My very first profitable business was importing products from China and selling them online mainly through Amazon & eBay. I started out with counterfeits at 12-years old, and by the time I was 17 I had built multiple different e-commerce brands into an empire I was proud of.
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I was incredibly confused when I was first getting started. I had hundreds of questions racing around my head:
When youre trying to start a new business from scratch, youll find your mind running in circles unless you have a clear direction to run into
So my goal is to make this the definitive A-Z guide to starting an importing & e-commerce business from scratch. Its what I would do, step-by-step, if I was starting from zero.
Ill give you every step of the process, and also give some insights on the why behind my strategy. Ill also be adding to this over time (as I get questions from readers), so be sure to bookmark this for future reference.
Finally I encourage you to follow this guide step-by-step, and to avoid jumping around. Importing products from China and selling them online is an incredibly simple business model its only when you do things out of order that it becomes confusing & complex.
So without further ado heres the story of my rise & fall in the importing/e-commerce industry, and how you can launch this business for yourself
First things first, lets wrap our heads around the concept
This is a simple business model thats easy to overthink. There are lots of moving parts that can feel risky or confusing. It reminds me of one of my favorite quotes:
Everything is simple until you make it complicated
Understand that starting this business, like starting any business, will require taking some risks. If you dont know what youre doing, its easy to end up with $1,000 worth of iPhone knockoffs in your garage (or $1,000 worth of nothing at all)
That being said if youre careful, have a solid roadmap (this article), and a bit of hustle you can build a profitable business for yourself with a relatively small amount of time/work.
Its important to understand your battle plan before going off to war
Heres the basic game plan:
Heres the BIG pitfalls to avoid (all explained in more detail below):
Well, I hope that gets you in the right mindset. Lets get into the beef of it. BEEF.
GET THIS CHEATSHEET FOR FIGURING OUT PRODUCT WINNERS
Finding a great product is typically the first & last place new entrepreneurs get stuck. If you dont know what youre doing, its easy to get lost in the abyss of product research
Luckily, this is also where I can help you the most
Ill show you how this works in a moment, but first let me tell you how I discovered this method
When I got started, I went straight for counterfeits (purses, wallets, shoes, workout guides, etc). I made a KILLING selling these through eBay, Amazon, Craigslist, and in-person but quickly decided to get away from them. I didnt want to build a business on a questionable legal foundation, and you shouldnt either.
I gave away these counterfeit businesses to two different friends. One friend had a ton of success selling workout guides via Craigslist in NYC and delivering them by foot. The other friend one was not so lucky. He was hounded by lawyers and even private investigators, until he was eventually sued into bankruptcy (and had to give up all his fancy toys that counterfeits paid for).
And thats why you should avoid counterfeit products. Like dealing drugs Im not saying it wont make you money, because it will. Im saying you shouldnt do it because selling counterfeits is not a business its a limited-time hustle. So dont do counterfeits
Since I was already selling products online successfully, I figured it would be easy to switch from counterfeits to legit products. However, I found out finding legitimate products to sell is a much different game. I had quite a few failures before I began to figure things out.
Heres some of the bad products Ive imported (and why they were bad):
I could go on all day about my early setbacks, but thats not what you want to hear about
After hundreds of overwhelming hours spent researching & selecting duds, I was ripping my hair out. I was trying so hard to find the PERFECT product one that would solve all of my problems. But all I was doing was losing money.
In a moment of desperation, I was about ready to call it quits. I was going over everything I had done, and all I knew was that it wasnt working. After many hours of thought, I decided that I would give it one more shot. I knew that the business model worked, and that I was clearly doing something wrong. So I decided to switch it up
Up until that point, I had tried to find products in the way that most people do. I was simply looking for products that I could buy for much less than they were selling for online. But clearly, that was not working for me.
What I realized is that sourcing products is not the tough part. The tough part is finding products that you can sell consistently. So I decided to flip the entire concept on its head, and instead try to focus on what people were buying. Instead of simply looking for cheap products from China, I was now searching for demand in the marketplace that I could sell into and then worrying about sourcing the product later.
