Giving Importing a Second Chance

[Mr_Maravish]

Hello All,

I have been around this forum for about a year and have read numerous threads on eCommerce and entrepreneurship in general. My first venture which I started around a year ago failed, but it was a very rewarding experience as I learned a lot about the whole import process, setting up a website, and driving traffic to that website. More importantly I learned some pitfalls and what were some of things that worked, so I am going to give this new venture a try, and I will document this process with some discretion so that newcomers could learn, and at the same time I could get insights from those experienced members.

Wanted to briefly thank @biophase , @JonnyC , @JasonR , @Ecom man, @Walter Hay and more for creating valuable threads with ton of information in them.

So lets jump in!

"I made sales before forming an LLC, or doing anything the "right" way." - @JasonR

"Find a market (a BIG market), figure out what they want or what they would buy, and then create a product around it. Again - you don't need to reinvent the wheel (look at the supplement industry)." - @JasonR

I got this information from Jason's Golden Nugget Thread back from 2014. https://www.thefastlaneforum.com/community/threads/jasons-how-to-build-wealth-golden-nuggets.52268/

So the product I have chosen is in a huge market that is proven to sell. What will help me set my product apart is:

1. Great looking website
2. Add some flavor to the product
3. Give this product a premium feel when compared to other products in its category
4. Traffic driving knowledge like Social Media, PPC, ETC.

Thanks to a thread created by @JonnyC , I learned how to do some research on current product performance.

I will attach some images regarding trends and some research I got using an Amazon Tool.




Based on this five year graph we could determine that this product has had high demand in recent years.



This chart which I gathered the information using a tool tells us several things. The average selling price for the top 20 is around $30 dollars which is a perfect price point and can also generate some impulse purchases as the price point is not really high. Then we have some additional information regarding estimated revenue, sales, and sales rank, and rating. Lastly, in the last column we see that all except one seller use Fulfillment by Amazon (FBA), means that cost to ship and store products with them is affordable as it is a light weight item.

I have only seen one other seller of this item with similar characteristics and they are based in the UK and only provide international shipping through their website.(I don't know if Amazon UK ships to US. They only drive traffic through Facebook and some blogs that have reviewed their product.

Being that the item contained most of the key elements to make it a decent product to source, I decided to give it a try!

@Walter Hay wrote a book which a purchased around a year ago which details the importing process.

Through the knowledge I gained in this book I started to research some manufacturers. I searched Alibaba, and a few other sources with no success. Checking some other sources I finally found a manufacturer that makes the product with the exact design that I want.

So I sent them the following inquiry which I typed up in word:



This was all done between yesterday and this morning. I will be posting an update once I hear back from the manufacturer.

 

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[JasonR]

Thanks.

Remember, there is no progress without "failure."

Your second time - you'll be smarter.

I would like to add to my quote...that no, you don't need to reinvent the wheel, but after spending some time with @biophase a couple weeks ago, that adding a significant improvement in the product and finding niches where people aren't marketing well, or innovating, is very important to your success. This is where I'm going with my new venture.

 

[Walter Hay]

Whenever you send an inquiry email, it would be better to give yourself a title, such as Purchasing Manager, Import Department Manager etc., but don't let them know that you are the owner. This give you the possibility of blaming your boss if you find it necessary to negotiate. You can say such things as "My boss says ........"

Walter

 

[Mr_Maravish]

Whenever you send an inquiry email, it would be better to give yourself a title, such as Purchasing Manager, Import Department Manager etc., but don't let them know that you are the owner. This give you the possibility of blaming your boss if you find it necessary to negotiate. You can say such things as "My boss says ........"

Walter

Great pointer Walter, I'll definitely use this for my future inquiries. They still have not responded back as they are just starting their day, but lets see what can be negotiated.

 

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[amp0193]

This was all done between yesterday and this morning. I will be posting an update once I hear back from the manufacturer.

You're being very smart about this. Kudos for getting the ball rolling again.

To save you some time: I would suggest not reaching out to one manufacturer, but to like 10 or 15. Even if they don't have the "exact" product advertised anywhere. More quotes will give you a better feel for the "real" price of this product, and will give you the information you need to negotiate a more favorable price with the supplier you choose. You'll also get a better sense of who is trustworthy, more eagerly wants your business, replies fastest, etc.

I just send out this message: Hi, I'm interested in your XXXX. Please send your full catalog and price sheet to my email at XXXX". I copy/paste to every supplier I can find, and then I sort it out based on who takes the time to reply with something that looks credible.

 

[Walter Hay]

You're being very smart about this. Kudos for getting the ball rolling again.

