Importing for eCommerce Resale

[Brian C.]

Hi everyone.

Last week on this forum, I was selected as the winner of @Walter Hay 's fantastic eBook on importing. This contest was orchestrated by @Ronak , who paid for my version of the book. That's right. I won the book - right here on this forum.

I can't thank these guys enough. Not only are they experts in their craft, but they consistently go out of their way to assist members on this forum. I highly recommend Walter's book and I highly recommend getting to know these two users if you don't already. They are truly exceptional.

For the past two months or so, I have been devoted to learning import/export. I've read multiple books, scoured the Internet, checked all of the related threads here on TFL - done basically anything in my power to become moderately knowledgeable.

I have experience in eCommerce, but am by no means an expert. In terms of importing, this will be my first commercial size import.

For those with little or no experience, I imagine this thread will prove to be of some value to you.

Enjoy.

 

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[Brian C.]

Deciding on a Product
I keep a list in my phone of products I see an opportunity in importing to the United States. Just about every product is small and low cost. As a novice with regard to the shipping process, this makes the most sense for me personally.

Some products are new innovations, while others are tried and true. I'd rather deal with tried and true products because that is what I am most comfortable with currently.

I did some research and decided on two products to request samples for. I have used these two products personally for many years, and understand the demands of the consumer to an extent. I took into account the margins on each product, possible competitors, packaging, logistics, etc. I deemed both products as viable, and looked into ordering samples.



Samples
For my first product, I received samples from two manufacturers. Both arrived within less than a week via courier. I paid $25 for each sample.

I decided to go along and pursue one of the manufacturers. I talked with their representative for about two weeks, which was longer than I felt necessary. I dragged my feet, made small demands, etc. I wanted to know what their company would offer me for service. Their product was excellent, and their representative was responsive to all my demands. They even let me pay via PayPal.



Ordering
The invoice the company offered me was not ideal. The product cost amounted to what was expected, but shipping was very high (their way of boosting profits). To me, it didn't matter. I had no problem paying extra for door to door service, and I wanted to show the supplier I was for real. I also wanted the product as quickly as possible, having spent about two weeks alone discussing the order.

I would still receive my product for a little less than $1 in Landed Unit Cost (if that's a legitimate thing), and sell each item for at least $2.75. With an order quantity of 500 and the market for it, I saw this as my first import opportunity, so I took it and made the purchase.



Personal Thoughts:
For my next order from this manufacturer, I will have the services of a Freight Forwarder based in China. This will cut my shipping costs, and I expect my Landed Cost for subsequent orders to decrease. I will be able to use this Freight Forwarder when placing my order for Product #2. I am currently waiting on those samples.

I wanted the real world experience, so I stopped waiting and made the purchase. I wanted to finish Walter's book before placing my order for obvious reasons, but I was burning time. Now that I am almost finished with his book, I will be better prepared for my next order.

 

[Walter Hay]

Deciding on a Product
I keep a list in my phone of products I see an opportunity in importing to the United States. Just about every product is small and low cost. As a novice with regard to the shipping process, this makes the most sense for me personally.

Some products are new innovations, while others are tried and true. I'd rather deal with tried and true products because that is what I am most comfortable with currently.

I did some research and decided on two products to request samples for. I have used these two products personally for many years, and understand the demands of the consumer to an extent. I took into account the margins on each product, possible competitors, packaging, logistics, etc. I deemed both products as viable, and looked into ordering samples.



Samples
For my first product, I received samples from two manufacturers. Both arrived within less than a week via courier. I paid $25 for each sample.

I decided to go along and pursue one of the manufacturers. I talked with their representative for about two weeks, which was longer than I felt necessary. I dragged my feet, made small demands, etc. I wanted to know what their company would offer me for service. Their product was excellent, and their representative was responsive to all my demands. They even let me pay via PayPal.



