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Tackling the import and ecommerce business

wade1mil

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This thread is to document my journey of starting an ecommerce business with my own brand and product line. Big shout out to Vigilante and Biophase for giving me the knowledge necessary to get my feet wet, and to Snowbank, JackEdwards and Amail for inspiring me to think outside the box. I will be posting an INSIDERS thread next week revealing my product and asking for input.

In June, I knew absolutely NOTHING about importing and I have never made an ecommerce store in my life. I have never read an ecommerce book or an importing book. In fact, I have an importing book on my Kindle, but haven’t even looked at the cover. I don’t want it to slow me down. I started researching ideas sometime in mid July. Since then, I have even gone on a vacation to Disneyland.

I spent 6-8 hours over a two-day period researching products to import. I came up with 5-6 ideas and ran them past Vigilante. I got good feedback on two, and started pursuing one. The other one is in my back pocket, but may give it to someone else if this one goes the way I think it will. Since then, I have found two more, but those I will implement into this brand eventually.

I received my sample order from China at the beginning of the month. I had 13 designs, 10 colors and custom packaging made. I did some testing on the product to determine a few things that are important to people buying them. I gave a few of them away to people in my target market to get their feedback, and the response was great.

I had a logo made from a designer on Elance for $25. She does great work, and I can give you her contact info if you're interested. Turn around time is 3-5 days due to the time difference. I redesigned my packaging to match the logo and website colors using a trial of Adobe Illustrator. That was hard and I will outsource everything graphic from now on.

After determining which designs and colors to order, I placed an order of 2000 units last Friday. To begin, I will stock 12 designs in up to 6 colors for each design totaling 58 unique combinations. The shipment will arrive at my house next week.

Between receiving my samples and my order, I've been testing some ecommerce platforms. BigCommerce, Volusion, Shopify, CoreCommerce, and a few others. I ended up going with Volusion because of their integrated affiliate program, but really liked BigCommerce the most. After finding an acceptable 3rd party affiliate software program (iDevAffiliate), I finally just moved everything over to BigCommerce. Eventually, I will register with ShareASale and let them handle everything (thank you Lighthouse).

Registered for an account with UPS, USPS, FedEx, DHL, eBay, Buy.com, Amazon, Facebook, Twitter, Pintrest, Google+ and YouTube. I’ve yet to use any of them except UPS.

I have the website 90% complete. I'm only missing an 800 number, PO Box, USPS shipping integration, merchant account and the affiliate program back-end. I'm signing up for the merchant account today, and the rest should only take a few hours.

I have a product in mind that acts as an accessory to my product that I plan on selling as well. I'm contemplating importing that as well, but I may hold off until I see that there is demand for it as well. Minimum order would cost less than $100, but no need to waste money. I'll probably offer it for sale on the website, and then send an email notifying the customer that it is out of stock. If I get a lot of requests, I will place the order and expedite the shipping.

Lessons learned:
- UPS only ships express from China, and not UPS Standard or UPS Expedited (per UPS live chat). My sample order cost $50 more than I thought it would. Will research alternatives.
- Importing for the first time takes 2-3 longer than you expect. I planned on having the website up and running around the 6th, and it's going to be more like the 22nd.
- Hiring web guys is tougher than it seems. I hired three guys; first two never responded after being hired, and last one quoted me 18-25 hours for something I did myself in 2 hours. They aren't lawyers; they're not allowed to make up hours if they want to work for me.
- Every question you have takes 24 hours to answer due to time difference. I've stayed up very late some days to get some work done that had to be done. China starts working around 7pm and stops around 4-6 am. Smoother communication that way.
 
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tm33

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Atta boy. Still looks like we're running around the same speed progress wise. I'll update you with a pm within the next few days.
 

Eskil

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Speed+ for having a solid plan and taking action on every step. Success is imminent. :)
 
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JasonR

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I'm excited to see what product you chose, your brand, and your website. Good luck!
 

wade1mil

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Exciting times!!!!! The best of luck to you! Hope all goes brilliantly.
Good work!

Thanks!

I am at the moment in the product research and am already really excited to sell the first products! I hope i will take as much action as you do.

Breaking the big things into small steps has made it easier. You WILL take as much action as me!

