FAQs
How much will it cost to get up and running?
That is a great question! Getting started doesn't have to be expensive. In fact, we recommend NOT spending a lot. Start small and reinvest as you make sales.
- LLC Setup. You'll have to setup your LLC with your state. I’ve seen as low as $50 and as high as $800 (California is one of the highest). You'll need your EIN. That is free. You may also need a business license and that depends on what State and City you live in. For more details, visit the Business Setup Module in the 0-100k System.
- Inventory. I recommend only investing $100-$200 to start testing your products. If they sell well, you’ll have more money to buy more products. Please don’t invest $1,000’s of dollars into this at first. Sell and get money rolling in.
- Shipping. Use a free service like Pirate Ship until you are selling on multiple platforms. I then recommend you switch to ShipStation. That is around $30 a month. Video tutorial found in 7.2 in the 0-100k System. It will start paying for itself because it will save you money in shipping costs and time. You can start with as little as what is mentioned above. As soon as sales are made then you can upgrade to bigger and better to help you streamline the process and to make it easier and make more sales.
- Shipping Supplies. DON’T BUY a lot. Get them from Amazon for the cheapest. As you get cash flow, you can buy branded packaging. The Supplies module in the 0-100k System contains a list you can buy once you have grown and want more branded packaging products.
Alternatively, you could start with Print on Demand (POD) and only pay when an item is sold. Your margins will be less starting off, but you won't have any up front costs of inventory or shipping supplies.
Do I need an LLC for each site or product?
Typically, if you are sell under the same brand, you can use the same LLC. However, it's always best to check with a lawyer for your specific situation. We are not legal professionals and as such can not provide legal advice.
How long until we can make money?
I’ve seen people make money in as little as 1 week to 4 weeks. If you already have an LLC, you can launch faster.
You need to register your business legally, the government requires that and it’s an extra step, but you need to get that done. I recommend an LLC as it protects your personal assets should you ever be sued, however, you can also register as a Sole Proprietorship. You can watch Category 3 in the 0-100k System so you can see how you can get products before the black book is opened up to you. You can start setting up your account on some deal sites with only your EIN. You’ll need to have your LLC before you start selling, but you can get pictures, pricing, and your descriptions in while you are waiting for your LLC to arrive.
How do I create a brand if I don’t know what I want to sell yet?
Check out module 3:1 in the 0-100k System. It’s a great way to learn what product you want to sell.
Check out the trending product section too.
Just sell what others are selling. Once you've found what sticks, then build your brand around it.
I want to sell _____ and need to find a wholesale or a manufacturer, where do I go?
Come over here and let me introduce you to the Little Black Book of Manufacturers in the 0-100k System. These are manufacturers we've worked with or recommend.
Who does your T-shirts?
She does Tees, Sweatshirts, Hats. Bags, Pillows, Aprons, Bar Towels and More.
What in the Devil is a SKU??
An SKU, short for "stock keeping unit", is a unique name or number combination used by retailers to identify and track products.
For example, a SKU for a Unicorn Pillowcase might be 'Unicorn01'. 'Unicorn01' would be the name used across systems to reference the same product. For example, if you use Shopify or Etsy and ShipStation, the SKU will be shared between the two systems to help easily identify the product being referenced.
You can make these up. The key is to make it so you can easily identify what the product is.
Keep it simple.
How do you sell on Amazon?
Well, I don't teach Amazon. This system is working on building your brand off Amazon so you to get higher margins and grow your list and create your traffic. This is how I've grown all of my e-com businesses.
How do you find products you don’t have to worry about patent infringements?
Check out 3:1 in the 0-100K System. I try to avoid this!
What about Trademarks?
Check out module 3:1 in the 0-100k System. Under the video, I’ll show you the link to find out how to know.
Do you have a good way to calculate margins or profits?
Yes! So glad you asked. Module 4:2 in the 0-100K System is the Profit Margin Calculator. This is so dang fun for me... calculating profits!
What is a presale? Can I sell before I buy inventory or before my inventory arrives?
A presale is when you sell products before you have them ready to ship.
Check out the presales lesson in the 0-100k System in the Bonus module.
Alternatively, if you don't want to have inventory, you could consider going the Print On Demand (POD) route. The Print on Demand provider will handle the "manufacturing" and fulfilment for you. Your margins will just be a little less.
What do I use for a CRM?
CRM stands for Customer Relationship Management. It's essentially all the data and information associated with your customers.
What is a good price for a logo?
Check out module 2:3 in the 0-100k System.
How do I get great pictures with zero budget?
Check out module 4:4 in the 0-100k System and get some awesome tips over there. I'll tell you how I started with Pick Your Plum.
