What would it take to convince you that international sales are approachable for eCommerce sellers like you? Don’t let horror stories and the unknown variables intimidate you and cause you to miss out on a great business opportunity! On this episode of The Amazing Seller, you’ll hear from business leader and international sales expert Jason Magee. Jason and Scott discuss many aspects to selling your products in an international marketplace. From their conversation you’ll learn steps you can take to get started, tips for saving money with overseas suppliers, the benefits of using companies like World First and so much more! This is an informative episode that you don't’ want to miss!
What steps are necessary to get started selling overseas?
When eCommerce sellers first consider selling overseas many cringe thinking of the logistical and bureaucratic nightmare they imagine it to be. While there are some unique difficulties to running a robust and profitable brand overseas, getting started just might be easier than you think. Wouldn’t it be nice to have someone with inside experience guide the way? Look no further! International sales expert Jason Magee joins Scott on this episode of The Amazing Seller to demystify the process of selling your products in an overseas marketplace. You’ll walk away from this episode with some clear steps that you can use to get started today. Don’t miss this helpful discussion!
A useful tip that can save you money with overseas suppliers!
As a small business owner, you want to maximize your profits and minimize your expenses to the absolute best of your abilities. What if there was a way for you to SAVE money when paying your overseas suppliers? On this episode of The Amazing Seller, Scott and Jason Magee discuss a tip that sellers like you can use TODAY to save on costs when dealing with your supplier. This tip has to do with paying your supplier in their local currency, you’ll have to listen to this episode to get more details – you’ll be glad that you did!
The benefit of companies like World First
If you are ready to start working toward selling in a marketplace overseas there are a few variables that you need to consider. When you're trading overseas on eCommerce marketplaces you'll need to find an effective way of converting your payments back into your own currency. In addition, you’ll have to pay overseas suppliers. That’s where helpful companies like World First come in to make the process easy on sellers like you! If you want a hassle-free and streamlined process to get your brand into an overseas marketplace, you might want to check out World First and see what they have to offer. To find out more about World First, make sure to check out the link to their site in the resources section at the end of this post!
There are BIG opportunities for Sellers in Germany & China
Are you considering expanding your business options and venturing out into foreign markets? Do you think that your brand would perform well with audiences overseas? If so, you might consider researching what is happening in the eCommerce marketplace in Germany and China. On this episode of The Amazing Seller, Scott sits down with business leader Jason Magee to discuss the rich potential for US sellers to get involved in these marketplaces. This might be the best move for your business right now, don’t miss out on all the insights you need to get started selling in an overseas market on this episode!
OUTLINE OF THIS EPISODE OF THE AMAZING SELLER
- [0:03] Scott’s introduction to this episode of the podcast!
- [5:00] Jason Magee talks about his background.
- [8:30] How to get started selling in another country.
- [11:30] How do you get money from overseas sales?
- [19:30] How do overseas sellers get started selling in the US?
- [22:30] Jason talks about how sellers can lock in an exchange rate.
- [26:30] Save money by paying your supplier in their local currency!
- [33:30] The benefits of using a company like World First.
- [36:00] Why sellers like YOU should get in on Germany and China markets.
TRANSCRIPT TAS 360
TAS 360: Tips for NEW and Current International Sellers to Help Get Started and Profit MORE!
[00:00:03] Scott: Well hey, hey what’s up everyone! Welcome back to another episode of The Amazing Seller Podcast. This is episode number 360 and today we’re going to be talking all about…
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…international selling whether you’re in the States and you want to sell internationally to another country or you’re in Germany or U.K or wherever we are going to talk about that. We are going to also talk about if you’re in the U.K or in Germany or any other country for that matter and you want to get started selling in the States.
I get a lot of people that ask me about this and honestly I don’t really know all the ins and outs. Now, I do have a few students in my class, my PLC classroom that is, and they are international sellers. Actually I have got one girl right now who is actually over in the Canton Fair and she has been shooting videos all week long inside our class which is pretty awesome. But she has given some back on us as far as like how to get everything set up and stuff but I wanted to have an expert on in this field. I haven’t had anybody yet and I came across this guy, his name is Jason Magee really awesome guy.
Jason has been a senior manager of North America partnerships at world first. This guy knows a thing or two about international selling and how to get things set up but also really how to save the money. Because a lot of the time we’re giving Amazon more money or just the transfer rate again it’s kind of confusing but he breaks it down really, really simply but he’s been working for World First for just about three years.
Just over three years actually and he’s been focus heavily on ecommerce development and really creating these ecosystems to help online merchants like ourselves to successfully sell on these marketplaces all over the world. Now, again he really does specialize in Amazon, Rakuten, Newegg and others. The thing is is because he’s been working with so many sellers throughout these past years he’s learned a ton. He sees some of these pitfalls and he sees how people can start saving some money as well and also really how to leverage being an international seller.
[00:02:05] Scott: So really excited to have Jason on, real great guy. He’s going to be a new father here soon, so I’m excited for him about that. And we had our little bit of a discussion on that but he’s just a really, really great guy, down to earth. He knows his stuff and he’s willing to share so I want to invite you guys, if you have a question definitely submit a question. You can submit that question right here on the blog or on the podcast if you go over to the blog you can submit that comment and then we’ll make sure that he gets those questions. He’ll probably will be hanging out there in the comments section so definitely, definitely do that. If you do want to leave a comment or even go to the show notes, you can just head over to theamazingseller.com/360 and the show notes, the links will be there. And also you can drop a comment there and definitely do that.
