. Duties varying depending on the country of origin and the product imported.

Thanks Biophase - could this be a potential issue with the tax authorities though? If in my book-keeping file I show a purchasing transaction of 600$ for example and only a 40$ transaction for Tax/Duties paid will they understand that something is not quite right?

Also one more thing I am a bit confused about, suppose I pay a supplier 1000$ for a shipment, of this 700$ is for the cost of the products, 100$ for shipping and 200$ for one-off work done on the products such as printing, services/minor changes, shouldn't the billable VAT/Duty only be for 700$+100$ and exclude the 200$ ?

Thank you again!

 

[Waylon]

Thank you so much Biophase. I have been reading each post here for 4 hours and Im still only on page 14, but I really want to ask a question in regards to patenting.

You said you really dont worry about patenting, but if you found a unique design from a maufactuer and only one other seller on amz, would you still disregard patenting? I guess perhaps I am scared when it comes to patenting and the horror stories that comes with it.

Edit: I have been doing research on this and I am still confused. There is a patent for the ornimental design. Lets call it a bungie cord that wraps around an object and protrudes through its backend supported by a ball to stay in place. Now this is the only one of its kind for sale on amazon. However, there is also a patent for a regular type bungie cord with a hook on each end, yet there are many people selling this exact design.

Its obviously the sole seller of the wrap around bungie cord found his product on alibaba and threw a patent on it. There are at least 10 different listings with his product there. I feel like I need to talk to a patent lawyer before going through with this, or any advice from anyone would be helpful. Thanks!

 

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[Ross Morgan]

At this point I am wondering if I should just hire someone to design my product
Lol I am definitely having someone else design this. Still interested to know what programs you guys use for designing products.

 

[mikey3times]

Bio, thanks for this thread.

How do you handle sales taxes?

My products end up all over the place and it changes from month to month. With all the state paperwork and remembering when to pay each state, I am about to give up since I only pull in $300-$500 per month.

How do you handle all the tax pain?

 

[Greyson F]

I've just read through this thread, I've been taking a lot of notes. A lot of discussions, and I have some questions I believe are new:

1) Different from the theme of this thread, my product is your standard pre-internet "invent and launch" type of project. So Is there any different process I should take for launching and operating a product on Amazon that is completely unique & a new invention? (No improvements, no knock-offs, this is will be the first of its kind so to speak)

2) What is the best way to build an email listing from Amazon? I began compiling buyer emails from competing product reviews, but upon further due diligence I discovered that doing that is apparently a no-no. So, with my "e-commerce" website currently being designed for both A) directing traffic to my Amazon listing and B) building email listings from outside of Amazon, what can I do to interact with the Amazon community on my brand?

3) Would you recommend an invented product launch for a startup to begin operating with or without FBA? Why or Why Not? This has been one of my biggest questions, and my fourth question will touch up more on why. I basically need to weigh the pros and cons that come from balancing ecomm-amazon-B2B marketing efforts. This question has been answered for products that are just being improved and rebranded, but I wasn't sure if it made a difference.

4) Okay, so to elaborate more on the FBA ordeal: I'm HIGHLY new at Amazon selling and shipping in general, so could you fill me in on what equipment and processes are involved for shipping & fulfillment of a product for both FBA and without FBA?

5) Our launch plan involves collecting two launch parties from my and my partner's colleges to buy the product together on the same date. A lot of excitement and hype has been felt from our friends and peers. BUT Does Amazon disallow or identify suspicious activity from large purchase volumes that come from a product launch? Should we spread it throughout the entire week? I'm not sure what to do here, because I've learned through this post that Amazon is the BEST way to make money with the least control.


Thank you so much for this thread, and I'll continue to study other threads that I have up on my computer screen.

 

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[Greyson F]

It does take some time to get the bullet points and descriptions right so you should start them now.

What about the bullet points and descriptions take the most time? I started on on Amazon as an e-book author, so I know that its completely different from physical product sales.

 

[Greyson F]

I use Azon Seller Tools, Manage By Stats, Search Ranker, Camel Camel Camel, merchant words (not really any more).

Could you elaborate on which one of these are best used for which component of research?

I'm currently doing research manually (By listing every item of that niche on Amazon, tracking reviews for improvements, seeing seller demographics, etc.) and I'd like to find a software that offers basic services to get me started.

Thank you all so much for these great resources!