Good job getting some work done dude!

Thank you for contributing!

Excellent progress! You've ticked off a lot of boxes in a short time.

It really didn't seem like it until I laid it all out. I'm just trying to keep up with you :)

Atta boy. Still looks like we're running around the same speed progress wise. I'll update you with a pm within the next few days.

There you are! You've been quiet, hoping we didn't lose you.

Speed+ for having a solid plan and taking action on every step. Success is imminent.

You as well. I'm interested to see how your supplements business goes.

I'm excited to see what product you chose, your brand, and your website. Good luck!

I may end up posting it over the weekend to get everybody's advice on changes/improvements.

Excelent! I look forward to hearing your progress as I am headed down a similar path.

I didn't realize there was this many people doing this. Feel free to share lessons learned or questions :)
 
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tm33

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There you are! You've been quiet, hoping we didn't lose you.

Quite doesn't equal quitting. Huge update coming from me sometime next week.
 

Brander

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and custom packaging made.

I gather the same company that does the product did the packaging, or did you order that separately? ATM I am researching on what kind of packaging I need to really stand out in my market, besides "monopolizing" a niche. Did you go all out unique or just put your logo on the standard packaging?
 
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wade1mil

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I gather the same company that does the product did the packaging, or did you order that separately? ATM I am researching on what kind of packaging I need to really stand out in my market, besides "monopolizing" a niche. Did you go all out unique or just put your logo on the standard packaging?

Correct. The manufacturer did both. I contemplated on not getting packaging made for the first round because all of my sales will be over the Internet. The customer will have already bought my product before they receive it, so the package itself really has very little purpose at the moment. I have custom artwork in a custom size using packaging concepts the manufacturer already uses.

If and when I got to retail stores with it, I will have my packaging remade. I chose to have packaging done because 1) it was incredibly cheap and easy, and 2) I wanted to give each customer a call to action on the back of the package to entice additional orders. A QR Code that links to the website along with a coupon code that I can change any time I want :) Currently, it's 10% off any reorder.
 

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Great thread!


Best of luck and looking forward to your updates!
 

MNentre

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Great job taking action Speed +

Also, I am in the process of doing nearly the EXACT same process. I got my sample in 1.5 weeks ago. I've given out a few to test quality and receptiveness. So far so good. I have been slowed down a bit as I want to try another manufacturer, too. I have a designer all ready to go for my logos, retail packaging, website, etc.

Is your product something that others are buying direct from china and selling for dirt cheap online with no branding? If so, im interested to hear your strategy for charging a premium while still not having much brand recognition. Im kind of torn right now on that topic. I know that price plays a huge factor in sales on ebay and amazon, at least until you get a developed and recognized brand/product, which could take years.

What are you planning on being your main sales outlets? Are you going to go to any retail brick and mortars?

I look forward to following your journey and hopefully we can both learn a lot as we conquer the same problems!
 
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wade1mil

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Great thread!

Best of luck and looking forward to your updates!

Thanks Patrick!

Also, I am in the process of doing nearly the EXACT same process. I got my sample in 1.5 weeks ago. I've given out a few to test quality and receptiveness. So far so good. I have been slowed down a bit as I want to try another manufacturer, too. I have a designer all ready to go for my logos, retail packaging, website, etc.

Is your product something that others are buying direct from china and selling for dirt cheap online with no branding? If so, im interested to hear your strategy for charging a premium while still not having much brand recognition. Im kind of torn right now on that topic. I know that price plays a huge factor in sales on ebay and amazon, at least until you get a developed and recognized brand/product, which could take years.

What are you planning on being your main sales outlets? Are you going to go to any retail brick and mortars?

I look forward to following your journey and hopefully we can both learn a lot as we conquer the same problems!

Speaking of trying out a new manufacturer, one thing I did on accident that saved me a lot of time: I initially placed my order with a company that was the least expensive for a sample order. After my bank wire failed due to incorrect paperwork or something, I asked them how much it would cost for a larger order and they came back with an astronomically high number due to the cost of new molds. This is how I found out they were a middle man. The middle made was charging for 13 molds, and the manufacturer charged for one. Ended up paying about 50% more with a different company for the sample, but 50% less for all future orders.

