Any suggestions on selling physical products - is there money in it?

by bmonthnet 12 replies
Hello;
I have been on the WF for a while now, I just have not been to active on here, probably will start to be.
I started out in network marketing, and in MLM. I believe there is a learning curve in able to get the most out of internet marketing, at least to a point.
I started in 2007 with network marketing, and for some reason saw more challenges then I was hoping to. I have done a tremendous a lot of research, and my analysis is that it does take some risks, and some commitment to go all in.
I did quit for a while to digest it all in for a while, and to see what direction I would like to go into. I started having no idea where I wanted to go and what my end result was going to be.
I am now leaning toward selling physical products. I did have some minimal success using ebay.
I am considering using both Ebay and Amazon as starting points for selling physical products. I am looking to store my own inventory a little at a time. The Amazon FBA program is where I am most likely looking to begin. Mainly I am looking to buy products as low as I can and have a small inventory of my own, while also doing a fair amount of research to see what the competition is selling.
My question is what does it take to sell physical products?
Is it a good business to get into?
What are some suggestions to being successful selling physical products.

This is primarily where I am looking to start for the long haul then possibly branch off into the more traditional network marketing business model. I would love to hear what has worked for some of you and what are the pros and cons of selling physical products. Any good places to start, is the term e-commerce a good way to start a business?

I will be looking to hear from you...
#ecommerce sites, wholesaling & drop shipping #money #physical #products #selling #suggestions
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  • Profile picture of the author Importexport
    Selling physical products online is a massive business, and if you do your marketing research first you will be off to a good start. What products will sell? What price can you realistically expect? What will be your selling costs? (eBay, Amazon, PayPal, Postage etc.)

    Then you need to locate goods that you can sell at a big profit. I'm not suggesting you be greedy, but higher profit margins make it possible to cover surprises including competition.

    My view is that profit starts with buying. If you don't buy at the best price, you're throwing money down the drain. Forget about all the suggestions on the forum that you should look for wholesalers. Just think for a moment - Q: Where do wholesalers get their goods from? A: Manufacturers. And they add a big margin before selling to you.

    You can buy direct from genuine manufacturers in China and other exporting countries at phenomenally low prices, and you don't have to place huge orders. I've had quie a few newbies start their profitable importing businesses with as little as $300.

    For some idea of what's involved in the safe sourcing and importing of physical product, you might like to have a look at my AMA: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.

    You can ask me questions there and get answers from someone who has been there - done that for many years.

    Walter Hay
    Provenchinasourcing
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  • Profile picture of the author mattburgessbc
    I sell physical products on Amazon and have been for the past year, here's a few things I've learned so far. 1) You are going to need a lot of money to start and scale a physical product business, Inventory is expensive.
    2) If you plan on selling Amazon, the fees are high so make sure you listen to Walter in the comment above me and run the numbers to make sure your margins are good enough before you start selling.
    3) Inventory management is a pain in the ass trying to figure out when to re-order, how many to re-order, so that you don't buy too many at once but also so you don't run out of stock
    4) When it comes to selling on Amazon its all about listing quality, number of reviews and price. The listing quality and price you can control but getting reviews is Very Hard I've found
    5) The more value your product has, the more you will sell. I know that sounds obvious but a lot of people think that by just finding a product in Jungle Scout that has low competition and then white labeling a product and throwing it up will make you win in that category. This strategy doesn't work anymore in my opinion

    Good luck man and message me if you have any questions
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    • Profile picture of the author sams90
      Can I ask how you managed to drive up reviews? Definitely a struggle for new products...did you run Amazon PPC? or use feedback review tools etc?
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  • Profile picture of the author ZanyZebra
    Originally Posted by bmonthnet View Post

    Hello;
    I have been on the WF for a while now, I just have not been to active on here, probably will start to be.
    I started out in network marketing, and in MLM. I believe there is a learning curve in able to get the most out of internet marketing, at least to a point.
    I started in 2007 with network marketing, and for some reason saw more challenges then I was hoping to. I have done a tremendous a lot of research, and my analysis is that it does take some risks, and some commitment to go all in.
    I did quit for a while to digest it all in for a while, and to see what direction I would like to go into. I started having no idea where I wanted to go and what my end result was going to be.
    I am now leaning toward selling physical products. I did have some minimal success using ebay.
    I am considering using both Ebay and Amazon as starting points for selling physical products. I am looking to store my own inventory a little at a time. The Amazon FBA program is where I am most likely looking to begin. Mainly I am looking to buy products as low as I can and have a small inventory of my own, while also doing a fair amount of research to see what the competition is selling.
    My question is what does it take to sell physical products?
    Is it a good business to get into?
    What are some suggestions to being successful selling physical products.

    This is primarily where I am looking to start for the long haul then possibly branch off into the more traditional network marketing business model. I would love to hear what has worked for some of you and what are the pros and cons of selling physical products. Any good places to start, is the term e-commerce a good way to start a business?

    I will be looking to hear from you...
    Is ecommerce a good business model?

    Yes. No. Maybe. It depends upon you. There's nothing 'wrong' with ecommerce but many get it 'wrong' due to their expectations going in to it.

    What is your propensity for hard work? For risk? For tackling problems?

    Most importantly: are you truly entrepreneurial?

    The online world is still plagued by the stench of the get-rick-quick brigade: buy this $47 ebook and you too will be able to run a multli-million dollar business from the beach, using only your iphone, working just 2 hours a week!

    Ecommerce is work. Real work. Takes time to pay off and, of course, there are no guarentees. Unless your mindset is that ecommerce is a real business that requires time and effort, then don't do it. Seriously.

    If you are up for building business then welcome to the game. It took me a while but I now have a 6+ figure a month ecommerce business. I started with amazon (and most of my income is still on there) and I would recommend the same to you.