Simply put it worked
The first product that I worked for me were Motivational Pillows, which were cheap to ship & easy to make variations. From there, I was on a roll. I sold all sorts of random products, from Competitive Samurai Swords to LED Lightbulbs and I was making good money with all of them.
Youll probably sell a collection of random products for a while, until you eventually stumble over what I call a beachhead product
I use the term beachhead as a reference to D-Day during World War II. When the Allies invaded the beaches of Normandy, they secured a foothold in Europe and then expanded throughout Europe.
Thats exactly what we want to do with our beachhead product gain a foothold in our niche and expand out into a full product line/brand from there.
For me, my first beachhead product was a specific airsoft gun. I stumbled over the product and sold a few, as they seemed to be popular. Immediately after selling these airsoft guns, I had customers emailing me asking for more. They wanted BBs, they wanted masks, they wanted vests they wanted to give me money for all sorts of things. So I happily obliged
Airsoft quickly became my bread & butter. I eventually stopped selling most other products to focus specifically on my airsoft business, which was selling 15-30 airsoft guns daily right off the bat.
My First Beachhead ProductAs I sold more, my relationship with my supplier kept developing and my prices kept getting cheaper. I was easily undercutting all my competition with a great product, and still coming away with a clean $10-30 profit per unit. And best of all, I didnt even have to touch the product my supplier even handled all shipping & returns.
I had finally done it and it all snowballed very quickly. Hundreds of hours of frustration finally worked, and it worked fast.
Now that you know my not-so-smooth journey, lets talk about how you can find good products for yourself
Finding great products to import & sell really comes down to these 3-steps:
BRAINSTORM > RESEARCH > SELECT
So lets get started
Your goal is to find a dream supplier for ANY product you are making money on, because then you can focus on growing the sales of your business rather than on customer service and shipping.
It isnt easy, but if you follow my advice below you will greatly increase your odds of finding a great supplier and product.
Your best friend in the importing business is AliBaba. I have used it for every single product I have ever imported. I use it for my own businesses, I use it for clients, and I know a ton of people that use it. It is an awesome resource.
Dont fall into the traps of Doba, WorldWideBrand, Volusion, or whatever other scam solutions are out there to find suppliers. I made the mistake of trying all of these when I first got started, and just ended up wasting hundreds of dollars for little to no value. Just stay away from these, trust me.
With AliBaba, you will be looking at only Gold members. I dont care how awesome of a deal you get from a non-gold member, or how many factory certifications they have, you DONT buy from non-gold members. Just following this rule will help you to avoid 98% of the scams and bad suppliers. Any other certifications or whatever are just icing on the cake.
You really want to find a supplier that will do cheap samples, offers PayPal payments (even at an increased rate, use PayPal), and seems to respond to your communications quickly and effectively.
Open up AliBaba for now, as you will be jumping back to it frequently while researching product to know if you can make a profit. If you need more clarity, we wrote a detailed post to guide you with buying from Alibaba and avoid scams.
There are a few limits on what kinds of items you want to sell
Other than that, you are really free to explore whatever comes to mind.
What I would do is go onto a few sites and browse around
Just keep looking through the market data on those sites and comparing it against what you can get from Alibaba. It may take some time, but eventually you will naturally learn what works and you will start finding great product opportunities left and right. If you really have issues finding a product, comment below or me and I will see if I can help [will at startupbros dot com]
Eventually youll find some opportunities that you want to move forward with. The next step is to start talking to suppliers and getting your hands on some samples. Dont worry, they all speak english (kind of)
Now that we have a product, we can start sorting through suppliers and contacting the ones that look promising.
All I would do is
*Note on Minimum Order Quantities* I had a lot of people mention to me that the MOQ posted by many Alibaba manufacturers is extremely high, so I figured I would paste my response here
The minimum order they list is generally not concrete, and is most of the time their average or desired order size. There is no way to know for sure without messaging the suppliers directly, which is why I go for 15-30 initially.
