Why “You” Should Always be the First Person to Sell Your Product!

Selling products online today is a given.  In fact, I would go so far as to say it is a prerequisite for launching or selling any product in today’s market.  If your product is not online in some way, shape or form, your company is simply not in the game.

Of the many different ways to get started in ecommerce the one we place 1^st in our clients strategy is getting their own site up and running and beginning the process of interacting face to face with their customers.  It is very common for clients to want to go big right out of the gate.  After all, they have put so much time, money, energy, sweat, tears and more into the making of their product, moving slow and methodical doesn’t always sound sexy as they are more than ready to hit the big time.  No matter how quickly they want to get rolling our recommendation is always not to skip this key step.

Below are the 4 reasons we suggest getting your own site up and running first:

1. Face time with your customers:  The fastest way to learn the maximum pros and cons of your product is to sell it yourself and have no one between your company and the customer.  Understanding your product inside and out before you take it to mass is critical to your companies overall success. 
2. Establish price:  Establishing your product's pricing strategy is key to your long-term strategy.  Although many factors go into pricing your product, typically your company’s website will set the price that all other retailers will look to when establishing their price.  (click here, if you need help establishing your product's pricing).
3. Product and company information:  Your website will act as the main go to place for both wholesalers and consumers wanting to know more about your product and company.
4. Work out the kinks:  Before you take your product to the main stage in mass retail or on Amazon you must first work out all the kinks in a more personal setting.  Selling one or two units per day on your own site will allow you to move through your initial buy of inventory and then make any necessary alterations to the product before placing your second order.  You certainly don’t want to sell 40,000 products on Amazon only to find there is a fundamental issue with your item.

Case study:  We have a client who sells a dental product.  Prior to taking this product to mass retail it was sold on it’s own website and Doctor to patient in the dentist office.  Although we had huge interest from Bed Bath and Beyond, Costco and HSN the owners noticed a flaw in the floss that was being used.  This flaw caused the floss to break quickly and was causing some customer issues.  Because they had started small these issues were researched and resolved resulting in a design change.  The product now being sold in Costco and on HSN is better as a result of the identification of this issue.  Had they bypassed the first steps this issue would have been caught long after 100’s of units had already been sold jeopardizing future relationships with these retailers and consumers, not to mention virtually killing their "Customer Lifetime Value". 

3 Key Factors to Consider when Launching a Foreign Product in the USA!

It is no secret that the US is the largest consumer market in the world gobbling up almost 29% of the total market.  To put that in perspective, total household spending in the US is a whopping 3.4 times more than households of the next closest country.

It is this mass consumption of goods and services that beckons to manufactures the all over the world to bring their products to the US.  Thoughts of doubling or even tripling their current sales efforts run rampant and expectations skyrocket.

Although the right product sold in the US, in the right way can surely be a company game changer, there are several factors that should be considered before beginning your US product invasion.

1. Market Experience - The first thing any manufacture should do when looking to expand into the US is find someone who has hands on, “real world” product sales experience.  I cannot stress this enough!  Every market is different, from packaging and product copy, to websites and social media, to buyers and logistics, the strategies you are accustomed to may not work on your new battlefield and your company will need guidance before, during and after your launch to be successful.
2. Commit to the Long Term - If you are considering launching your product in the US, it is important to understand the process will be a marathon, not a sprint.  From manpower to capital, you must prepare to “slug” it out for at least 24 months before any significant, recurring sales will begin to flow.  Can it happen sooner than 24 months?  Of course!  However, strategically your company will be better positioned if your expectation is 24 months and the process goes a bit faster.
3. Open a US Based Company - Once you have a qualified consultant and you have created a long term strategy, it will be time to open a US registered company.  Although this is not required to do business with US based retailers, the process of set up, payment, credit card processing and logistics will be vastly more efficient if you do.  I understand this takes some commitment and a huge leap of faith, however, it is very difficult to “kind-of” do business in the US.  The commitment is either there or it is not.

The US consumer market is the Holy Grail of product sales and as such is not tamed easily.  Much experience, patience and determination is needed to master this market.  However, once mastered, it will take you for the ride of your life!

As a retail product consultant and Costco expert, I am often asked about bringing products to the US.  Over the years, I have helped multiple companies prepare, launch and manage their US retail product business.  Below are some of the most common questions I receive during my free consultations.  I hope you find them helpful.

1. Will US retailers buy full containers? - The easiest answer is yes, but not at the beginning.  All US retailers will want to test products to ensure they will sell prior to making a large commitment.  Once a successful test is complete, most large US retailers will be open to buying full containers FOB if there is a significant price advantage for doing so.  Please note:  Even if the retailer is buying full containers from overseas, you may still be required to maintain some domestic inventory for emergencies and quicker fulfillment.
2. How many samples will I need to shop my product?  Depending on the product, I would recommend at least 50-100 production quality samples when introducing your product to the market.  These samples should not be “hand made” (if at all possible) and you must be prepared that in some cases you will not get the samples back, even if the retailers chooses not to carry your product.
3. Will retailers prepay for product?  No!  Once your product is established and selling well, you may be able to request a retailer provide an LC on large shipments, however; unless your product is the new Cabbage Patch Doll or Power Ranger toy, you must be able to finance product and terms of up to 90 days to be competitive. 
4. Does my product need a UPC or EAN?  Yes.  All products sold through mainstream retail must either have an EAN or UPC.
5. Does my company need to have a US website?  The answer to this question is more of an opinion on my part.  Yes, I believe in order for your product to be competitive and have a real chance, it must be represented and sold on a website designed and written for the US consumer.
6. Will I have to pay duty on my product when importing it to the US?  This is a product specific question as products are treated differently depending on what category the fall into.  I recommend contacting a US customs broker to help you with all importing product questions and fees.  Western Overseas Corporation out of Long Beach is a good one.  www.westernoverseas.com. 
7. Is Product Liability Insurance required?  Yes.  All major retailers require you to carry PLI (Product Liability Insurance) with the specific retailer named in the policy.  A minimum of $2M per occurrence and $4M aggregate is generally required.