Ordering
The invoice the company offered me was not ideal. The product cost amounted to what was expected, but shipping was very high (their way of boosting profits). To me, it didn't matter. I had no problem paying extra for door to door service, and I wanted to show the supplier I was for real. I also wanted the product as quickly as possible, having spent about two weeks alone discussing the order.

I would still receive my product for a little less than $1 in Landed Unit Cost (if that's a legitimate thing), and sell each item for at least $2.75. With an order quantity of 500 and the market for it, I saw this as my first import opportunity, so I took it and made the purchase.



Personal Thoughts:
For my next order from this manufacturer, I will have the services of a Freight Forwarder based in China. This will cut my shipping costs, and I expect my Landed Cost for subsequent orders to decrease. I will be able to use this Freight Forwarder when placing my order for Product #2. I am currently waiting on those samples.

I wanted the real world experience, so I stopped waiting and made the purchase. I wanted to finish Walter's book before placing my order for obvious reasons, but I was burning time. Now that I am almost finished with his book, I will be better prepared for my next order.

It's good to see you taking action, and I wish you well.

Walter

 

[Brian C.]

Update:

Finally received my first order today. Instead of the 500 pieces I ordered, I received 505. It was a nice little touch from my manufacturer that genuinely made me happy.

Fortunately, I have a photography studio already set up in my basement, so taking quality pictures of my items was an easy task. I take photos with my iPhone 6, and then edit with Photoshop if need be.

I currently use two eBay accounts, and decided to list my items on my buyer account that has a 100% feedback rating with 50 reviews. I listed my items individually based on size and in lots (quantity of 10). Personally, I would rather sell lots - as it means less trips to the post office.

I will likely expand to selling on Amazon before expanding to my own website. I am also looking into private labelling my product as my competitors all have packaging of their own. This will allow me to sell to retail stores too, although I don't want to get ahead of myself.

I am also in discussion with multiple manufacturers regarding a third product I would like to import. I will be ordering samples this week.

There is more work to do now than ever, but I am glad that I have my first import under my belt. It was a major learning experience, and will set the precedent for subsequent orders. It is nowhere near as difficult as some people made it out to be.

I'll be posting an update in the next week or two. Hopefully, I will have much to share then.

 

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[Azure]

Isn't that a little high cost to sell an item for 2.75? That leaves you 1.75 before shipping, labels, labor, return % etc.

Good for you for taking initiative though.

 

[Brian C.]

Appreciate the kind words @Azure

The margin is acceptable, by no means great. I am somewhat upset I will have to go to the post office so often. I hear my old economics teacher yelling "opportunity cost" in the back of my head. Oh and eBay sucks too.

eBay takes out roughly 10% then PayPal another 3%. I want to avoid this is much as possible - obviously. Amazon's $40? listing fee is keeping me from joining there too.

Shopify is the next logical step. I am in a niche market where I can carry several products and carry them on one website as they are related. I am working to get there.

As I generate capital from this venture, I figure I can diversify my products. Since I am new to importing, I figured this purchase would be a good place to start.

I want to sell to retail outlets as well. They sell the product retail for $5+. eBay is the cheapest you can find it anywhere - like a lot of products.

 

[amp0193]

Personally, I would rather sell lots - as it means less trips to the post office.

Use USPS.com "Schedule a Pickup". Never go to the post office again. Also, when you start selling a decent amount, get Shipstation: it'll save you time on printing out postage from eBay's stupid system:

 

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[Brian C.]

Use USPS.com "Schedule a Pickup". Never go to the post office again. Also, when you start selling a decent amount, get Shipstation: it'll save you time on printing out postage from eBay's stupid system:

Wow. Thank you for sharing that information @amp0193 . You just singlehandedly simplified my entire shipping process.

Thank you!

 

[biophase]

Appreciate the kind words @Azure Amazon's $40? listing fee is keeping me from joining there too.

If Amazon's $40/mo is keeping you from joining then you don't want to know what their fulfillment and commission costs are!

 

[Brian C.]

