Should Your Source Products Overseas Or Locally? Amazon FBA

I’m going to share with you the answer to the question should I start my products overseas or should I store some locally let’s just jump right into it so number one I would like to mention that I would definitely recommend keeping this criteria in front of you at all times quality profit margins lead time these are the three things that are motive the most value to me when I’m sourcing a product I want to make sure the product is top quality because in the end that’s what’s gonna matter when you’re building a brand you’re not gonna get repeat buyers you’re not gonna get

word-of-mouth marketing if your brand sucks if your product sucks so you need to have good quality and I think it’s also just morally it just sits better with you consciously I’m knowing that your product is a most great quality and your customer is gonna really enjoy using it second is cost so I actually put cost profit margins second to quality because I actually do you believe that I would pay a little bit more for a product if I knew it was better quality and I can stand firm by this because I’ve experienced it I’m going with a cheaper product having poor quality compared to my competitors you’re not gonna beat them you need to have the best quality but you also don’t want to have such high costs that you’re not making a profit so you need to kind of use your own common sense with that third is lead time so you want to find a supplier that can produce the goods relatively quickly because it’s really important to have a short lead time so that if you do all of a sudden urgently need inventory they can provide that for you second I’d like to mention that anything that can be absorbed into the bloodstream or ingested orally sorsa locally so if you live in the u.s.

source up in the US if you live in France source on in France so just make sure you source those things locally just because there’s more liability risk with those types of products and your own country is going to have their own set of rules with what type of products and chemicals are allowed

so it’s just safer just source it locally and you never want to put yourself at risk and put the potential customer at risk of a product that could harm them so anything that can get absorbed into blood including lotions lotions can get absorbed into the bloodstream face creams lipstick mascara anything like that source it locally I wouldn’t source out overseas but it’s up to you

but that’s just my two cents so why you people source overseas instead of locally well first of all you know every country has their own free trade

agreements in the u.s. I’m going to speak for the US because that’s where most of you guys live that follow me the US has you know different trade

agreements with different countries so it allows for easier import and export and of course more affordable as well since their trade agreements for duties and tariffs so for example the Canada US and Mexico have nasta which is a free trade agreement so it becomes easier to import export products from these countries China and the u.s. don’t necessarily have a free trade agreement so why is everybody importing from China the reason for that is just because it’s much lower cost to start a business in China than it is in States and that is because there are much fewer regulations there’s no minimum wage there’s no unions there’s no medical tax they just you know have really low labor costs so the fact of the matter is we would all love to source our products locally every business would love to hire people locally and sorts our stuff locally the thing is I can’t afford that as a business owner I can speak for myself I can’t afford to open a business here in Canada hire Canadians who the minimum wage is now around $15 an hour and source my products here it’s just it wouldn’t be affordable and the only way I could do that is if I increase the cost the sale price of my products and I know that if I increase the sale price dramatically I would be getting as many sales because unfortunately we live in this world where we want the cheapest you know we always want something that is cheaper than the next and this is Reuben study after study personally for you might that might not be the case but for the majority of people we always look for the

steal and we don’t necessarily look at the tag and look at the label and see where it’s manufactured and you can’t blame people for that because the cost of living is very high here the cost of living in China is much cheaper in North America we do pay a lot and so when you’re in a state of desperation when you don’t have a lot of money at your fingertips you’re not gonna look for the top quality you’re not gonna look for something that’s sustainably made you’re not gonna look for something that’s fair trade all of these important factors because at that point you’re just trying to put food on the table and trying to buy the bare minimum so it is kind of a cycle and as business owner we want to you know we want to create jobs in our own country but it becomes harder because the consumer wants to pay less and we know that we can give them what they want by sourcing oversee so now what’s happening is that there’s a trade deficit between US and China where the u.s. is importing way more than they’re exporting to China and it’s causing a lot of debt and the u.s. obviously a lot of jobs are lost to people in China and what’s happening is most of those imports is actually US companies you know they have to shut down their manufacturing warehouses because they can no longer afford them so they send the raw parts to be assembled in China so these shipped parts to China the Chinese people will assemble them and then they ship them back to the US so that’s now considered an import to the United States so unfortunately that’s where things are going that’s what’s happening just because their labor is far cheaper than what they it is in the US and you know we can’t blame the businesses we can’t blame the consumers it’s just the way kind of the economy is working right now and it’s not really working but I don’t want to get into politics with this I want to get

strategic so an option for you if you can’t afford to reduce your products locally then you can you know produce them overseas manufacture them overseas and as your business grows as your profit margins increase you can then to manufacture locally because then there would be a little bit more cash flow in the business and when you have more cash flow you can start to hire people locally so I think that’s a good option because you can then start a business and grow it and then once you have that cash flow you can start to create jobs locally in your own country but other than that I mean it’s totally up to you where you source your products I will say that it’s definitely a lot more challenging to source overseas than locally just with language barriers and the time zone I would say the time zone is is quite a challenge because

sometimes you know you want to end your workday at 8 p.m. and then they’re starting their day at 8 p.m. your time so you you know you’re on the Skype trying to communicate with them and then you got to go to bed soon and it’s just not that that great but you let a deal with it so that’s the thing with China but there’s other places that you can source as well and also you can see this is a positive thing so some people will source overseas and they will create jobs for people that need it most so people who are in poverty and they create jobs for them so for example fair trade and ethically made clothing brands they might search these things overseas but they make sure that the conditions are great and they actually give back a lot of them so sometimes they you know create bracelets in Africa and so they’re creating jobs for women I’ve seen a few lines like this where they’re getting a older woman who would usually have a really hard time finding work they would get them to create bracelets and employ them so that they have money for themselves that they otherwise wouldn’t have had so you can always think of it in a positive way and find places that really need employment and also in China too you know so this applies everywhere it applies locally it applies overseas just do what is within your capacity I don’t know what it is right now I don’t know what your cash flow is but just think of those things I hope that this video helps you if you guys have any more questions regarding this topic feel free to

down below or any video request I’d love to hear your video requests through my next Lux bids video comment down below and I’ll see you in the next one bye

Leave a Reply

Your email address will not be published. Required fields are marked *