Ebay Amazon What are The Pros and Cons of Importing?

– Often, there’s high
margins, but not always. Cons. Requires cash to prepurchase inventory. This has been the hardest
part for many people. KPI requires on average $36,000 pre-purchased inventory
to make $1,000 profit per week after all expenses. A lot of people don’t get this. A lot of people come to me and they’ll say, “You
know, I’m wanting to do “a full-time import business.” And I say, “How much are you
gonna spend on inventory?” “Under five grand.” “It won’t work.” Unless you can find that
miracle product today, and they’re out there, This is an average. But if you keep doing it over time it gets very hard to find
those miracle products. And the next thing is the
MOQ, Minimum Order Quantities. When you start off small, manufacturers, distributors, suppliers, they want you to buy larger numbers because of the economics of scale. But I wanna sell you one
at a really good price. So you’ve got to buy
obviously a higher amount, which is more of a
challenge when you start of, so the MOQ is always an issue. Next is shipping costs,
economics when they’re small. Currently to get a container from China costs around $2,200. Door-to-door. $2,200 to get a 20 foot container
from China to Australia. Now that holds 27 cubic meters. If you can’t fill a 27
cubic meter container, you’ve got to buy in small amounts which of course economics go up. And also in 1969, we made a
treaty in Australia with China. And that is that China can
send parcels, large letters, way cheaper than you and me. If you post two iPad cases to yourself, or to your nextdoor neighbor
it will cost you $7.50 for two iPad cases. Send them from Shenzhen, China, it will cost you $1.50 to Australia. So you can’t compare them–
– [Student] Are you sure that’s shipping now? Is that express or standard? – That’s the standard doing this. – [Student] Is there any
way we can change that? – [Professor] Yeah, good question, yeah. So far none. Nothing. There’s a way out of it, is to see if they do with the dividers. The Chinese can actually
ship items cheaper, if they weigh less than 500 grams, and are two centimeters thick. If it’s bigger than that, then it will tilt back in your favor. But if you do small stuff, it will tilt in the favor of the Chinese. See that one is the small part of mind. But where do most people sell start? Small stuff. Okay, so, next is it’s how to find profitable products when you import it. Less than 3% of the
products that we research, we find for importing worth it. After we put into the equation of the shipping from the supplier and the shipping to the customer. Less than 3%. So KKO importing, one VA, one virtual assistant can find three to four products per week. Whereas, a VA for your dropshipping can find greater than
40 products per week. Massive difference. That’s 40 profitable products per week. Massive difference. – [Student] You mean the–
– [Student] Sorry. Is that calculation, is that from the large company of product that’s required to make importing– – No, it’s just simply there’s not that many products they’re making. ‘Cause they have criterias
that the product must sell at least 15 times a month for reportings, and it must make around 50% profit. Otherwise, we won’t import it– – [Student] And that’s
because of the import, The quantity that you
need to import to buy– – Yeah, ’cause you need more history, and also the other
equation is with importing, our rule is we must have
at least 90 days history. ‘Cause everything we sell, we’re gonna get to this tonight, everything that we sell is proven. We know it gets anything. Everything that we do has
already proven so well. The other thing with importing
is you need a warehouse. Unless you’ve got what we call a focal, a forpiling to six company. We have of course dropshipping, you have in your warehouse, and you need shipping for free. With dropshopping, the supply does the work for you. You even have the shipping inventory. So there’s pros and cons. You also need to handle
returns when you’re importing. With dropshipping or returns, it goes back to suppliers. Happy days. And you need staff if you
have a warehouse in Australia. You don’t need them with dropshipping. You run the whole shabang overseas. We run 80 million a’s, and most of them in the Philippines. And you know the least amount
of inventory not selling. Again, dropshipping don’t have that risk. It doesn’t sell, you don’t have to buy it ’cause you get paid first.

Norman Bunn

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