Think Amazon America is just for USA based companies? Think again, welcome to Global From Asia episode 96, aww ya!
Amazon USA is for anyone who wants to sell into the US market – you don’t need a US company.
Hey guys, so exhausted here, was at the most amazing startup event in Hong Kong, and probably anywhere in the world I have ever been, Rise just wrapped up for a 2 day event jam packed with speakers, booths, and happy hour parties! Tried to meet everyone I had on my list but just thousands of people in there and …. insane! If we didn’t connect, well, then we’ll have to go to another awesome event like that one!
Ok, now onto this week’s show, from popular demand we have Wilson Blues back on the show with us, he was on back in episode number 66 discussing F2C or factory to consumer, (podcast here: Factory to China (F2C) for international e-commerce) but we didn’t get into Amazon specifically. Today he’s sharing on how he uses his Chinese company to sell in Amazon USA, and get the funds deposited directly to his Chinese bank account in Chinese Yuan. He explains how people from around the world are doing this, and people and programs to look into … I know people have been asking me about selling on Amazon from Hong Kong, and here is a good show for you. SO let’s dig in, and after the show I’ll give some shout outs and announcements
Topics Covered in this Episode
- Introduce Wilson
- What are some of the biggest advantages in your current Amazon setup
- how to open an Amazon account via China?
- Using FBA or how is your logistics setup?
- So you ship your stock to FBA from China to USA, then B2C from Amazon FBA usa warehouse? Who is the importer of goods in USA?
- Banking and cashflow, the Amazon deposits are every couple weeks, to a USA bank, can you explain how you manage cash flow between USA and China
- If you go on backorder, can you ship JIT (Just in time) or dropship from China to the customer directly.
- Do you have sales tax on the products?
- Is there any Amazon representatives, business development, in China to help out? do you talk to them?
- What are some of the bigger challenges in selling on amazon
- What do you recommend someone just getting setup selling on Amazon?
- Ways people can reach out to you – blog / contact info
People / Companies / Resources Mentioned in this Episode
- Wilson’s first interview on the show Factory to China (F2C) for international e-commerce
- Amazon’s international / global selling business development page (Chinese)
- wechat wilsonblues
- His blog blues.la
- My upcoming Sept 19 China Business Workshop in Florida (here is the Eventbrite page)
Episode Length 28:26
Thanks Wilson man, I have not been selling on Amazon for years, but always thought people had to get a USA company setup and a USA bank account in order to get the Amazon payments to be deposited. I think this is a groundbreaking show and hopefully helped some of you guys out!
If you like the show, a great way to do so is to leave a review, go to globalfromasia.com/itunes and leave a quick 5 star review, it helps the show out get found more in iTunes, and it also makes me smile and motivates me to keep rocking these weekly – almost at number 100!
Quick announcement, getting some emails from people interested in attending the China Business Workshop outside of Miami in Sept 19, 2015 – and Victor Leal my South American connection even started emailing some of his contacts in Florida, appreciate lal the support everyone and if you can spread the word too that would help me and my wife out pay some of our bills for our USA trip – that is at ChinaBusinessWorkshop.com/sunny2015
Next week we’ll have Tom Grundy from Hong Kong Free Press sharing about how he got his news and media organization setup and some things he has learned along the way in Hong Kong business and a bit of politics.
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Michael: Thinking selling out Amazon US is just for US based companies think again and welcome to Global from Asia episode number ninety six oh yeah
Introduction: Welcome to the Global From Asia broadcast with the daunting process of running in a international business from Hong Kong is broken down in the straight up actionable advice, and now your host Michael Michelini.