In my experience, Chinese factories will go through many hoops to work with you on order sizes, unless they are a MASSIVE factory that only ships via sea. If they use normal air shipping at all, they shouldnt mind sending out even a single item via air (which is what they do with samples anyways).
Again, with some items it will be different than other. For instance I looked into selling LED lighting that attaches to the sides of buildings, and the margins looked great, but the MOQ ended up being somewhere around $5,000 of lights due to the purpose of the item (to run down entire high rise buildings). I skipped over that one.
Another option is AliExpress.com, Alibabas site for smaller orders. You will generally get better prices for the same amount on Alibaba if you are willing to put in the effort to communicate with suppliers, but AliExpress is always an option. So we wrote an article you can use if you choose to buy products on Aliexpress.
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After all of this, you should have at least one solid supplier for a product you know will sell. Guess whats next
At this point, you are going to have to make a decision about your inventory. If it were me, I would invest the couple hundred bucks and buy 5-10 pieces of my product to get started. You can certainly buy one at a time to start and that will work, it will just be a slower start.
I guess now is a good time to mention that I have not found drop shipping to be a viable option for somebody just starting out with a new supplier. The only times I have ever had successful drop ship relationships with suppliers is after a long and prosperous history, at which point they work with me to get their American distributors to drop ship. More on that later, but I thought I would mention it as you dont want to do that just starting out, it almost always ends with unhappy customers and banned accounts.
Anyways, you need to get a few pieces of inventory and start selling them.
I only suggest using TWO of these THREE sales channels when first starting out Amazon, eBay, Craigslist
Notice I did not say spam your friends on Facebook and every forum you can find about it. That is a ton of work and will produce very little result for you. Not once have a I tried to sell things to my Facebook friends, I barely even tell them what I am working on unless asked.
It is relatively easy to set up shop on all of these I would just look at what the top sellers of your products are doing and then try to improve upon that. Most of the time, the copy text used in eBay and Amazon ads is free domain from the manufacturer, so you can get a lot from other sellers and simple Google searches.
Within a day or two after getting your product up, you should begin making sales. This is when things start to get really exciting. Just ship out your products at the closest post office and wait to see what happens. Make sure you ship as soon as you can and pack everything well obviously, but I am assuming you guys know how to ship things so I wont go into much detail. Make sure you ship immediately, and make sure you pack it up well. I would also suggest throwing in a thank you note with a website or some way to turn these guys into recurring revenue (see below for more on this).
You should know pretty quickly if you are making money and what the problem areas are.
Within a month it should be painfully apparent if you need to find a new product or if you should scale up your current product.
If you cant make a profit with your product on those sales channels, then I dont think it is worth it to put any more effort into that specific product, and I would look for another product to sell.
Given that you are finding success with your product and have no deadly hiccups (lucky those dont exist), lets move on to scaling this baby up.
After I had my airsoft guns up on eBay and Amazon, all I had to do was keep track of inventory and shipping. Being 15 at this time, I was ecstatic.
I slowly started to add more products to eBay and Amazon, started sending out promotional materials with my shipments, began advertising, and started a brand name behind my online business. My 20 order per day average quickly swelled to 30, 40, 50 sales per day.
Keep in mind that NONE of this would be possible if I didnt find an awesome supplier in the first place. If youre reading REALLY closely youll notice that I was 15 now, and it took a full 2 years of many mistakes and marginal success before I got to this point. Hopefully from reading this article, you can skip most of those mistakes and get right to the success.
I didnt really know what I was doing and was kind of just throwing money at things and seeing what works. It was an awesome learning experience for me, and I learned a ton about what works and what doesnt work in marketing and growing online sales.
Here is the stuff that I did to scale up my sales that will probably work for you
And the stuff that didnt work
If you are unsure about a marketing method you are thinking about trying, just comment below or me and I will tell you what I know about them
Keep in mind that the only money I was putting into this was reinvested earnings. You can certainly spend out of pocket to grow faster, but my goal in this post is keeping your risks low while still growing, and bootstrapping (funding your growth from internal operating revenue) is the best way I know to do that.