 

[biophase]

Thanks for the thread Bio.

When is it okay to compete on price?

I work for a sub-trade, and recently found out that we pay a ridiculous amount for some of the supplies we use every day. Upon seeing some invoices I quickly checked Alibaba and found that one of the products has a 1,500% (give or take) mark up, with some of the other products also having very large mark ups. Let me re-emphasize that we use these products every single day and they have huge margins ($60-$400 profit a piece). We pay ridiculous price's for theses items because they come from large reputable brands. However, these particular product's are completely non brand dependent. They are bare bone simple tool's that have one job to do and are about as complicated, and as brand dependent, as a coat hanger. It's just that no one is offering a more cost effective solution.

I smell opportunity.

I'm in the fortunate position of working for the largest company in this particular sub trade in my city, and I also have a good relationship with my boss. I have samples on the way and plan on sitting down with my boss, showing him a side by side comparison of the products and offering him a favourable price.

Here's my problem: I always read people preaching about the importance of not competing on price. But in my specific situation I see this as the only way to position myself, seeing as the big boy brands charge so damn much. After all, why would my boss (and other similar companies) ditch their beloved big boy brands for a no namer charging the same price? They wouldn't...or at least I doubt they would. I see this price competition as my entry point in the market where I can then start to build a reputation and add more products at a premium price.

The goal is to test drive these private label products with my company then set up an e-commerce site and use, with the use of FBA, start expanding to other companies, then cities, then provinces. There are almost an infinite amount of products I can add in this niche once my brand has some authority. This isn't a very sexy trade and I'm confident that with some good direct marketing, good copy, and quality products that I can quickly position my self as the quality, affordable , Canadian alternative to the expensive american brands that currently run this niche.

Think FBA meets IceCreamKid's carpet cleaning post.

Is competing on price in this instance OKAY?

I think you are over complicating things. Don't take anything as a blanket statement. YOU have to decide how you are going to get this account. It can be price, better service, better quality or all of the above. So you do need to ask yourself, why would my boss (and other similar companies) ditch their beloved big boy brands for a no namer charging the same price? Then come up with an answer for yourself. It's not all about price.

 

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[biophase]

Hey Bio,

If you have several niches, ranging from say kitchenware to athletic shoes, what would be the benefit of having their own separate names as oppose to falling under one big name? If that sounded confusing, why not just call everything Biophase? Biophase pan, Biophase basketball shoes, etc.

I ask because I am in talk with manufacturers for two items in completely different niches myself.

Thanks as always.

You could do that, but does it make sense? Roxy's dog accessories sounds good, but Roxy's basketball shoes?

 

[biophase]

Since we are on that topic...what are your thoughts on retail/online arbitrage, Bio? It is kind of disheartening that the 'gurus' discourage making your own stuff from the start and encourage going the RA/OA route first. I see it as a race to the bottom since it will become a price war with other sellers selling the same stuff as you.

Obviously, I don't think this is the smart way to go. If you like to work harder each day and as time goes by, you can certainly go this route.

 

[biophase]

I have contacted several manufacturers about designing a product and I need to create a file for the design. I am trying to make a tool that normally is just a wrench into a ratchet wrench. This is my first time doing something like this and I wanted to know what recommended programs I should learn for making a design file?

I think it would be easier for you to hire this out to a CAD designer to make your design files. You should just sketch out your design and have someone create the design file for you.

 

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[biophase]

Thanks Biophase - could this be a potential issue with the tax authorities though? If in my book-keeping file I show a purchasing transaction of 600$ for example and only a 40$ transaction for Tax/Duties paid will they understand that something is not quite right?

Also one more thing I am a bit confused about, suppose I pay a supplier 1000$ for a shipment, of this 700$ is for the cost of the products, 100$ for shipping and 200$ for one-off work done on the products such as printing, services/minor changes, shouldn't the billable VAT/Duty only be for 700$+100$ and exclude the 200$ ?

Thank you again!

I don't think this would be an issue at all.

Your VAT/Duty should only be for the cost of the product, $700 + $200, not for the shipping.

