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One of 2

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the other factors 3

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that I really take into account is the shipping time 4

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and the lead time as 5

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well as the size of the product. OK. So 6

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with size there 7

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is a competitive advantage. If you're going to ship 8

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something that is large because 9

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you don't have to do sea 10

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shipping and 11

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it's a bit more difficult and there's higher 12

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fees and everything 13

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but just when I 14

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am in general thinking 15

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about a product the 16

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smaller that it is. 17

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There are some bigger 18

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advantages. OK because I 19

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can go and 20

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buy a larger amount of these products and store them 21

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at the Amazon warehouse for a longer amount of time. 22

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And I'm not going to get killed on storage fees. 23

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Also shipping by air is a 24

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quite easier process 25

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and it 26

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reduces that lead time so you get your product out 27

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there faster. 28

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And then let's 29

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say you have some errors in inventory 30

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forecasting now you 31

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won't get hosed on shipping by doing air 32

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so you'll 33

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be able to react much faster. 34

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I know a lot of people are 35

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advocates of sea shipping 36

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and 37

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it can be a great option but there are a lot of downfalls 38

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and unless you are shipping a 39

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large enough amount in 40

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your shipment you're not actually 41

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going to save that much by doing sea. 42

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Obviously if you fill a whole container you're going 43

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to get massive savings. 44

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But mmm I 45

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just find that the 46

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faster I 47

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can get my feedback loop that I 48

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will I'll 49

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make up for the margin lost 50

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and it 51

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won't even be margin lost if it's 52

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small just in general it makes 53

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that feedback loop a lot faster so 54

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try to go air if you're 55

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a beginner sea will 56

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make things more difficult. And with the biggest 57

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reason is cash flow. 58

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Now one of my friends those 59

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eight for years 60

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and he 61

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still does all of his products by 62

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air I mean every once in a while he'll 63

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do sea but it's just things 64

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are going so fast and he needs every 65

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bit of cash flow that he 66

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just keeps things going the air and the 67

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logistics get really messy when 68

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you're trying to get all these sea shipments. 69

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It 70

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depends on the size of your products and whatnot. 71

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So just 72

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really take into account shipping 73

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and lead times. 74

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And if you're a beginner I suggest finding 75

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something smaller rather than larger. 76

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But you know there 77

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is like I've said in the competitive advantage section 78

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there is opportunity where 79

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it's more difficult. But might my one highlight 80

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I try 81

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to avoid oversized units because 82

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Amazon charges an 83

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arm and a leg. 84

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If you get into the oversize so make 85

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sure that you watch the fee video if 86

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you're not aware of that and don't go into oversized. 87

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Because yeah you're gonna 88

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get hosed and it makes a lot of things unprofitable 89

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that you think would be profitable. 90

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So until 91

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the next time Oh and I guess one 92

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other thing I should say is the only reason I 93

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was able to go zero to six million in six months was 94

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because my Shipping time from 95

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my supplier I was in theU.S. 96

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It was literally two days. 97

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Two days into 98

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the warehouse and we had pretty fast lead 99

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times. 100

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So on and 101

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with him I guess 102

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I didn't talk about lead times enough from 103

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the manufacturer. 104

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It was only three to 105

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four weeks so three to four week lead time 106

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two days shipping 107

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and I'm mean Amazon warehouse 108

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whereas sometimes in China it's 109

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45 day lead time plus 110

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if do 111

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sea shipping 30 112

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plus days and then you're in the 113

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warehouse. So you've got to buy a 114

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lot more inventory. Be well planned 115

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but yeah you 116

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know that faster that feedback loop you 117

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can have much faster learning 118

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and you can scale up 119

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faster. 120

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Yeah. So I'll just add 121

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a little example here to exemplify so if 122

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we look if we have a 45 123

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day lead time from your manufacturer is 124

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not always that long can be 30 125

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but we're gonna 126

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get that plus shipping 30 127

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days if we go ocean 128

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and then. 129

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Now that's two 130

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and a half months right there. 131

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But we 132

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then have to purchase again just 133

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about right away because if our lead time 134

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is two 135

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and a half months and we bought two, 136

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two to 137

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three months of inventory we have to order right 138

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away. So we're net go 139

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net negative five 140

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months of inventory. So it's 141

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gonna take four months 142

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to be profitable in that product. 143

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Whereas when you have that lower 144

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lead time and shipping time you 145

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could get profitable much 146

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faster. And this 147

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is the reason right here why 148

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you see a lot of people having cash flow issues 149

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with Amazon FBA so you 150

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may give up some margin on 151

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shipping lead 152

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times but you 153

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will gain on the speed 154

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speed in your money back 155

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so you could launch more products. 156

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So this 157

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is a good criteria I take into account.