Michael: Hey guys pretty exhausted though, over here it was one of most amazing start events ever for Hong Kong the rice conference this past week and probably one of best events for tech and startups I’ve I’ve been to quite a while maybe anywhere in the world for me and so it was a two day event with speakers and booths and multiple stages and happy hour parties and it was it was overwhelming and my brain is still overwhelmed with just people and I try to connect with everybody I know there are some tweets and emails and things going back and forth and I I know I missed a few guys like Shane and some others and I’m really sorry about the and but I’m happy I’m at a lot of you so thanks again for coming out and hope you guys enjoy it so now for this week’s show from popular demand we have back with us Wilson blues he’s back on the show with us episode number sixty six where he’s talking F. to see our factory consumer e-commerce Wellington a show if you want to catch up that’s gold Maisha dot com slash Episode sixty six but we didn’t get an Amazon show and I could get a lot of listeners asking about how to sell Amazon with the Hong Kong company or from China and how does that work and taxes and things like that so we have Wilson here has been doing it for many years and he actually does newsy US company anymore and he close that down he does everything through his Chinese company and has a funds directly deposited to his Chinese being in Chinese yuan so he explains with us pretty openly. About how he does it and it’s not just for Chinese companies for international businesses anywhere like Hong Kong or other places will link it on notes to and I know people been asking me a lot so I’m really happy we finally got something about Amazon from from Asia So let’s dig in and every interview will do some announcements and our fun stuff so stay tuned. I think your buddy for tuning into the global from Asia podcast we have with us my friend back for a second time Wilson Blues who is on with us an episode sixty six Thanks for being here Wilson
Wilson Blues: Hello Hello Michael thank you for find me all here I’m so excited to come back to GLOBAL from major park casts and there will be some background noise because Miles wants to come in here and be on the show so yeah welcome Miles so anyway future founder for sure is learning a lot just by being here.
Michael: so well so for those that haven’t gotten to listen to your previous show can you give us a quick introduction of yourself and what you do
Wilson Blues: OK my name is Wilson Blue. I’m doing the business of Commerce and now my main focus is a amazon and the website the web store you know this is what I’m doing now.
Michael: know we’ve known each other for quite a few years met through startup weekend and you’ve always been doing if you commerce and how many maybe give us back or how many years we’ve been doing e-commerce
Wilson Blues: Approximately four years I think so yeah four years.
Michael: Awesome man,. OK and that’s great for our topic today because you know I think there’s a lot of punk ass to talk about Amazon selling Amazon but we are here in China so you know you and your china chinese and from Challenger right Jo-Jo and south of China and so I think I’m really excited your willing to share. With us your strategies and some of your set ups of how you do it so first of all may be why why Amazon Why do you choose if you said web stores and there’s a lot of people were taught even before maybe just give us some ideas of of why Amazon
Wilson Blues: Amazon now is the biggest ecommerce platform in the globe and especially in the U.S. markets and you know Amazon now it is promoting There are some amazon prime program and like recently they have had prime day strategy true just to put to a check more new primers. And their experience on a shopping Amazon is very really really awesome really really awesome so I think Amazon has the potential and it’s very Chandy So I think there are a lot of the opportunities to make money on Amazon.
Michael: fairley and we’re just recording this after their earnings on Wall Street and it was up like twenty percent yesterday almost fifty percent it’s like double up fifty percent this year and it seems like they’re unstoppable another thing they’re not just e-commerce they’re also web hosting this podcast I even use Amazon to host the podcast file so a WS And yeah the system amazing company to be for and there’s no doubt in our mind so there’s a lot of ways you can still be a seller on Amazon so we’re gonna using FBA which is fulfillment by Amazon and and maybe give us an overview of maybe how you setup your logistics for this
Wilson Blues: You mean a logistics?
Michael: I just have some clarifying questions but you ship your goods from China to their F.B.A. warehouse in the U.S.
Michael: and then they ship to the customer when there’s the order.
Wilson Blues: there are two ways that we uhm. Do that Amazon business uhm All school way is just a ship from China but ah experience is very bad for shoppers for buyers and now we have turned to the FBA program which is very good to the shoppers and we usually ship via DHL or UP’s UPS or FedEx from China to the Amazon warehouse
Michael: And so I know I have some questions here and we talked a little bit before the show so do you use the USA company to sell or are you do you have to have a company in America to sell or
Wilson Blues: or a couple of years ago we have two but now Amazon offer offers a program called Global selling program, so we are able to open an accounts, merchant accounts in China now it’s very simple and easy.
Michael: This point between us information by not even you know a lot of people in China that are aren’t even Chinese so you get paid R&B. Chinese yuan or dollars or any is it direct deposit How do they settle the payments still every two weeks like in the U.S.