Alright guys so just want to also say one thing before we jump into this interview that I did with Jason my mic, my mic the quality isn’t that great and there is a reason for that. I got so excited that when I got on with him that I forgot to enable my podcast mic and I had my earbuds mic hooked up. I didn’t realized it until after we were done. I wasn’t go back and rerecord this thing. You can still understand what I’m saying you can definitely understand what he’s saying but I just want to let you guys know I’m aware of it and I’m sorry but it’s still ok. You can still listen but it does sound terrible but it doesn’t sound like the quality of the podcast mic. So like I said sorry but I think you can get a ton of value from this interview. So guys sit back, relax or if you’re on the run, enjoy your run and listen to this interview that I did with my good friend, Jason Magee, enjoy.
[00:03:49] Scott: Hey Jason, what’s up man? How are you doing? I’m so excited that you’re here brother.
[00:03:54] Jason: Scott I’m excited as well. Thanks for having me on. I have been an avid listener for a long time so it’s a privilege for you to welcome me here. Thank you.
[00:04:02] Scott: This is awesome man. I’m excited. I have been talking to you for the past, it seems like a few weeks but actually it’s been longer because I think we got in touch maybe a month and a half ago then we finally got together like three, four weeks ago. And then we made this happen because you’re the guy that’s going to help me understand the fully international Amazon seller’s space as far as how do we make it happen if we we’re maybe someone who lives in the States that wants to sell into another country or maybe someone that’s in the U.K and want to sell in the States.
And figuring out not necessarily just about how to sell in those different platforms but more of how do you get yourself set up, moneywise, legally. We got to know what we need to set up there? What does Amazon’s require? I know you have a lot of knowledge in this space and that’s why I wanted to have you on and really pick you brain about this. So maybe before we start you can tell us a little bit of you and kind of where you come from?
[00:05:01] Jason: Yeah, absolutely, well you’re right. There’s going to be a lot to cover here, I’m really, really excited to get into it. A little bit about me, I head up partnerships in North America for World First. I have been here for over three years. We specialize in global money movement and setting up any country receiving account to collect revenues from Amazon sellers regardless where they are based or other market places and we help them bring it back home.
Me myself in the last three or so years that have been here at World First we’ve seen everybody has seen this ecommerce thing just completely grow. We are all kind of riding on the coattails of Amazon and I have just been able to learn a ton from talking with folks like you talking to merchants. And also just finding other partners who add value to Amazon sellers so it’s not only am I just going to talk about us at World First but there are a lot of other really companies and classic they could be using that we don’t do here at World First. This is a lot of positive things to talk about.
[00:06:08] Scott: Yeah, I love it that you’ve been in the space and you seen a lot of different fellows and businesses and even the landscape in Amazon has changed. And not in naturally a negative way. A lot of people look at Amazon with all these changes and they think to themselves “Oh my god the sky is falling.” That’s not me. I still think there is a great opportunity, I think there will always be a great opportunity in every platform that has bias. eBay went through tons of changes since I started online which is over 15 years ago and they’ve had a ton of changes, Google had changes, they all had changes. We have to adapt.
[00:06:49] Jason: Well one cool thing that I talk about a really cool trend that actually helped anybody especially selling internationally. Three years ago it was all that arbitrage and reselling and that has always been awesome for selling internationally as well but you see this rise of private label so people will create their own brand, they don’t have any sort of mapped pricing to follow. They don’t have the gate authority or permission to sell in another market. You see like obviously resellers and arbitrage models works, swimmingly. You know private label has been a positive change that gives merchants and Amazon sellers the small control over when, how, why they sell et cetera. That’s a really positive change we kind of seen in the industry.
[00:07:29] Scott: Yeah people out there that are looking the shortcut thing. They are usually the ones that are complaining, like oh man they got rid of that loophole that we discovered and now can’t do it anymore and we can’t game the system like it’s one of those things.
I just want to talk to you though like really today I know I’m glad to be back we’re glad because there are so many different things we can talk about. You’ve got so much knowledge just working with all of these different sellers internationally. What I really want to do though is I want break it down and really dumb it down in a sense could I need it dumbed down. I want to know like if I wish to go and try to sell in another country which I want to eventually, but if I wanted to do that my first thought is how do I get a bank set up there and how do I get an entity or what does Amazon need me to have I guess would be the first question and maybe we can jump into that.
[00:08:27] Jason: it’s a very, very, very good question. Everybody thinks, whether you’re in US selling in Canada or you’re European selling into the UK et cetera that you have to create a business entity and actually completely that you spend a lot of money just for the privilege to try and sell on Amazon and other markets. The beauty is it can be as simple as using your country as the entity and just setting up as a foreigner to sell in the Amazon market. You don’t need to necessarily. There are a lot of benefits and there are some techs, specialists out there. I’m not one of them.
But there are some benefits. You don’t need to let’s say you’re in the US trying to enter the UK you can simply go directly to the amazon.co.uk sign up as a seller there and they don’t require you to have any country presence. There are a few immediate steps that you will need to have; you need to have your VAT set up.
