Zero To Hero

How To Start a Brand &

Build an E-Commerce Empire

Manuel Becvar & Duncan Cassar

 THE

Table of Contents

05
About Us

09
Introduction

12
Chapter One: Branding Done Right

18
Chapter Two: Branding Essentials

28
Chapter Three: Business
Incorporation Overview
 39
Chapter Four: Choosing a Country
To Incorporate Your Business

58
Chapter Five: Business Banking

71
Chapter Six: Product Analysis &
Innovation

83
Chapter Seven: Product Industry &
Demographics

95
Chapter Eight: Overseas
Manufacturing Guide

115
Chapter Nine: An Introduction To
E-Commerce
 123
Chapter Ten: Social Media & E-
Commerce

132
Chapter Eleven: Inventory Storage &
Fulfillment

138
Chapter Twelve: Product Branding

144
Chapter Thirteen: Moving To Retail
& Wholesale

151
Chapter Fourteen: Moving Forward
From Amazon

155
Outro
 05

About
Us
My name is Manuel and I
was born in Austria in a little
town called Melk. For me,
Asia and its perks always
fascinated me since I can
remember. I remember
watching Bruce Lee &
Chinese movies as a kid and
was hooked right away. My
professional career started in
1998 when I worked for
Austria's biggest DIY retailer
(bauMax). I moved to Hong
Kong in 2005 when I was
offered a position as an
intern to work for one of the
biggest Sourcing Offices in
Hong Kong with a staff over
200 people.
For more than 10 years I
worked with the biggest
retailers in the world on
developing, sourcing and
finding new products for
them. These retailers
included: Metro, Rewe, OBI,
Carrefour, Tesco, WalMart,
Amazon, Auchan, Lowes,
Sears, Home Depot and
many others.
As you can imagine the big
retailers expect their
products to be more than
just conform to standards
and regulations when they
purchase them in Asia. They
need to be at the highest
standard and quality.
06
These retailers cannot afford to have a product recall due to
quality problems or defective components. These products
need to be top-notch.

In those 10 years, I got to know all the standards and product

requirements there are and additionally gained a lot of
experience and insight working with factories in China.
Not just that. I learned a lot about China, its culture &
manufacturing. Where & how to find the best suppliers, how to
negotiate and communicate with them, how to arrange
business travel for my Customers and a lot more.

In the busiest seasons (April & October), I was accompanying up

to 30 Buyers within a month to exhibitions, factories and
showrooms to help negotiate, develop products and follow up
the Buyer's requests after they were gone. I got to know all the
tips & tricks you need to return home from your trip
successfully.

I now have an Import/Export company based in Hong Kong

that you can find under my links.
I also speak publicly at large events within Asia, Europe, and
North America. You can also find my content on podcasts, e-
interviews, and magazines. I run a blog that discusses everyday
business, e-Commerce and importing from China. Feel free to
head over to my educational site mentioned in my profile.

I also have several courses on Udemy discussing import from

China, selling on Amazon and other eCommerce channels as
well as certification and compliance to national standards and
laws.

07
My name is Duncan and I was
born in Malta, a small island in the
Mediterranean Sea. From a young
age, I was always fascinated by
entrepreneurship and coming up
with innovative ideas & products.
In 2014, I took a life-changing trip
to Asia where I explored most of
SouthEast Asia and the Far East.
This made me fall in love with the
culture and that's when I started
coming up with ideas on how to
start my own business. I always
had a passion for product
development ever since working
for a Fortune 500 company
factory in its assembly division
when I was 16 years old. This
summer job exposed me to how
products get developed, logistics
and how products are marketed
to the end consumer.
When I took my trip to Asia, I
made it a point to visit China
extensively, it is that trip that
started my journey of
entrepreneurship.
Currently, we develop unique and
innovative products that we sell
via our E-commerce channels
and our plan is to expand to retail.
Developing my first product was
a hard(and expensive journey)
and I made it a point to teach
other fellow entrepreneurs on
how to import, market and build a
brand properly.
In Q3 2017, I'm launching a digital
media & marketing company
based in Singapore, to help local
& global business market and
grow their social media following.
08
 09

Introduction
 Why Build a
Brand?
Over the last couple of months, many established
and new Amazon sellers have experienced several
changes on the platform both positive and
negative.

The biggest change was the update in Amazons

review policy which made launching a new product
much harder.

Thats when the idea of the Zero To Hero ebook

came up. Both I and Manuel realized that to
succeed on Amazon, you need to have:

A good product
A strong brand
Multiple sales channels

Over the past few months, we have explored

different strategies which will help you not only
become a successful Amazon seller, but also gain
exposure globally.
10
 Aim For Long Term Success:
Building a Strong Brand with
Multiple & Global Sales Channels

The main aim of the ebook is to go from idea to a strong,

recognizable brand in your niche.

Unfortunately, a lot of entrepreneurs are focusing solely on the

Amazon platform. While it may be the easiest and the lowest
barrier to entry; there are many disadvantages:

No control over your brand since the customer belongs to

Amazon.
Amazon has made several changes which affected sellers
badly.
Building a business on one income stream is never good
Higher competition & lower pricing
Some markets are saturated

In Zero to Hero, we will go over other E-commerce platforms, both

in the US and in other countries. The series will provide an in-depth
guide on which channels work best, including marketing strategies
for each, including:

1. Which ECommerce platform to use to build your own online

store
2. Expanding in the US beyond Amazon, this will include stores
such as Walmart and also small retailers(How to find them &
approach them)
3. Selling in Japan & EU
4. Product branding How to custom packaging, handling
customer service & inserts
5. Social Media Marketing A deep look into Adwords &
Facebook advertising for e-commerce
6. Outsourcing & Building a Team Where to find Virtual
Assistants and which tasks make sense to outsource.
11
 12

Chapter
One
Branding Done
Right.
 The Key Areas To Building a Brand
Choosing a Brand Name
This will be the main feature besides the logo of your brand, so it
must be chosen carefully. Brand Names can be mainly classified
into 3 main categories:

1. Niche Specific Example: Joes Tea Company

This choice is fine if youre planning to exclusively sell within one

specific niche or main category. However, as your company grows,
it is essential to expand into different areas of one category.

2. Category Specific Example: Joes Beverage

This option is ideal if your main focus right from the start is to grow
your brand to dominate your niche. By not limiting the choice of
products in the brand name you can diversify according to the
market at that time. Targeting multiple sub-categories within a
niche is essential(as we will learn later on in the series) because
you can target multiple keywords within that niche.

3. Unique Brand Name Example: Empower Drinks

This gives you the most freedom for your brand, as you can expand
and release products without being limited by the brand itself.
However, a lot of effort must be made to get the name out there
and customers wont start associating your brand with a specific
category in the short term. The best benefit of a unique brand
name is that you have complete control, this is especially true if
trademarks, domain names and other intellectual property is
available for you to register.

Ultimately, a brand name goes down to preference. All three

choices require effort, a line of successful products and excellent
customer service to succeed.
13
 Logo Design

The logo, in most cases, IS what makes the brand. It

is the key feature with which your customers will
identify your brand.

Before hiring a designer for your logo, here are

some key aspects your logo should include:

Simple, Yet Detailed

A logo shouldnt be too complicated as it can be

distracting, especially when it comes to products.

Think of the products you will release, or plan to

release on the market, it is likely your products will
be made of different materials(wood, stainless steel,
fabric, etc.) and a variety of methods of
application(embroidery, engraving, stamping, etc.).

A great logo will make your products stand out

more and its a great way to start building a brand.

14
 Credit: The Logo Company

Colour Scheme

Ideally, your brand shouldnt have more than 2 or 3 colors in all of its
branding. This applies to all aspects of the brand. In the pictures
above, you can see how all the major brands pick one main color
and focus all their branding on it.

Demographics

Make your brand appealing to the audience youre targeting.

Audience segmentation will be helpful in targeting the right
demographics that may be interested in your brand through
advertising and social media.

The main demographics you should be interested in are:

1. Gender: Male or Female
2. Age Range
3. Location Country and State/Province
15
 How Import Dojo Applies Branding
As you can see from the
image above, Import Dojo
implements all key elements
when it comes to branding.
The brand name in itself has
great relevance to its
audience. The logo is fairly
simple and recognizable,
with few, but bright colors.
However, what makes the
brand, in this case, is the
story of how Import Dojo
was started and why Manuel
had the idea to start the
blog. You can read more
about it here.
Products, even if essential,
are only one aspect of the
brand.
When you combine the
same concepts throughout
your website, social media,
and packaging; thats when a
brand truly starts to
distinguish itself from the
competition. Quoted
references can also be
helpful.
References to people can
also be made through the
written accounts of
interviews and debates.
16
 The Hard Truth: Branding Takes a
Long Time To Be Effective

Unfortunately, the not so sexy part about branding is

that it takes an unbelievable amount of work,
consistency and time to see the rewards.

Nonetheless, people are more likely to buy from a

company that offers a unique experience to its
customers. The whole point of the series is to
expand your brand to multiple sales channels and
expand globally.

While Amazon will still be the main sales channel,

having control over your brand, customers and
products are going to be the only way to succeed in
the future.

Find out how to build a brand the right way with

Import Dojo Brand Evolution!

17
 18

Chapter
Two
Branding Essentials
 Brand Story

With lots of brands coming up every day, its essential to

differentiate your brand from others especially if you
want to expand further than Amazon.

Having a story or a purpose for your brand will help you

connect with customers and gives a human touch to the
company.
Before coming up with a story, ask some key questions:

1. Who is my target market? (Age, Income Levels, Gender)

2. Why am I selling this/these products?
3. What problem/need I want to solve?
4. Why did I start this brand/company?

These will all help you come up with a good story that you
can use both in your products and marketing materials.
One of the most viewed pages on a companys website is
the About Us page customers/viewers want to know
who theyre purchasing from.

They are more willing to purchase from a company they

can connect with. This will be the foundation of building a
customer base of your site and be different.

Here are some examples of how some brands applied

their stories into their whole company profile.

19
Yellow Leaf Hammocks

20
Whipping Post

21
Au Lit Fine Linens

22
 Creating a Slogan

Slogans are a key part of branding because they either:

- Tell viewers what your brand is about

- Deliver the brand/company message

This will be even more important if you choose to go the

unique brand name route.

While having a unique brand name has a lot of benefits,

potential customers will have no clue what your brand is
about, unless your Logo is related to the category/niche
youre selling.

A good slogan has to be very short, memorable and

unique.

A good place to start is Shopify's Slogan Generator:

23
Lets say your brand sells natural teas and promotes a
healthy lifestyle. We will use the main keyword Tea and
see if the slogan maker generates something that fits our
brand.

As you can see the program generated over 1,076. Its

important to choose a slogan that fits your brand and the
products you will sell.

Generators are good for brainstorming ideas and

inspiration using the slogans the generator give you is
not recommended. However, you can pick a slogan that
fits you and modify it as your own.

24
 Hiring a Designer

The final step is to put all these great ideas to mind and
find a designer to put your brand to life.

Ideally, choose a designer which has the following

attributes:

- A great portfolio

- Experience working with medium/large companies

- Experience in E-commerce design

- His/her experience is not limited to logos only. This is

because you will need to apply the same branding
throughout packaging, website design, inserts etc.

- Ideally, has worked with clients in your same

niche/category.

Here is an email/proposal template we use on freelance

websites. We always try to give as much detail as possible.
This helps us filter candidates who are truly
interested/passionate.

25
 Hiring a Designer Proposal
Template

Subject: Seeking Brand Designer For E-Commerce Brand

We are an up and coming E-Commerce brand specializing in the [Niche/Category]. The

candidate were looking for should have:

Experience working with E-Commerce brands, preferably in the [Your Niche/Category].

Extensive branding experience. Preference will be given to candidates with experience in the
following categories:

1. Logo Design

2. Marketing Materials & Inserts

3. Advertising Design

4. Product Design & Packaging

If youre interested in forming part of our team, you should provide us with:

Portfolio of your designs E-commerce/brand related preferred.

Rate Sheet with your pricing.

Proof of Experience/Work with medium to large brands.

Our budget is of ***$/***, however, this is flexible for the right candidate/s. We have
additionally attached:

A brief overview of our brand.

Description of our product/s.

Some Logo and Designs we like. These can be used as inspiration for the project.

Looking forward to hearing from you.

Kind Regards,

[Name]

Managing Director

[Company/Brand]

26
 The Importance of Building a Brand

With the effects of globalization becoming stronger, more people

are looking into creating new income streams, one of them is E-
commerce.

This is especially true in emerging economies where people are

exploring different ways of making money. Competition is at an all-
time high as more new sellers from different nations and income
levels are diving into E-commerce & online selling.

Having a good product will come first, however, repeat customers

and word of mouth is priceless for long term success & growth.

This is happening more often on large E-commerce sites like

Amazon, where private label sellers have similar products targeting
the same audience.

The only way for a customer to issue a purchase is:

- Price
- Reviews
- Listing
- Photography

This becomes complicated when most of the products have the

same design. In fact, at the slightest change from Amazon, they
lose sales since there is no control.

The only way moving forward is to build a brand both on and off
Amazon, expand globally & build a trusting customer base.

Find out how to build a brand the right way with Import Dojo Brand
Evolution!

27
 28

Chapter
Three
Business Incorporation
Overview
One thing all major(and minor) brands have in common, is that
they are protected from a legal perspective. Having a good
business structure will give a lot of benefits moving forward.
Although the initial setup process can seem overwhelming and
expensive, it doesnt have to be. Nowadays, there are many
countries where you can incorporate remotely that provide a lot
of features, benefits and most importantly in a financially
secure jurisdiction.