If you follow this tutorial, you will eventually be where I was making a solid 50 orders a day. At this point shipping and inventory are going to really start taking a toll on you and your time. Youll want to work on moving in one of two directions
If you get past this point, it is really up to you where to take it. I preferred to keep it at this level (automated cash flow), but you could certainly grow this as large as you wanted to. There is no real limit on how much money an importing business can make, and you have built a solid foundation to build off of.
New Post* The Ultimate Guide to Sell on Amazon in
At this point, there was very little that could go wrong. Short of some horrible unforeseen event taking place, I had a steady stream of automated income coming in one of the first ones I had ever built.
Then there was a horrible unforeseen event
I dont remember the exact circumstances, but the Chinese ports suddenly stopped shipping airsoft guns out. For over 3 months, I couldnt get any airsoft guns out of China.
I know it was more than 3 months, because that is when I was forced to throw in the towel.
I searched around for a replacement supplier from anywhere I could, but the prices had just skyrocketed. On top of that, I had a bunch of orders I couldnt fill and angry customers
With many new projects sprouting up, and being only 16 at the time, I refunded everybody and moved on
I did make enough money to invest elsewhere, most of which was lost on other ventures. I learned more than I did in my entire schooling career with this business, and I hope I communicated everything well enough to expedite your learning curve.
The only thing to do now, if you havent been this entire time already, is TAKE ACTION! If this strategy intrigues you, get out there and at least try to put this stuff into action. Make it happen!
Please comment below if you have any problems, questions, or suggestions with any part of this I will be responding to everything immediately for the next couple of days.
Good luck, and talk to you below!
Note I have since written a follow up to this post called Step-by-Step Guide on How To Find A Profitable Product To Sell
What are your powder coating questions and challenges? Joe Powder, aka Kevin Biller of ChemQuest Powder Coating Research, shares his powder coating knowledge and expertise by answering questions sent in from around the world.
Hello Joe,
Can a steel powder-coated insert work inside pressure-treated lumber? This is for an outside fence where I have a decorative steel insert placed into a pressure-treated fencepost.
Thanks so much,
Joe Pozeg
Kitchener, Ontario, Canada
Dear Mr. Pozeg,
I think that I know what youre asking. It sounds like you wonder if a powder-coated steel item that has been inserted into pressure-treated lumber will withstand the elements. There are at least a couple of issues. Is the powder UV durable? And will the powder resist the nasty chemicals that are present in the pressure-treated lumber?
As for the first question the powder will resist fading, chalking, and corrosion if it is a good-quality polyester or polyurethane powder. Hybrids and epoxies will chalk and fade if exposed to sunlight.
Now for your second question the powder will probably resist the pressure treatment chemicals. Its important to ensure that the steel is clean and chemically pre-treated before applying the powder coating. Unclean steel will compromise adhesion and corrosion resistance. Pre-treatment (iron phosphate or zirconium) will enhance adhesion and corrosion resistance more so. You also need to ensure 100% coverage of the steel. Voids in the coating provide excellent sites to propagate corrosion. I hope this helps.
Good luck,
Joe
Dear Joe Powder,
We lease out a 7,500-square-foot building to a company that does powder coating. They have asked permission to build a small building next to the current building to sandblast products prior to powder coating (so they can sand blast in a contained area).
What kind of issues should be discussed with the lessees to be sure they are not contaminating the land around the building and/or the building? What questions would I need to know to have someone inspect to see if all is OK? What kind of inspector?
Thanks,
Kara Lynn Rankin
Vancouver, Washington
Hi Kara Lynn,
Thanks for the message. These are excellent questions. Here are some issues to consider:
Who should inspect this process? Good question. Your choices include: a local representative from your states EPA, an independent powder consultant, or possibly a representative from your insurance company. The larger insurance companies have environmental experts that offer their services as part of your insurance coverage. I have had success using them through the years. Some state EPAs will inspect processes and render recommendations (maybe more like mandates) for the handling of emissions and effluents.
I hope that this helps you.
Good luck and let me know if you have more questions,
Joe
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