To save you some time: I would suggest not reaching out to one manufacturer, but to like 10 or 15. Even if they don't have the "exact" product advertised anywhere. More quotes will give you a better feel for the "real" price of this product, and will give you the information you need to negotiate a more favorable price with the supplier you choose. You'll also get a better sense of who is trustworthy, more eagerly wants your business, replies fastest, etc.

I just send out this message: Hi, I'm interested in your XXXX. Please send your full catalog and price sheet to my email at XXXX". I copy/paste to every supplier I can find, and then I sort it out based on who takes the time to reply with something that looks credible.

What you suggest is a good idea, but the email message you send is too brief.

First, don't say "I", because that identifies you as small fry. Say something like "We are established importers, and we think your product XXXX would fit well with our current product range." This can lead to some awkward questions about your business, but I'm sure you get the drift. Also, never ask what their MOQ is.

Walter

 

[amp0193]

What you suggest is a good idea, but the email message you send is too brief.

First, don't say "I", because that identifies you as small fry. Say something like "We are established importers, and we think your product XXXX would fit well with our current product range." This can lead to some awkward questions about your business, but I'm sure you get the drift. Also, never ask what their MOQ is.

Walter

Thanks for the tips Walter.

I used to be less brief and got far fewer responses. When my short approach was working better, I kept doing it. I'll try making it sound more like what you suggested and see how it does.

 

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[biophase]

So the product I have chosen is in a huge market that is proven to sell. What will help me set my product apart is:

1. Great looking website
2. Add some flavor to the product
3. Give this product a premium feel when compared to other products in its category
4. Traffic driving knowledge like Social Media, PPC, ETC.

Um yeah... not liking anything of those reasons.

 

[Mr_Maravish]

Um yeah... not liking anything of those reasons.

hehe...I know I'm having second thoughts myself about going back to step one and doing a bit more research on different potential products. It's very challenging to find a good product, and I don't want to rush in to something that I'm not 100% sure. I was thinking to look more into a product that will have customers having to re-order once their product runs out instead of a buy one and potentially never get another order again....what are your thoughts on this?

And thank you for stopping by the thread and giving feedback!

 

[amp0193]

I was thinking to look more into a product that will have customers having to re-order once their product runs out instead of a buy one and potentially never get another order again....what are your thoughts on this?

Subscription products are great. You get recurring money and a high lifetime customer value.

If you go with a "normal" product, you boost lifetime customer value by cross-selling and offering them complementary products.


Two different ways to do it, both work just fine.


You're kind of missing the point though, and that is differentiation. How is your product different (better) than what's already out there. Your list above doesn't set your product apart. It might set apart your marketing, and enable to get a small piece of a pie. But ultimately, you're building your business on a quicksand of race-to-the-bottom pricing. If you have a great product that is better than the rest, it will sell itself, even with poor marketing.

If you have a great product AND great marketing... you'll kill it.

 

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[Mr_Maravish]

Subscription products are great. You get recurring money and a high lifetime customer value.

If you go with a "normal" product, you boost lifetime customer value by cross-selling and offering them complementary products.


Two different ways to do it, both work just fine.


You're kind of missing the point though, and that is differentiation. How is your product different (better) than what's already out there. Your list above doesn't set your product apart. It might set apart your marketing, and enable to get a small piece of a pie. But ultimately, you're building your business on a quicksand of race-to-the-bottom pricing. If you have a great product that is better than the rest, it will sell itself, even with poor marketing.

If you have a great product AND great marketing... you'll kill it.

Yes differentiation is the key factor especially nowadays where there is so much competition, it's really important to actually add value to customer's lives instead of just giving them an alternate product to choose from. I'm going to have to do more research, and look into different niches and gather more information about whats going right and what could be improved to add more value to the niche. Do you have any tips on researching different niches or do you just go based on your pasts experiences and products that you have previously ordered?

 

[amp0193]

Yes differentiation is the key factor especially nowadays where there is so much competition, it's really important to actually add value to customer's lives instead of just giving them an alternate product to choose from. I'm going to have to do more research, and look into different niches and gather more information about whats going right and what could be improved to add more value to the niche. Do you have any tips on researching different niches or do you just go based on your pasts experiences and products that you have previously ordered?

I look for opportunities and pain points in the hobbies and interests that I pursue.

I look for niches and products that can fit into my current brand.

And, I'll also research completely random niches just to expose myself to what else is out there.


I will say, that there are thousands of niches and hundreds of thousands of products that you can make money selling. So, don't get stuck in the research phase. Make a list, comparing the things that are important to you (price, profit, lead time, size, cost, etc.) and choose whichever one seems the best.

The great thing about starting a product based business, is that if things don't sell as planned, you can always liquidate your inventory for at cost, and then you can try again.