In the next part of the ebook,we will guide you through

everything regarding business incorporation and banking
including some helpful tips on where to incorporate your
business.

P.S. This guide is only meant as a resource. While a lot of

research has gone into proving helpful and accurate
information We are not lawyers. Before incorporating your
business, especially in countries outside of yours, always
consult with a qualified professional specialized in international
laws & taxation.

29
 Why Incorporate?
Many new business owners and online sellers alike often ask if they
should incorporate their business before selling online or do it once
they are established and have capital. This all depends on what
type of business you run, in our case, what products youre
importing. If youre importing products of high-risk liability such as:

- Electronics or Electrical Appliances

- Toys & Baby products (any products used by children ages 3-10)
- Supplements
- Cosmetics & Beauty Products
- Food & Drinks

These are all products that need certifications and in some cases
lab testing done. If youre importing as a Private Label(and not an
established brand), a corporate structure will offer you an extra
layer of protection.

Furthermore, having your business incorporated has numerous

advantages which are helpful especially later on when your
business grows larger. Some of the benefits include:

Personal Asset Protection

It is very important early on to separate personal assets and

business assets. Aside from the initial stage where you have to fund
your business, you should immediately get a business account for
your transaction.

This is crucial not only because some banks wont allow you to use
your personal account for business, but more importantly, having
your personal assets separate, will protect you in the unfortunate
event your business is liable for damages. A business corporate
structure, such as a Limited Company, will protect your personal
assets. This is the main reason what makes incorporation attractive.

30
 Transferable Ownership

In the event of an exit, company shares or members can

be transferred. Making it very easy and attractive if you
want to sell your company in the future. This is true if you
have a Corporation structure, where you own 51% or more
of the company, shares can be easily sold or transferred to
the new owner.

Tax Benefits

Depending on the structure and country of incorporation,

you might find out that you owe fewer taxes than a self-
employed/sole proprietorship. This is due to numerous tax
cuts and deductibles offered to business owners. If you
qualify, your tax bill can be reduced greatly, as always,
consult with a law firm specialized in business
incorporation or your CPA on what tax cuts are available in
your country or state.

Important: This shouldnt be confused with tax evasion and

its by no means condoned. Tax avoidance is allowed only
in accordance with the tax laws of the country of
incorporation. For this reason, if incorporating in a country
different than the one youre resident in, consult with the
tax authorities before proceeding with incorporation.

31
 Separate Credit Rating

Your company will have its own credit rating and it wont be
affected if your personal credit score is not good. Keeping a good
credit score for your business will give you a lot of benefits, these
include:

- Increased overdraft facilities

- Higher Credit Card Limits
- Bank Account Upgrades
- Dedicated Financial Advisor(depends on the bank and account
history)
- Reduced or No Account Fees

Having a good history will make your company investor-friendly as

investors or potential buyers want a company with few debts or
liabilities.

Retirement Plans and Payroll

Having your own company will allow you to create private

retirement plans for you and your employees. Depending on the
bank, business accounts have payroll management in their system.
This will be very helpful if you plan on having employees or
contractors.

32
 Disadvantages of Incorporation

Unfortunately, while there are a lot of benefits to business

incorporation, this comes with its cons. This is true to small business
owners and people with limited capital. Some of the disadvantages
are:
A Lot of Paperwork

Registering and maintaining a business comes with a ton of

paperwork and filing. This can be very confusing if youre new or if
this is your first company. Each country has its own laws and if
youre selling globally, you have to comply with each country.

This can be quite overwhelming, but unfortunately, it must be done.

To make things easier, have your CPA or lawyer take care of your
company filing that way you have no risk of incurring fines.

Fees! Fees! Fees!

With tons of paperwork, comes tons of fees. Between registration

fees, yearly licenses, taxes and CPA fees; your outgoing expenses
might increase. Maintaining a corporation can become expensive
and shouldnt be done without capital.

Limited companies are popular because the fees are lower and
have less filing requirements than corporations. This is the structure
that works best for new sellers and those in e-commerce in
particular.

33
 Liability Is NOT Guaranteed

While incorporating your business may protect your personal

assets, you may still be liable in some cases. Only a Corporation
fully protects the personal assets of the shareholders.

If you import products with high-liability, its best to consult with a

lawyer on which structure is suitable.

USA Incorporation

There is a common misconception amongst people outside the

USA that incorporating your business in the US is expensive and
complicated.

Furthermore, in some cases, if youre importing in the US, you need

to have a US company or subsidiary. Some drop shippers in the US
will also refuse to work with you unless you have:

- Reseller Licence
- Employer Identification Number

34
 US LLC State Registration

It is recommended to start off with an LLC if you choose to

incorporate. For US non-residents the 3 best states to incorporate
are:
Delaware

Delaware State is the most popular place for foreigners who wish
to incorporate in the US. However, Delaware is better suited for
those wishing to form either an S-Corp or C-Corp.

- State Filing Fee: $200

- Certificate of Formation: $90
- Annual Fees: $300 Alternative Entity Tax by June 1 + State Filing
Fees $200 = $500

Nevada

Home to the popular Las Vegas, Nevada is one of the best states to
file an LLC, with its very attractive tax rates and ease of filing.
Besides the yearly fees, there are no other requirements to follow.

- State Filing Fee: $75

- Annual Fees: Business Licence $200 + Annual List $150 = $350

35
 Wyoming

Wyoming is the cheapest state of the 3 for LLC costs. It offers all
the benefits of states like Nevada and formation shouldnt take
longer than a few business days. Foreigners wishing to incorporate
in Wyoming, must have a registered agent notifying the state in
writing.

- State Filing Fee: $100

- Annual Fees: $100

In all three states you require a Registered Agent. A registered

agent is a person or service that acts on your behalf in the state of
incorporation.

They would receive any letters/paperwork and notify you when

paperwork and annual fees are due. Services normally start at
around 49$/year and its required by law to have a representative
in the state of incorporation.

Employer Identification Number

If youre a US resident or youre a non-resident, wishing to get an

EIN, the process is quite simple, and you can either get the EIN by
applying online, phone or by mail. If youre a US non-resident with a
US LLC/Corporation, you will need a responsible party to get the
EIN.

To get the EIN you need to fill out Form SS 4 and send it to the IRS.
Getting an EIN is very simple and fast the whole process
shouldnt take more than 15-30 minutes and is free of charge.

36
 Getting a Bank Account
If youre not a US resident, this is the biggest issue you will face. It is
extremely difficult and rare to get a US bank account(business or
personal) without being physically present. In some cases, there
are companies that offer the service of opening a bank account
remotely, however, they are expensive.

You can also consult with your CPA or lawyer and see if they can
open an account for you.

To open a business account in the US, you need:

- Passport
- EIN & Company Registration Documents
- Business Licence
- Articles of Organization This is a list of all the members in the
company, you should get the documents when you register the
company.
- Operation Agreement

Keep in mind that every bank is different and requires different

documentation. If youre a non-resident, inquire beforehand on
what documents are needed.

Virtual Address

You need an official business address, this is needed to receive

company mail and to register for services & marketplaces.

A virtual address will notify, forward and even scan your mail
There are numerous companies offering these services for as little
as $90/year.

37
 Phone Number

If youre registering a US LLC as a United States Non-Resident, you

need a US phone number. This is will be required by all
businesses(including banks) and marketplaces you will deal with.

The easiest and best option is to simply get a Skype number, it is

fairly cheap with low call rates. If youre based in the US, it is
recommended to get a business phone number.

Find out how to incorporate your business with Import Dojo Brand
Evolution!

38
 39

Chapter
Four
Choosing a Country To
Incorporate Your Business
 The Ultimate Double Taxation
Guide

Most E-commerce sellers come from a wide range of

countries and sell in a wide range of markets. The most
common ones are:

- US residents selling in the US, EU & Asia

- Europeans selling in the EU & USA

- Individuals who either come from other parts of the world

and sell in the US/EU

- US/European residents who sell in other markets &

countries outside Amazon

Most sellers normally pick one market, for example, the

US, and start selling there. This is easy because when it
comes to tax, you have to deal with:

- US Taxation(sales tax, customs, import duties etc.)

- Personal Income Tax based on your country of residence

Naturally, as you your business grows, you need to expand

into other markets. This is where things get complicated as
each country has its own tax laws & systems. In particular,
when it comes to international tax, double taxation comes
into effect.

40
 What Is Double Taxation?

Double Taxation is commonly referred to when income taxes are

paid TWICE on the same source of income. It normally occurs
when income is taxed at both at personal and corporate levels.
There are two types of Double Taxation:

1. Juridical
This is when one source of income is taxed by two or more
countries. For example, youre a German resident who sells goods
on Amazon US and you get taxed by both US and German
authorities on the same income.

2. Economic

This happens when more than one person is taxed on the same
income. This often happens when a company has multiple
members/shareholders and the same income is taxed on that
income(instead of redistributed amongst each member and
personal tax is paid).

Important

Double Taxation is often an unintended consequence of

international tax legislations. Countries and tax authorities try to
avoid double taxation as much as possible and systems are in
place to avoid you or your company paying twice on the same
income.

41
 International Double Taxation

International businesses are often faced with issues of double

taxation. Income may be taxed in the country where it is earned,
and then taxed again when it is repatriated in the business home
country. In some cases, the total tax rate is so high, it makes
international business too expensive to pursue.

To avoid these issues, countries around the world have signed

hundreds of treaties for the avoidance of double taxation, often
based on models provided by the Organization for Economic
Cooperation and Development (OECD).

In these treaties, signatory nations agree to limit their taxation of

international business in an effort to augment trade between the
two countries and avoid double taxation.

What Is a Double Tax Treaty? Does My Country Have

One?

Many countries around the world have signed agreements or

treaties between them as a means to avoid double taxation. These
are based on models provided by the Organisation for Economic
Cooperation and Development(OECD). This is a life-saver for
business owners as they often have issues of the income being
taxed in the country where it is earned and then taxed once again
once its moved to the owner/s home country(or residence).

To find out if your country of tax residency has a double taxation

treaty with the country you do business in, check on both countries
tax authority website. You can also search on Google by typing:
Country + Double Tax Treaty replace the country field with the
country you do business in(example: USA).

42
 How Can I Avoid Double Taxation?
To avoid double taxation, there are two ways:

1. Speak with your accountant/CPA so they file for taxes correctly

on your behalf.

2. Have a limited liability company(or the equivalent) Limited

companies have the ability to pass on their profits to their owners
and pay personal income tax on the earnings.

The Advantage of Having a US LLC

As we saw last week, having a limited liability company in the US

has a lot of benefits. However, perhaps the biggest benefit of all is
the ability to make the LLC a disregarded entity.

This means that any profits the LLC makes, get passed onto the
member/s so basically the LLC in itself never gets taxed, only its
owners.

This is perfect for those who are non-US residents and are part of a
double taxation treaty with the US, as you can get taxed on your
personal income in your tax residency.

Keep in mind that you still have to file a tax return with the IRS at
the end of each financial tax year(normally April). This is a great
benefit and when you form your LLC, is something you should
definitely discuss with your CPA.

Tax regulations can be very confusing, unless you have experience

in handling taxes on your own, always consult your CPA,
accountant or tax authorities first. Double taxation can be avoided if
there is a structure in place.

43
In the event youre taxed twice on the same income, this can
always be refunded back. However, its a long and bureaucratic
process which can greatly reduce your cash flow and delays to
your business.

Other Limited companies in other countries have the same

structures as a US LLC, so make sure youre aware of the tax laws
before incorporating in a jurisdiction where there is no Double
Taxation Treaty!

Offshore Incorporations

There is a common misconception surrounding foreign

incorporations being labelled as tax havens. This is all depends on
where you incorporate and how you declare tax I would always
recommend declaring your offshore company with the tax
authorities back home.

A good idea is to incorporate either:

1. Where the majority of your business operations will be

2. The country of residency
3. Countries which have a very good legal, banking, and taxation
systems such as Singapore and Hong Kong.

Lets look at some of the best offshore incorporation structures and

what they offer.

44
 British Virgin Islands(BVI)

Warning
BVI has been recently in the news due to tax evasion. Currently,
these jurisdictions are at a greater scrutiny from tax authorities in
the US and Europe. Should you still want to incorporate here,
consult with the tax authorities back home and make sure you
declare your registered offshore companies to comply with the
law.

Other jurisdictions under the public eye are Bahamas, Panama &
Barbados.

The BVI are an idyllic paradise islands located in the Caribbean

Islands known for its super-rich expat community & low tax rates.

Here is a complete overview of BVI incorporation:

45
 Main Features

Company documents are widely accepted by major

international banks.
Fairly low yearly renewal fees.
Information about the owners, directors and shareholders is not
public.
No property purchase restrictions in the BVI & freedom of doing
business in any country.
Anyone can register a company in the BVI
Companies incorporated in other jurisdictions can be moved in
the BVI

Requirements

Must have a registered address inside the BVI, main address can
be in any country. For this, you can easily use an agent or law
firm to act as a registered agent.
Minimum member requirements are 1 shareholder and 1
director.

Capital

BVI companies have to issue a minimum amount of shares on their

behalf. The maximum authorized capital for 50,000 shares($1 value
for each share) is subject to a government fee of $350.

Tax Rates

BVI companies pay zero tax for all its members, directors, officers &
shareholders. This is what makes the BVI an attractive option.

46
 Annual Fees

Each BVI company must pay the annual renewal fee of around
$800 1000$. The fee mostly depends if youre filing for renewal
on your own or using a service.

Public Records

Names of the directors, officers and shareholders are not filed with
the BVI Register of Companies, not included in the Memorandum
and Articles of Incorporation and not available for the public.

