New plan guys, we’ve got a new plan.
Hey everybody, my name is Megan and this is The Bootstrap Boutique where beginners build businesses. As always, glad you’re here.
We have recently completed a move, or actually I should say we’ve half completed a move and we are in temporary housing for the next few weeks, so that’s really fun. But we will get through it. Yes I am sitting on the floor, yes my dogs are here and here and will probably make noise at some point during this video.
Here at the Bootstrap Boutique we talk about how beginners can start and build businesses. Mostly right now I’m talking about myself but I do hope that’s going to change soon.
So what I’m doing is working on starting a private label company fulfilling and selling through Amazon FBA or Fulfillment by Amazon. There are lots of different people out there talking about Fulfillment By Amazon.
One of those guys is Scott Voelker, he runs a very popular podcast called The Amazing Seller. And he talks about when you are looking for products to source, that you should follow what he calls the ten by ten by one rule. Meaning that you can sell ten products a day, profit of about ten dollars each, and thats on one product. And then obviously you can build from there.
There’s some other guidelines too that people generally try to follow like your product should be small enough to fit in a shoebox, and that’s because of the shipping fees and storage fees that Amazon charges, and also when you are importing products into this country the smaller and lighter weight, obviously the better.
Now Scott talks about that process because it works. So what do I do? Go and try to find something else, a different way to do things. Not that that’s bad, I think that the ten by ten by one area is getting a little saturated especially on the smaller products that you would buy online from Amazon, but it does work for a reason and it is mentioned for a reason.
So I had a product I was really excited about, the problem is it was big, or it still is big I guess, that part of it hasn’t changed. Just for me to have my minimum order quantity or MOQ sent over from China, it was going to be almost a fourteen foot shipping container full of just my product.
Now I was going to take that risk when I was going to work with a third party fulfiller. Because I was going to have them receive it, repackage it as it needs to be packaged and sent on to Amazon. However this company has not really shown a lot of interest in this product or my business to be frank. I got a pricing sheet, I asked some questions, I got the pricing sheet sent back to me. Now that wasn’t what my question was and so I just got a little frustrated with that process.
Also, the suppliers in China, they don’t play around they are emailing me like every day going, “Hey we need an answer, hey we need an answer.” And I’ll tell you the truth, I feel awful but I just haven’t responded because in my heart I don’t want to acknowledge that this is not going to be my product but my head knows that this is not going to be the product that I launch with on Amazon.
So what does that mean for me? Well, it means I’m back to square one, back to Jungle Scout, back to looking for new products.
So I really like the niche that I’m working in right now, that I’m looking in because most of the products are disposable, which means that you would reorder them after you have used up what you have which means that hopefully over time if you’re doing it right, your cost of customer acquisition is going to go down, you are going to get reorders on that same product.
So I want to stay in that area, plus I’ve already got my email address set up and all of that, and that would just be one more thing to change, so let’s not do that right? Let’s try to make this a little bit easier. This is an area where people will buy, I don’t doubt that at all, actually I know its true because I’ve seen the numbers on Jungle Scout and its kind of stuff that I’ve bought for myself anyway, so I already know there’s a market there, I’m not worried about that. I’ve just got to find something that’s going to be a little easier to get to me.
Also I’m interested in looking at manufacturers here in the United States or maybe Canada or Mexico. You know, everybody talks about how you gotta go to China because its so much cheaper, so maybe that’s my solution, is finding these other products just here in the United States. I’m sure that they’re made here its a little harder to find it because you don’t have the clearing house that is Alibaba for US manufactured products, but if I could find that, even if its a little more expensive, the shipping on this other product was going to be so big, because the product is so big and it took up a lot of space. And you know, I can probably between the balance of the two make something work there. So that is something that I also want to explore.
Ok thanks guys thanks again for watching this week, I appreciate you just letting me talk it out and get to where I knew I needed to go but I think that we are there now, I think we’ve got a decision so the good news is I can move forward. Please subscribe to this channel so you never miss a video, I post new ones every Wednesday.
Oh, and you can tweet me, I am @megloftin on Twitter. That is something that I am trying to be better about, it is not a strong suit of mine but I am working on it and trying to be more active there and trying to connect with like minded business people so definitely find me there if you already know about me here.
Alright guys, have a great week, take care!