Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 1 00:00:00,660 --> 00:00:02,279 One of 2 2 00:00:02,280 --> 00:00:04,080 the other factors 3 3 00:00:04,110 --> 00:00:05,499 that I really take into account is the shipping time 4 4 00:00:05,500 --> 00:00:08,740 and the lead time as 5 5 00:00:08,940 --> 00:00:09,579 well as the size of the product. OK. So 6 6 00:00:09,580 --> 00:00:12,540 with size there 7 7 00:00:12,810 --> 00:00:13,799 is a competitive advantage. If you're going to ship 8 8 00:00:13,800 --> 00:00:15,529 something that is large because 9 9 00:00:15,530 --> 00:00:17,059 you don't have to do sea 10 10 00:00:17,060 --> 00:00:18,809 shipping and 11 11 00:00:18,810 --> 00:00:20,729 it's a bit more difficult and there's higher 12 12 00:00:20,730 --> 00:00:21,620 fees and everything 13 13 00:00:21,660 --> 00:00:23,529 but just when I 14 14 00:00:23,530 --> 00:00:25,679 am in general thinking 15 15 00:00:25,680 --> 00:00:27,720 about a product the 16 16 00:00:27,990 --> 00:00:28,820 smaller that it is. 17 17 00:00:29,420 --> 00:00:31,259 There are some bigger 18 18 00:00:31,260 --> 00:00:33,239 advantages. OK because I 19 19 00:00:33,240 --> 00:00:35,580 can go and 20 20 00:00:37,200 --> 00:00:39,569 buy a larger amount of these products and store them 21 21 00:00:39,570 --> 00:00:40,940 at the Amazon warehouse for a longer amount of time. 22 22 00:00:41,870 --> 00:00:43,700 And I'm not going to get killed on storage fees. 23 23 00:00:44,230 --> 00:00:45,989 Also shipping by air is a 24 24 00:00:45,990 --> 00:00:47,570 quite easier process 25 25 00:00:48,090 --> 00:00:50,039 and it 26 26 00:00:50,040 --> 00:00:52,199 reduces that lead time so you get your product out 27 27 00:00:52,200 --> 00:00:52,450 there faster. 28 28 00:00:52,930 --> 00:00:54,509 And then let's 29 29 00:00:54,510 --> 00:00:56,549 say you have some errors in inventory 30 30 00:00:56,550 --> 00:00:58,709 forecasting now you 31 31 00:00:58,710 --> 00:01:00,350 won't get hosed on shipping by doing air 32 32 00:01:00,550 --> 00:01:02,970 so you'll 33 33 00:01:03,060 --> 00:01:04,310 be able to react much faster. 34 34 00:01:04,900 --> 00:01:06,479 I know a lot of people are 35 35 00:01:06,480 --> 00:01:07,789 advocates of sea shipping 36 36 00:01:07,790 --> 00:01:09,569 and 37 37 00:01:09,570 --> 00:01:11,780 it can be a great option but there are a lot of downfalls 38 38 00:01:11,980 --> 00:01:13,709 and unless you are shipping a 39 39 00:01:13,710 --> 00:01:15,479 large enough amount in 40 40 00:01:15,480 --> 00:01:17,369 your shipment you're not actually 41 41 00:01:17,370 --> 00:01:18,970 going to save that much by doing sea. 42 42 00:01:19,600 --> 00:01:21,359 Obviously if you fill a whole container you're going 43 43 00:01:21,360 --> 00:01:23,060 to get massive savings. 44 44 00:01:23,320 --> 00:01:25,610 But mmm I 45 45 00:01:25,800 --> 00:01:27,689 just find that the 46 46 00:01:27,690 --> 00:01:29,339 faster I 47 47 00:01:29,340 --> 00:01:31,379 can get my feedback loop that I 48 48 00:01:31,380 --> 00:01:33,190 will I'll 49 49 00:01:33,240 --> 00:01:34,449 make up for the margin lost 50 50 00:01:34,450 --> 00:01:36,079 and it 51 51 00:01:36,080 --> 00:01:38,099 won't even be margin lost if it's 52 52 00:01:38,100 --> 00:01:40,609 small just in general it makes 53 53 00:01:40,610 --> 00:01:42,499 that feedback loop a