There are no accounting and audit requirements for BVI

companies.

Time Frames of Incorporation

5 to 8 business day from making the Apostille & documents. Most

third-party incorporation services can register you in 1-2 business
days upon receiving all documentation.

Overall Costs

$1200 Incorporation Fees & $800-$1000 yearly renewal. This

doesnt include any share capital for the company.

47
 Estonia E-Residency

The Estonian E-residency program is not quite an incorporation

However, its specifically designed to act as a digital identity. This is
perfect for location independent entrepreneur who need a base
in a European country.

The E-residency is not a residency program, however, you can

register an Estonian company which is also very attractive.

Features

Document verification and encryption

Digitally sign documents and contracts.
Form an Estonian company online. You need an Estonian
address & bank account(which you have to fly in Estonia to
open).
Merchant Accounts available
Tax Filing can be done online. However, tax residency must be
established first.
In addition to this, people who enroll in the e-residency scheme
will receive a smart ID which provides:
Document encryption & authentication
Digital signing of documents
Digital Identification

This scheme is truly unique as it provides a way to shift taxes &

documentation entirely online. As more people are working from
home or becoming digital nomads, having an online ID which
provide top security features is a must.

The E-residency only costs around 100 and the process is done
entirely online.

48
 Estonia E-Residency

The Estonian E-residency program is not quite an incorporation

However, its specifically designed to act as a digital identity. This is
perfect for location independent entrepreneur who need a base
in a European country.

The E-residency is not a residency program, however, you can

register an Estonian company which is also very attractive.

Features

Document verification and encryption

Digitally sign documents and contracts.
Form an Estonian company online. You need an Estonian
address & bank account(which you have to fly in Estonia to
open).
Merchant Accounts available
Tax Filing can be done online. However, tax residency must be
established first.
In addition to this, people who enroll in the e-residency scheme
will receive a smart ID which provides:
Document encryption & authentication
Digital signing of documents
Digital Identification

This scheme is truly unique as it provides a way to shift taxes &

documentation entirely online. As more people are working from
home or becoming digital nomads, having an online ID which
provide top security features is a must.

The E-residency only costs around 100 and the process is done
entirely online.

49
 Singapore

Singapore is perhaps one of the best places to incorporate since

its very entrepreneur-friendly and a strong financial centre of Asia
and worldwide. The main attractive thing about Singapore is that
its own government pushes for new entrepreneur to register their
companies there. This makes the process more streamlined and
you get a lot of help. The government website also provides a lot of
information.

A limited company in Singapore is called a Private Limited

Company and each registered company must bear the suffix Pte
Ltd in all official documentation.

50
 Features & Benefits

Singapores Pte Ltd. outlives the lives of its shareholders.

Meaning the company stays active even if the owners pass
away.

The Pte Ltd is a separate legal entity in Singapore. This means

that the company liabilities are completely separate from its
members and shareholders(ie You)

Registering a company in Singapore will give you a credible

image and makes it attractive for business and investors.

When registering the company you have the option to pass the
company to a new ownership if the need arises. This is a great
feature as you can easily pass company ownership to investors
and buyers in the event of an exit.

The first 300,000 SGD earned are eligible to a government tax

credit of 50-100%, for incomes over 300k SGD, the corporate tax
rate is 17%.

If the profit is already taxed on an income level, the Singapore

PTE Ltd. Frees you from any capital gains.

If youre not a resident of Singapore(ie a foreigner), you MUST

appoint at least 1 local director which can be either a
Singaporean/a citizen or PR. However, if you want to shift
operations to Singapore, you can obtain an EntrePass visa
Singapores employment pass.

51
 Registration Process & Requirements

A Singapore Limited Company can have a minimum share value

of 1 SGD, there is no maximum capital share value. The company
can have a maximum of 50 shareholders.

The entrepreneur must choose a unique business name for the

business, preferably with an available domain name. A name
check can be done and reserved also.

Company must have a real address in Singapore and the local

person appointed as director must be 18 years or older.

You must appoint a local secretary no later than 6 months from

the date of formation.

Some private limited companies will require enlisting auditory

services. This can be checked before applying for registration.

Some sectors of the economy require government approval

before incorporating. Some of these sectors are finance, banking
and insurance.

If youre planning to set up the Singapore Limited Company as

an offshore company, you must use a third-party service to file
the application process. Foreigners are not allowed to file for
registration for there own. Singapore has a visa-free policy of up
to 90 days for most nationalities and you dont need any special
permits to form the company.

52
 Hong Kong

Hong Kong has long been considered a financial Mecca of Asia and
its actually the place I would recommend to register an offshore
company. Their banking system is excellent and its a very
entrepreneurial country. The process is getting a bit more difficult,
however, with the proper guidance, the incorporation process is
fairly straightforward.

The most common type of business entity registered in Hong Kong

is a private limited liability company. Limited liability companies are
a separate legal entity for its owners compared to structures such
as sole proprietorship. Anyone above the age of 18 can set up a
company in Hong Kong.

I will list all the process and requirements for registering a HK

Limited Company. Due to the complexity of the process and tighter
regulations, it is recommended you engage a professional firm to
handle the process.

53
 Requirements For HK Companies

Company name The name must be unique and needs to be

approved before proceeding with incorporation.

Directors Unlike Singapore, directors can be from anywhere in

the world. You must appoint at least 1 company director and
there is no requirement for the director to be a nominee
shareholder in the company. Directors must be of at least 18
years of age and board meetings can be held anywhere in the
world.

Shareholders HK Limited companies allow a minimum of 1

and a maximum of 50 shareholders. There is no residency
requirement of the shareholders and a single individual can own
100% of the business. Nominee shareholders can also be
appointed and shares can easily be redistributed and sold.

Company Secretary The appointment of a company

secretary is mandatory. The company secretary must be a
resident in Hong Kong or have its official office/place of
business in HK. The company secretary must be a different
person in the case of a sole director or shareholder. The role of a
company secretary is to maintain the company books and
ensure compliance with the laws of Hong Kong.

Share Capital The general norm is to have 1 share per owner,

the currency of shares can be in any major currency and if
transferring shares they are subject to a stamp duty.

54
Registered Address To be able to register the company, you
need to have a registered Hong Kong address. This must be an
actual address and not a P.O. Box..

Public Information Information about the company and its

members is available to the public in compliance with
Government laws. If you wish to keep details and names hidden,
you can consult with a professional firm.

Taxation Profits tax is set at 16.5% for profits made in Hong

Kong. Only profits and income earned in Hong Kong are subject
to the tax as HK has a territorial taxation policy.vMeaning profits
made outside Hong Kong arent subject to tax. There is no
capital gains tax & withholding dividend taxation.

Compliance It is mandatory for companies to maintain

accounts. Accounts must be audited annually by a Certified
Public Accountant in Hong Kong. Companies must also file an
annual renewal fee and must hold an Annual General Meeting,
18 months from the date of formation. The subsequent years,
the AGM must be held every 15 months.

Time-frame It usually takes between 5 to 7 days to

incorporate in Hong Kong.

PS: Although there is no official requirement to be physically

present in Hong Kong, you must be present in order to get a
Business Bank Account. Its difficult(if not impossible) to get a bank
account remotely.

55
 Documents Required

To set up a company in Hong Kong, the following documents are

required:

1. Articles of Association of the company. A copy is normally

provided by the firm assisting the incorporation process.

2. Incorporation Form that includes all of the following:

Company name

Registered address

Description of your business & sectors you

will be operating in

Personal Details of shareholders, directors

and company secretary

Member Liability

Share capital Amount & No. of shares

If directors or shareholders are non-residents of Hong Kong, these

additional documents are needed:

1. Copy of passport
2. Overseas proof of address
3. Bank Reference Letter

For resident shareholders and directors:

1. Copy of Hong Kong identity card

2. Proof of address

56
For corporate shareholders and directors who are registering a
subsidiary in Hong Kong:

1. Copy of parent company registration documents such as

Certificate of Incorporation and Articles of Association

If your documents are not in the English language, they must be

professionally translated.

Further Assistance

If you need further guidance on the best policies of registering a

Hong Kong Company, Manuel & Michael Michelini from Global
from Asia have just released a brilliant Udemy course.

They explain all the steps in detail and Michael has extensive
experience helping online sellers register companies in Hong Kong.

You can check out the course here:

https://www.udemy.com/how-to-start-your-international-
business-via-hong-kong/

Find out how to incorporate your business with Import Dojo

Brand Evolution!

57
 58

Chapter
Five
Business Banking
Having a good business structure is only one part of
running the business A good company needs to have the
best tools to be financially viable. In this blog posts we will
talk about business banking, transfers and international
exchange rates.

As your business grows, you cant afford to lose money in

fees, for this reason, its important to choose the best
banking tools you can find.

Regardless of the country you choose to incorporate in, we

suggest you have:

1. Business bank account In the country of incorporation

2. Bank account in your home country or country of

residence

3. International Bank Card(HSBC, Chase, Deutsche Bank

etc)

4. Currency Exchange Account

We recommend having accounts in all 3 major world

currencies US Dollar($), Euro() and Pound Sterling().
You may ask why would you need so many accounts if
youre only operating in one country or currency?

59
There are 3 reasons:

1. Market Crashes & Recession

As we have experienced in the past, countries have market crashes

or recessions which greatly devalue the local currency. This can
sometimes be so severe to eliminate your profits or worse put you
out of business. Having a second account in another currency will
enable you to switch/move your assets and reduce the risks.

2. Global Expansion

At some point in your business, you will want to expand into other
markets besides the US. Having an account in the local currency
combined with a low exchange rate account; will save you fees on
money transfers.

3. Material Prices & Sourcing

A lot of E-commerce sellers overlook this very important aspect,

materials rise and fall according to the local(and global) stock
market affecting labour costs and increasing your Cost of Goods
Sold. A good way to go around this issue is:

- Source different types of materials so your risk is spread out

(Wood, Aluminium, Titanium, Textiles etc.).

- Source from different markets. Example: Electronics from China,

Textiles from India and Merchandise from the USA

In every business there is risks involved, however, what separates

successful businesses from unsuccessful ones is that they prepare
their business for every situation.

60
Here are some of the best business accounts in the world
you can use there are no affiliate links and all the
companies/banks mentioned are listed because they truly
provide the best value and they are tools we use.

Best Global Banks

As we will mention in this blog post, nowadays, there are a

lot of banking options. However, I would also recommend
having a bank account with a major, global brand.

While their fees may be higher, the fact that they have a
global presence is perfect for E-commerce. HSBC is
probably the best choice if available in your country since
they offer:

Free ATM withdrawals from HSBC ATMs worldwide.

Insurance packages Travel Insurance, product liability
insurance, house insurance etc.
Free Transfers to any HSBC account worldwide If your
supplier has an HSBC account, this will save you a lot of
fees!
Account opening assistance worldwide if youre an
HSBC customer
Very good online banking & secure

61
Citibank is a great alternative to HSBC(if it isnt available in
your country). Their service is top-notch and their accounts
come with a lot of benefits. The Citibank Plus Account in
particular is a really good option, its features are:

No monthly/yearly costs
No ATM fees worldwide However, they dont refund
ATM charges that local banks charge abroad.
No foreign transaction fees
No currency exchange mark-up You get charged
Visas official rate.
No fees on international transfers

US Bank Accounts

This is probably the best bank account in the US to have if

you travel overseas a lot. Almost every service the bank
offers is FREE One amazing feature that is very rare in
banks: they refund you worldwide ATM fees you get
charged by the overseas banks.

Their only downside is their online banking system, which

is a bit lacking. However, having this account as part of
your banking is definitely an asset.
62
You need to be a US resident or have a US address(if
youre not a US resident you can use a mail forwarding
service).

You can open an account online and they have a few

branches across the country. If youre not a US resident,
we suggest to visit a branch to open the account.

No setup fees
No monthly fees
No ATM fees Worldwide
No foreign transaction fees
No currency exchange markups You only get charged
Visas official rate

Alternative

The Capital One 360 offers the same benefits as the

Charles Schwab Account, however, they dont refund
worldwide ATM fees.

If you travel frequently outside the US, then this might be a

deal breaker.

63
 European Banks

United Kingdom

Fee-Free in Europe(SEPA Countries)

Low ATM fees Worldwide
Very low transfer fees(if transferring within SEPA)

No debit card fees worldwide including ATM withdrawals

5 monthly fee Free if a balance of 5000 is kept in the
account or deposits of 500 monthly

64
 Germany

Free no set up costs & no monthly/yearly subscriptions(for the

basic plan)
No ATM fees worldwide However, they dont refund ATM fees
the local banks charge(if using an ATM outside the EU).
No foreign transaction fees
No currency exchange markup
Downside Their English customer support is very limited.
However, its a pretty good option for German residents.

Sweden

No ATM fees worldwide

Free SEPA transfers
No currency exchange fees
Monthly fee 25 SEK(~2.50) Waived for students and persons
younger than 21 years old.
Free Travel Insurance for trips up to 45 days

65
 Digital Banks

N26

N26(Formerly Number 26) is by far the best online bank in Europe!

Based in Germany it is now available in all EU & SEPA countries
except Malta & Cyprus. The bank offers three plans N26, N26
Black & N26 Business. N26 is now a certified bank and they offer
deposit protection up to 100,000 according to EU regulations.

Features

Free no set up costs & no monthly/yearly subscriptions(for the

basic plan)
No ATM fees worldwide However, they dont refund ATM fees
the local banks charge(if using an ATM outside the EU).
No foreign transaction fees
No currency exchange markup You only get charged
Mastercards official rate.
The entire account opening process is online you never have
to physically show up anywhere
Card usage notifications directly from the app
Free Mastercard
Customer Service Support in German & English

66
 To be eligible for a N26 Account you need:

1, EU resident/citizen You need to submit proof to be eligible

2. A mailing address in Germany You can use a German virtual
address for this.

This is by far the best online-only bank if youre from the EU &
travel a lot!

