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Cheapest way to send my products worldwide?

by Hippos
4 replies
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I created a social network in a certain niche, and set up a "points for rewards" incentive system.

The rewards aren't cheap, so I was considering producing my own products (with own branding which would strengthen my brand).

I can produce these products for 25% of the price in China, which is great. But to send them worldwide it gets very expensive and difficult.

Why? I don't send a lot of stuff. I plan to also send the products later, but at the moment it's only the rewards.

- I could let them send the products to me in Europe, and send them myself from there. But sending one item to the USA costs more than the product itself. It's also a hassle to send everything by myself. I would also pay import tax to import into Europe, and then possibly again to send to other countries in the world. Double taxes.

- Fulfillment directly from China: send fee is still pretty high, but somehow lower than sending it myself. Downside: they all require you to sell fast -> keeping items in stock for months gets very expensive.

- Fulfillment from the USA: costs are reasonable, but the same problem: high monthly warehouse fees.


I was excited about creating my own products, but shipping makes everything so complicated due to the small scale. Does anyone have a solution for this? Or is that just how it is?
#cheapest #products #send #worldwide
  • Profile picture of the author XSV1
    You don't mention the niche, so maybe your products are very unique to this niche and need to be in a physical form. However, if they don't, why not simplify your rewards system for now and make everything a digital reward? You can find companies that offer products in your target niche and then give out digital ecard vouchers that they can redeem with those companies and you can remove having to absorb that expensive shipping fee.
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  • Profile picture of the author Hippos
    Thank you for thinking outside the box. But even though virtual items could be an option, I am very excited about having my own product line.

    After seeing how cheap it could be done, I don't want to give it up... but yes, shipping is a big issue...
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  • Profile picture of the author Oziboomer
    Originally Posted by Hippos View Post

    I created a social network in a certain niche, and set up a "points for rewards" incentive system.

    The rewards aren't cheap, so I was considering producing my own products (with own branding which would strengthen my brand).

    shipping makes everything so complicated due to the small scale. Does anyone have a solution for this? Or is that just how it is?
    I would say "Where are you making your profit?"

    If you have set up the social network and are rewarding members then that is an acquisition cost for acquiring the leads.

    Many businesses do not profit on the front end but they do build out a back end where they cover those acquisition costs and make their real profits.

    In some of my businesses the acquisition costs are between $55 and $80 and we usually break even on the first sale but not always.

    The key is in establishing the business so it can retain the customers you have attracted and can profit from repeat sales.

    It is one thing finding the best shipping prices and the cheapest manufacturers and another building a sustainable business.

    If you have offered a reward or product without knowing your full costs then that is a lesson and it should help you to focus and adapt so you can build a successful business.

    I run some FREE + shipping options for some products and depending on location in some circumstances I can be out of pocket on the initial transaction but I also run back end continuity programs so high cost shipping locations for physical products are easily absorbed by the back end digital products or repeat subscriptions.

    Best regards,

    Ozi
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  • Profile picture of the author Hippos
    Originally Posted by Faisal Qureshi View Post

    Hi

    Why dont you try amazon warehouse to send products world wide?

    Regards

    Faisal
    Thanks Faisal, I looked into it, but the costs are high for the limited amount of products I send out at the moment.

    Originally Posted by Oziboomer View Post

    I would say "Where are you making your profit?"

    If you have set up the social network and are rewarding members then that is an acquisition cost for acquiring the leads.

    Many businesses do not profit on the front end but they do build out a back end where they cover those acquisition costs and make their real profits.

    In some of my businesses the acquisition costs are between $55 and $80 and we usually break even on the first sale but not always.

    The key is in establishing the business so it can retain the customers you have attracted and can profit from repeat sales.

    It is one thing finding the best shipping prices and the cheapest manufacturers and another building a sustainable business.

    If you have offered a reward or product without knowing your full costs then that is a lesson and it should help you to focus and adapt so you can build a successful business.

    I run some FREE + shipping options for some products and depending on location in some circumstances I can be out of pocket on the initial transaction but I also run back end continuity programs so high cost shipping locations for physical products are easily absorbed by the back end digital products or repeat subscriptions.

    Best regards,

    Ozi
    Thanks Ozi.

    At the moment I earn money with advertising on the website. It's profitable, but if I could promote my own products, the margin could be a lot higher.

    At the moment it seems I'm too small to really get the highest margins, but it feels like a step in the right direction at least.

    The way I see it now, my best option is to send everything myself for now. It's gonna be expensive for now, but it gives me a chance to grow to a point where I'm big enough to start with order fulfillment.
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