lot faster so 54 54 00:01:42,500 --> 00:01:44,589 try to go air if you're 55 55 00:01:44,590 --> 00:01:46,700 a beginner sea will 56 56 00:01:46,800 --> 00:01:48,539 make things more difficult. And with the biggest 57 57 00:01:48,540 --> 00:01:49,580 reason is cash flow. 58 58 00:01:49,820 --> 00:01:51,509 Now one of my friends those 59 59 00:01:51,510 --> 00:01:52,209 eight for years 60 60 00:01:52,210 --> 00:01:53,729 and he 61 61 00:01:53,730 --> 00:01:55,329 still does all of his products by 62 62 00:01:55,330 --> 00:01:56,939 air I mean every once in a while he'll 63 63 00:01:56,940 --> 00:01:59,399 do sea but it's just things 64 64 00:01:59,400 --> 00:02:01,349 are going so fast and he needs every 65 65 00:02:01,350 --> 00:02:03,930 bit of cash flow that he 66 66 00:02:04,290 --> 00:02:05,859 just keeps things going the air and the 67 67 00:02:05,860 --> 00:02:07,649 logistics get really messy when 68 68 00:02:07,650 --> 00:02:08,929 you're trying to get all these sea shipments. 69 69 00:02:09,070 --> 00:02:10,739 It 70 70 00:02:10,740 --> 00:02:11,509 depends on the size of your products and whatnot. 71 71 00:02:11,520 --> 00:02:14,210 So just 72 72 00:02:14,340 --> 00:02:15,359 really take into account shipping 73 73 00:02:15,360 --> 00:02:16,370 and lead times. 74 74 00:02:16,380 --> 00:02:18,749 And if you're a beginner I suggest finding 75 75 00:02:18,750 --> 00:02:20,540 something smaller rather than larger. 76 76 00:02:20,730 --> 00:02:22,589 But you know there 77 77 00:02:22,590 --> 00:02:24,509 is like I've said in the competitive advantage section 78 78 00:02:24,510 --> 00:02:27,389 there is opportunity where 79 79 00:02:27,390 --> 00:02:29,389 it's more difficult. But might my one highlight 80 80 00:02:29,390 --> 00:02:30,989 I try 81 81 00:02:30,990 --> 00:02:32,889 to avoid oversized units because 82 82 00:02:32,890 --> 00:02:35,609 Amazon charges an 83 83 00:02:35,610 --> 00:02:35,860 arm and a leg. 84 84 00:02:36,480 --> 00:02:38,579 If you get into the oversize so make 85 85 00:02:38,580 --> 00:02:40,649 sure that you watch the fee video if 86 86 00:02:40,650 --> 00:02:42,820 you're not aware of that and don't go into oversized. 87 87 00:02:43,510 --> 00:02:45,569 Because yeah you're gonna 88 88 00:02:45,570 --> 00:02:47,909 get hosed and it makes a lot of things unprofitable 89 89 00:02:47,910 --> 00:02:49,160 that you think would be profitable. 90 90 00:02:49,280 --> 00:02:50,759 So until 91 91 00:02:50,760 --> 00:02:52,439 the next time Oh and I guess one 92 92 00:02:52,440 --> 00:02:54,689 other thing I should say is the only reason I 93 93 00:02:54,690 --> 00:02:56,669 was able to go zero to six million in six months was 94 94 00:02:56,670 --> 00:02:58,169 because my Shipping time from 95 95 00:02:58,170 --> 00:02:59,060 my supplier I was in theU.S. 96 96 00:02:59,310 --> 00:03:00,830 It was literally two days. 97 97 00:03:01,220 --> 00:03:03,169 Two days into 98 98 00:03:03,170 --> 00:03:04,799 the warehouse and we had pretty fast lead 99 99 00:03:04,800 --> 00:03:05,810 times. 100 100 00:03:06,150 --> 00:03:07,189 So on and 101 101 00:03:07,190 --> 00:03:08,719 with him I guess 102 102 00:03:08,720 --> 00:03:11,669 I didn't talk about lead times enough from 103 103 00:03:11,670 --> 00:03:11,920 the manufacturer. 