Home Forums Logistics new product for international market

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #1227442
    jfoldbar
    Participant
    • Total posts: 4

    i am currently developing a new product that i hope to sell worldwide. it is a lot for a joe bloe to take on with no experience in this field. but one step at a time.

    as a brief discription. it is a small plastic box about 20cm cubed. not electic. not food. just plastic.

    one of the future hurdles that i sometimes think about is logistics.

    my first plan is to make a few of the items in china, bring to australia and sell. if it takes off, eventually i want to sell to other countries.
    but the idea of bringing bulk to australia, then induvidually to usa seems silly

    it seems to me that i should send a container load to usa, and then try to sell from there. but im not sure about how to do this unless i am in the usa, or i know someone there.

    a friend said, perhaps i can sell on amazon. but as yet i havnt been able to find anyone who has tried this.

    one option is just to sell a container load to a chain store (like walmart) then the logistics is on them. intheory my profit per item is less, but perhaps quantity can make up for that.

    any ideas?

    #1227456
    Dash Freight
    Participant
    • Total posts: 93

    Congratulations on your new venture.

    Wow! there are a few issues here. In one post you go from selling a few items, to supplying Walmart by the container load. For information on Freight services, I can help you. Basic rule of thumb is, the more complex it is, the more it will cost you. For instance, buying from China, delivering to you in Australia, is simple. I can help you with some trade rates for small shipments.

    To send a third party shipment, such as a 20 or 40 foot container to USA – can be done, but the economies of scale will not kick in until you are shipping regular high volumes.

    I have clients in a similar situation. Some of them find it easier to import here, then sell to NZ and USA, shipping from Australia. I am not saying that’s what you should do. There are a whole lot of variables to consider; the market size, Freight costs as a percentage of the Gross Margin, accessibility, competitors, etc. For instance, if you are selling a low value item that is large in size, like a dolls house, you would not ship it via Australia because the freight cost would kill the deal.

    But if your product is high value and small in size, like a microchip, you could import to AU and then export to US. This means you can maintain quality control. and inspect the goods yourself. You don’t want your clients to spend a lot of money, then call you saying it is not what they ordered. When you ship direct from China to another country, how do you know the factory is sending the right product?

    Maybe you should see how the product sells in Australia first.

    There are many options. Good luck

    Rob Dash E: rob@dashfreight.com.au M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221
    #1227490
    Dave Gillen – FS Concierge
    Keymaster
    • Total posts: 2,560

    @jfoldbar some good advice from Rob above. Sounds like a steep learning curve (and cost) before you know if this is a profitable venture or not.

    I would look more into Amazon. The basic idea is you can send them your product to store and ship (and sell), so they would be your friend in the US 🙂

    Dave

    Dave Gillen - Client Acquisition | Brisbane | (07) 3180 0288
    #1227501
    bb1
    Participant
    • Total posts: 4,485

    You could also use a 3pl company based in the US, so get the shipment sent there, and they pick, pack and send when you send them order details. Obviously you pay for the service. @lucasarthur is a 3PL expert, he may have some advise.

    But like others have said don’t get to far ahead of yourself, maybe try in Australia to see if anyone really wants your product, because you think it’s better then sliced bread, no one else may want it.

    #1227591
    jfoldbar
    Participant
    • Total posts: 4

    thankyou all for your input.

    of course my first step is to try australia. but as this is a new product, (if) it takes off, i have to be ready for that. so i am thinking of every move that i can think of before i start.

    as rob has said, posting small things os is much easier than large things.
    my product is roughly 20cm cubed, and weighs about 3.6 kg.
    i expect it to retail around the $80 mark.
    i havnt got accurate quotes for delivery to us yet, but i imagine its well over $50. and quite simply i dont think people would want to pay $50 delivery for something that costs $80. could be wrong though.

    heres my current plan in a nutshell.

    buy 100 or 1000 units from china. (still getting quotes)

    i have already determined which lawyer and protection i will use. once i have product here. i will get australian protection. i then have 6 months to get protection in other countries.

    in that 6 months i will be trying to sell in australia. wherever i can.

    i will use the 6 months of sales data to determine if its worth it or not. (i wish i had longer than 6 months because i dont think thats enough time to tell. but thats all the time i have, according to lawyer)

    if my australian sales is enough for me to warrant getting protection in other countries, and i do that, then the speed of me selling, and how to do that, am unsure atm. the answer may well present itself later.

    so, quite simply, i would rather you guys rip my plan to shreds than the market.

    so let the comments rip.

    thankyou all

    #1228124
    Tony1
    Participant
    • Total posts: 1

    First thing is to perfect the product with samples then you can drop ship from China directly to the USA customers. What is the point of difference in your product that will excite people to purchase your product? USA has many plastic boxes on the market.

Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.