Is it better to have items that sell for higher prices $19-29 or for lower $5-10?
Doesn’t matter. It’s all in the value that you are offering. Check module 4:3 in the course to find sweet spots.
Is payment via western union a good idea?
NOOOOOOOOOOOOOOOOOOOOOOOPE Never ever. Use PayPal or their in-house site until you learn to trust them. Then you can wire the money but never use Western Union. EVER.
Taxes?
If you have questions or are confused, please contact an accountant.
Here are a few things to consider:
- Most deal sites collect sales taxes, but you will have to check with individual deal sites to see their policies.
- If your state requires it, and most probably do, you will need to pay sales taxes for any purchases by customers in your state. This is because you have a sales nexus in your state due to the fact that you are running the business and shipping out products from that state. If you have an employee in another state who also ships out, or you drop ship from a company in another state, you might also have to pay taxes for that state. There is an app called TaxJar that can help as well. In some states, you have to pay sales taxes on the total amount you collected from the customer. This means the order total (item cost + shipping collected). You need to check your state guidelines.
- For getting sales information, ShipStation allows you to pull a report for your completed orders that gives you the line item order information. (Shipped > Stores > Select the Store > Other Actions > Export Orders). This gives you a line item report of orders so you can filter them by your state. For Sassy Steals and Jane, it shows the total of the order (item + shipping collected).
- You must talk to an accountant or research what sales tax % you need to pay. Some states charge sales tax based on the origin of where the item is sold/shipped from, and others charge based on the rate at the destination city the package is going to.
More info can be found here: https://blog.taxjar.com/charging-sales-tax-rates/
What is the real secret to success?
The secret is testing it, tweaking it and trying it again, and not stopping.
What if I want to open my shop and I don’t have a huge selection of products?
Don’t stress it.
Shopify has some themes built around stores with only a few items. I actually really like these. You’ll notice my pillows are their own site. Not pillows, jewelry, and socks. One thing. Buyers get overwhelmed and walk away.
Do I need insurance?
Legally, I need to say yes.
You can get it for pretty cheap. Your insurance company can help you get the right coverage. Everyone will be a bit different due to the products they are selling. Note: They will not cover any products with lead in them. You don't want to sell that stuff anyway!
I started without it because I didn't know it existed, and by the time I found out that I needed it, I had cash coming in.
Video on types of insurance recommended:
Insurance agencies/agents suggested by members:
- Brett Weston (Utah only) http://www.westoninsagency.com/
- Ashlin Hadden http://www.ecom.insure/
What about dropshipping?
“I came in planning to dropship and now it seems that's not too smart due to quality, etc. So I'm reworking my concept to build a brand, and one thing I'm struggling with is all the extra costs w/ storage, shipping materials, labor, time, etc. Profit margin is very small when all expenses are totaled, and it's a huge time investment as well. Not sure where to go with this. I was hoping to create a side business that didn't take too much time and could eventually bring in a few extra $k per month. I already have a brick-and-mortar (service biz) and was hoping to move away from that. What are you guys doing to make it work? How much profit should be expected (on a % basis) to be considered a win? I know there's lots of talk about $ sold, but what are the actual $ profits after all the time and hard costs (including employees, etc.). I need direction to actually find a product that will work for me, considering the above. I'm guessing you need a higher-end product to make it all work?”
You can do drop shipping....don't stop because of the smaller margins. In business building, you have two things. Time or money. If you don't have a lot of time to get it up and going, then the dropshipping margins are better than none. If you want to do your own thing, then look into a shipping company. Shopify now has a pick, pack, and get things out the door, and you'll never have to touch products or orders. Your margins will be a lot higher than dropshipping too. When I first started, I hired my neighbors to ship for me. They were grateful for the work, and I was grateful I didn't have to ship. They did it all for me. I agree...get shipping off your plate asap and focus on marketing your product. You want to be getting 30% if you are using vendors (middlemen). You can get a lot higher when you go to china. My girls bought their scarves in Cali for $3.50 and got them in China for $0.57. They sold a set of 3 for $13.00 + free shipping. Their margins went sky-high when they moved to a manufacturer. Test the market, make sales, then talk to manufacturers.
Higher-priced products, you don’t need to do that. I sold products for $2.99 and made it work. I sold a lot of them, but it works when your margins are right.
How do you get traffic?
Module 8 (Influencers) is your goldmine!
What if I don’t want to use my home address?
I don’t blame ya. I didn’t either, but we had a warehouse, and that might not be an option for you. My girls didn’t have that option either, so we set up a PO box for them, and it worked great! Now, that might not be what you need, so here is an article that breaks it all down so you can find your best fit: https://toughnickel.com/self-employment/Private-Post-Office-Box-Rental-More-Options-Than-Just-the-US-Post-Office
How do I sell more on deal sites?