Wilson Blues: We register an account on a service called pioneer. It’s like or don’t mean to have a true change for the money so here’s how you worse first every two weeks. Amazon we’ll send the payment accounts to our pioneer account which is something like uhm virtual service but virtual bank i think I guess, yeah, and then we just take money from the pioneer into our local China bank accounts. That’s how it works
Michael: got it and then they would pay us and the currency in dollars.
Wilson Blues: you know when the money is back to our bank accounts in China it’s ivy. Very. Very frankly user friendly I mean yeah.
Michael: and the so this I know you’re maybe only user for China but you know is that for any country or is China like if people are in the U.S. and they’re in Hong Kong there’s a lot of listeners have a Hong Kong company or other country companies. He that work for any country or is a special for China Chinese sellers.
Miles: I mean your program it doubles out I know it’s a it’s full makes it sound like it’s
Michael: Well well.,, Okay back to logistics, your I clarified before we started but so you shipped there like a hundred or a hundred pieces or so took us depends on the product but you air air ship it to the U.S. F B A warehouse and then ah If you don’t have a U.S. company I guess how does it get into the you said maybe just talk about the customs clearance the goods getting into the warehouse and F.B.I.
Wilson Blues: but surely it is the challenge posed handling this so it’s not our nice wood that we are consuming about and you just went down there was something like a tax happens that is that these extra informers and it will pay them.
Michael: That’s do math things. It’s a week in redoing this but a I don’t I think too much but say it’s a hundred dollars value and a tax is ten percent so you have to pay ten dollars So then D.H.L. will add that to your account your bill.
Wilson Blues: Yeah yeah
Michael: And then and then you pay the ten dollars on top of the shipping fee.
Wilson Blues: Yes exactly yeah yeah
Michael: OK So that’s interesting and I think also like inventory control so if you send a hundred pieces to the F.A.A. and then you may be you sell all one hundred pieces what have you have to send it right away right you have to send more goods or or how you deal with that the inventory control.
Wilson Blues: It’s it is a bit complicated yeah because sometimes you have should just monitor the size sure ation and just you have to monitor the inventory situation so when the inventory becomes zero there listing from Amazon will disappear usery we praying to to make it like one week the planet one week or two week ends and we we will do this frequently like every one every week we always ship one time yes to ensure the inventory is fine.
Michael: and then I guess so if you do in detail it only takes how long does it take to get about get there
Wilson Blues: usually it takes four days to from four days two like a days working days and
Michael: So and then you figure out you know your figure out when you have a certain like maybe twenty pieces out of one hundred left maybe you should send another a hundred pieces next week it arrives and then you don’t want to get ZERO right you want to always try to stay above zero inventory to keep your products selling right. So so I guess you have like a minimum number alert or like alert me or if my inventory.
Wilson Blues: the best boards on Amazon has a such a feature to a lot but uhm it depends on the sounds volume you know where when there is when there is item there have ever goods has a very good sounds then we will have more inventory to prepare but when the item has only like two to two to four or five sounds per day then we are not a monetary yeah we will get a rot and then just made up.
Michael: this is really great and. I should clarify this before but see this is your own brand or is this like Are you a seller on a current product or because there’s so many different ways Amazon’s pretty complicated right so do you make your own ASEAN like which is I think Amazon stock stock a number are you listing is your own brand or a listing on a current product listing.
Wilson Blues: you being a private label?
Wilson Blues: we have private label accounts it’s research for party label products but we also have. Their cars just for the you know the the buy box game you know yeah so the bypass game is a very unique unique system on Amazon and. OK uhm It’s very complicated you know you have to always have to always to monitor what is there potential items you know and just to just to click the buttons sell on Amazon there is a small button you know sell sells on Amazon yeah
Michael: maybe I’ll try to repeat back and see if I’m right so basically like I bought saw it was I like five or six years ago so it’s changed a lot but I know there’s like a listing of a microphone and I need a new Mike for the podcast because it’s this one’s been acting up so if I see it I was and I see like ten sellers. And then there’s like the best price is really at the top.and ah is that the buy button the best price of that product or of my or all have.
Wilson Blues: has their own ah very complicated everyday. Yeah it’s not just the pricing factor there are. A lot of more important factors so there are like a group of factors true to this sides who just gather by barks.
Michael: Yes oh I feel like you’re a privately private label is better then try to get past it.
