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Sourcing in the old China; Latin America - Amazon Seller tips with Susana Bermudez Part 2
December 13, 2021
Sourcing in the old China; Latin America - Amazon Seller tips with Susana Bermudez Part 2
Things we discussed in this session:

A. Part 1

B. Part 2

Things we mention in this session of Seller Round Table:

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Transcription in this episode:
[00:00:01] spk_2: welcome to the seller roundtable e commerce coaching and business strategies with and er not and amy we's [00:00:08] spk_1: I think we're in the right moment to do this because there I mean it's not that that in the past they were not open but they are more open now and they are willing to do products that they never uh did before. You know even if they have the material you know uh they because I experienced this with wood stuff, they are like I never did this before, I'm used to do chairs or I'm used to do tables. But guess what? I have all the things that I need and if you walk me through I can accomplish this, you know, So I think if you're building a private label brand of home the core or things like that and you are able to take the time to work with them, you will have massive success. I mean and I'm not saying that the price is gonna be the same. I never say that the price is gonna be the same like in china because there's many differences uh in latin America there is a group that support um cos little companies or start ups and and is that there's no slavery at the level that we can see in other countries. You know uh And I also like to take care of the manufacturer or the or their Cassano's right because I mean Most of their families they eat from that you know and if you are coming to one of our countries and say oh but I want to pay $2 for this, you're charging before, but I want to pay $2 because I pay $2 in China. You have to realize that you're not in china and you're dealing with someone that will probably can grow with you, but they eat from from that only product for example, [00:02:12] spk_0: right? And they may not be at the point where they can give you super mass manufacturing prices like china can because a lot of raw materials are in china so they have to sometimes import those raw materials. But where you can make up the money, here's the thing. So here's a wonderful thing. It might sound like, okay, Susannah just said we can't get good prices and you know, I may as well just stay in china then. Okay, so here's where there's some really cool benefits. This is what I'm really excited about sourcing from latin America for not only is there not an ocean between us, you know, if I'm selling in the U. S. There's no giant ocean that I have to import. So lead times importing is actually quite easy. So I have several clients that have moved their manufacturing to Mexico and they used to be in europe or china. And what has been really cool about it is they went from having to order. So all of us have to order big quantities in china. We have to order big quantities because that's how we get discounts, right? We order big quantities, we stick it in a container, we put it across the ocean our lead times to get those big quantity made, usually 30 to 45 days depending on what the product is just to get it produced And then the lead time to get in here is 30 days sometimes longer. Right? So now we're looking at, we always need to be looking 90 days ahead to stay ahead of our manufacturing and we're having to order really large quantities. Uh So what you can do in latin America, which is really cool is you can work with your manufacturer especially they're making something that's new to them, right? Maybe like Susanna said there would they make wood products, make tables or chairs and now you're asking them to make a short Treasury board or something like that, right? You know, who knows? But um but now they're changing up their production, their changing up their processes to work with you, right? But they can make that in smaller quantities to begin with and you can have your product in amazon in like two days. It's very quick and you can ship it super easily. You don't have to find, you know, some big expensive freight forwarder, you can just use Chl and you know you can ship it very very easily, you can use ground freight, it's you know, it's not the same, you can shorter lead times smaller quantities. Now that being said, if you have something where you're selling a ton and you're you're selling, you know it's just a really it's like your best seller and your shipping container loads at a time. You may not want to move that product first to latin America. You might want to look at your whole repertoire products, all of your product lines, you might go okay, this one I can look for a supplier of and if I could find the solid supplier in smaller quantities. But if you're shipping containers several containers a week from china of one product, you may not find a manufacturer in latin America for that immediately because that's what I've learned through working with other sellers that are really shipping container loads every week. Um That it's very difficult for some of the manufacturers. They found in latin America to produce those those kinds of quantities. But [00:05:53] spk_1: I think it will depend on the product because for example, I have a client uh she does clothing and it was it was super fast. I mean she could she was able to source big quantities because the manufacturer, it's in peru and they've been doing this for other renamed brands in the U. S. And and she showed them her designs. Yeah it took a little time but [00:06:26] spk_0: they were like [00:06:27] spk_1: working together um and she was able to like shit like it was a big big quantity. Uh [00:06:36] spk_0: But [00:06:38] spk_1: what I'm trying to say is not that they cannot find it, but it has to be something that we already good at like Yeah [00:06:47] spk_0: exactly. Because I've heard the opposite to, I've heard that people have been quoted way to higher quantities from really professional manufacturers and you find the same thing in in china, you know, if it's a really good manufacturer that's already in major brands, they are going to give you these super high minimum order quantities because they don't want to deal with small batches. So depending on the product you might find but you might find a supplier that can that either is too much for you or too little for you or maybe you'll find one of both. There's a ton of manufacturers that are in latin America all across different countries, Everything that you can take advantage of. So don't rule it out. And the number one rule is build a relationship because you never know what you can do it. It's the same, that is the