If Amazon's $40/mo is keeping you from joining then you don't want to know what their fulfillment and commission costs are!

Glad you stopped by @biophase . I am currently reading through your AMA eCommerce (2015+) thread. Great stuff.

It's either $40/mo. or $0.99 per item plus commission as an individual seller. I think the choice is obvious. Time to get branding my product and add its UPC before taking the Amazon plunge.

 

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[biophase]

Glad you stopped by @biophase . I am currently reading through your AMA eCommerce (2015+) thread. Great stuff.

It's either $40/mo. or $0.99 per item plus commission as an individual seller. I think the choice is obvious. Time to get branding my product and add its UPC before taking the Amazon plunge.

The choice I guess isn't obvious... find a different product before going onto Amazon, because based on your post, my guess is that your product is very competitive on Amazon. How is the competition for your main keyword?

 

[amp0193]

Glad you stopped by @biophase . I am currently reading through your AMA eCommerce (2015+) thread. Great stuff.

It's either $40/mo. or $0.99 per item plus commission as an individual seller. I think the choice is obvious. Time to get branding my product and add its UPC before taking the Amazon plunge.

You have to have a $40/mo professional account to run PPC ads. PPC ads are the/easiest/cheapest/best way to get visible on Amazon when you first launch a product. Unless it's a hyper-competitive niche

 

[Brian C.]

The choice I guess isn't obvious... find a different product before going onto Amazon, because based on your post, my guess is that your product is very competitive on Amazon. How is the competition for your main keyword?

The choice for me is obvious. With 500 units of my first product and with other products on the horizon, it wouldn't make sense for me to pay $0.99 on each item plus commission - especially when the item sells for only $5. I would be better off selling as a professional at $40/mo. especially as I grow into my account.

In terms of competition, there are 6 other competitors on Amazon under the main keyword. Not all offer the same specifications on their product that I offer. Out of those 6, 2 have been in business for the past 20 years or so. These 2 brands are sold in retail stores across the country.

Yesterday, I sold 10 units of my product the first day of its listing on eBay. My competitors on eBay are the same as my Amazon competitors.

You have to have a $40/mo professional account to run PPC ads. PPC ads are the/easiest/cheapest/best way to get visible on Amazon when you first launch a product. Unless it's a hyper-competitive niche

All the more reason to go for the $40/mo. professional account. I can see the PPC ads having a big impact when I begin to carry other related products in the same niche market. Didn't know about the ads before though! Thanks once again @amp0193 !

 

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[amp0193]

The choice for me is obvious. With 500 units of my first product and with other products on the horizon, it wouldn't make sense for me to pay $0.99 on each item plus commission - especially when the item sells for only $5. I would be better off selling as a professional at $40/mo. especially as I grow into my account.

In terms of competition, there are 6 other competitors on Amazon under the main keyword. Not all offer the same specifications on their product that I offer. Out of those 6, 3 have been in business for the past 20 years or so. These 3 brands are sold in retail stores across the country.

Yesterday, I sold 10 units of my product the first day of its listing on eBay. My competitors on eBay are the same as my Amazon competitors.




All the more reason to go for the $40/mo. professional account. I can see the PPC ads having a big impact when I begin to carry other related products in the same niche market. Didn't know about the ads before though! Thanks once again @amp0193 !

Misunderstanding... you made it sound up there like you thought the $40/mo plan was silly. I think biophase thought the same. Gotcha.

 

[Brian C.]

Misunderstanding... you made it sound up there like you thought the $40/mo plan was silly. I think biophase thought the same. Gotcha.

To be honest, at first glimpse I did! When I first saw the $40/mo. fee I was left with sticker shock. I've never sold on Amazon before so it caught me by surprise.

Yesterday, I attempted to list my item on Amazon, but was unable to do so because I lacked the UPC. It was then I realized that it was nothing short of remarkable that I sold any of my package-less product at all. Luckily, I am not signed up for the professional account - yet.