Wilson Blues: It’s a it’s privately label a it’s uhm long term business you know because uhm the sell on Amazon system to me is very weird i don’t know how but it’s very unique in the global e-commerce platform right.
Wilson Blues: but it’s a form of profit private label ring products I think ah the buyers or have err bad experience because people are always just keep doing something good for the products for their own brain to make sure uhm that the people to come back to.To be this re yeah wrecked buyers yeah that’s what.
Michael: Ah I don’t wanna surprise questions questions for you but do you recommend them so make up a web store or a website at all for this business for their business here or just just only have Amazon listing.
Wilson Blues: Yeah it depends for the newbies and for our normal regular products I think Amazon is the best option is to say at the beginning if you are you’re new to the e-commerce industry.Because the web store is very difficult to get a chair fic.You are spend a lot of time gaining experience on how to get chaffing and you should have a very good understanding of how how Internet Marketing works you know so but I I Amazon the chair fic is is over there yeah you can just get a check it directly from.
Michael: Like you were just numerous I think before we recorded but here saying I guess it’s true like Amazon is becoming the search is this where people go for products to go to people still search Google as much for a product I think people just type in Amazon dot com and search for products rather than go to google dot com and search for products.
Wilson Blues: Yeah that’s that’s their habits it’s about a habit changing you know now people people used to search products on google dot com right
Wilson Blues: but now people tend to search a what they want to buy on Amazon because it’s like so Amazon now it’s like a like a Shopping so change and yeah and sometimes it’s very smarter than Google. You know some Amazon has a very very smart I agree them system.
Michael: Yeah I mean I’m sure yah Google is is upset because I think the the buyer buyer traffic is the most valuable like or one and more valuable traffic right when somebody wants to buy a product so if by Google losing some of that is definitely hurting its revenues so back to some like logistics and things. Ah in There’s a lot on some sales tax or for a customer on a buy a product do you get involved with that as a seller or or how does that work
Wilson Blues: Fortunately ah we’re not required to pay for the packs currently yeah in China I mean maybe just just for the US local merchants
Michael: Yeah Yeah
Wilson Blues: Yeah I guess so
Michael: First I had to file every quarter how many sales I had in I’ve had a New York company in New Jersey company of Florida company so doing a where my companies were at the time I had to pay tax or I was registered so I still actually was filing even though I closed my floor a company while ago I still get no to. This is about sales tax but it’s always like you to say how many sales you got in America and how many were in your state and any of the pay a certain percentage of tax for that sales in that state to that government.
Wilson Blues: Yeah in China I always recommend recommend to buy X. by friends. To who wants to ah open an account on Amazon I just recommend to to use their Chinese local partners it’s ID to show her cards just to avoid a tax you know because this is China you know.
Michael: Yeah. Interesting this is from Global from Asia so(laugh)
Wilson Blues: There is a story I have a kind of a friend who has a chinese wife and he wants to uhm open an account but I highly recommend through to use his wife’s information to open an accounts.
Michael: Interesting yeah I mean there’s this is stuff that ah is very you answer then I’m afraid as an American to say much but ah.
Wilson Blues: It might, It might change later. I don’t know but you know it sounds like a little bit unfair boats It’s it’s about the country difference I don’t yeah
Michael: Well I think the same in China right there we’re not how much how about today or Timor but I mean I think that’s like the Amazon of China right or how about our or Alibaba and they want tax I Mean the government wants taxes here too right so they’re raking in a very strict for people not in China to sell here I think it’s because they want to control more the tax or the sales orthe currency but ah
Wilson Blues: because uhm the online business in China is a new industry so uhm the law on the law for this is not material I mean mature mature not sure yet mature yeah yeah.
Michael: Thanks Thanks Wilson so this is something interesting is there people we can talk to in China about Amazon or other people around the world that are like helping sellers representatives like business development people do you talk to them or how’s that work.
Wilson Blues: OK there are two ways to open an account in China uhm the first one is the the do your self self service but uhm it’s not recommended and Amazon has an office in China and they have a lot of a business development managers who help people to open an account you can just to find and to help yourself to find and open an account and the good thing is that when something bad happens they will help you they will help you check out what’s going on there and why your account is suspended or bands or or even help you are reopening to your accounts.
Michael: Yeah yeah definitely it’s also is it the cost or the same if you do you’re still.