What that is it’s value added tax it’s the UK and Europe’s version of how our sales tax here. It is something you do need to set it up, you can set it up on your own, there are some other companies out there like Meridian Global services and Simple VAT and some other ones that are they are all there. You can do it yourself but when it comes to taxes and things like that obviously you need to make sure you check every box appropriately, if you don’t want to do it yourself there’s sort of help there. But the beauty here about selling on Amazon market outside of where you live is you can take advantage of the FBA. So much knowing that folks use FBA here in the US there is a pan-North American FBA program that allows US fellows or Canadian fellows to sell across the Northern south border.
You also can set up the same thing in Europe so if you are a UK seller and you want to sell into Europe there is a pan-European FBA program that allows you to ship to Spain, Italy, Germany, France, the UK. So it’s as simple as that. Get your VAT set up, figure out how you want to get your goods there, leverage Amazon FBA and step one is check your product. Can you sell out there? Do you own the brand and do you need brand permission? Just go do your own search and see how that product is doing over and if the product is not even there at all there is a really cool opportunity to create your little niche.
[00:11:00] Scott: Yeah okay, so let me ask you this though because you are about collecting the money and getting the money back to us, what happens there? Generally if I didn’t use a service that you guys have or your company. If I did that how would Amazon collect the money and then send me the money into my bank account?
[00:11:20] Jason: Yeah so very good question. So to get it right, do you want to know if you want to sell on the Amazon how are you able to bring your money back home basically?
[00:11:30] Scott: Yeah. How am I able to bring it back home? For me personally I’m in the Sates, I’m selling in the UK or I want to sell in the UK, I get a sale in the UK, I’m assuming it goes into an account over there. It doesn’t come directly to me. How do I get it because they are probably going to ask me what my banking information is, like how to pay me? How do I even do that?
[00:11:51] Jason: So here is how Amazon works when it comes to collecting your revenues on an Amazon market overseas. If you’re based in certain countries, for instance if you’re in mainland China and you’re trying to sell on Amazon in the US. There are certain countries like that where you have to have in country account to collect revenue so you can’t even set up to sell there without an account.
So that’s where a service like World First comes in because these are accounts that provide the bank accounts in the merchant's name, sort code et cetera to collect revenues in that market. Here is the thing, if you are in the US and you want to sell into Europe or vice versa, Amazon can pay you without needing another service. What we’ve seen, is that there’s no such thing as a free lunch. So, when they bring your money back home Amazon there is a fee, a percentage taken out of the exchange rate.
So our merchants who come to World First, we typically save these merchants you know 2% sometimes more, sometimes less depending on volume but what we’ve seen is the merchants who use Amazon to bring their revenues back home they’re seeing 3%,4%, 5% taken out 4% more, less et cetera, so there is a cost associated with leveraging Amazon and they actually… The other thing too is they’re really in control. They going to send it back to you on a scheduled day, at a scheduled time and some people like that but look using a service like World First you can set it, forget it and just bring more of your profits home but that’s some of the immediate baseline levels and benefits of using the service.
[00:13:35] Scott: So ok let me understand this, if I just set up myself up in the UK Amazon will collect that money. They will send that money to me in the States no problem. They going to charge a 3% or 4% or a 2% whatever it is on your volume. There is a percentage that they are going to add on your normal FBA stuff that they normally already selling you. If I earned a $1,000 they’re going to charge me a percentage on that $1,000 that come into my bank account.
[00:14:03] Jason: It’s very close. So what happens is let’s say that one pound is worth $1.25 so every one pound I move I should be getting $1.25 back. So it’s not a separate line item when Amazon pays you, but if you look at the exchange rate that day and what you actually received you may receive $1.22, $1.20. So really what you can do is the day that Amazon disburse your revenue you can simply do a quick search. It gives you a rough idea of how much was taken out of the exchange rate. That’s something that you don’t see and usually the first step is just to educate merchants to let them know that this is kind of happening.
[00:14:49] Scott: Ok, ok so using a service like World First, if I’m understanding this correctly maybe you can cut me off if I’m not seeing this clearly but it’s like you guys have bank accounts in those countries and then you’re representing my business or I have an account through your company as if I was going through bank of America let’s say. Then that money that is being sent in there, you’re now sending me that money at a discounted rate because you’re set up in that country? Is that correct?
[00:15:40] Jason: Yeah, yeah exactly. We have banking relations in all over the world that allow us to be able to you know diversify the large banks that are out there and be able to provide these customer accounts, these receiving accounts specifically designed to do just that. I’m going to correct the revenues from my marketplaces; Amazon, Newegg, eBay, RAkuten, et cetera and when World First brings it back home we provide a very, very competitive rate of exchange to make every merchant more profitable because you are bringing more revenue home.
[00:15:55] Scott: Got you. That makes sense. I understand that correctly and now because of that again it’s kind of like if I was to go through your service I let you know that I want to sell over in the UK and then you’re going to help with that set up or to give me the different pieces that I need to make that work.
[00:16:16] Jason: Yeah exactly. The journey as a merchant will register with World First. We welcome them, we do a full due diligence thing, compliance check to make sure we vet them. And then we say, “Hey we see you’re based here in New York City, where else are you selling?” “Ok I’m selling in Europe.” “Ok we can issue your account UK, we’re going to issue a UK account,” we can even set these accounts for merchant selling into China or Japan or other places. Yeah we look at them but the beauty here is not only are we here to help save merchant’s money, make them more profitable. We have a very wide partner network so we know that a merchant is having an issue with private label or translating their listing. We have a very wide network of folks we can connect them with to help with all these issues. We really try and bring this big ecosystem together.