 

[biophase]

I've just read through this thread, I've been taking a lot of notes. A lot of discussions, and I have some questions I believe are new:

1) Different from the theme of this thread, my product is your standard pre-internet "invent and launch" type of project. So Is there any different process I should take for launching and operating a product on Amazon that is completely unique & a new invention? (No improvements, no knock-offs, this is will be the first of its kind so to speak)

2) What is the best way to build an email listing from Amazon? I began compiling buyer emails from competing product reviews, but upon further due diligence I discovered that doing that is apparently a no-no. So, with my "e-commerce" website currently being designed for both A) directing traffic to my Amazon listing and B) building email listings from outside of Amazon, what can I do to interact with the Amazon community on my brand?

3) Would you recommend an invented product launch for a startup to begin operating with or without FBA? Why or Why Not? This has been one of my biggest questions, and my fourth question will touch up more on why. I basically need to weigh the pros and cons that come from balancing ecomm-amazon-B2B marketing efforts. This question has been answered for products that are just being improved and rebranded, but I wasn't sure if it made a difference.

4) Okay, so to elaborate more on the FBA ordeal: I'm HIGHLY new at Amazon selling and shipping in general, so could you fill me in on what equipment and processes are involved for shipping & fulfillment of a product for both FBA and without FBA?

5) Our launch plan involves collecting two launch parties from my and my partner's colleges to buy the product together on the same date. A lot of excitement and hype has been felt from our friends and peers. BUT Does Amazon disallow or identify suspicious activity from large purchase volumes that come from a product launch? Should we spread it throughout the entire week? I'm not sure what to do here, because I've learned through this post that Amazon is the BEST way to make money with the least control.

Thank you so much for this thread, and I'll continue to study other threads that I have up on my computer screen.

1) The process is the same. You go through the exact same process. Amazon doesn't know if your product is brand new or a rehash of another product.

2) You can add an insert card, or a warranty card, or do anything that would compel the buyer to give you their email address. I'm not going to go through the specifics as there are so many. Just be creative, find a way to make them want to come to your website and sign up.

3) 100% go FBA as soon as possible.

4) This information can be found easily elsewhere. I'm not going to go into it. But it's really nothing to worry about. If you can ship a product and print labels, you will be fine.

5) No Amazon won't care and your product will probably not even make a blip on their radar. They won't notice you.

 

[biophase]

What about the bullet points and descriptions take the most time? I started on on Amazon as an e-book author, so I know that its completely different from physical product sales.

Just writing them and tweaking them. Nothing specific.

 

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[Dissio]

Hi, what would you recommend fot the person who has got like 500$ to invest, and lives in country with population 35 millions people? Is it possible to start anyting? Any advice?

 

[Greyson F]

Just writing them and tweaking them. Nothing specific.

Okay, thank you for clearing that up. I've been reading several stories of Amazon offing white-hat sellers for stupid reasons, some even involving "product descriptions not accurately describing the product", so any additional information on how to prevent that from happening would be golden. The lack of control on Amazon is a nightmare.

2) You can add an insert card, or a warranty card, or do anything that would compel the buyer to give you their email address. I'm not going to go through the specifics as there are so many. Just be creative, find a way to make them want to come to your website and sign up.

I really like the process that a college-geared company called Campus Protein uses. I think you might find it interesting to use in your own Instagram marketing experimentation too, @biophase

They use an insert card that either has a special hashtag or an offer like "Post a picture of your protein stacks and tag us to receive special offers, discounts, etc."

Instagram is really difficult to get people to go from their platform to the Internet, but I think Campus Protein does a fantastic job of mastering the process of getting people from the Internet to interact with their Instagram. As a customer, the marketing is really clever. They give you several samples of different flavors or new product launches and the promo/discount makes you think "it'll only take 30 seconds to pop a picture!"

 

[GenYJourney]

Hi, what would you recommend fot the person who has got like 500$ to invest, and lives in country with population 35 millions people? Is it possible to start anyting? Any advice?

I'm no Biophase, but your question has been answered many times over. Read this thread through its entirety. Best of luck!

 

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[Andyc2288]

Have you experienced while growing rapidly,competitors sending cease and desist letters?

For example claiming to own a tradedress?

What are your thoughts on this

 

[Wisith]

Hi, what would you recommend fot the person who has got like 500$ to invest, and lives in country with population 35 millions people? Is it possible to start anyting? Any advice?

I'm no Bio as well, but yes you can. You can certainly get samples made for $500 or less. I got mine made for 1/5 that price. After getting samples made, go get a small batch, and test the market. Or you can go the presale route. A lot of way to maneuver around the battlefield.

You have the Internet, you are no longer limited to just your country.