How to Buy Items from China and Sell Them on Amazon for Maximum Profit

How to Buy Items from China and Sell Them on Amazon for Maximum Profit Speaker 1: Want to source products from China and make profit on Amazon? Here's your full guide. I'm Josh Hackett, CEO and founder of EHP Consulting Group and my goal is to help you become and stay a millionaire on Amazon. So step one is to make a product and a manufacturer checklist. Checklists are so important. Just like when you go to McDonald's and you order a sandwich, you want it to be the same every time. You want to have a winning product every single time. You want to have a winning manufacturer every single time. So here is our product research checklist, questions to ask yourself. Does the product have more than 10 competitors? Does the product have at least 25% or higher profit margin? Is there a barrier to entry? So let's say if you're selling a biodegradable product, does it have to have special certifications? If you're selling a product for babies, does it have to have special certifications? That's a barrier to entry. Can you get around it? Is it a seasonal product like a water gun you can only sell in the summer? Is it a long-term product? Fidget spinners were very short-term. Do you think it has a patent? If you do, you need to hire an attorney to do a patent search. Is it niche? Multivitamin supplements are not niche. Supplements that are niche are female enhancement supplements. It has to be niche. Very specific. Do you think China can come in and easily compete? So once you start making money, somebody from China is going to come in and they're going to try to compete with you and steal your sales. So you need to make sure that your product isn't easily or they're not able to easily compete with you if possible. If you are looking at the competitors, are they making at least $5,000 a month? If you go on and the competitors are making pretty much no money, then you're probably not going to make money either. And then you give it a rating after you fill this out. So that's the product checklist. Then for the manufacturer, you want to see how quickly do they answer? Do they take a week to answer? Do they take a day to answer? A day is normal. 24 hours is normal. What about their grammar and English? Can you understand them? Can they understand you? If they can't understand you, when a problem pops up, you know there's going to be a huge issue. How many years have they been in business? Are they a verified supplier? Are they kind and respectful? Have you done a test buy for them? Have you actually looked at their items that they sell in hand and tested their quality? And then you can give them a rating. Next, you're going to go to the description and then you're going to download the AMZ Pro extension. And this is really good. So you can try it for free. It's right in the description. We're going to be utilizing this to help us find the manufacturers and identify the great products. So you're going to click on this and then you're going to download it and then simply you're going to help Use AMZScout and click on this button and you're going to find a new product idea. So the one thing I love about AMZScout is they have a random product idea button that uses AI to help you find a good product to launch. And so if you don't have any ideas on what to launch, you can just click a random product idea and then it's going to go through and just try to find random product ideas for you to get your creativity going. And that's what you want. So we kind of did that one. The first one was a wireless microphone. I think that's too competitive, so we're just going to keep looking. We're going to open the extension back up and do another random product idea and just kind of just go through this. Forever Stamps. Wow, Forever Stamps are selling a lot. This could potentially be a product. This isn't a product I want to sell because I want to sell a private label product, but it's just crazy how This picture is so terrible and they made a thousand sales and it's not even Amazon FBA. So this one has potential but we're going to keep going. And then we finally find a product idea that looks pretty decent to me. And if we do look at, we run AMZScout, we can see in the bottom left corner, it has a niche of eight, which is pretty darn good. Eight out of 10, that means it has a lot of potential. The monthly revenue looks pretty good, the monthly sales. But most importantly, we're going to look at the competitors and we can see that this competitor Only has 50 reviews and they're making 200 sales. So that's pretty darn good. It's like a new competitor. This one only has 34 reviews and it's making a thousand sales a month, 31 reviews. So pretty much the competition is new. So you have an opportunity to double down in this category and make a lot of money because there's a lot of the competitors, 65 reviews, 400 sales. A lot of these competitors look like they're brand new. So I'm going to pick a product and I do think that this one is selling for $19.99, 400 sales, pretty good reviews. I like how it looks. We're going to double down on this one and then what we would do is go through the product checklist. Does the product have more than 10 competitors? It does. But all the competitors are making a significant amount of money and it doesn't seem like there's that many competitors so we could count. We're going to find the profit margin shortly. Is there a barrier to entry? This is just a card game. So there is no barrier to entry. Is it a seasonal product? I don't believe so. Is it a long term product? Yes. This is a card game. It wouldn't have a patent. It is very niche. China could come in and compete. I don't think it would be easy because these are in English. So sometimes the grammar is off. So we need to, if we know English and it's our first language, we could stand out and make sure that they can't compete with us. Are all the competitors making at least $5,000 a month in sales or more? All the sales, you can kind of go back and double check to see how much so we can go back. And we can use AMZScout and triple check to see how much the competitors are making. So fill this out to the best of your ability is going to be the next step. So you can try to give it a rating and see if this is a good idea. And step number five is to go through the manufacturer checklist now. So if it passes the product checklist, it's time to find the manufacturer and go through the manufacturer checklist. So we can click on here on AMZScout and they actually have a find a supplier button, which makes it super easy for us. You can just go to Alibaba and then it's going to do a reverse image analysis just like this and then you can start going through the manufacturers because we can see they already make this. Doesn't look like they have the pink one but they already pretty much make