[00:17:11] Scott: I got you. So you’re helping, I like this, you’re helping your customers in a sense, you’re helping them to be more profitable and to be more successful because you know as they bring money through the door obviously World First is going to be bringing money through the door. I mean not to kind of gloss over that, obviously World First needs to make some money, we understand that but you’re also there to save us some money and you’re also there to say, “Listen, we’ll also connect with some people in our network to help you build your business if you need help with the listing because people don’t speak a certain language or you need help with this stuff.” You guys have connected yourself or aligned yourself with other people that can help us and then from there hopefully we do better. If you do better that means that more money is going to come through and that means that you’re going to be getting the money through that because you’re going to be charging a small fee to make that transaction happen. But also you are actually saving us money on that end of it too because Amazon charges more because they are doing the translation of the money.
[00:18:17] Jason: Exactly, exactly so number one yes we are making money but we’re able to keep our lights on by making far less than others out there.
[00:18:25] Scott: Yeah, Yeah.
[00:18:28] Jason: We have a vested interest to help you as successful as you can in one market and then not only do we work closely with merchants on Amazon, we have partnership with all sorts of markets places all over the world. Since every one of our client is a dedicated account manager who knows their business in and out. We can then say, “We see you’re selling these widgets, you might actually want to talk to these folks because these markets places they saw they do very well in that category.” So rising tide raises all ships.
[00:19:03] Scott: Sure I love that, that’s really awesome. Let’s go the other way now, I get a lot of people in the TAS audience they say, “Scott I’m an international fellow or I want to be an international fellow in the UK, I want to sell in the US,” what’s the difference there or how does that work?
[00:19:23] Jason: It is very, very, very similar. It’s very similar. In that case the merchants from Europe, in the UK they don’t need an in country solution to collect revenues. We’re very, very good nice to have and they can obviously get started without it. It’s the same thing as before you need to figure how you’re going to get your product here so you need a logistics provider, you need to decide how you’re going to fulfill. Are you going to fulfill yourself, fulfill by merchant it or through FBA. The other thing too is the little subtle differences on the language side. Maybe you don’t have to do a full translation but you want to make sure that we call a tennis shoe, ‘tennis shoes’ they call them trainers. If you’re listing correctly they need to make sure that it’s in the proper verbiage.
[00:20:11] Scott: I get that 100%. So let me ask you this though, if someone is in the UK and Amazon is going to collect that money for them and send that money to them in their country are they paying additional taxes to get back over to their country?
[00:20:26] Jason: I have to deflect that one. Not a tax expert here but what I’m going to say here is what’s more important is email Amazon is becoming… We’ve all seen Amazon talking about sales tax in the US. I would say in that case, rather than obviously just ignore it which I think a lot of folks do, I think it’s really important to bring in a company like TaxJar or Meridian in that case just to make sure that… Some States take a grey approach to it but I would always say rather be safe than sorry. We work with a company called Nevada Corporate Planners, Scott, he always does webinars talking about this exact model which foreign sellers selling in the US, what are your obligations, what do you need to do, what should you do, et cetera?
[00:21:22] Scott: Okay, let me flip that around because I didn’t mean it to be a tax question. Again, just to really mention that again, Jason and myself and World First is not tax experts, period. We are just giving advice as far as like, the way that we see things happening and from other sellers, but definitely, definitely, check out TaxJar. I know those guys really well. I’ve recommended those guys. They have a ton of resources on their blog and I know you can reach out to the support and get any questions but I meant more of an exchange rate is really what I get them talking about. I meant like, if they collect my money and then they send it over, like how does that work for someone that’s in U.K but then they are selling in the U.S and then the money is coming from the U.S to the U.K?
[00:22:08] Jason: So they’re selling in dollars, Amazon’s taking… All the buyers are paying in dollars. Amazon is sitting with your pool of dollars. They’re going to transfer that back to pounds to you. So World First in this case, we would just give that U.K merchant, a U.S dollar account to collect the money from Amazon in U.S dollars and then we did the last mile. But here are some really cool sort of nuggets that people don’t really think about. So if you look at phases, you don't need to use a service like World First in that case to get started. Obviously we provide a massive benefit just on saving on the rate of exchange but one thing that's really cool is a lot of merchants don't know, with services like World First or other services out there, they actually can lock in a rate of exchange for a certain amount of time.
So merchants will want to do this for kind of two reasons. If I'm in the U.K and I'm selling in the U.S and I see the dollar strengthened compared to the U.K, because in this case obviously we've seen what Brexit’s done to the pounds, it's weakened it. That means anybody selling in the U.S bringing the revenue home, they're bringing more of their revenue home. So if you lock in a rate of exchange, you do two things.
One, if the rate’s in your favor, you're guaranteed that rate of exchange so you have an increased profit on what you've locked it in at, but some folks they don't care whether the rate goes up or down. They just say, “I want to be protected or at least know my profit margin is.” They don't care whether it goes up or down, they just want to lock it in. So you could actually lock in a set amount for a certain amount of time to actually protect yourself.
[00:23:41] Scott: How long generally can you do that Jason?
[00:23:44] Jason: You could do it up to three years, many folks don't. But here's the thing, now getting even more deeper to that let's say you do $100,000 worth of revenue a month. So let's say you want to lock in $300,000 for three months. You can do a regular forward contract, which means on that exact date, you have to move all of your money back or we have what's called a flexible forward, which means that you can draw down any portion of that amount, say you hit that $300,000.