Monese

Monese is an online bank that offers a UK bank account to anyone

residing in the EU. They are a really good bank, however, there is a
monthly fee of 4.95.

If you plan on doing extensive business in the UK or need a bank

presence there(especially when Brexit takes effect in a couple of
years) Having this account is a must.

67
 US Digital Banks

Simple is an online-only bank and its shaping to become one of

the best very quickly.

They offer some really cool features & everything is done through
their app. Some of the features include:

No monthly/yearly fees
Free Debit Card
iPhone & Android App
In-app budget tracker & visualized spending reports
High level Security
Goal Setting via their app

Simple is also a full member of the FDIC, so deposits are secure.

Furthermore, the bank has been getting a lot of investor funding, so
expect more features in the future.

68
 Currency Accounts

If your exchange fees are eating up your profits, you will need a
service that offers the following:

1. Low Exchange Rates

2. Ability to transfer large sums of money
3. Experience in dealing with online sellers
4. A platform that supports multiple currencies

Currencies Direct ticks all the above! The setup process is quite is
easy just fill out the form on their website and a representative
will contact you to see what type of business you run. Currencies
Direct offers:

Features

Low Exchange Rates

Extensive experience in dealing with online sellers particularly
Amazon
Risk Management if you transfer huge sums of money, you
want the best rate in real-time. This service will contact you
when the exchange rate is ideal so you dont lose money on
extra fees.
Supplier & Manufacturer Payment This is what separates
Currencies Direct from the rest. They cater to a specific need us
importers want(ie paying suppliers)!
Amazing customer service

69
I cant stress enough how important having a good currency
exchange account is. While Paypal is great to start with, their fees
will eat your profits as you grow larger and payments become
bigger.

This will also be true when you start to outsource different tasks of
your business. It is likely that your
employees/contractors/freelancers will be from different
countries, having a currency account will allow you to streamline
payments more effectively.

Find out how to incorporate your business with Import Dojo Brand
Evolution!

70
 71

Chapter
Six
Product Analysis &
Innovation
The ultimate goal for any business is to be sustainable in the long
term. To achieve this, you need to have a Unique Selling Point(USP)
that differentiates your business from the competition.

This mini guide and case study is meant to get you to think outside
the box in terms of product selection and launch cool & innovative
products.

In terms of Private Label products, sellers normally follow one of

these options:

1. General items with unique logo and packaging.

2. Completely unique product.
3. Improvement over existing products.

Importing general items used to be profitable, but its not

sustainable in the long term! When choosing products, you need to
think from the Amazon customer's point of view.

How would you feel(as a customer), if youre searching for a

particular product, and find something like this:

72
This is a very bad approach as the only way to differentiate
between each product is:

1. Listing
2. Photos
3. Price

Price is the most obvious one, so more often than not, it becomes a
race to the bottom. This is not what we want as a brand. By creating
something that the market wants & improving upon it, you will have
control over your brand. This is also an asset if you plan on selling
to retailers in the future Retailers love unique, branded and in
demand products!

Todays case study involves picking an existing product and

completely breaking down each aspect of it and try to improve it.

Note: This is only an example and the strategy should be applied

for your product of choice.

The Product

73
For this case study I picked an Interactive Dog Toy Ball. Lets have a
quick overview of the product.

1. Number 1 Best Seller in Dog Toy Balls

2. 5,054 reviews
3. 2 Variations
4. Multiple Colors

Based on the initial data, these numbers may seem prohibitive,

however:

1. Multiple reviews indicate the product is popular

2. Variations show demand for different sizes and colors

All that needs to be done is analysing the product carefully and see
if we can improve it. So lets go ahead with our product analysis.

Product Listing

Bullet Points The bullet points are too short and dont
describe the product features in detail.
Poor Images & Very Bland A product with this
popularity/demand should have higher quality pictures.
Listing Title This, in my opinion, is the most lacking part. The
title is not Keyword Optimized and non-descriptive.

74
 Reviews

Moving on with the product analysis, its time to check the reviews
The item is a bestseller after all! Reviews of customers are
extremely important, more so after the Amazon Review change
where all the giveaway reviews have been removed.

Lets see what the reviews tell us about the product:

The most notable aspect is that 24% of 5,045 reviews (1210 reviews)
are 3 stars or lower. This already shows me that the product can be
improved upon, but lets look at the positive reviews first.

Positive Reviews

75
Looking at some of the positive reviews, I picked up these features
customer like:

Adjustable difficulty of the item makes it accessible to any dog.

Fun Toy and most dogs love it.
A lot of the reviews suggest customers bought 1 or more. This is
a very good sign.
The product makes their dog exercise more.

Positive reviews are an important aspect, as they tell you what

customers LOVE about the product. If you are innovating or
improving an existing product, you have to know what customers
like about your competitors.

Negative Reviews

Looking at the negative reviews throughout the listing, I have

noticed a common theme:

76
Dangerous Some dogs have risked choking because it comes
apart easily.
Cheap material most dogs break it easily.
Boring some dogs found the toy to be boring, this suggests
that the toy is only ideal for particular breeds.
Functionality Some customers found that the treats dont
come out properly.

When looking at negative reviews, focus on a common theme if

many customers complain about a particular feature, this can be
improved!

External Research
After focusing on the listing, its time to search if theres demand
outside of Amazon USA. Remember, the goal is to build a lasting
and global brand, so you need to expand your research further. I
will look at this particular product and see how it performs:

Google Trends

When launching a product, its easy to only focus on that particular

product. However, the goal is to see if theres demand in the
category. I made a Google Trends search for the keywords Dog
Treat Toys and Dog Toy Balls to see if theres any demand
throughout the year for this product.

77
As seen above, the demand for the product is fairly steady all year
round with some months experiencing high demand. This is good
news as it shows that this product is not seasonal and there is
interest in this niche.

Re-Cap

Based on the initial analysis, our conclusions are:

Positives

Quality is an issue We can make a better product.

Material is low-quality hard plastic and therefore we can
improve the material quality or use a different material.
Certifications No certifications are mentioned in the listing, by
obtaining certifications we can make the product better.
Photos Higher quality photos.
Listing Better product descriptions & bullet points.
Variations Include colors in the listing & offer 2-3 colors.
Packaging With some effort we can make a better packaging.

Negatives

Large amount of reviews However, 24% are 3 star or lower, so

a better product can outperform it.
The product is extremely popular and therefore hard to get the
#1 spot.

Warning: If going this route, it is extremely important to check if

any products you take inspiration from dont have a patent
associated with them. The idea is to have a brand with unique
products So be unique!

78
 What's Next?

Once you have made significant research about a particular

product. You need to make any improvements come to life. The
way to do this is by either:

1. Hiring a product designer to design a completely new product

based on the feedback you give them.

2. Sourcing a factory that produces similar products and see if they

can make the requested changes.

I recommend hiring a product designer as they can completely

experiment with different designs and you would get a unique
product for your brand. When youre happy with the result, you
pass on the design to the chosen factory and a mold + sample is
made.

A Note About Product Research

We are all familiar with product research tools such as Jungle

Scout or Unicorn Smasher. While these tools are great, they
shouldnt be used to exactly tell you which products you pick, BUT
to discover hidden gems within the marketplace & monitor sales
volume. The best way to truly build a lasting brand is to:

Build a brand around a category/niche youre passionate about.

If you have a strong passion/interest towards a particular niche,
you know what the market wants.
If you already have a product in a category, focus on building a
list & interact with potential customers via social media. Once
you build trust with your customer base, they will often tell you
what products they love/want.
Release products which are both unique and better than the
competition.
79
 Moving Forward

Once you release a new product on the market its best to release
other products related to the brand. This is done to:

1. Cover many sub-niches in one category.

2. Show expertise in your niche.
1. Build trust with your target market(if you consistently release
great and innovative products)

Good places to look for new products related to your item are:

Frequently Bought Together

As you can see with our product from the case study, Amazon is
already showing you an item that is frequently bought by
customers.

80
 Customers Who Bought This Item Also Bought
Section

Same as above, Amazon gives you all the data you need to make
your research easier for your next products.

Sponsored Products Related To This Item

This is very important as it shows PPC activity surrounding a

category.

If other sellers are spending money promoting their products, then,

there is interest in the market. As you can see below, Amazon is
showing a lot of products.

81
 Category Magazines

Magazines(both online and offline) are a good source of inspiration.

These publications only cater to an audience actively interested in
the category so they can greatly help you.

Understanding the market and your potential customers will help

you gain authority within your niche.

Forums

Forums are a great source because audiences discuss topics

related to a particular niche. Which is very helpful because:

1. You can get inspiration for blog posts

2. You can segment your audience( Gender Age Household
Income etc)
3. Advertising Forums have advertising sections, see what type of
brands and products are advertised and do your research on that.

Trade Shows & Exhibitions

This is by far the best way to source new products. Trade shows
are a great way to see trending & upcoming products and find
potential suppliers. Manuel will talk about this in more detail as he
has a lot of experience in this field.

Reminder: Always do your research before investing time and

money into a product Your customers and business will thank
you later!

Learn how to find the right products with Import Dojo Brand
Evolution!

82
 83

Chapter
Seven
Product Industry &
Demographics
Lets imagine that you arent sure yet which product you want to
sell in but you have a certain industry in mind. I always say follow
your passion or something that you can relate to.

After all it doesnt make sense to start selling Bluetooth speakers

when you know nothing about them let alone explain features or
answer technical questions of your customers.

So ideally you start with something that you can at least relate to or
feel that you can improve on.

Lets pick an industry - Hiking & Trail Running

1. I go onto Google and start my search.

84
2. I check the first few links and I find a site that has a
compilation of the top 10 products makes it very easy for me.

Heres the Top 10:

1. Jacket
2. Shirt
3. Pack
4. Handheld bottle
5. Shoes
6. Socks
7. Poles
8. Neck Gaiter
9. Medical Kit
10. Food

3. Next thing I do is go onto Google.trends.com and enter trail

running.

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It is a very trendy topic as you can see.

4. Now let's look at particular states in the US:

Colorado, Utah, Washington, Arizona, North Carolina are the top 5.

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If I look into cities as you can see there is a very high
demand in Denver, Portland, Seattle, Austin & San
Francisco (& a few more).

I know from living here in HK there is very high demand as

well. Now if Amazon would have a store here that would
be probably my first item to put up on as a listing.

As an alternative I could also set up an eCommerce shop

here in Hong Kong (theres my next business idea).

However I am going to focus on selling a product in the US

now either on Amazon or my own eCommerce shop.

Next thing to do would be to research the particular top 10

products and then focus on either the highest demand or
the product I can affiliate myself with the most.

After I pick a product I go onto Google keywords planner. I

pick trail running jacket and as you can see theres a very
high demand (100,000 1 Million monthly searches on
Google).
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If I were to go after shoes it would even be 1M-10M per month.
Thats a lot of potential customers!

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What do I do now with all those numbers? Nothing for now since I
still am far away from launching a product, but the point of this
exercise is that I become aware of the trends, the search and
interest volume of my potential clients and how I can take that to
my advantage.

E.g. I can set up my own shop or sell on Amazon and drive traffic
via targeted Facebook ads (or Google) to my listing. And I can
specify that by country, state, city and interest. I am not going into
detail now (that's for later) but just a quick look at a Facebook
campaign with these keywords and targets generates an audience
of 790,000 people. Something for later when my product is live (or
during the launch).

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Now obviously this is just a brief and short trip into researching
demographics and interests. But as you can see from above,
theres literally a million potential clients for me.

Obviously I would now have to do my product research, find

suppliers etc but this will be a post for next week.

What you can do from here on is to look up the competition on

Amazon and how you can improve a product or even get unique
ideas.

Let's assume that you have your product and industry well
researched. What do you pick now? Private Label or having your
own design?

Let's look at the options:

Private Label

2-3 years ago Amazon FBA private labelling became the No.1 way
to start your new business with a small capital. Simple find a
lightweight product, fits in a shoe box and costs less than 2$.

So many people jumped onto that train that today we have

immense competition on Amazon. While there are still categories
and products out there that have small competition, it's getting
more and more difficult for everyone.

I am sorry to tell you but those days where you start off with 1000$
or less are over. I still see success stories with private labelling
however starting capital should be at least 3-5,000USD. You are
going to want to order a quantity (say 500-1000 pieces) that last
you 1-3 months when you launch, especially if your product goes
well.

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You will need capital for marketing (PPC, Facebook ads
etc., influencer campaigns), logistic costs from China,
inspection costs, photography and business set up costs. If
you are looking at higher priced items from China
because they have less competition, 5000US$ are easily
spent on product costs only.

How does private label work? By now I think most of you

how it works but basically you are buying a product off the
shelve from a manufacturer, maybe improve it. put your
own logo on the product or packaging and send it to
Amazon. Obviously there are many steps in between but
that's pretty much it in a nutshell.

Does private labelling still work? Yes it does, but the

competition is just immense right now that youll want to
pick your product carefully with extensive research.
Perhaps instead of making it difficult for yourself with
limited capital you may want to look into other private
labelling like wholesale private labelling. Whats that?
Check out my good friend Will Tjernlunds speech at the
Global Sources Summit last year October in HK:

https://www.facebook.com/globalsources/videos/10154
597697889785/

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So while private labelling in its different forms is still a
viable option and will make you money you will have to
have a good product that stands out plus extra capital for
marketing and advertising since the TOS change from
October 2016 in regards to giving away products and
review services has more or less collapsed as a sure way
to gain traction in your first few weeks.