same in china. Even if you know, I had a client, we found a manufacturer that she just loved for her product And they were huge. I mean we got on a video call with them and they had huge showrooms, they were doing so many different types of products and she was like a me, I love them but I don't know they gave me a minimum or fun to be 10,000 units and we got on a call, I said don't worry about it, let's get on a call with them? It's introduce ourselves, let's get to know them. And we were able to source a small quantity from them and they were really great to work with because we took the time to sit down and to build a relationship. [00:08:20] spk_1: That's totally the difference. I think that's totally, totally the difference. And, and mostly if you want to grow, like, like we mentioned, if you want to grow your business, that's what it takes. You know, like do it probably the, the old way old school. Uh, yeah, because it's about taking the time, it's about caring about your product, caring about what you're doing? You know, and but birth, I mean latin markets, it's a fun place to be even, you know, if you can go and meet one of the manufacturers and and try to talk to [00:09:00] spk_0: them, they're all speaking of that, let's talk about that because I think a lot of people are nervous. They, when they think of Mexico, they think of drug cartels, they think of danger. They think of all that right? And they're like, we've heard, right, the common questions that are asked as well, what about my goods, are they in danger? You know, am I going to be, is everything going to be safe there? You know, what's what's the chances I'm going to be dealing with, you know, a manufacturer that's involved in a cartel, You know, what, what should people be thinking about when it's, what do we say back to those safety concerns about sourcing? [00:09:41] spk_1: I mean I never experienced that in the past with any of my clients. Uh, I don't know if that's just, you know, gossip. I'm not saying that that doesn't exist because that exists in every country probably, you know, but I I don't think that's something they have to worry people about that because also let's just thinking about when you go and travel. You know, if you didn't take the chance to go to a place just because what people are saying about the country and all and this and the drugs and the, it's too insecure. I mean, you know, it's the same thing. Just stay at your home and probably you're going to be there and in business I think is the same is the same way if you, it's, we're so close, like for example Mexico, it's so close that in a couple of flights or I don't know, less than 10 hours. You can be in Mexico or less than two hours in one hour. It depends where you are, but it's so it is that, you know, it's [00:10:53] spk_0: that changes things for me. I'm no longer and that's why I want to build a relationship with a supplier in latin America, you know because multiple suppliers in latin America. But starting with this first one, even though I'm getting some pretty high price quotes and learning to, I'm not just ruling that out. I'm learning to understand the culture and I understand what it takes and the great thing is I'm in san Antonio, I can be in Mexico city in two hours, you know, versus china that's like several days and there's some serious quarantine. I've been during the pandemic. I've been to Mexico like four times. I love it and there's no, you know the hospitality there is just wonderful and the people are great and their joyful and the food is amazing, you know, so I I would encourage people to not be concerned. You have to be concerned about your safety no matter where you go. [00:11:51] spk_1: You know I [00:11:52] spk_0: Mean I couldn't believe it serving in the military because you know here I was fighting to keep America free and I got stationed over in Korea and I'll never forget, you know Korea has been at armistice for you know, I think 50 some years now. Um and so when I went there, my family, they started sending me like care packages like you know with food and stuff like that and they're like these shapes, you know, and I told him I was like there's a Taco bell right here. Like there's Mcdonald's, I don't, I don't need beef turkey and rations, you know I'm okay like this, this place is great, the restaurants are amazing. The food is amazing that people are cool and I felt safer in a war torn country in a dark alley than I've ever felt in the U. S. So it definitely made me think twice about like whoa okay until I experience until I went out to other countries and experience what it was like to actually live there and be ingrained in the culture. Um Everything that I had heard, everything that my family thought about that place was completely different. So yeah I agree people should experience it and they shouldn't um they shouldn't rule it out. We were talking about brasilia brazil is has some major electronics you know you can they a lot of great technology resources and stuff like that and you know they're great but when we when the olympics I think it was the olympics that were at brazil like four years ago or something wasn't the olympics it was some major sporting event or something. Um I don't remember what it was but somebody was there and I remember a few of our folks from our our unit we're going to visit during this time and people were saying oh it's so dangerous you know and there was there's a lot of pickpocketing and like small theft kind of things but any time you go to a major event like that like the little things are going to come out right? So but in general you know the people that went to that event came back and they were like that was fine you know there was no people are being murdered on the streets, it was okay. So I think it's just a general thing that we don't know what we don't know and we need to take the time to actually learn build relationships and give it a try. Right? [00:14:20] spk_1: Yeah. In latin America, I mean it's if people like that never been there have like all this in their heads, just go for it, go ahead and give it a try and you will realize that it was just you know, maybe one but experience from someone here or there or whatever. I mean we don't know where they, where they were, you know, but generally if you go to Monterey or you go to certain places in the border or I don't know to Mexico city also to Colombia to Guatemala to all these places. Uh we welcome people from other places because we know how important it is to bring them for tourism. Now imagine if we try to keep them for tourism or keep coming, why we're not going to do that the same if they're going to help us to grow our businesses. You know, you're going to try to protect that. And so I will say I will encourage everybody to to