[00:24:15] Scott: Okay, okay. That makes sense. So you've got options to lock it in if you want to. I think the scary part of locking it for a long period of time, is you might be thinking the opposite. You might be thinking I’m locking in and I might get a better rate in the future.
[00:24:30] Jason: Exactly and that's the thing with us is, we're not authorized to even provide advice on which way the market … If I had a crystal ball to know which way the market was going, I couldn’t be here but the thing is, is some folks like to do it on a very short amount of time when there's unrest happening or for whatever… People choose a lot of different reasons but that's the thing is people… I think that the big takeaway here is the rate of exchange is moving every second of every day. So if you or somebody on your behalf isn't at least monitoring what's happening, then you're at a disadvantage.
So another example here that I wanted to share is, let's say that, the job numbers. U.S. employment numbers are doing incredibly and they just come out or let’s say the dollar strengthens. Let's just use a generic, let's say it goes up 3% compared to the pound. The cool thing here is if you don't cut your pricing on how you price your products, you're automatically making an increased 3% profit margin by selling your goods at the same price, but think about this. What if we you then lowered your price 3%, you have the exact same profit margin but you're able to win the buy box to increase sales velocity just because of how you’re pricing your products.
[00:25:52] Scott: Now that's huge it's almost like… Well here's another example, let's say for example you had a supplier and that supplier gave you a 3% or a 5% discount because of who you are and how many you bought. You're getting an advantage over your competition and this way you're doing the same exact thing except it's just because of the money transfer. It’s always with the money, I guess the value depending on where your country is.
[00:26:21] Jason: Yeah, so I want to say, one thing about the supplier side, this is another, man this is action-packed cool thing. So, on the supplier side you're right. If I'm going to buy 10 widgets, I'll get a better price if I bought a thousand widgets, we all know that. So here's the thing, let's say I'm in the U.S and I’m buying from somebody in China. Well let’s say I’m even importing from Europe, those are where my manufacturers are. A lot of times folks in the U.S are paying their supply or folks anywhere are paying their suppliers in dollars.
So think about this, if I'm in China even though Chinese they do a lot of business in dollars, if you ask for that same invoice in a local currency, so local Renminbi, if you’re Chinese Yuan, you may, we've seen our merchants get a discount because they're getting priced in a local currency. So if you're paying for the same 10 widgets but you get 2 prices, one in U.S dollars and one in local currency, we've seen merchants get a lot of big price breaks just because they're willing to pay in local currency.
[00:27:24] Scott: So how does that work though? So if I'm willing to do, like I'll give you an example right now, I mean I'm getting ready to send a wire over today. And we got our pricing U.S dollars. So you and I, we’re having a cup of coffee together and I just told you that, would you tell me that I should be asking for another invoice?
[00:27:43] Jason: So here's what you should do, you should go to your supplier and say, “Hey I'm very happy to pay you in dollars, really appreciate your business, but do you mind?” And I would frame it as if you, because you do. You want to make it as easy as possible on supplier. So supplier's charges you in dollars a lot of times because they're trying to make it easy for you. If they, so if you go, “Hey look, I'm willing to meet you on your level, in your customs et cetera can you also just send me that same invoice priced in local currency?” The local currency that you want to receive or Renminbi in this case and if you look at them right beside each other and you just go to Google or go to our website you just see what the exchange rate is, you actually could get 3%, 5%, 6%, 7% off of that invoice of the exact same invoice paying at the exact same time.
[00:28:30] Scott: So how, okay so let me ask you this, so then how would I pay them in their local currency if I'm paying through like a bank wire or something how does that happen?
[00:28:39] Jason: So that's actually how we were built as a business is to actually make those sorts of payment. So I know we're talking a lot about bringing money home from marketplaces but our core business, we were started because if you want the massive companies of the world and you needed to make an outbound wire in a foreign currency, we wanted to provide much better rates of exchange and more competitive rates of exchange as to say and the service component as well. So we do the whole outbound payments wherever you're sending money.
[00:29:09] Scott: Okay, so again I'm going to ask you and this is on the fly here. I'm totally like picking your brain. So like let's say, “Okay, I've got an invoice for $10,000 in U.S and I'm going to ask them for another one.” And then they give me another one and it's last or it’s at in their currency and then I… How do I make that work with you? Do I say, “Hey Jason,” or whoever my rep is, “I want to go ahead and pay this invoice, what do I do?” Do I have to then connect you with one of my bank accounts so you can pull the money and then you guys make that, how does that work?
[00:29:42] Jason: So you sign up with us once you're on board and you're set up with us. You say, “Hey Jason, I need to pay this amount of currency to this supplier on this day.” And then you can either send us the funds via wire or we can direct debit your account and there are a lot of ways you can get funds to us. Once we have the relationship with you and we can pull funds from your bank account or you can push them to us, it becomes a local transaction because you're sending it to us in the same currency in the U.S. You're not having to wire it overseas. So you earn a few savings there and then when we did the last mile, which is dollars to local currency, we provide competitive rates of exchange compared to banks.
[00:30:23] Scott: And so that sounds like a lot. What kind of time frame does that take? Because I mean like if I do a wire, I can wire it today and it could be there tomorrow or the next day.