The most obvious downside on a private label item is that

anyone can come in and hijack or have the same product
up after a few weeks. Even if you are brand registered, a
competitor can come in and modify the product with his
factory, maybe even improve it and sell under his own
listing. Within a matter of weeks you can have 4-5
competitors and the price gets driven to the ground. Think
of the melon slicer that everyone tried to sell and within 2
months there were 30+ sellers of this product.

Imagine you would have been the person designing this

item, how long youd been the only one making huge
profits. All the other guys that came in after you had to
fight for the price and customers. Basically a race to the
bottom.

What are the advantages on private labelling?

1. Small investment costs (3-10,000USD)

2. Quick turnaround time from placing orders to selling the
product
3. Good starting point to make money on the side and
learning the process

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Dont get me wrong, to start out and if you are concerned
about capital and big investments private labelling is a
great way to get started. Youll learn the ropes, get your
first experience in China and on Amazon and youll be set
up with your business.

Even I started with a private label but quickly moved on to

create unique products.

Your Own Design & Why Being Unique IS Better

Whats your own design and what are the risks involved?
What sort of capital do you need to invest?

OK, so first off you might say even my unique products

can be copied at some point. Yes, thats true but youll
have a head-start of at least 6-8 months and by the time
the competition comes in youll have a lot of reviews (that
he doesnt have) and youve already made good money
and ideally even work on your next product. Thats the
business cycle anyway, you create a product, someone
comes and copies you. Deal with it and move on.

Next question may even be how to avoid that anyone

copies you patents and trademarks. First youll definitely
want to register your brand on Amazon so that anyone
trying to hijack your listing has to ask you for approval
guess you wont approve.

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Second, you may even want to patent your design in the US (or
wherever you are selling) So anyone trying to copy you has a very
low chance of succeeding. You can easily report them to Amazon
infringing your patents or design.

What's the downside with your own design? There are three things
that come to mind.

1. Long period of development & perhaps the feeling of missing out

on action.
2. Medium to Large investment costs (10,000USD)
3. Risk of product not selling well (but youll have that risk with
private label items as well) as it is new to the market and no one
knows it exists yet".

What's the upsides of your own design?

1. You dictate the selling price and market. Out of experience your
margins can be 100% upwards. Private Label usually has anywhere
from 15-45% (which is actually not bad when you are starting out).

2. You can interest retailers and other businesses with a unique

design. Its very unlikely that Walmart is interested in buying a
private label garlic press.

3. You have a USP (Unique Selling Point) that your competitors

(private labellers) dont have. If you keep coming out with unique
products your customers will return. Just think of Nike or Adidas
how they constantly re-invent themselves with new designs,
material etc. If you are a one hit wonder theres not really a
momentum that you can build (e.g. improving the garlic press for
the 50th time).

Learn how to find the right product with Import Dojo Brand
Evolution!

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 95

Chapter
Eight
Overseas Manufacturing
Guide
There are a lot of statistics I could give you but I wouldnt know
where to begin. I want to break down China and its manufacturing
in a few sentences.

Believe it or not, China is still the biggest production site by far.

While there are several countries in the vicinity, such as Vietnam,
Thailand, and Bangladesh, they simply do not have the
infrastructure that China does. Imagine you need sanitary items,
furniture, household appliances, insurance, and a smart phone. You
walk into a WalMart. You can find practically anything you need in
there and thats within 10,000 square feet. That pretty much sums
up Chinas infrastructure.

Factory A provides plastic and tooling, Factory B provides

packaging, Factory C provides raw material and components, and
Factory D assembles everything. They are all within a stones throw
away from each other.

Most of the factory bosses are related to each other. They set up a
perfect system within their community.
Ill give you an example, and I am not kidding you, 95% of the
worlds supply of electrical multi-sockets comes from a small town
in Cixi near Ningbo/Shanghai. When I say small I actually mean
small for China.

There are over 1.4 million people in this town. When you step into
Ningbo Kaifeng (World largest factory for electrical multi sockets)
you are overwhelmed. And when you step outside of the building
you see five competitors across the street. All the factory bosses
are related to each other. And down the street they can find
everything they need factories that make packaging, tooling,
plastic, steel, and so on.

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The Chinese are so effective in terms of production and
infrastructure that some first world countries could really learn a
lot.

The big retailers figured out a long time ago that nearly every large
corporation, retailer, discounter, or online shop has a buying office
somewhere in China/Hong Kong. I know this because I have been
in the industry for over 17 years. When you walk into a factory and
look at the production line you see cartons of goods with famous
names on them. Whether it is a fan from Home Depot, an audio
speaker from Target, or a ceramic pot from Bed, Bath, & Beyond,
they were all made in China. Most products are made in specific
areas.

Here are a few examples:

- Guangdong province (South of China): Electronics of any kind,

especially consumer and household, toys

- Zhejiang province (Shanghai area): DIY products, tools, metal

and fabrics, lighting

- Hebei province (Beijing area): Textiles, coal, steel, iron,

engineering, chemicals, power, ceramics and food

These are the main areas for production. However, nowadays

production is also shifting inland to take advantage of lower labor
and production costs.

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 Certification

First things first. You need to understand that certifications are

based on directives and legislations. So for example the GPSD in
Europe (General Product Safety Directive Legislation) or the CPSC
for the US (Consumer Products Safety Commission) says that a
product needs to meet certain standards and need to be safe in
general to import or bring to the market. Simple right?
Unfortunately not. The GPSD has tons of directives under its belt
such as the CE, RoHS, REACH directive). Which means that for each
product or category there are further sub-categories that have
directives which tell you exactly what your product needs to meet.
Wait a minute, what exactly are you saying? I cant read all this
technical jargon.

Ever went onto Google to look what your product needs to meet
under which directive? Found a site and then theres a 200 page
PDF that tells you in technical mumbo jumbo what the directive is
about and after reading that you still dont know what to do? Well
this is where a lot of people struggle

So which certificates do I need and do I need them all?

Yes and No

The good news first. No you do not have to have all tests and
certificates done by third party laboratories (both the US and
Europe). What would suffice in (almost) all cases would be a
declaration of conformity. Wow really? Yes, and here is the
however. If you trust your suppliers blindly that all raw materials
are free of hazardous chemicals, comply with electromagnetic
compatibility (electronics for example) or meet certain other
standards then that would be very foolish. If your supplier cant
provide any certification and claims that he complies with
everything you ask for that's a huge red flag.

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I also understand that you dont want to invest in any certification
not knowing if it will sell. And this is the most important part where
you as a entrepreneur and business person need to come to a
decision.
A) Is my product potentially dangerous (can it explode??).
B) Is my product relatively simple and cant harm anyone (e.g.
leather wallet)?

Once youve figured out what you need for your product you need
to evaluate what should be invested. Let's take an example. For the
sake of it let's look at a simple and a complicated product.

Simple product:

Solar powered garden light for 1.2$. Comes with nothing but a few
cables, some plastic and a solar cell. Simple right? Technically I
have to meet the following: LVD (EMC), ROHS, REACH & CE in
general for Europe. Now if I were to test all of these the costs
would amount to roughly 2000USD with a very cheap Chinese
laboratory.

If it was TUV or SGS the costs would be triple that. Now what if I am
going to order 1,000 pieces and my testing costs would already
cost more? That doesnt make sense. In this case I suggest to get
self declaration of the above regulations and save yourself these
costs.

Obviously youd still want your supplier to declare that he can fulfill
those requirements so look for suppliers who already deal with
customers in the country you want to import to and have a good
reputation or can back up their claim that the item is compliant with
raw material certificates for example (from the raw material
supplier).

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Complicated product:

Small Electric fan heater 5.9$. Comes also with a few cables, some
plastic, a plug and a PCB. Simple right? No. You see, I need to plug
this product into the socket (230 Volts plus) and the potential
dangers are very high. If the unit tips over or a child puts a cover on
top, the entire unit can burn up (and the house with it). Also here
technically I have to meet the following: LVD (EMC), ROHS, REACH
& CE in general for Europe.

Ideally I will also want a GS mark for Germany because this is a

product consumers want to have with GS. On top of that I want
abnormal testing from TUV for example. Abnormal testing means
they would test what happens if you cover the unit with a blanket
or if it tips over that the unit switches off automatically. A good
supplier knows that there needs to be a tip over switch installed
and overheating fuse included. This abnormal test alone costs 4-
5,000USD. A GS mark costs somewhere in the same vicinity (2-
4000US$). The other tests (LVD, RoHS, REACH & CE) are roughly
2,000USD. Now we are looking at 10-12,000USD investment costs.

Would I do all these testings before purchasing? Yes, 1000%. I do

not want to risk my business or anyone elses life because I wanted
cheap. You may say ok but I dont have that kind of money. Then
you need to find a supplier who either has these certificates
already or is willing to invest the money for you. If you cant find
one then it's simple the product is not for you and your budget.

You can still go for it without all the testing and certifications but I
think we are on the same page here that that would be a very
foolish decision in case anything happens.

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Now I cant go into hundreds of products or case studies here, that
just isnt possible. But I think you see my point. First I need to
evaluate if the trouble is worth it and if I even want to deal with
complicated products.

If the answer is yes then the strategy is pretty clear I think test
and get certificates. If you dont dare to sell these risky (but
profitable) products go the easy way and pick simple products or
walk away.

Products & Components To Avoid

When Starting Out

Some items really dont make sense to import (together with the
antidumping rate items). These items are usually license-required
items, large items or items that are manufactured in a low-income
country near you.

China is getting some competition from a few countries, not only

because of labor costs but also due to government import
restrictions (antidumping fees for example).

Products that are difficult for importing:

Anything related to gas

Cars
Supplements
Foods, drinks
Animals
Guns, weaponry
Hazardous material
and more

For the above items you would need to obtain proper licenses first
and this can be quite difficult. So the above might not be your first
choice of import.

101
 Contracts & Tooling Guide

A lot of people are concerned when they produce their own design
in China that the supplier will copy it and sell to other sellers.

First I would like to point out that in my nearly 12 years in China I

have had almost only good experiences with suppliers even with
my own designs and exclusivity agreements.

Lets look at your options and what it actually means to have NDAs
or Exclusivity Agreements in China and how likely it is to enforce it
or hold up in a court.

Let's look at the terminology first and what they mean:

NDAs

Whats an NDA and when do you use it?

An NDA or Non-Disclosure Agreement is used when you have your

own product design and want that developed by a factory in China.
You basically agree with the factory that they are not allowed to
disclose, share or produce your design (or even ideas) with any
other customer or supplier.

Neither local or overseas. In most cases if you have your own

design a tooling is likely need to be made. The first step you take
before you send any designs to a factory is to ask them to sign the
NDA.

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 Tooling

To produce your design it is very likely that the factory needs to

make a mould or tooling for you. With this tooling parts of your
product will be manufactured and eventually assembled into the
final product.

(Categories like Textile or Food do not need tooling). Toolings are

often included in the price quoted to you when you hand over your
design. However you can also opt to pay for the tooling if you want
to own the tooling as well.

Toolings can go anywhere from 1,000-30,000+USD depending on

the size of the product. Yes, things can get pretty expensive.

Can I move my own tooling to a secure location?

Toolings are usually very large and heavy as they are made out of
die-cast in most cases. Moving them requires quite some logistics.
So if you are unsure that your supplier is going to use them for
other customers you should move them to a secure location (e.g. a
rented warehouse).

This can easily cost a few hundred US$.And every time you would
place an order this tooling needs to be moved to the factory and
after production back to the warehouse. An expensive enterprise.

So having said all that if you feel you need to have your tooling
secure somewhere else you should not work with this factory in the
first place.

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So what's the best way to go about having your own designs &
tooling?

Two scenarios:

You are just starting out and have no factory contacts

whatsoever.

My tip is to work with a sourcing agent that can help you find
reliable and trustworthy factories. Dont go onto Alibaba and
randomly look for factories that could make your product. You
dont know them, they dont know you and are unlikely to help you
anyway. Even if they tell you: no problem, we can make it for you
they are likely to copy your product or sell the idea to other sellers
the minute you place an order.

Just the other day a reader of mine told me he found a trading

company on Alibaba for his design and placed an order of 300
pieces. When he got contacted by the actual factory about labels
and other things they needed from him he found out that the
trading company placed a total of 500 pieces with that factory.

They ordered an additional 200 pieces (without the knowledge of

the client & even with the clients logo) for themselves probably to
ell it on Aliexpress or even Amazon themselves.

Youve been placing orders in China for a while.

Work with the factory of your trust. Even if the product you are now
looking to manufacture doesnt fit into their assortment. Factories
have a large network and contacts with other factories Ask them to
help you source a factory that can make your product whom they
trust. Id he happy to pay a few cents more for this type of help if it
means I get connected to someone trustworthy.

Ideally your existing factory can help you manufacture your new
design.
104
 Mutual Exclusivity Agreement

Let say you find a product on Alibaba or at the shows and you want
to buy this product exclusively to sell on Amazon. Suppliers are
likely not to give you an Exclusivity Agreement if you dont
purchase high quantities from them or if you havent had any
previous business with them. FBA sellers are in general very small
customers for factories.

The 1000 pieces (if even) you & I are going to want to place as a
trial order cause more trouble to the factory than you could
imagine. Setting up production and purchasing raw material for
only a 1000 pieces is an expensive endeavor for factories.