Wilson Blues: It’s the same thing
Michael: so why as well there right and do you have to have a company in China or a can do is individual ah person or
Wilson Blues: If you want to ah get ah have to ah business development manager opened in our culture you have to have a company but if you don’t want to to ah get them to have yourself you can just ah do it as an individual
Michael: Great this is really really helpful and so I guess for some people here think about selling on Amazon even even me back and forth but what are. The game so what are some of the bigger challenges they would say. Into a into two thousand and fifteen for Amazon sellers.
Wilson Blues: I mean there are challenges I think the biggest one is to lacked the right products So the price of the product selection is like that direction. The marketing is the like power if you’re the true if you choose the wrong direction then you your waste your time and money you know and confidence so I think the most important thing is the product selection you have to have to make it very clear competition analysis. Just to get a date or like the B.S. are the reviews Yeah. The best seller rank. You know it’s a value to show you how the South is going.
Michael: So I think that kind of covers my next question but so so somebody just getting started they were it’s select the product but I think that’s all I always get people asking me what how do I Choose what product so I can that’s the show itself for our sake everything right so I would be some tips on finding the right products.
Wilson Blues: uhm actually it depends on what what resources you have or what interests or what hobbies you are good at you know yeah but uhm you can just check out the of the team or or the Alibaba dot com But first of all you need to have or have a category to start with.
Michael: Like if you just want to sell it just stick within one vertical market
Wilson Blues: Yeah you have to start with a very common category and just just take the gold from the category Yeah a lot actually but for the electronics category I don’t recommend it’s very very fierce.
Michael: Yeah that’s so influx type expires hopefully right products are he got ah
Wilson Blues: Yeah and the merchant from China you know is so crazy. To just send a prized like you you cannot imagine you know. It’s like the factory original price. You you’re not able to to compete with them you know not possible
Michael: Yeah there’s a lot of stories ah we can get in here and I guess that’s the way lot of Chinese business owners think the price is the most they want it to be the cheapest price and.hmm
Wilson Blues: Even when you have ah ah No idea for the products you’ll be copied so You know because this is how you. How it’s going in China
Michael: Yeah well that was kind of scary scary but.but
Wilson Blues: for me it’s the same Yeah I’m so scared about this Category too.
Michael: Well I guess really I think we covered a lot today and I really appreciate you coming on we’ll send in a second time too so what are ways people reach out to you or think you or maybe give you some questions in the future
Wilson Blues: OK uhm I have a Chinese blog but the menus in English again leave your message blog blues dot alley, dot alley yeah, or you can add me on wechat Wilson Blues
Michael: We will put that up on the show notes Wellstone and thanks again for coming. Have a great day.
Wilson Blues: Thank you have a nice time with you
Michael: Thank you Wilson had not been selling Amazon for quite a few years two thousand and twelve I took a break but I always thought people had to have a U.S. company and have a U.S. like account being a cow in order to get Amazon payments to be verified and deposited I think this is pretty groundbreaking news for a lot of listeners so I hope you guys take some actioning and get this going I love to hear people’s feedback if you like the show also and it helps you I you know want to rate there’s many ways you can get involved help one easier one is give iTunes review I’m told by the you know marketers out there that if more reviews on iTunes helps more people find the show so if you like it go to global from Asia dot com slash iTunes and a quick five star review helps me out get more and I also get all fuzzy and warm inside when I read out on the show and appreciates it motivates me almost up to episode one hundred OK And now a quick announcement I now it’s to China business workshop going on outside of Miami on Saturday September nineteenth this year and I got some great people contact me about it and get involved one is Victor Leo one of my South American contacts and connections. He’s been pretty awesome and he kept me some of his Florida contacts are going so yeah maybe if you guys can even make it to support me and my wife’s family to you know get to the U.S. and back pay some of the bills so it’s China business workshop dot com slash sunny twenty fifteen two zero one five forty two The Eventbrite page if you share that and next week we’re going to have Tom Grundy from Hong Kong Free Press he’s the founder there and I’ve been shared out some of our weekly newsletters and he has given me some insights about how he’s grown and started this news a media organization from Hong Kong.Sewing it’s own business in politics and here a little bit and it should be a fun one so kitchen next week and thanks for tuning in see yah