TAS 127 Ask Scott Session #34 – Amazon FBA Questions

This episode of The Amazing Seller is the special FRIDAY edition… and what’s so special about Fridays? It’s when Scott Voelker does his “Ask Scott” episode, where you can ask your specific, situational questions and get direct answers from Scott. These episodes are some of the most listened to for very good reason. You get practical, powerful advice from somebody who’s a bit further down the road than you are, and the lessons-learned can help you to avoid pitfalls and mistakes Scott has made thus far in his private label business journey. You can ask your own questions by submitting them through the Amazing Seller website: www.TheAmazingSeller.com/ask – go ahead, ask your question now!

Trademarks on my brand name: Is it a good idea?

Many sellers who first start out with an Amazon private label business are concerned about their brand name and everything that goes with it being solely theirs. It’s an understandable concern but Scott doesn’t feel it’s that important at the beginning. Why? Because getting started is a very time consuming and difficult process. Your learning curve is very high. Taking the time to figure out the brand name/trademark issues is a waste of energy at that point. You need to focus on making the business successful first to see if it’s even worth trademarking any brand names. Scott’s got lots to say on this issue so be sure you listen to get all the details.

Should Amazon Private Label sellers have insurance to cover themselves for liability issues (like customers possibly being injured using the product)?

Business insurance is something many beginning sellers don’t consider as a cost of doing business, but it’s very important. On this episode of The Amazing Seller a listener asks about the possibility of a customers being injured using his product and what steps he should take to protect himself and his business from lawsuits. Scott’s first piece of advice is to not sell things that have a high risk of injury (nunchucks, throwing stars, etc.). But secondly he highlights the fact that once you begin selling  a certain amount of products Amazon will require you to have liability insurance and will ask you to provide proof of it. That’s something you need to be ready with when that time comes. Hear Scott’s explanation of the policy and how you can go about finding the right kind of insurance for your needs, on this episode.

What’s the best way to avoid high customs charges when ordering large quantities?

It was back in episode 32 when Scott shared about a shipping mistake he made that cost him $1,082.00. Today a listener asks about a similar issue, wondering how to best go about arranging the shipping of large orders to the U.S. so that customs fees and costs are minimized. There are varying guidelines that shipping companies use regarding their calculation of the fees incurred at customs, but there are also things your product supplier can do in terms of how they package and invoice the shipment to help you minimize customs costs. Listen to Scott’s explanation of this confusing issue to make sure you are not incurring more charges than you should, on this episode of The Amazing Seller.

Have you made the most of Scott’s free resources? The Private Label Workshop is a great one you should attend!

If you’ve listened to The Amazing Seller for any length of time you know that Scott’s not one to hold back information. He’s eager to share what he’s learned so that you can have every tool you need to make your private label business a success and a blessing to you and your family. One of the best and most comprehensive things Scott’s created is his “Private Label Workshop,” a weekly, live, FREE webinar that teaches you the 5 steps to finding, launching, and selling an Amazon product successfully. If you’ve never been a part of his workshop, now is the time! You can find all the details and sign up for the next workshop at www.TheAmazingSeller.com/workshop.

OUTLINE OF THIS INTERVIEW EPISODE OF THE AMAZING SELLER

  • [0:05] Introduction of this episode of “Ask Scott” – where you can get your questions answered by Scott!
  • [0:58] How you can submit your question.
  • [1:10] A situation highlighted on the TAS Facebook community!
  • [6:21] QUESTION 1: How should I go about trademarking a brand name in light of possibly wanting to sell different products in the future?
  • [12:58] QUESTION 2: What sort of insurance should I have in place in case a customer gets injured using my product?
  • [21:45] QUESTION 3: I’ve just placed an order for over goods from China, with a unit cost of $22. What’s the most efficient way of shipping orders this large and avoiding customs issues?

LINKS MENTIONED IN THIS EPISODE

www.TheAmazingSeller.com/ask – Ask your question!

www.TheAmazingSeller.com/FB – the TAS Facebook Community

The episode about Scott’s shipping mistake – www.TheAmazingSeller.com/32

Scott’s free workshop  – https://www.TheAmazingSeller.com/workshop

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Join the discussion

5 comments
  • Hi Scott,
    are the policies regarding to insurance liability the same until now?
    Because actually, I don’t want to have it right now (to reduce costs) as I am just starting the business.
    So can I start with a pro account without the insurance and then have it once I have 10K sales per month?
    Thank you in advance.

  • Hi Scott,

    I listen to your podcast a lot and the insurance thing can be tricky. I am an underwriter for a large US insurance company and I handle tons of commercial policies for medium to large businesses. I’m also looking into private labeling!

    I would say for anyone looking for a commercial insurance policy is to, like you said, call a broker and they can approach multiple markets for you to find the best coverage at the best price. Make sure you choose a policy from an A rated carrier. You can go with a lessor rated carrier, but that may cause issues down the line; renting a commercial property or buying a commercial property. Landlords and banks want A rated paper/policy for property.

    To explain your business to a broker, tell them you are a manufacturer of your specific product or products and the product is manufactured overseas.

    They will ask for sales and ask where you sell and who you sell to.

    For general liability, make sure you have products coverage. I would be sure you are getting $1MM/$2MM limits on the primary. Be sure to read the exclusions or ask your broker to clarify. Duh right 🙂

    Property in my eyes is the trickiest part, because to cover your property(stock/products/work computer/etc) you have to specifically schedule locations onto the policy. This means you have to schedule all the FC’s that you have product at with specific amounts, but this can get complicated since inventory can fluctuate. I would go with a limit that represents the most amount of stock you would have at that FC. Also, ask for blanket coverage which combines all the limits at various locations into a large limit that all locations have access to.

    I would also get an umbrella policy. For most PLers, I think a $1M limit would be sufficient but ask your broker if you’re not sure what to do. Its their job to advise you, plus they get paid commission. Make them work for you!

    Scott, if you would like to get more info on this so you can provide your listeners more info I would be more than happy to have a chat with you.

    Thanks!

    • Hey Marilyn, Alibaba is open all the time, but individual suppliers do work different hours, I would expect to start seeing responses around this time tomorrow night (Monday) in china!

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