Most raw material suppliers have MOQs of 5000 pieces (per raw
material) and up. So getting the material for 1000 pieces can be
quite expensive. While some factories may have stock left of
material or might agree to purchase the larger quantity from the
raw material supplier in order to produce your order it is unlikely to
happen in reality. Having said that you could approach things a little
different to get your exclusivity:

You could ask the supplier to sign exclusivity agreements for 6

months. Meaning you could agree on a quantity that you will place
within those 6 months and if you dont reach the quantity the
contract will be voided.

Which will give you the time to figure out if the product is selling
and the supplier on the other hand isnt forced to sign a deal for a
long time.

After this period of 6 months the contract/agreement can be

reviewed and extended for a longer period. Even if the supplier
does not agree to an extension you have at least a head start of 6
months on other sellers.

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Validity of Agreements & Contracts:

In the FB groups I often see question like: How are those

agreements going to hold up and what are your chances of
winning an NDA dispute in China if you find out your supplier has
betrayed you?

Well to be honest the chances are slim. Does it help to have an

agreement in Chinese? No. Even if you hire an expensive lawyer in
China and win the case by the time you resolve the issue your
expenses will have ballooned into thousands of $.

So unless you have a patent it isnt even worth it pursuing a lawsuit.

You will also have difficulties finding out if your supplier actually
used your tooling for another client. An un-trustworthy supplier will
find many ways to wiggle himself out of the situation.

For example he could claim a disgruntled engineer of the company

left the factory and took the designs to the next factory he started
to work for. You wont be able to proof him differently.
So what's the point of having an agreement at all and what's best
approach?

To ask a supplier to sign an agreement or NDA shows that you

mean serious business and they will take you and your project
more seriously. If he doesnt agree to it in the first place move on to
the next supplier.

Work with a supplier whom you trust and have worked with for
many months/years already. You will still need to have
agreements in place with that supplier but the understanding is
entirely different.

If you work with a supplier and you let him know he can grow his
business with you over the years he will honor your agreement.
The contract is more or less a formality.

106
Either place orders with a factory for ODM (products off the rack) in
the beginning and eventually propose your ideas and designs after
you worked with them for a while or hire a Sourcing Agent who can
help you get you in touch with trustworthy factories.

For example in my case study I actually got exclusivity for my

product (for an initial 1000 pieces order).
And the supplier honored it. How do I know that? As you know my
case study is public and people who join the course can see
contacts of my supplier within the course.

After I launched my product and case study only a few days went
by and my supplier contacted me to tell me that he had received
quotation requests from 2 different US sellers already. Those 2
people wanted to copy my process (they even used my email
templates and quotation forms that I offer in my course). The
supplier refused to offer my product to those 2 guys. That's not to
say that they cant go anywhere else but at least I know I have a
reliable and trustworthy supplier.

So it's all about finding the right supplier and develop a relationship
with him. You will want to have agreements in place even after a
long relationship but again, that's just really formality and if you
found a trustworthy supplier they will honor agreements and in 95%
of the cases help you if you have to claim money for example
(defect or returned goods).

The point I want to get across to you is not to worry too much
about getting copied in China if you approach things professionally.

Getting copied will happen eventually because either:

1. Your competitor copies your product or modifies it.

2. Your approach was unprofessional.
3. Another factory copies/modifies the designs because they have
seen it on Amazon.

107
Take the head-start that you have with your product and move on.
That's how this business is.

Let someone help you professionally with sourcing and negotiating

deals in China or deal with factories that you trust and have
business relationships with.

And remember the above goes only for your own designs. It is a
different story if you are buying products off the rack maybe with
small modifications from a supplier that you found on Alibaba for
example.

In these cases it doesnt make much sense to have NDAs or

Exclusivity Agreements because it is not your design in the first
place. It belongs to the supplier.

However if you make significant modifications and are able to

place larger orders it makes sense to have agreements.

Choosing a Supplier

Most people start out on Alibaba because they cannot come to

China. While I do recommend to come to China it doesnt make
sense if you are just starting out. If you are starting out, head over
here to my Alibaba screencast which helps on choosing a supplier:

https://importdojo.com/alibaba-hacks/

108
 Ordering & Testing Samples

I'll cover three topics about sample management:

1. Sample costs
2. Communication
3. Supervision

Sample Costs

Once you have settled on a supplier for your new product it is time
to purchase a sample. Most suppliers will charge you for sending a
sample. There is usually no way around this unless you have
worked with the supplier for a longer time.

Even for me, being here and dealing with suppliers on a daily basis
I cant guarantee that I dont have to pay for a sample.
Here are some Insider tips to try to get a sample for free.

Introduce yourself as an assistant of a large company. Suppliers

tend to smell money when a large company is interested and
are more likely to give away samples for free.
State that if the sample is OK you will place a large order
State that you have especially chosen this supplier to be your
exclusive supplier for this product and he has the chance now to
do business with you.
Ask him to put the sample cost on top of the official order that
may follow if the sample is what you are looking for.
State that it is company policy that you/your company dont pay
for samples and if he wishes to do business he should agree to
your sample terms.
Split the costs. Offer to pay for either the samples or the freight
costs.

109
If none of these work I recommend you to agree with the supplier
to deduct the sample costs from the official (larger) order. At least
this way you save the sample costs if you decide to order from this
particular supplier.

Be wary of sample costs in general

On one occasion I was sourcing for a textile accessory. The item

itself can be made for approx. 2 USD.

I screened around 10 suppliers and eventually narrowed my

selection down to 5 suppliers. They were all in a similar price range.
When it came down to ordering samples one of the suppliers (who
was also the most expensive) asked me for a sample fee of 100
USD to be transferred to his bank account. That didnt make sense.
I immediately knew it must be a trading company with no factory
background.

They probably outsource the work to a factory because they have

no own facilities. Eliminate suppliers that have high sample costs
right in the beginning.

Samples are usually 10-50% more expensive than the originally

quoted price. It is a common practice to charge more for samples,
as many of the samples need to be handmade for the customer,
especially if you have some sort of modification request.
Another reason why samples are usually more expensive than the
quoted price is that they want to see if you are serious & sincere
about placing a larger order later.

I can tell you that from my own experience as a manufacturer. I get

about 5 sample requests per week and all of them want it for free.
If a buyer is not willing to pay for a sample I wont send it to him
because I will be thinking he just wants to get a sample and there
will be no follow up order.

110
Sometimes suppliers have stock of their items. If you do not need
to have any modifications done, or you just want to check the
quality before asking for more, request a sample they have in
stock. If they have stock, they usually charge the regular (MOQ)
price.

Communication

In my 12 years living and working in China I have learned to

communicate with Chinese suppliers in different ways compared to
communicating with Western companies.

What is being said or promised on the phone/chat or email is not

always being followed by the factory or the supplier. Often you will
find that something you said or agreed on is being done
completely different.

For example you ordered a sample of a certain product in a certain

color & quantity but what you receive is completely different from
what you asked/paid for.

Unfortunately the chain of command in factories is not always

direct. So when your sales contact gives your sample order to his
sample our engineering team there may be 2 or 3 people in
between.

In between often some information gets lost. So eventually the

person responsible for making your sample will receive different
instructions that deviate from your original briefing. Often there will
be no meetings held on projects from clients (like we are used to in
the western world), but rather a quick email to another person that
has not fully understood what you actually want or need.

Often there will be no message or notification that your project may

be urgent or requires special attention. That might be a simple
instruction, for example telling the sample team to make the
sample with a US plug or adapter.
111
No one has told the sample team and common sense is
unfortunately not requested when being a worker in the factory.

Which brings us to:

Supervision

I cant stress enough how important it is to supervise & monitor

your order/samples or other projects that you have with your
supplier. Westerners work differently. We are more detailed and
we expect people to have the same common sense that most of us
have. Information will get lost. You need to plan for it.

After each discussion on the phone/chat or email you should

follow up with written and agreed on-points. Try to think of
everything for the supplier and make it as easy as possible for him
to follow up & complete your instructions. Give him a goodie at
the end of the email to advise him of the potential to be working
with you.

For example:
Hi Tony,
Thanks for the talk just now. I would like to summarize the discussed points:

Sample to be sent to . (your address)

Sample needs to be in working mode. A non-working sample is not accepted, as the sample
will undergo quality tests by my third party laboratory. (this part doesnt need to be true but he
will think twice before sending you a sample in poor condition)
Sample needs to have a US plug (attach him a picture of a US plug-make it easy for him)
Please make sure the sample is tested on your side before being sent out.
Please attach your model number & supplier name-tag to the sample as I am getting many
samples and would like to know who sent which sample. (this way you will not lose reference
of which supplier made your sample if you order from more than one)
Make sure you mention samples of no commercial value to the Sample Invoice (in order to
avoid customs tax on samples at your destination).
Etc.

Please give me a written confirmation of all discussed points and your understanding.
If the sample works out well and everything is as it is agreed on, expect an order of pcs.

Best,
..
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Here a few more tips on communication & supervision with your
supplier:

1. Give deadlines to suppliers that you both agreed on.

2. Set yourself reminders on your smartphone/computer that will
help you to remind your supplier.
3. Make simple sketches & drawings of your requests if the supplier
misunderstands you.
4. Have him confirm each step of your modification or request.
5. Keep emails clear and with bullet points to make your requests
stand out

Once you have a feeling on what you need to pay attention to it

gets a lot easier and your sample orders in China will be a lot
smoother.
Inspections

Ive been saying this forever and I still see people shipping their
products from China without inspecting their products by
professionals but my recommendation is never ever ship without
inspecting your goods.

Especially not if you ship directly to Amazon. If theres a problem

its too late to re-work the goods (in most cases) or ship back to
China.

There are several third-party inspection companies in Asia. Some of

the big names are: Bureau Veritas, TUV-SUD, TUV-RHEINLAND,
and AsiaInspection (which I personally use) to name a few.

The first three are usually expensive but also very thorough.
AsiaInspection is a simple and cost efficient service that should
work in the beginning for you. Register on their website and simply
create an order with them. You can fill out all the details or even
better ask your supplier to send them a sample.

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Simple steps: You ask your supplier for a date when you can send
an inspector (usually around 70-80% of the finished production),
you book the inspection online and the Inspector will go to the
factory on the arranged date.

Once the inspection is completed they will send you an inspection

report. Based on this report you can either:

1. Release the shipment to the supplier

2. Ask the supplier to re-work the goods according to your agreed
terms and fix problems found during the inspection

Only when you are entirely satisfied should you release the
shipment. In most cases there will be minor findings, such as
scratches, dents, or packaging issues. If this doesnt bother you
then release.

If there are major problems like faulty wires or wrong colors, ask
your supplier to re-work the goods.
Trust me, he will re-work, as he is still waiting to get the full
payment.

Remember, NEVER pay everything up front. Once everything is as

it should be you can give your logistics provider the order to pick
up the goods and send them to the port.
You are of course entitled to skip this process, but it is highly
recommended, especially for first-timers and for order amounts
above 1,000USD.

Find out how to manufacture and import your own product with
Import Dojo Brand Evolution!

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Chapter
Nine
An Introduction To
E-Commerce
While selling on Amazon has numerous benefits, nothing beats the
feeling of having your own store and having full control over your
brand.

While the process is time consuming and requires some capital

investment, in the long run it will pay off. Here at Import Dojo we
always recommend to expand into new countries and to have
more than one sales channel nothing beats having your own
sales channel!

The Importance of Having Your Own Store

1. Have a Stronger Online Presence

A website is not only an additional sales channel, but also an asset.

If you manage to build up enough sales volume, the valuation of
the site can be added to your companys overall valuation. Its
never wise to build a business solely on someone elses
platform(Amazon/Ebay), by having your own website you have an
additional channel to drive traffic to.

2. Control Pricing, Offers & Marketing

Marketplaces like Amazon and Ebay have a lot of sellers

competing for the same customers. This causes price wars and
more often than not, its a race to the bottom. By having your own
website, you can control your pricing, make your own offers and be
in control of what you charge.

3. Better Branding

A website offers endless possibilities when it comes to

customization. Marketplaces have guidelines which restrict the
amount of customization you can make. With your own site, you
have complete say on what goes into the design, colors and overall
branding.

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4. Customer Relationship Building

Through email marketing and social media, you can truly connect
with customers in a much more meaningful way than Amazon.
Amazon limits sellers on having buyers information and restricts
communication with them. When you have your own website, you
can focus more on the customers and listen to their needs.

The Challenges

Capital Investment

Although building an online store requires minimum capital

investment, marketing will require a significant amount of
money. This can be difficult in the early stages as you also
need to outsource website copywriting, blogs and design.

Getting Traffic

This is by far the biggest challenge of an online store. With

Amazon, sellers dont need to focus much on traffic(except
Amazon PPC) as the marketplace gets enormous traffic.
With your store, chances are you wont have visitors on
day 1 so you need to dedicate a lot of effort for driving
traffic. These include:

- Facebook Ads
- PPC(Adwords/Bing)
- Blogging and SEO
- Social Media Marketing

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Website Set Up

Luckily many platforms have made this part easy.

However, you still need a lot of time to make the design of
your store ideal. Most platforms like Shopify and
BigCommerce have a lot of integrations which helps you
sync inventory across all marketplaces.

Besides the design, the most important parts of a website

are:

1. Have an SEO friendly website.

2. Design fits your brand and audience.
3. This can be easily done with the use of integrations,
plugins and premium themes.

Content

Between the blog, website copy and your email capture &
sequence, you need to write a lot of content. If youre not a
good writer, you need to outsource all of the writing which
requires a lot of capital initially.

When writing content, a good tip is to diversify content not

just on your niche but the whole category or subcategory.
Use different long tail keywords that cover different topics
and once you monitor traffic and engagement for a few
months, you will find out what your audience is interested
in.