The competition on eBay for my product is almost non-existent. The market is pretty much untapped. If it were flooded with non-branded versions of my product, I would just use eBay and Amazon to market my brand rather than compete on price. My main plan of attack would still be the same and that is through affiliate marketing. Specifically, website owners directly in my target market with large amounts of followers that spend a lot of money. My affiliates are all prime customers of my product, and all of their followers are prime customers as well. The one affiliate I spoke to lit up when I told her about the product, and the 3-4 others she spoke to are just as interested. I am offering a two-tier affiliate program to encourage my affiliate to market for me also. I could possibly sell out within a few days or I might sell a dozen and have to approach it a different way.

I'm not going to approach brick and mortars to begin. At this point, they are better than importing that I am. Until I have a brand they need or I feel like I can import my product better than they can, I'll stick with online.
 

Brander

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so the package itself really has very little purpose at the moment.

Unless it's soo unique that they show it to their friends and they want to have it as well :)

Until I have a brand they need or I feel like I can import my product better than they can, I'll stick with online.

Exactly the right approach, pull not push, some independents with a few stores and decent volume wouldn't be exactly not-worth-it either...

I have come to the same conclusion last week when my research has uncovered a manufacturer who controls a good chunk of retail chains as well - this is both bad and good. Bad in terms of b&m distribution, good in terms of exit (licensing or buyout).
 

DTS Ltd

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wade1mil,

Be sure to let us know what kind of response you get from the use of the QR codes.
I just started incorporating their use and have been thinking of some interesting ways to put them to practical use.
 
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wade1mil

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Be sure to let us know what kind of response you get from the use of the QR codes.
I just started incorporating their use and have been thinking of some interesting ways to put them to practical use.

Will do!
 

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This thread represents to be what (business) life is all about. Speed +. You are going to do great. And the product you have in your back pocket is great also and I would encourage you to simultaneously pursue that. Multiple streams of income = stability.
 

Likwid24

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Awesome job taking action Wade! I wish you the best of luck! I know your going to be a success. I can tell by your attitude. Your gonna rock at whatever you do!
 
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wade1mil

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Awesome job taking action Wade! I wish you the best of luck! I know your going to be a success. I can tell by your attitude. Your gonna rock at whatever you do!

Thanks man. Back at ya!
 

HackVenture

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You go man!

Sounds like there's going to be some really good news coming from you very soon eh?

Hiring web guys is hard unless you know exactly what you're doing; the lousy guys are
cheap, the good guys are too expensive for a typical business that's just starting out.

That's why so many founders end up PARTNERING with a tech guy so the work that's
supposed to be expensive ends up getting done for free.

Look forward to your updates!
 

theag

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That's why so many founders end up PARTNERING with a tech guy so the work that's
supposed to be expensive ends up getting done for free.

Giving up equity isn't free at all.
 
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wade1mil

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I received the order from the manufacturer about 10 days ago. Long story short, the quality of the product was very poor. I contacted the manufacturer asking for either a refund or replacements and they refused. The issue seemed to be the quantity I ordered (2000) wasn't big enough to have them machine made, so they ended up making them by hand. I am in the middle of a dispute with my credit card company right now and have listed the products in groups on eBay as factory seconds. I am holding off ordering more until I know the results of the dispute or eBay listings.

I don't want to wait around for someone else, so I ordered another sample of a different product. This one is unrelated to the first, and only has 1-2 competitors on Amazon/eBay. I planned on getting in next Tuesday, but it arrived this morning. Thank you FedEx! Cool thing about this is if it doesn't work out, I would easily keep them for myself and still get a helluva price. I plan on having a website up within the next 12 hours, have the pictures taken in 30 minutes and listings on Amazon and eBay tonight before I go to bed. If the products are as good as I think they are and I get enough demand online, I will be ordering a pallet of them next week. Here is the picture for some motivation.

china.jpg

Hiring web guys is hard unless you know exactly what you're doing; the lousy guys are cheap, the good guys are too expensive for a typical business that's just starting out.

I was a programmer back in the 90's, but I wouldn't consider giving a percentage of any business to someone who only brought programming skills to the table. I think an average programmer would rather earn $5 more per hour than a percentage of the business.
 

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