this same item. And we can already see this one right here, it's verified. So they're a verified manufacturer by Alibaba and they've been in business for 12 years. They're a little bit more expensive, but it's probably because they are very high quality and they know what they're doing. So you can go through the manufacturer checklist and then reach out to them. on Alibaba and see how their English is. Do they respond quickly? How many years? We saw the one was in business for 12 years. Are they a verified supplier? Are they kind and respectful? And then you can ask them for a test product. Hey, can you give me a test product? I would like a sample of your cards. The same one is this. Do you have this in stock? I would like to have a sample and then message them and then start ranking them. I recommend to reach out to at least five different manufacturers so you have more on the list than just one if one falls out and the sample is really bad. So number six is going to be finding how much it actually costs to launch and then doing a profit breakdown. So once you start talking to them, you're going to see, okay, how much does it cost for me to launch something like this, like this product? And they're going to tell you, oh, it's going to cost, you're going to have to buy 50 units, it's going to cost $500, right? And then you can kind of do the math on how much it's going to cost. And let's say it ends up costing around $5 per unit. So you can go into here and click a profit calculator and it looks at the competitors and it already puts in the weight, it knows Amazon's fees, it knows everything. So all you have to do is put in the product cost. So let's say it costs $5 and then you can also see, okay, it costs $5. How much money are we potentially going to make on this? And you can see the profit per unit is $4.51. So every time you make a sale, you make $4 and the net profit margin is 25%, which isn't the best, but it's not too bad. I think there's room to increase the price on this or hopefully get the product costs down lower. And then the ROI and the monthly estimated profit is around $3,000 a month. So potentially on this product, if you launched it and it was similar, you'd be making around $3,000 a month, which is pretty decent. So with these numbers, I'm happy, then I would start moving forward with the next steps. So step number seven is then asking the manufacturer, okay, do you have any experience with shipping directly from China to Amazon? If one of the manufacturers does have a lot of experience, you're going to most likely want to go with them more because they know what they're doing. If not, you can tell them what to do. Here's the step list. It's going to be one, you're going to log into Amazon Seller Central. You're going to go to your inventory and ensure a listing is created, your new listing. Click send to Amazon. You're going to fill out all the details and when you get the label, ensure you don't use a partnered carrier. You're going to say you're using a third party carrier. Amazon is then going to give you a label, a special label, not like a UPS label. It's a label for Amazon to know, oh, this is your products. So they're going to receive it in their facility. Once the manufacturer ships it, you're going to ask the manufacturer, hey, what's the tracking? Usually they'll ship it via UPS or FedEx and then you give that tracking into Amazon. Once it arrives to Amazon, they're going to start checking it in and you're going to be ready to go. So pretty much you're going to go into Amazon Seller Central, you're going to go to create your product. Click in send or replenish inventory. You're gonna do the send from address. So is it shipping from China? So then you put the ship from address from China. And then the marketplace destination is obviously the United States. You're gonna put how many boxes you're sending in. If it does have an expiration, you need to have a product. You need to put the expiration date. So supplements have expirations, so you need to put an expiration date. Then you're just gonna click you're ready to ship. Confirm and continue. Make sure you have your FNSKUs on the outside of each product or the UPC code. Next, you're going to put your shipping date. When do you plan to ship this? Sometimes the manufacturers take a while, so you're going to ask them. They're going to be like, Oh, November 13th. And then are they going to do one shipment or two shipments? Usually you want to kind of just do one shipment, even though it costs a couple extra bucks. And this is where I'm saying you're going to put a non-partner carrier. So how are they shipping it? You can just put it as other for right now. And then once they ship it, let's say they ship it via UPS because there is a UPS in China. They can ship it via UPS directly from UPS to from China, UPS directly to the US. And you're going to fill all this out. You're going to give them a delivery window because Amazon wants to say, okay, when is it going to arrive? Give them a delivery window. And here's the ship to address. They give you the ship to address, give everything to the manufacturer. Then after this is done, you're going to come back into the same. It's going to have a shipment ID. You're going to go to your shipments, manage shipments. You're going to see this shipment and they're going to, Amazon's going to say, what's the tracking? Cause you put other, you didn't give them the tracking number. So then the manufacturer is going to give you the tracking number. You input that. Once it arrives to Amazon, Amazon's like, Hey, this is the account. Everything's there. You're going to check it in and it's going to be live on Amazon. And number eight, the final step is to pretty much pay the manufacturer. Now to pay the manufacturer, you can pay them directly on Alibaba.com and that's my recommendation. If you pay them on Alibaba.com, they have trade assurance. You can see it's protected. You can pay via credit card. If something goes wrong, you get a full refund. So this is the best way to pay them. Pay them via credit card via Alibaba.com. After that, you just follow up the manufacturer. Hey, when are you shipping it? Where's the tracking? You get the tracking number. Give the tracking number to Amazon. Amazon inputs it. Once it's delivered, Amazon says, oh, this is your account. This is your tracking. Everything's there. They'll check it in. Boom, it's Amazon Prime with two-day shipping and every time you generate a sale, you get money in return from Amazon and that's pretty much how you do it in a nutshell. If you are interested in AMZScout Pro Extension, check it in the description. If you learn something new in today's video, please do drop a like and if you're an Amazon seller, I highly recommend you subscribe to the channel because we're giving away great content that's going to help you in your Amazon journey.