explore, Not, not be afraid of all price or this or that. No, it's just another way to make your business grow in a certain way or you're gonna grow or your business or you're, you're gonna know more people or you're going to be open to something different. You know there is a lot of stuff to discover and to explore in a place that it's too it is close to the U. S. Yeah, but although it's it's, I don't know [00:16:00] spk_0: and I wanna I wanna put it out there to our listeners, I want to put it out there to not only think about finding manufacturers for your stuff, but think about the opportunities that you have based on the skills that you have. So you all know how to launch products online and many people in these countries do not. [00:16:29] spk_1: And [00:16:30] spk_0: amazon is now moving into many of these countries like amazon just opened in brazil there. Ben opened in Mexico and they're continuing to grow. There are so many manufacturers of finished goods, things that you know, there are things that are already made that you could either potentially white label, you could list for them. There are so many opportunities to make money. Uh people are looking at friends that are, you know looking at amazon brazil for example and they are looking for manufacturers in the local area where they can just hook up with them list their products to the local market because they already know what they're doing right? So they can list those products and they can help that local market and they can make money at the same time to really think about all of the opportunities that you have and not just even your own products, of course you can look for alternate alternative suppliers and hopefully you can find one and but also look at all the other things. Were planning a sourcing trip to latin America later this year. And we're thinking about starting in that white label space, right? Just discovering manufacturers in the white label space where you can discover all the different finished goods, all the different things that you can already get and that you can use your skills to become an even more innovative and global entrepreneur. Your skills are valuable. And so I just want to encourage you guys not only to consider uh finding manufactured for your own products, but to look at what goods are manufactured in these other countries and use your skills to either bring those goods to the U. S. Or people in Australia. We've got all these different marketplaces, you know, think about global commerce and what you can do if you just dip your toe into another market. Um Yeah I think it's a really good opportunity and you know it's crazy so point then. [00:18:44] spk_1: Right? Yeah. Tulsa Okla. Also in in in the same uh amazon Mexico, you know uh there is a lot of products that you could probably buy there and sell them tell the problem right away in amazon Mexico, you know, Yeah or bring into the bringing those products to the U. S. Or whatever. But yeah there's a lot of opportunities and I think it's like Amy said like we don't have to keep all our accent in the same basket. We need to find other ways and then we get creative right Amy you can get really creative with ideas and stuff and what we can do because when we open our minds to to the possibilities, you know uh we can discover that there's more in latin America maybe for me or you know it's it's kind of interesting but I will encourage everybody to just take, take the chance and and try to uh b b at least with one ft in the other side. You know what I'm saying? Just in case just to just to test the waters, you don't have to switch your sourcing tomorrow. But you can start like finding finding new products or new ideas or or we're working the way uh slow pace to just change your sorting from one uh continent to the other. [00:20:19] spk_0: Exactly, exactly. Well we always wrap up our sessions asking from an entrepreneur standpoint what kinds of things are you reading or listening to that are super motivating you right now. Do you have certain podcast, you have a book, you just read that you're just like it's amazing. It really inspired me. Is there something that you're reading or listening to right now that is really inspiring you. [00:20:45] spk_1: I read too. Well I read I read one book like pretty much every day because I discover new things every day in that book and it's the napoleon hill uh, book that is called thinking real Rich because it's not about making money, it's about grow rich right here. Right? And as you know, Amy, I'm a life and business coach. So I, I love everything that has to be or it's uh, it's about the mind you know, and and all that and the other one is go giver that I love that book because I don't know if you give more, you will receive more. Maybe not in the same way but, but it's, it's kind of cool how things are connected in life and when you go and you try to give to other people whatever they need you will, you will get your needs fulfill at some point. [00:21:49] spk_0: Got it. I love both of those books. Go give her and thinking very rich. It's awesome. And last but not least how can people get in contact with you to get connected to sourcing in latin America. [00:22:03] spk_1: Well, I have uh, well my, my instagram, it's at coach Susanna vida and then my email is info at manufacturers suppliers dot com. So everything every question or whatever you can send uh, send an email to me to info at manufacturer supplier dot com. [00:22:24] spk_0: Got it. So info at manufacturer suppliers dot com awesome. Yes. And then your instagram you're on facebook to your all over the place. so I know where to find her. So you know you can, you can always reach out to me as [00:22:41] spk_1: well [00:22:42] spk_0: so and you know we like I said we're planning a trip out there as well so you know those, those of you stay in touch if you're wanting to just kind of get into that side of things um there's gonna be lots of things, lots of opportunities coming in latin America so excited about that. All right everyone, well thank you so much for being here Susanna, it was so great to just talk about all these things. Hopefully today everyone feels kind of refreshed and they have a better understanding of how to get started and what to expect when they do and how to reach out to you and they get stuck. Um and yeah, it's just been wonderful having you so thanks everyone for tuning in and we'll see you guys next week on the seller roundtable. [00:23:30] spk_1: Bye. Hi thank you amy [00:23:34] spk_2: thanks for tuning in, join us every Tuesday at one PM pacific standard time for live Q and A. And bonus content after the recording at cellar round table dot com sponsored by the ultimate software tool for amazon sales and growth seller S C. O dot com and amazing at home dot com