You can use the data to release new products based on

what your audience wants.
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 Essential Pages & Content For Your Site

About Us Page

The about us page allows you to tell your brand story, mission and
goals behind your products. This page is very important as it gives
a face to your brand that customers can identify themselves to.

Store/Shop

The store should be simple and easy to navigate. Like Amazon,

include keyword focused descriptions and great images.

Blog

A blog not only give important updates and information about your
niche, but it also helps drive traffic to your site and build up SEO.

Policies

The most important policies you should put on your website are:

1. Privacy Policy
2. Terms & Conditions
3. Shipping & Returns

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Building an Audience & Getting Traffic To Your Website

The beauty of selling on Amazon is that you dont have to worry

about driving external traffic to your products. Aside from Amazon
Sponsored Ads and Facebook Ads, Amazon generates enough
traffic to their marketplace. What makes Amazon unique is that the
traffic is mostly buyers. When it comes to your own website,
getting traffic will be the major challenge. However, there are a
number of ways to drive traffic(and sales) to your E-commerce
store.

Pay Per Click Advertising

Like Amazon Sponsored Ads, pay per click marketing is very

powerful in driving traffic towards your products. The most popular
pay per click networks are Google Adwords and Bing, when it
comes to these two however, you will have higher competition on
keywords so your strategy has to focus on long tail, less popular
keywords.

Blogger Outreach

This is a similar technique to the one Manuel used for his French
Press Case Study. When youre a new brand, chances are that few
people know about you. In this case you have 2 options:

1. Build an audience yourself which requires time and money.

2. Leverage someones existing audience to gain exposure.

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Bloggers are perfect for gaining exposure! They are
trusted by their audiences and gain consistent traffic to
their blogs. When choosing bloggers to promote your
brand or products, take into consideration the following:

1. Are they well known and trusted in my category/niche?

2. How much traffic does their blog get?(use Alexa to
check this)
3. Are they active on social media?
4. Are they experienced in promoting products similar to
my category/niche?
5. What is their target audience demographics?

One advice is to find someone that truly fits your brand,

audiences can tell if someone is truly passionate about
your product(s), so be very careful in who you pick. Once
you filter down the blogger(s) of your choice, you need to
contact them. You can do this either via their
website(normally they have a specific Advertisers page) or
via social media.

Based on experience, these two incentives work best:

1. Money offer with no commission involved(This can

normally range from $50 to $1000 depending on the
blogger).

2. A free product sent to them and they get commission for

each referral. They can use the Amazon Associates
program or you can create your affiliate program on your
website.

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The second option normally works best as the blogger will
be more incentivized to promote your brand.

Bloggers are a great way to drive high amounts of traffic

both to your Amazon listing and your website. If a blogger
proves very successful, a good option would be for your
brand to sponsor the blog as you get a permanent
advertising presence.

Building your own e-commerce store requires a lot of work

and patience. However, the benefit of having your own
platform and customers is very rewarding. While the
Amazon platform will most likely always be the main
source of revenue, having an additional sales channel that
you fully control is the ultimate step towards having a
strong brand.

Find out how to build your own store with Import Dojo
Brand Evolution!

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Chapter
Ten
Social Media &
E-Commerce
Social Media is essential to get your target audience to find
your brand and connect with influential figures in your
niche. In the past few years, social media has become the
number one medium for promotion and businesses who
want to achieve long term success need to have a social
media strategy in place.

Why Having a Social Media Presence is Important

We often hear how social media is powerful and important

for brands around the world. The main reasons why social
media is the platform of choice is:

Advertising conversions are higher than other forms of

promotions such as traditional PPC, offline marketing
and television.
People spend a lot of time on social media so its very
easy to find your target audience.
Social Media provides a lot of data on demographics
and behaviours which if used right it can scale up your
business significantly.
Drive Huge Amounts of Traffic To Your Website &
Amazon Listing.
Connect with your customers on a personal level and
find out their concerns or needs in your category.

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 A Look at Social Media Platforms

Facebook

Facebook is without a doubt the most popular social network to

use. Although having(and growing) your own Facebook page is
essential for your brand, the advantage Facebook has over other
platforms is an affordable and converting advertising platform.

Initially, the best strategy to use Facebook Advertising is to find

your target audience. No other advertising platform in the world
allows you to segment your audience by:

Gender
Income
Country
State/Province
Interests
Age

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When launching a new brand, my strategy is to have a budget of
$5 a day maximum to find my target audience, that way, when the
time comes to launch my product, I know already who to target.

Facebook also allows you to target audiences who liked a

particular page, so if you have a fitness brand and want to target
female audiences aged 18-25 who like Nike, Adidas & Under
Armour; you can do that with FB Ads.

What this allows is to have better converting Ads and more clicks
to your sponsored posts. One suggestion I can give is to not direct
the audience to your Amazon listing(unless you have a lot of
positive reviews), but instead to your website/landing page to
collect email addresses.

Instagram

Instagram is the platform of choice if you want to showcase your

products, brand and your story. The visual aspect of Instagram
allows you to truly differentiate yourself from your competitors.
Since Instagram is owned by Facebook, you can use their
advertising platform to also target Instagram users.

What I really like about Instagram though, is the ability to connect

with authority in your niche and even larger brands. This makes it
the perfect social media platform alongside YouTube to gain
massive exposure for your brand.

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However, the downside of Instagram is that you only have one
clickable link in your whole profile The Bio. This makes it very
hard to direct audiences to click the link, for this reason, although
Instagram can be used to drive sales, the main use of the platform
is to gain exposure.

Twitter

Twitter is one of the top social media networks, however, their

follower base has been declining in recent years so in my opinion,
other social media platforms are much better. Twitter works best
for announcements or to give news regarding your brand or
products.

I would still suggest you to have a Twitter account though, not only
it works great for some niches such as fitness, yoga and cosmetics;
but also because as a brand you need to be everywhere! The more
places you are, being social media platforms, marketplaces or
countries, the better.

So while in some cases twitter can work great, its not an ideal
platform for E-commerce sellers.

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 Snapchat

Out of all the most popular social media platforms, snapchat is the
newest one. However, they are quickly gaining a large
following(particularly amongst younger audiences) and they are set
to go public soon. Snapchat is a video-based application that
allows you for to share videos which are only available for a limited
amount of time.

This is a great app if you want to make quick promotional videos or

even use it to make instruction-based videos on your products.
However, unlike most social media platforms, Snapchat only
applies to certain categories.
Nonetheless, if your market is mostly younger audiences, you need
to use the app as its quickly becoming the number 1 social media
platform amongst the younger generation.

YouTube

YouTube is by far the best social media platform for exposure and
driving insane amounts of traffic to your website or Amazon listing.
With the introduction of their Video Advertising Platform, you can
quickly gain enough exposure or even go viral. Its not uncommon
for unknown brands to go viral and get massive sales via YouTube.
Video based ads convert much better also, however, at $0.20 a
click, it can become quite expensive.

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The power of YouTube relies in a pool of YouTubers from all kinds
of niches, in fact, if you can find influencers or brand ambassadors
willing to make an unboxing review or How-To-Guides for your
product, you will get more sales than any other method, such as
PPC or FB Ads.

The major tips I can give regarding YouTube are:

If youre starting your own channel, your videos must be very

well made.
Focus on providing value and showcasing your brand.
If sponsoring other videos, make sure that your products are of a
higher quality. Packaging, inserts and the product itself need to
look professional.
With thousands of videos uploaded every minute on YouTube,
your videos can easily get lost, have a keyword strategy in place
and leverage other social media networks to get views.

If used right, YouTube can be the single platform that elevates your
brand from a small business to a well-known brand loved by its
audiences.

Unless you have enough video making or editing experience, I

wouldnt suggest you make YouTube videos yourself(as a brand),
instead, outsource the whole process or even better, leverage the
audience of other YouTubers.

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 Social Media For E-Commerce Sellers

Social media and E-Commerce are a perfect match for each other!
No other platform gives you the ability to showcase your products
in front of thousands of potential buyers. When it comes to
promoting your products on social media, you need to focus on
these points:

1. Show what your brand is about(your brand story). People are

more willing to buy from brands they can connect with.

2. Run Giveaways, Polls and Promotions frequently. These will not

only boost sales but it will also give you some great data about
your customer base and buying habits.

3. Show unique features about your products and great looking

pictures will attract more followers.

4. Use social media to provide great customer service. Check your

inboxes frequently and reply to comments you get on your posts.

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However, the most powerful way to gain followers and exposure to
your brand via social media is by advertising. Facebook and
YouTube provide the best converting advertising platforms and
give you a lot of data about your customer behaviour.

Amazon PPC can get very expensive after a while and social media
is another great way to drive traffic. It is recommended to not drive
traffic directly to your Amazon listing via social media advertising,
but instead, use the following strategy:

1. Set-Up your Facebook/Instagram/Youtube Ads targeting your

ideal audience.
2. Links should point to your website or E-commerce store.
3. Have a landing page and an offer to get email subscribers.
4. Provide customers the option to either buy from your website or
Amazon itself.
5. By driving traffic to your website you have the ability to collect
email subscribers. Email subscribers allow you to:
6. Pitch offers during holiday seasons or when you experience slow
sales.
7. Connect with your customers to build a relationship with your
brand.
8. Send an email blast when launching new products so you not
only get some sales, but also some traffic to your listings.

Social Media Marketing can be a great asset to have for your

business. No other tool comes close when it comes to connecting
with your target audiences and getting exposure for your brand.
Keep in mind that social media is a slow process and not every
platform will suit your brand.

We recommend focusing your efforts on 2 or 3 social media

platforms and outsource the rest to a virtual assistant.

Find out how to maximize sales through social media on Import

Dojo Brand Evolution!

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Chapter
Eleven
Inventory Storage &
Fulfillment
This chapter will be on a completely different, but equally
important subject Inventory Storage & Fulfillment. When it
comes to product-based businesses such as ours, its important to
not only get your logistics right, but also have the best rates and
fast shipping.

I have used both FBM(Fulfilled by Merchant) and also FBA so I will

also give my point of view on what works and what doesnt.
Although my main focus is on FBA, I normally still leave some units
in a storage facility either to reduce my Amazon fees or to fulfill any
orders from my own Ecommerce store.

This chapter will be all about how you can manage your inventory
effectively and save fees when compared to Amazon. I will also
show you how you can use a third-party fulfillment center to take
advantage of busy periods such as the Chinese New Year or the
December holiday seasons.

So lets have a look at what options are there for importers or

sellers and explore different ways on how you can manage your
inventory effectively.

What To Look For In a Fulfillment Center?

If using a third-party fulfillment centre, ideally it should be as

similar to Amazon FBA as possible in terms of service and
efficiency. However, here are some features I look for when making
my decision:

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 The fulfillment centre should be in a strategic location so I
reduce shipping costs from the country of origin.
The FC should have a backend software system that enables
me to track my inventory and gather other important data(fees,
shipping rates, SKUs comparison, etc.).
They should have integrations with all major Ecommerce
marketplaces(Ebay, Amazon, Shopify, BigCommerce, etc.). This
allows me to manage all my marketplaces(in terms of logistics)
from one place.
Their shipping rates should be as low as possible and they use
all major courier services. Never use a fulfillment center that
relies on one courier as it limits your options.
If Im using the fulfillment center exclusively for Amazon, I look
for ones that have extensive experience dealing with FBM. The
requirements are more strict when it comes to FBM and a few
late shipments can compromise your Amazon seller account.

The Benefits of Fulfillment Centers

Backend dashboard allows you to track inventory and shipping

status of your products.
Cheaper long term storage than Amazon.
Some FCs offer great rates for oversize items and storage.
Ultimate control over pricing and customer experience(if selling
from your own store).
Brand-able shipping packages.
No restrictions on inserts or marketing materials.
Multiple integrations with eCommerce marketplaces.
Ability to process returns easily.
FCs can make custom orders for special clients

As you can see, choosing the right fulfillment center has a lot of
benefits and if youre planning on launching your own store, a FC
outside of FBA is recommended.

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 FBA Prep Centers

Prep centers are storage facilities specifically used for preparing or

assembling your products according to your requirements. FBA
prep centres will make sure to prepare your shipments according
to Amazons guidelines. This service might be very useful if you
want to make sure that you have everything in order or if your
product(s) come in multiple pieces and need assembly.

Nowadays prep centers have evolved and offer multiple services,

including:

Goods Inspection.
Product Photography.
Labeling, Knitting and Bundling.
Storage.
Inventory Updates.
& much more.

Please note that prep centers dont fulfill any customer orders, they
should be exclusively used for storage, inspection and prepping.

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 Location, Location, Location!

When choosing a fulfillment center or storage facility, location is

very important. Since ideally you want to save on shipping costs
from your supplier/manufacturer to the destination(if not an FBA
warehouse). When it comes to locations, my preference would be
coastal states in the US. In particular:

1. New York
2. California(Los Angeles preferred).

If your supplier is in China or any other Asian country, Los Angeles

would be my choice. LA has both the busiest port and airport in the
US in terms of cargo, making it an ideal destination to ship your
inventory. Also, a lot of fulfillment centers and storage facilities are
situated around LAX airport or close to the port.

Shipping your goods domestically will always be cheaper, so the

only way to save time and money with your imports is to pick the
closest location in the US from your supplier/manufacturer.

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 Amazon Multi-Channel Fulfillment

Image Source: Forbes

Amazons multi-channel fulfillment service where you can use FBA

to fulfill third-party orders such as Ebay or your own ecommerce
store. This is extremely convenient if you want to have all the
shipping and fulfillment in one place. However, in my opinion, the
Amazon fees are quite high and you even have to pay extra to have
a multi-channel order.