[00:30:36] Jason: Yeah, it's the same based on where you're sending money. A lot of majors we have it there but typically depending on when you get to same day or next in our ability to get funds into China as long as the manufacturer’s able to receive it. It's extremely comparable to a bank.
[00:30:58] Scott: Okay, okay, good.
[00:31:01] Jason: Typically a lot less headache because you're not having to go actually into a branch necessarily. So a lot of cool value adds.
[00:31:07] Scott: Okay, so let me ask you this, I've got a partner right now that we're starting a new brand and stuff and one of these invoices that's going to get paid here in the next day or two is for that brand. So she's really handling a lot of that side of the business. So what is it, that I just basically have to get in touch with you guys and then get her to get in the onboarding and then from there I mean, is there people that you only work with that they're doing a certain number of volumes, like what is that, what does that look like?
[00:31:36] Jason: Yeah exactly. We don't typically have a minimum if you're bringing funds home from an Amazon Marketplace. If you're sending money outbound, I mean typically it all depends on the relationship but typically it's $500 to $1000 minimum based on whether you’re a new or existing client but most folks are paying a lot more than that per wire anyways.
[00:31:58] Scott: Yeah, yeah. I mean we're talking, our wires, I mean for down payments or generally if we're testing a market, is around $1,500 to $2,000 and then if we're doing a full fledge order, we're talking between, the low end would be 5 grand to upwards of $10,000
[00:32:13] Jason: The simplest way is, sign up for an account, it takes probably 5-10 minutes to set up an account, because once you get the right checks or, usually happens very quickly but typically same day as long as you get us the info. All you need is to say, “Hey, I need to pay the supplier on this day.” We pull the funds from you, deliver it for you. It's so simple.
[00:32:34] Scott: Cool, all right. Definitely going to be checking that out. That's definitely going to happen. I think we've covered a ton and I don't want people's minds to get too overwhelmed here, but I think a lot of this stuff that we talked about is critical. I guess the biggest thing that I want to have people take away is really like, is it complicated to get this stuff set up? A, if they do it by themselves or B if they use the company like World First? I think I just want to hear that and then I want to hear like again, maybe one more time, like what are the benefits to using a company versus just doing it themselves?
[00:33:22] Jason: So the question being, is it complicated to set up to sell on Amazon on other markets? Simple answer is no. But the thing is people are scared about what they don't know. So number one, just as the way you got started selling on Amazon without knowing anything, step one is just do a little bit of research. What you will find is it's very simple to start the process. Even if you do it all on your own, it is simple. There is a ton of support out there but there are other companies that can just expedite your ability to be successful in those markets. So I think the other quote that I really like is to have what others don't, you have to be willing to do things that they won't.
It is very simple. So there are a lot of other companies out there that specialize even end-to-end getting somebody set up but simply put, the number one thing to do is, sign up on Amazon in that local market and take a walk into a lot of things you need to do and you can fill in the gaps. You just learn on the fly or leverage somebody else that can just help. Go buy somebody a coffee who sells cross-border, there's a ton of meetup groups and say, “Hey, what do I need to do to get started?”
[00:34:34] Scott: Yeah, yeah. I agree. I agree, again it's the fear of the unknown for a lot of people and people that are starting into one market place don't want to go. I mean even myself we're talking about just now starting to possibly launch some of our current products in other countries but it's almost like… And again I don't think there's a right or wrong time when to do and I think just me personally, I like to get my bearings in a certain market place first, make sure the products are doing well but then like you said, you could take that same product that's just doing okay here and put it into another market place in another country and it could do really, really well.
[00:35:13] Jason: You can just test. See that’s just the thing, you don't have to start with a massive pallet or a truckload, it could be five units. My advice to be, if you're going to start testing the market don't focus on being profitable, focus on sales velocity because at scale the cost gets lower. I mean the other thing too is, everybody claims, I mean everybody, the ho-hum, Amazon is saturated in the U.S. One, that's false. Two, even if that were true, it's not saturated in other markets. So the thing is a lot of times a widget that I might sell here for the equivalent of $10, a lot of times because there aren't as many sellers selling that product in another market, I could sell it at a higher profit margin. So maybe I don’t sell as many units but per unit I'm making more money.
[00:36:07] Scott: Yeah, now I get it. That that makes total sense. Let me ask you too. I’m going to pick your brain here and get your opinion, out of all the countries right now Amazon is on or that is in, which one do you hear the most about that's like up and coming?
[00:36:24] Jason: I mean Germany is just massive.
[00:36:27] Scott: I heard that too.
[00:36:26] Jason: So Germany is massive but, number one you're in the U.S or the U.K and you're not selling on each other's marketplaces, that's step one. But you want to talk about something up and coming is Amazon China is really focusing on trying to attract Western Brands and retailers. So we actually had an event in Brooklyn where we invited a lot of our bigger sellers and we actually had a representative from Amazon China talk about the steps to get set up to sell into China. That is, everybody's worried about the cost. A lot of the Chinese sellers who are selling in the U.S are able to drive down the cost to the manufacturers but the opposite is happening, like a lot of Chinese buyers want Western Brands and are buying from Western companies. So that's another cool trend that everybody should pay attention to.
