- Posted by Jeff Vacek
- On May 13, 2016
- 0 Comments
- eCommerce Business Tips, Jeff Vacek, Starting an Amazon eCommerce Business
If there’s one thing I see ALL highly successful eCommerce businesses do is they win on the ‘Buy’, NOT the ‘Sale’.
This strategy at the beginning is literally a matter of philosophy for most start-up eCommerce businesses. But very quick, it needs to become something you practice instead of something in theory.
Let me explain…
When most eCommerce entrepreneurs set out to build a business their philosophy is to make a lot of money by selling a lot of product. And that’s perfectly normal. It seems obvious. Sell a lot of product, make a lot of money. Great!
The challenge is when you think that way you are focusing on winning on the ‘Sale’ versus winning on the ‘Buy’. And by doing that you put yourself at risk of making poor decisions (especially buying decisions) on the front-end that will hurt you on the back-end.
For example, when sourcing from a site like Alibaba or similar sites often times you’ll end up spending a whole lot more than you need to on that product purchase, which means you are FORCING yourself to try and win on the ‘Sale’.
That’s not safe…
What if you have issues with the product getting to you from the source? What if its not right when it gets to you? What if… What if?
Meanwhile, your competitors are getting their version of that product to market before you and participating in the ‘race to the bottom’, the price war and establishing themselves as the leader in the marketplace… Before you even get a chance to start.
Then once you enter, its too late. You’ve lost the race to get it to market AND you’ve lost the pricing war because you paid too much.
Let’s look at the flip side…
My business partner and I take a group of our clients to China three times a year to source direct.
One of the BIGGEST benefits of the trip is that we show our clients how to win on the ‘Buy’ and NOT the ‘Sale’. And this is regardless of what level they are in the business.
The market that we go to is VERY apt and appropriately set up for you to do this. It’s a buyer’s market. There are 700,000 products from thousands of manufacturers, agents, etc. all being showcased in a giant mall like market.
All you have to do is find niche products that you can private label and sell on Amazon or your own stores in the market (more on that below). A translator can help you negotiate a ridiculously low price, putting next to nothing down if anything at all for a deposit, have little to no MOQs, get it customized, etc… All right there on the spot in the market direct from the manufacturer.
Then you get a company like our eCommerce fulfillment services company to aggregate, inspect and QA all of your products BEFORE they are shipped to the States or wherever to be prepped for Amazon, prepped for other sites and sold… Saving you extra time, effort, money, worry and hassle.
And all this for 30%, 40% or more LESS than what you would pay on your own going through Alibaba, Canton, etc.
You do it that way and you absolutely win on the ‘Buy’ and NOT the ‘Sale’. But actually doing it this way you win on BOTH. You source, buy, ship and prep for SO much cheaper doing it the way WE do it. You buy a pair of gloves for $.31 US, land it in US for $.31 more and get ready to be sold and be ‘in’ on each unit for (pair of gloves in this case) let’s say $2 and you can now sell that product for anything from $4 – $9 and make money. You have room to move, room to compete, etc. when that’s what you’re paying. TOTAL win on the BUY AND on the SALE my friend!
Now there is a bit of a science to this… Finding a good product or products quickly in a market that big… Getting a good translator to negotiate for you… Find a good company or people China side to do all of the aggregation, inspection, etc. for you. You need to know the best way to do and find all of that.
So, if you want to do that we recommend going on one of our China trips. We show you everything, mastermind with you, guide you, and walk you through step-by-step on how to source while there. Plus, we have our own office and warehouse in China and we can aggregate, inspect, QA and ship your products for you. Then we’ll work with you to launch bigger, better and faster. Its really a great all-in-one process and experience that will transform how you do business.
If you’d like more information on our trips go here. They are life-changing and business altering!
Thanks for reading!