If you dont have a lot of sales from other channels you can use
Amazons multi-channel fulfillment, however, if you really want
ultimate control over pricing and customer experience on your own
website, you should pick a third-party FC.

Fulfillment centers, prep companies and storage facilities allow you

to diversify how you manage your inventory. If you sell on your own
ecommerce store or have large/oversize items, a fulfillment center
will help you reduce your fees substantially.
I would still suggest you to use FBA if most of your sales come
from Amazon, however, ideally you would want to expand into
other sales channels. By using a FC you would have ultimate
control on pricing and customer experience.

Learn about inventory & fulfillment with Import Dojo Brand

Evolution!
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Chapter
Twelve
Product Branding
 Product Photography (Taking Your Own vs Hiring a
Professional)

Why are great product pictures important? When people come to

your website or Amazon listing the first thing they do is to look at
your pictures. The customer bases his immediate buying decision
on your photos.

It seems so obvious but yet I see so many listings with very poor
product photography. Even if the product itself is great a poor
picture can decrease your conversion immensely.

Lets take a look at two examples:

I look for a wooden cutting board on Amazon and I find a few

listings. The well performing listings (even if not the best product)
have great listings. Take a look at this photo:

And now take a look at this photo of a listing that is performing

poorly:

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This product is actually equally good and the seller even stresses
out FSC certification (sustainably harvested wood). Me personally I
would rather buy the FSC certified product but the picture is
turning me off.

My suggestions is if you are not a professional photographer then

please hire someone to take photos for you.
Yes, great photos may cost you a bit of money but it is a one time
investment and it will pay itself off. Also while sometimes
Photoshop can be used for retouching, adding shades and effects I
do not recommend using Photoshop to edit your product picture
into an environment. It just looks cheap.

Custom Packaging - Standing Out From Your

Competition

Ive posted about custom packaging in a previous blog post which I

think is a comprehensive guide. Have a look and get some ideas
there.

The point is to think outside the box and reflect the product on the
packaging. E.g. the Nike Air packaging or Cigars in a wooden box
that reflect a humidor.

Shipping Boxes

Make sure that you use enough carton strength when shipping
your products. The unit packaging needs to be at least 26 ECT
(Edge Crush Test) see above blog post.

Until your product reaches your customer there are many hands
involved that handle your packaging. So youll want a sturdy and
compact packaging.

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 Use thick carton (32 ECT minimum) for export cartons and add a
sticker that says Fragile handle with care. No matter if the
product inside is fragile or not, this will improve chances your
cartons are handled more delicately by the courier or logistics
company.

Insert Cards & Marketing Materials

Add insert cards as simple as the below one where you can ask
your customers to leave a review or also sign up on your website
so that you can collect email addresses.

141
Also include Instruction Manuals (if applicable). Even if your
product is self-explanatory some customers appreciate a guide on
how to use a product. You can even add some tips or reference
another product of yours that will make the customer come back.
For example if I sell my French Press I also add: in the unfortunate
case that you break your glass, we have a replacement glass
available on Amazon. Another example would be to reference a
spare part that is only available through you. Or something along
that line.

Having great photos is essential to show the visual aspect of your

products. Great photos will help you sell your product, especially
on Amazon where customers often look at the photos to determine
if they should make the purchase.

If you dont use external marketing methods such as YouTube

videos to showcase the features of the product, chances are that
great photos are your only way of attracting customers to your
brand.

When it comes to selling products, most sellers only focus on the

product itself. A lot of people dont realize that the product
packaging is also a part of your product. This applies especially if
you rely heavily on marketing or want to expand into retail and
wholesaling.

Look at YouTube for example, a lot of product review channels put

a lot of focus on a brands packaging. What this means is that good
packaging will help you sell more of your product.

Another thing to note is that great packaging can also help you get
more positive feedback or reviews on Amazon. These days online
shoppers purchase a lot of products at any given time, by making
sure that your packaging wows the customer, they are more likely
to remember your brand and comment positively on the
experience.
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Great brands put a lot of effort in making their products look good,
and so should you! With proper product branding you will help
attract more customers and gain more confidence in your brand.

Learn how to brand your product with Import Dojo Brand Evolution!

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Chapter
Thirteen
Moving To Retail &
Wholesale
My background is actually retail, so I naturally started out with retail
before moving onto Amazon. When a friend told me about FBA I
didnt even know that Amazon lets third parties sell on Amazon.
I thought they only sell their own product. I am glad that friend
pointed me to FBA, otherwise it would have been a lot more
difficult to get my brand off the ground.

It has been nearly 3 years since I started my own business and as I

said I started in retail. I had collected many contacts in retail and
that was the natural way to go for me.

Looking back I am happy I started out in retail as it helped my

brand immensely to get exposure while creating a second income
through Amazon.

The ultimate goal of any brand or company is to get their products

in front of as many customers as possible. The only way to do this
is by listing your products through all the sales channels that are
available to brands.

The most powerful or rewarding sales channel is retail and

wholesaling. Retail has the power to move your product quickly,
thus getting huge exposure for your brand and products.

The Challenge

Retail is notoriously one of the hardest sales channels to get into.

Your products must not only be appealing to consumers, but also
packaging and marketing materials have to be of a higher standard
than E-commerce..
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However, one of the hardest challenges is finding retailers who are
willing to take on a new brand and its products. Retailers often
dont take huge risks with their capital and prefer to invest in brands
that are already established or brands that carry really unique
products.

So the key is to have unique products rather than generic.

Selling a Garlic Press that has some accessory doesnt make you
unique. The retailer will buy this product from his trusted source.
Larger items also have the issue of shelf space; which in retail is
limited. On top of that you cant just knock on a retailer's door and
expect a smooth and fast process.

Retailers have decision maker hierarchies and it is often difficult to

get to the right decision maker. Often times retailers already have
their suppliers or connections and they arent open to a new
supplier. Reasons being that they already may have great buying
conditions and relationships with their existing suppliers.

In some cases I worked on a potential retailer for over 2 years

before getting an order (in my previous job) and in those 2 years
there were 3 changes on decision makers and I had to start from
the beginning again.

The new guy might not be open to you as the previous guy was
and maybe he is already bringing sources/suppliers to the job and
you need to start all over again convincing the new guy.

On top of that most larger retailers get emails and phone calls
every day from new suppliers wanting to sell them their product.
So it is a long and windy road to get into retail, sometimes as much
as 2 3 years. But once you have your foot inside the door you are
in a great position.

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 Solution

One word relationship. If you have a good relationship the price

or your product doesnt really matter.

Someone is likely to buy from you if you have a relationship with

him right? The more credentials you have and the more history you
have with a person the more likely that person is to buy from you
right?

An example. Lets say you need a new health insurance. You

already have an insurance from your trusted childhood friend (lets
call him Steve). Steve is quite expensive and maybe his insurance
package doesnt even have a lot of benefits.

But you still buy from him because hes your friend and youve
known him for years & on top of that you trust him. You even have
him over at your house for BBQs, you meet up for beers etc.

You get a phone call from an insurance company trying to sell you
a new health insurance with much better benefits. You dont know
this company but the offer sounds appealing.You take the offer
and go to Steve and tell him he needs to make the same offer or
you buy from this new insurance company.

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Steve probably cant make the same offer but hell adjust his old
package and give you more benefits, maybe even at a better price.
On top of that he throws in a coupon or voucher for shopping at
Amazon.

You close the deal with Steve. Thats the power of relationships.
And thats how retailers work they have their trusted sources and
relationships. You need to become Steve.

Many of those relationships especially in the old days included

some sort of bribery. For example if you switch to a new supplier
that supplier would buy out your entire old stock from the old
supplier. Back in the 90s it wasnt unheard of that a new supplier
would invite you over on his yacht and take a trip down to the
South of France.

Thankfully these unfair tactics arent accepted anymore at least

not with multinational retailers. There are strict enforcements in
terms of bribery in big retailers. However, the relationship factor still
plays a key role in doing business.

Today it's just called wining and dining a customer. You take the
customer out for a steak dinner and a nice bottle of wine and you
probably dont even end up talking business but a few days later
youll get an order.

Now the key is to build a relationship with the buyer. You probably
wont be able to close a deal for months or even years because
every offer you send to a new prospect ends up in the trash
inbox.

1. Start out by visiting local stores that have maybe 20-30 stores in
the area/country or state. Try to get an appointment with the
Manager or Purchasing Department. Once you have an
appointment prepare yourself with:

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- Company presentation (Powerpoint / PDF)
- Product Catalogue (Can be PDF but prepare something nicely
and dont just show a link to your Amazon listing)
- Bring samples and business cards
- Bring your wholesale price list

A store can probably take up 5 pieces per item/per store. So 30

stores makes 150 pieces, not bad for a first order.

2. Once you are listed in a smaller or local store look into larger
retailers that have 100-200 stores.

Same principle applies in terms of preparation but you are

probably not the only one knocking on their doors. So you need a
bit of track record with a smaller retailer or your online portfolio.

Retailers with more than 100 or 200 stores probably have their own
purchasing department, maybe even a buying office in Asia. So you
need to get to the decision maker.

There are several ways to get to decision makers but the most
effective yet also most frowned upon are cold calls.

Email the decision makers or better cold call first. There are cold
call guidelines for free on the internet. Key is to let the buyer speak
and you only listen. Most buyers just want to talk about how great
they are, let them. You need to make them feel that they have the
upper hand.

After your first cold call, follow up on the topics and email a
proposal as discussed in the call. Give it a few days and then either
email or call again.

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3. Exhibiting your products at a local or international exhibition is
the best way to find retailers and wholesalers.

This time the buyers come to you and all you really have to do is
follow up with the topics of the discussion.

The key takeaway here is that getting into retail really is a marathon
not a sprint but it can be very rewarding

The Rewards

The best thing about retail are re-orders. You might not make much
money on the first order but if the item sells well re-orders will
come and often times in much larger quantities than the 1st order.

The good thing then is that the entire process is already set up and
all you have to do is to place an order with your factory, knowing
the entire process with the retailer. Or if you have stock back home
you can just send in the new order to the retailer from your
warehouse. From some retailers I get re-orders every 1-2 months
for the same product and all I have to do is place an order to the
factory and ship the item to the customer.

These orders can be 2-5,000 pieces each time. Sometimes I make

1$ on a product, sometimes 5$. So in 1 day I can make 25,000$ in
profits not really doing anything (a bit exaggerated theres still
work to do ). Imagine how many months youll have to sell on
Amazon for an order and profit that large.

Getting into retail is very hard but as I said it can be very rewarding.
Its not a sprint so some deals can take 2 or more years but if the
client is worth it dont give up. Obviously the above is just a short
visit into the topic, theres much more to it such as contracts,
advertisement material, sampling, pricing structures etc.

Learn how to expand into Retail with Import Dojo Brand Evolution!

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Chapter
Fourteen
Moving Forward From
Amazon
Amazon is still the number one E-commerce marketplace in the
world, and it will be for a long time. Although we believe that
Amazon has some disadvantages for sellers who wish to have
complete control over their business, you should always list your
product there.
Currently, the markets which we recommend expanding to, are:

1. Amazon EU(UK & Germany should be a priority).

2. Amazon Japan

These marketplaces have a much lower volume than their US

counterpart, however, the traffic and sales are increasing year-on-
year and Amazon has been investing heavily to attract buyers &
sellers to their marketplaces outside the US.

Expand Into Other E-Commerce Marketplaces

There are a number of E Commerce marketplaces that allow you to

list your products, some also have a similar fulfillment service like
Amazon FBA. While not all ECommerce marketplaces are
ideal(some have very low sales volume), this will allow you to
increase your brand visibility and target markets which your
competition is unlikely to target.

In my opinion, the marketplaces that make the most sense to

register a seller account are:
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 Walmart & JET
Newegg
Sears
Ebay
Rakuten

Focus On Growing Your Online Store

Having your own E-Commerce store is only to have complete

control over your brand & pricing. One of the things I like about
having an E-Commerce store is that I have complete freedom
when it comes to:

1. Creating special offers/giveaways.

2. Store Design & Branding
3. Customized Packaging
4. Control over Customer Service & Experience

However, the best thing about having your own store is that its a
challenge! While Amazon definitely needs some mastering all the
buyer traffic is already there! With your own store, you need to
spend an enormous amount of time dedicated to bringing traffic to
your website.

While this requires a lot of hard work and testing, in my opinion, its
more rewarding and it can be scaled significantly once you have a
working formula
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 Outsourcing

We feel this step is the most important part of any business. A

successful business is a scaleable business. While you should
always retain control over the key tasks of your business, it is
important to delegate tasks, especially those tasks that are time-
consuming or you have no expertise in.

With the rise of freelancing and outsourcing websites, it is very

easy to find very skilled freelancers or companies for your
business. In my opinion, these are the tasks that you should
definitely outsource:

Importing & Business

Product Inspection
Product & Packaging Design
Logistics(Freight Forwarder, Warehousing etc)
Product Sourcing
Legal & Accounting
Social Media Marketing
Company Branding
Graphic Design

Of course, what tasks you outsource depends entirely on you,

however, if you want to scale your business and achieve freedom,
you need to delegate tasks.

Check out Import Dojo Brand Evolution to learn on how to expand

to multiple sales channels and grow your brand!

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Outro
This concludes this E-book. Dont be scared of what may seem to
be a lengthy process.

Once you have mastered the important steps what you need to
focus on comes naturally andthe rest will be like a walk in the park.

These steps should help you to cover every aspect of importing

goods to your home country. Manuel wrote several other books
that are available within the course of our site. Head over to
ImportDojo and see how we can help you:

www.importdojo.com

For any question you may have, you can contact us here:

mail@importdojo.com

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