Check out module 5:2.
Start by asking for a higher listing.
Check out module 10.2 for my 5 P’s if they are not selling.
What about deal site pricing? Or profit margins when working with deal sites?
Some of the deals I’ve seen don’t seem to be very profitable unless they’re sourced directly from the manufacturer. Any suggestions for how newbies like me can compete?
Yep! Check out modules 4:2 and 4:3 in the 0-100k System.
Can you submit to multuple deal sites?
Yes, just make sure they are not going to run at the same time.
Are there deal sites you don't recommend?
I don't recommend using Groopdealz. IF YOU DECIDE TO SELL ON GROOPDEALZ search what others have reported in the 0-100K Facebook group. Many vendors have not been paid in full or severely delayed.
I seen some deal sites require a minimum of $600 in product required to submit to deal sites?
It depends on the deal site. Some require you to have a minimum quantity of products available to sell. If they do, they are typically looking for $600 in total sales, not your cost of the product.
Say you sell a product for $25, and you only pay $5 per unit. You'll need at least 24 units on hand to sell. ($600 minimum / $25 sales price = 24 units)
Your cost for those 24 units would be $120. (24 units x $5 cost)
Are there manufacturers who will put your design on their products for you?
Yup, that’s what the Little Black Book of Manufacturers is for. They make everything and anything you want.
You can also look at Print on Demand providers like Printify.
Can you explain, after you find a product that sells really well from fashiongo, how to find that same product cheaper from China? Do you show the manufacturer a picture of the item, and they replicate it?
Yup, but I’d only do that on clothing if you are selling tons. The MOQ on ordering clothing is high in China. Also, give it a bit of a twist, so you are not exactly copying. I’ve sent plenty of pictures to China of items I want and then changed them (to something that I would want better) to avoid copyright. Add pockets or a different neckline cut. A different type of fabric, etc. Then there are manufacturers who can do this in the Little Black Book of Manufacturers USA or China.
What is MOQ?
Minimum Order Quantity. It is the minimum quantity you have to order from a manufacturer
How and where to look for next quarter’s trends?
Check out 3:3 where I show you some insider tips. Scroll all the way to the bottom for a 12-month selling guide.
Help! I found a product I like, but shipping looks like it will eat up my profit margin!
Use Pirate Ship (free) or ShipStation to find you the best rates. Charge more for the product. Add value.
Check out Category 7 How to Ship Your Products.
How do you handle custom designs made by the manufacturer or Alibaba?
You might also be asking, "Is there any assurance that my design won’t be made available to everyone else as well?"
The only way to protect your design is #1: Get a lawyer involved. They can help protect it correctly and show you how to follow up with people who knock you off. #2: This is not a guarantee, but it worked for me. I built a great relationship with my manufacturers, who said they wouldn't sell my designs. They could be lying (heck, they are on the other side of the world:), but I honestly trusted them.
If you want to get your products inspected overseas, do you have any recommendations?
Yes, I recommend https://movley.com/. I have not used them personally as I have met a lot of my manufacturers and have not needed that, but we have had others in the group use this company to double-check their products and have been very happy with the results.
You can also ask the manufacturer to send you samples for approval. Typically, they are open to doing that as long as you cover a small shipping charge.
Who is your shipping broker?
Lindsay Ogden with Cargolink. info@cargolink.com
When will I need to use a shipping broker?
Feel free to contact a shipping broker at any time. Most are more than happy to help. If it’s shipped by boat you need a shipping broker for sure. Air shipment will depend on product and amount. Anything over $1000, reach out to a shipping broker. Check out module 3:5.
Where do I get shipping supplies?Tattos:
Branded Tape:
Sticker Mule or Tape Jungle With Tape Jungle, it does take a long time. In the future, I’ll get it from China but I wanted to see the reaction first before I put a ton of money on tape.
Stickers:
Start with Print Runner or Sticker Mule, then you can get them in bulk and cheaper from China in the future.
Starting off or just testing, you can get them faster here in the USA.
Boxes:
What's a good website to sell on?
Shopify. Everything you need all in one place and only $39/mo.
How much should I pay for a URL (domain)?
If it’s not taken by someone, it will only be $20 ish. Opt for the privacy option, or you will get spammed.
That’s the only 2 things you should buy from GoDaddy: the domain and the privacy option.
Use godaddy.com for your domain (URL). Do NOT buy a WEBSITE from godaddy.
What's the best automated abandoned cart app for Shopify?
Shopify has their own automated abandoned cart emails or you can use your email service provider to set up your own. If you are using Klayvio, then I’d use what they provide. Check out Category 5 for mini tutorials on setting up Shopify.