[00:37:22] Scott: It's funny because that was my thought. As soon as you said selling into China, I'm like “Why would I want to do that?” Chinese companies are coming in to the U.S base and hijacking and doing all these crazy things and now why would I do that but you just brought up a good point. Sometimes they just want to buy from a U.S seller. Now would it matter that it's not made in the U.S? Like if I’m sourcing it from China but then I’m on the U.S, now am I still that or should it be a U.S made product that could sell better in the China market?
[00:37:52] Jason: I think it’s both but I think it's all about the brand…. Here's the thing, I have a lot of good friends who love buying in China because I studied there so I've spent a lot of time there. I have a lot of friends who love buying western brands like Lacoste or Louis Vuitton and things like that. None of them are manufactured in the U.S but the brand sits in the West. So it’s the origin as much as the brand and the product is always of a good quality if they're getting products that are Western and brands, that's what they really are after.
[00:38:29] Scott: Got you, got you. Yeah, that makes sense. So it's more about brand than it is just the product? I got you.
[00:38:36] Jason: Exactly.
[00:38:38] Scott: Okay and that makes sense. That makes total sense. I just want to say, I did, I heard that Germany is definitely one to be looking at so I'll definitely be keeping my eyes and ears on that marketplace. Someone even said that, “You probably shouldn't even mention it, we want it to be our own little secret kind of thing.” So here we are talking to a few thousand people.
[00:39:00] Jason: It’s funny, another thing there, this is, I mean you also want to know the facts too but here's the thing, you also have to look at buyer behavior. So the difference with what we see with Germany is the rate of which they return things are more. So U.K folks don't return things nearly as much but it's not beyond a German to buy for cellphone cases knowing they're going to choose the best color and return three of them. Not always the case, not to care anyway but you just do your research and see what the buyer behavior is like.
[00:39:33] Scott: Yeah, it’s a great point and you bring up a really good point there where and I can see that happening especially with clothing. I would think people would buy like, well I'll just buy a small and a medium and see which one fits, I'll send the other one back.
[00:39:45] Jason: Good point, good point. So regardless of where you are, I mean it happens, I do that.
[00:39:50] Scott: Yeah, a lot of people do. I mean I can see that happening, so if you do sell those types of products, just be aware that you are going to get higher returns because people are going to do that and you got to have that built into your margins and stuff too because technically once they send it back, you can't really just put that back into your inventory. Now you could have it sent back to you, repackage it send it back as new but there's another step that you'd have to do in that process. But again, when you're thinking about products, you're thinking about your brand, if there's something that you think that people are going to want to buy three of them because they're different colors and see which one looks better up against their kitchen stuff, you might want to be careful with that or just be aware.
[00:40:31] Jason: I know, I know we're running quite long here but one cool thing that I do want to mention too, there’re a lot of companies that are out there that if you're, let's say I'm a foreigner, a European selling in the U.S and I'm selling a good I don't want returned back to me, they not only can be your return provider, they can give you an address and collect your products. A lot of them will repurpose it, refurbish it and they'll sell it for you and just give you a cut back. So instead you having to get it returned all the way back, they're like, “Alright, well we're going to gather these 10 widgets that were returned.” But for no other reason other than they didn't like the color. So now they're going to refurbish them and sell them and then you can actually get a revenue share back by having them sell your product.
[00:41:09] Scott: So they're kind of like a consignment shop where they'll actually, they won't buy them back but they'll take them back and then they'll list them and then they’ll sell them and they’ll give you a fortune?
[00:41:17] Jason: Yeah, exactly. I think a company like I believe Trade Port here in the U.S does that for foreign sellers.
[00:41:23] Scott: Okay, okay, that's actually, that's something I actually have not heard of, so that's a new resource for me. So definitely give me the link to that, we'll put it up on the on the show notes page to this episode for sure because that's actually interesting. Again if you're a foreign seller you don't necessarily want to have it shipped back to you and then have to have it repackaged and then sent back. You might as well not even do it. But to have a company like that, that's pretty, that's pretty powerful, that’s a great… There's a service for everything. Right?
[00:41:51] Jason: Yeah, there is, there's so many out. It's crazy.
[00:41:57] Scott: But I think that's a good service though. I mean it's a need. It's something that we would need and we want though. It’s a great service.
[00:42:03] Jason: Look at all these incredible ecommerce companies that have popped up. Whether they're new or they’re existing, they're all the same story. I was a seller and then I’ve realized that I ran into an issue so I created a company to solve my own issue. That’s a prime example.
[00:42:19] Scott: Yeah, yeah. It's really good. I love it. Alright, so let's just wrap this up. I think we went down some really weird roads there and we did a lot of deep diving but I think there's a lot of value that came out of this episode. I learned a ton already and I know we're going to have more conversations in the future and I just want again say thank you Jason for spending some time with us. Why don't you let people know how they can get in touch with you or World First and we'll link everything up on the show notes as well.
[00:42:52] Jason: Yeah, perfect. So I'll provide a link directly the World First so you all can go directly to the services we provide. Me personally, my email is email@example.com. So firstname.lastname@example.org. Reach out to me, email me. If I don't know it and I can't help I can hopefully find somebody who can. So just let me know.
[00:43:16] Scott: Yeah, that'd be awesome and what we’ll do too guys, I'll put a special link there as well because I did talk to Jason and they'll definitely take care of our TAS’ers. So definitely check that out. I know Jason, one of the reasons why you got in touch with me also I think was because some of the people that were coming to you had mentioned that they came from the podcast and I hadn't even really mentioned it which was pretty awesome. So I want to thank you for doing that, for reaching out and let me know that but also now being able to really give these people that are TAS followers and listeners just direct access to you and to World First. So I want to thank you for that.
