Buying stock.

finxx · Oct 7, 2019

Buying stock of certain backpacks for example. White labeling with my logo on it. Making custom videos and selling them on my store and shipping them out of my garage.

Would that be a better approach other than dropshipping? I feel like that would take care of a few problems.

Pros
1. Higher profit margins. Buy bulk buy low.
2. Quality control because I can hold the product
3. Shipping will be a few days
4. Branded packaging and badging

Cons
1. More risk. Actually holding stock
2. Higher initial cost.

Seems like the pros outweigh the cons. Am I missing something?

James2774 · Oct 7, 2019

Cost can be very much lowered, you dont have to pay all upfront, what company are you planning on buying this from?
If you are as a business are buying or selling to another business you can finance a lot of this for terms.

finxx · Oct 7, 2019

I am thinking of buying 1000 backpacks for example. Put my logo on it and brand as if I created it.

Market and advertise my brand and product. Sell on my website as well as amazon fba.

James2774 · Oct 7, 2019

finxx said:
I am thinking of buying 1000 backpacks for example. Put my logo on it and brand as if I created it.

Market and advertise my brand and product. Sell on my website as well as amazon fba.

Buying these from where?
Where are you from?
You may be able to get these dropshipped as well via POD services

finxx · Oct 7, 2019

I'm in the usa. Selling to amazon members as well as my own website. Buying from alibaba.

macdonjo3 · Oct 7, 2019

You can probably find a factory to do a MOQ lower than 1000. I think even a dozen of them. Higher cost per unit, but may as well do 100 or so until the idea is validated. Who knows if you can even drive traffic profitably?

I dropshipped my first $1MM in rev then switched to 3PL once it was clear it was going to work for a long time. Too risky otherwise.

James2774 · Oct 7, 2019

finxx said:
I'm in the usa. Selling to amazon members as well as my own website. Buying from alibaba.

Ok that helps a lot.
If you are selling B2B, so if you were selling to a redistributor thats easier to finance.

You are selling to consumers so if you have a great credit score 700 and up you can get some decent funding and terms through a personal line of credit.

finxx · Oct 7, 2019

macdonjo3 said:
You can probably find a factory to do a MOQ lower than 1000. I think even a dozen of them. Higher cost per unit, but may as well do 100 or so until the idea is validated. Who knows if you can even drive traffic profitably?

I dropshipped my first $1MM in rev then switched to 3PL once it was clear it was going to work for a long time. Too risky otherwise.

How did you get it branded with a low MOQ?

macdonjo3 · Oct 7, 2019

finxx said:
How did you get it branded with a low MOQ?

You just offer to pay higher per unit. Sometimes we had to pay a mold fee for the type of item we were selling.

Buying stock.

finxx

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finxx

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