104 104 00:03:12,620 --> 00:03:14,669 It was only three to 105 105 00:03:14,670 --> 00:03:16,880 four weeks so three to four week lead time 106 106 00:03:17,000 --> 00:03:17,730 two days shipping 107 107 00:03:17,731 --> 00:03:19,370 and I'm mean Amazon warehouse 108 108 00:03:19,620 --> 00:03:20,990 whereas sometimes in China it's 109 109 00:03:21,230 --> 00:03:22,839 45 day lead time plus 110 110 00:03:22,840 --> 00:03:23,488 if do 111 111 00:03:24,630 --> 00:03:26,129 sea shipping 30 112 112 00:03:26,130 --> 00:03:27,839 plus days and then you're in the 113 113 00:03:27,840 --> 00:03:30,179 warehouse. So you've got to buy a 114 114 00:03:30,180 --> 00:03:31,709 lot more inventory. Be well planned 115 115 00:03:31,710 --> 00:03:33,449 but yeah you 116 116 00:03:33,450 --> 00:03:35,429 know that faster that feedback loop you 117 117 00:03:35,430 --> 00:03:37,269 can have much faster learning 118 118 00:03:37,270 --> 00:03:38,779 and you can scale up 119 119 00:03:38,780 --> 00:03:39,380 faster. 120 120 00:03:39,450 --> 00:03:41,970 Yeah. So I'll just add 121 121 00:03:42,300 --> 00:03:43,829 a little example here to exemplify so if 122 122 00:03:43,830 --> 00:03:45,329 we look if we have a 45 123 123 00:03:45,330 --> 00:03:46,989 day lead time from your manufacturer is 124 124 00:03:46,990 --> 00:03:48,140 not always that long can be 30 125 125 00:03:48,150 --> 00:03:49,949 but we're gonna 126 126 00:03:49,950 --> 00:03:51,929 get that plus shipping 30 127 127 00:03:51,930 --> 00:03:52,929 days if we go ocean 128 128 00:03:52,930 --> 00:03:54,099 and then. 129 129 00:03:54,100 --> 00:03:55,529 Now that's two 130 130 00:03:55,530 --> 00:03:56,360 and a half months right there. 131 131 00:03:56,510 --> 00:03:58,079 But we 132 132 00:03:58,080 --> 00:04:00,239 then have to purchase again just 133 133 00:04:00,240 --> 00:04:01,769 about right away because if our lead time 134 134 00:04:01,770 --> 00:04:02,760 is two 135 135 00:04:02,761 --> 00:04:03,994 and a half months and we bought two, 136 136 00:04:03,995 --> 00:04:06,059 two to 137 137 00:04:06,060 --> 00:04:07,589 three months of inventory we have to order right 138 138 00:04:07,590 --> 00:04:09,269 away. So we're net go 139 139 00:04:09,270 --> 00:04:10,949 net negative five 140 140 00:04:10,950 --> 00:04:12,509 months of inventory. So it's 141 141 00:04:12,510 --> 00:04:15,030 gonna take four months 142 142 00:04:15,270 --> 00:04:16,190 to be profitable in that product. 143 143 00:04:16,670 --> 00:04:18,509 Whereas when you have that lower 144 144 00:04:18,510 --> 00:04:20,189 lead time and shipping time you 145 145 00:04:20,190 --> 00:04:22,379 could get profitable much 146 146 00:04:22,380 --> 00:04:24,189 faster. And this 147 147 00:04:24,190 --> 00:04:26,939 is the reason right here why 148 148 00:04:26,940 --> 00:04:28,380 you see a lot of people having cash flow issues 149 149 00:04:28,381 --> 00:04:30,119 with Amazon FBA so you 150 150 00:04:30,120 --> 00:04:32,659 may give up some margin on 151 151 00:04:32,660 --> 00:04:34,259 shipping lead 152 152 00:04:34,260 --> 00:04:35,969 times but you 153 153 00:04:35,970 --> 00:04:37,509 will gain on the speed 154 154 00:04:37,510 --> 00:04:39,039 speed in your money back 155 155 00:04:39,040 --> 00:04:40,400 so you could launch more products. 156 156 00:04:40,410 --> 00:04:41,939 So this 157 157 00:04:41,940 --> 00:04:43,350 is a good criteria I take into account. 11681