    Good luck whatever you do and good luck if you decide to venture.
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  • Profile picture of the author DWaters
    I am a big supporter of Amazon's FBA business model and Yes there certainly is money to be made. Keep a couple of things in mind. The majority of people who go online to buy something go directly to Amazon first. Also about 45% of what sells on Amazon is actually sold by third party sellers. So the point is it makes s complete sense to have your inventory on Amazon where people will see and buy it.

    As Walter points out above you make your money when you buy. It is all about buying your inventory items at the right price so that you make a decent margin later when it sells.
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  • Profile picture of the author bmonthnet
    Thanks for your input, point taken.
    Yes, I am completely in for the long haul, because I see e-commerce more of a challenge when you start, but from others I have heard the pay-off is good.
    As for products I am looking into the wholesale market, and international wholesalers which I have heard have the best ROI.
    While I do not have a lot of money to invest right away, I will probably start small and do a fair amount of research. I appreciate the suggestions, more then likely I will need to buy locally, research international wholesaler's and even consider brick and mortar stores that have good deals. I will suspect it will be a challenge, but since I have had my fair share of setbacks in affiliate marketing and the traditional MLM business. I am setting my focus on physical products. Yes I am sure it will take some time, some effort and some money to see any results. As far as purchasing products any other suggestions on finding the cheapest products. Like, I said previously I am leaning toward local, international wholesaler's and even like new products. The only downside I have is I am unable to buy bulk at this time, my efforts will be buying a small amount of products. I am looking to get into a specific type of category to be able to sell. I appreciate the comments thank you..
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    • Profile picture of the author Importexport
      Originally Posted by bmonthnet View Post

      Thanks for your input, point taken.
      Yes, I am completely in for the long haul, because I see e-commerce more of a challenge when you start, but from others I have heard the pay-off is good.
      As for products I am looking into the wholesale market, and international wholesalers which I have heard have the best ROI.
      While I do not have a lot of money to invest right away, I will probably start small and do a fair amount of research. I appreciate the suggestions, more then likely I will need to buy locally, research international wholesaler's and even consider brick and mortar stores that have good deals. I will suspect it will be a challenge, but since I have had my fair share of setbacks in affiliate marketing and the traditional MLM business. I am setting my focus on physical products. Yes I am sure it will take some time, some effort and some money to see any results. As far as purchasing products any other suggestions on finding the cheapest products. Like, I said previously I am leaning toward local, international wholesaler's and even like new products. The only downside I have is I am unable to buy bulk at this time, my efforts will be buying a small amount of products. I am looking to get into a specific type of category to be able to sell. I appreciate the comments thank you..
      I think you might have missed the point in my post. I suggest that you remove the word wholesale from your thinking about buying products for resale.

      The word wholesale appears time and again in retail advertising to give the impression that the prices are low. The same applies in advertising by suppliers who want you to buy from them for resale.

      The fact remains that wholesalers have bought from someone else (usually the manufacturer) for resale to you. Wholesalers aren't running charities. After buying from manufacturers they add a big margin before selling to you. You can bank that extra margin for yourself if you avoid the wholesalers and go direct to the manufacturers.

      Don't believe the often repeated myth that you have to place huge orders if you want to buy direct from manufacturers. I have taught thousands of newbies who have become successful importers, and the majority of them have started off with small orders when buying from manufacturers.

      If you look at the big B2B sites you will see thousands of suppliers quoting huge Minimum Order Quantities (MOQs). I teach how to ignore those MOQs and buy small quantities from real manufacturers.

      Please note that the majority of suppliers on the big B2B sites claiming to be manufacturers are traders masquerading as manufacturers.

      Walter Hay
      Provenchinasourcing
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  • Profile picture of the author Pat H
    Thanks everyone for the all thoughtful and nicely explained responses. It's an area I've also considered getting into so the comments were helpful.
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  • Profile picture of the author sweetcrabhoney18
    I was going to provide advice too but it seems the others have filled this thread with so much valuable information there really is no point! LOL.

    I will instead add this --
    • Take your time and research and pick out a niche you can stick with for years to come.
    • Grow your business up , nurture it and it will grow.
    • Expect to invest a good amount of money and know your numbers backwards forwards and upside down.
    • Don't get discouraged when things get hard because it will happen and you can't give up. Just roll around , dust yourself off and keep moving forward.

    Know ahead of time that the others in this forum have offered advice and motivation because they believe in you and they know based on facts that there is a great potential in the world of selling online.

    Good luck! Keep us updated .
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  • Profile picture of the author timexer
    If you'd like to get started in dropshipping with AliExpress here are two useful guides:


    1) "The Ultimate Guide to AliExpress Dropshipping (January, 2017)"

    https://www.oberlo.com/blog/aliexpre...hipping-guide/

    2) "The Definitive Guide to Dropshipping with AliExpress"

    https://www.shopify.com/blog/1176071...ith-aliexpress

    Hope you find it useful. Good luck!
    Timothy
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  • Profile picture of the author bmonthnet
    Again thank for all the comments to this discussion.
    As what was previously mentioned buying directly from manufacturer's or suppliers does sound like a good idea. I going to begin with Amazon but also I am considering going through shopify to run my own e-commerce site.
    I am specifically looking to get into a certain niche of products to sell, which I am doing my research on.
    I appreciate the feedback it has been invaluable information so far. I am mainly looking to buy small to start off then consider buying bulk.
    My questions are other then using the big marketplaces to buy products where would you suggest searching for manufacturer's to do business with?
    Should this be done online? Or physically going to the manufacturer?
    Thanks for the information, I am taking this all one step at a time. This is one of the business models I am looking to get into.
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