Now, my next task is to create packaging for my product with the UPC on the packaging and then list on Amazon. I'm currently looking at companies that specialize in packaging, but I am also considering using Microsoft Word to create the packaging label. The packaging will be a simple "self-adhesive paper band" or "belly band," so I feel this is quite feasible on Microsoft Word. Could be wrong.

Sorry for any confusion I may have caused. It's nice to know that you guys are here to offer your opinions and expertise. It really is appreciated.

 

[amp0193]

Yesterday, I attempted to list my item on Amazon, but was unable to do so because I lacked the UPC. It was then I realized that it was nothing short of remarkable that I sold any of my package-less product at all. Luckily, I am not signed up for the professional account - yet.

Now, my next task is to create packaging for my product with the UPC on the packaging and then list on Amazon.

Ok, here's how this works:

You don't need the UPC on the packaging, you only need it to type in the box when making the listing.

Buy a UPC code here: http://nationwidebarcode.com/

If you're going to ship the product yourself (merchant-fulfilled) then you're done. You don't need to put anything additional on your item, and just ship it as is.

However, you'll get more sales if you ship it into Amazon as FBA orders are Prime-Eligible.
In this case, you need to print out the FNSKU label and stick it onto your product. You can print these off on 30 to a page Avery label sheets from any office store.

Either way, you should be able to get going immediately.

 

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[Brian C.]

Update:

To date, I have sold 12 units of my first product- all without any packaging.

I just finished applying my own packaging today, although I looked into potential firms to do the job. The packaging fits right in with my competitors, which are legitimate businesses. It isn't great by any means, but it does fit the industry standard.

I am now listed as a professional seller on Amazon. I have no idea why I neglected such a great opportunity for a marketplace for so long. The site was nowhere near as difficult to navigate as I imagined. I also changed my eBay buyer account to reflect my brand as opposed to my personal name. On eBay and Amazon both, I sell under my brand name, in which I will be able to incorporate future related products.

My hope is that branding and greater exposure will warrant an increase in sales. I also increased my price to $6 to compensate my time with branding and packaging my product.

Again, this is my first import, so I am learning as I go. I got over some hurdles I had in my head regarding the import and distribution process, and feel that alone is worth my initial investment.

Now onto product #2.

EDIT: Oh and @amp0193 , thanks for sharing the information regarding the UPC. I would have been absolutely lost without it.

 

[Brian C.]

Update: (9/28)

Just finished MJ's book. Talk about a complete change of perspective...

I haven't sold anymore of my product since my last post nearly 10 days ago. With my brand and packaging applied, I played with the price and just brought it down from $6.00 to $4.98 with free shipping. This leaves me with a gross margin of $0.98 per item. Not very good.

I do have listings both on eBay and Amazon in quantities of 3, with a margin of $1.23 per item. Again, not good. Considering all my time and effort, this margin isn't worth it - even if it is near 100%.

I am glad I did get on Amazon. Unfortunately, I am still unable to use PPC as my product is not yet in the buy box. I'm working to get it there, but so far it has proven a difficult task. Despite this setback, I've learned more about Amazon selling than I would have without any action.

Reading TMF , I now understand that I am simply dabbling in a commoditized product. I added no value, no USP, etc. I am peddling a product contingent on price. Not what I want to be doing, and not what needs to be done to get me to where I want to go, but it is part of the process.

That being said, I am in negotiations with manufacturers for my next product. With this product, I am adding significant value. I am improving on an already existing product that is dominated by two distributors. I know I can beat my competition, especially with a USP and significant value added. My improvement would solve a problem that I've personally had, friends have had, and I imagine others have as well. I will purchase each unit for a little less than $2, and am eyeing a selling price around $20+. One step at a time though.

I consider the $500 spent on my first product to be a small price to pay in the process. I've learned much in 2 weeks, and I will only learn more as time goes on. I wish I had read MJ's TMF before my first import, but again, I wanted to take action - and I am glad I did.

More updates to follow.