[00:44:01] Jason: Hey, thank you and I appreciate your audience. They’re asking some really good questions and I think Scott what you've done in the last year's and to create this community is incredible and what I've seen you guys are ridiculously helpful, super awesome. I think a lot of Amazon sellers are but I think your group really does go above and beyond. So keep it going guys and ask away.
[00:44:2] Scott: Yeah, awesome. Thank you so much Jason and like I said guys, I'll link everything upon the show notes and you can get access to Jason and World First and again I'll give you guys a special link there as always and just let everyone know that World First if you do use them, that’s [email protected] sent you and I'm sure it will take very good care of you. Jason I want to thank you so much and I want to congratulate you too. You have a new baby coming, right?
[00:44:46] Jason: I do. I do. Life's about to change here.
[00:44:50] Scott: Is this your first?
[00:44:51] Jason: It’s my first. Little boy, I know how bad I was as a child so I can only imagine what’s in store for me.
[00:45:02] Scott: Oh man, you're going to love though. I’m telling you it is life changing and you can’t even describe it or even just even imagine what it will do for you and your emotions and everything, it's going to be an amazing moment for you. I'm excited for you and I think that you’re going to really enjoy it. It's going to change the way you look at life. I promise you that in a good way.
[00:45:22] Jason: I really appreciate it, thank you.
[00:45:24] Scott: Yes you will have some of those times that you feel like pulling out your hair but that's part of the road. You signed up for it.
[00:45:32] Jason: That's the journey man. I appreciate it Scott. You've already given me some nice tips being a part of yourself but thanks.
[00:45:38] Scott: Yeah, no problem Jason. Alright take care and will talk to you soon brother.
[00:45:42] Jason: Alright, thanks. Take care. Bye.
[00:45:44] Scott: Alright, so there you go. Again I want to apologize for the audio. It really frustrated me when I got done with that and I figured out that my audio was not being recorded through my podcast mic. Again guys, you can see how things just happen but in this case I had to roll with it and hopefully you guys were able to go through and pick out all those golden nuggets, those value bombs that Jason was dropping for us because there was a ton in there and when I got all done.
I know I learned a ton and I also feel a little bit more confident when I decide to go that route and I'll definitely be reaching out to Jason and World First to help me with that, which I'm already in the process now after the interview of talking to one of my partners and saying like we need to probably use them just to pay them in their local currency. That could save us money. So yeah, that totally opened up my eyes to a ton that we can do and that we should be doing when we are ready but again I want to just say thank you to Jason and World First for allowing Jason to come on the show and really just add a ton of value. And him and I have been talking, like I said for the past probably a month and a month and a half and we've got a lot of other things that we want to jump into. I wanted to start here.
Jason is advanced. He can go into a whole bunch of different directions, but I said listen, I want to break this down, I want to chunk it down, this is one of the biggest questions I get for people that want to start selling internationally whether it's into the U.S or from the U.S to maybe Germany or maybe Japan or wherever. It's always a question that comes up. So I wanted to knock this one out first and this way here you guys have like the nuts and bolts that you guys need to get started or to even decide if you want to get started.
[00:47:39] Scott: Then what we're going to do, is we're going to dive into some other topics which he's really, really, really a smart guy like I said but he's really skilled in as far as helping other sellers in all aspects of their business when it comes to money. Which I think, like money transferring and all of that stuff because we need to understand how that works and he can also guide us and lead us to other resources. And that's one thing I really picked up from Jason is that seeing that he's been doing this for over three years now and being able to work with a lot of sellers and a lot of companies for that matter he's able to now network with some of these other companies that can also help us when we get to certain stages that maybe World First doesn't do or that he can't help us with then he's able to guide us and point us in the right direction.
I think that's huge in anything. Whether you go to a conference or whether you listen to this podcast and then you reach out to Jason and you get some advice there. So like I've said before, I'm going to say it one more time, networking and finding the right people is key to being successful in any business not just Amazon but in this case it is Amazon or your own ecommerce site. So definitely, definitely reach out to Jason, World First. If you want to go directly through my link, you can head over to theamazingseller.com/worldfirst and you can see what their company does.
And again if you have any questions reach out to Jason or reach out to me and I can point you to Jason and this way here we can get any questions that you have. So this way here you can have all the information that you need to make that decision. So again guy’s theamazingseller.com/worldfirst and then also the show notes, I think you guys should definitely probably download these. The transcripts, the show notes all that stuff can be found at theamazingseller.com/360.
[00:49:28] Scott: Alright guys, so that's it. Once again, I want to apologize for that mic issue. I feel really bad about that and I just wish that I can go back in time and fix that but I can't and I'm not going to be able to. So hopefully again you guys were able to get all the value that we dropped here today. Alright guys, so that's it. That’s going to wrap it up for this episode. Remember, I'm here for you, I believe in you and I'm rooting for you but you have to, you have to… Come on, say it with me, say it loud, say it proud, “Take Action.” Have an awesome amazing day guys and I'll see you right back here on the next episode.
LINKS MENTIONED IN THIS EPISODE
- Make sure to check out the great services from World First – HERE
- Jason’s email address: jason.magee[at]worldfirst.com
- Trade Port
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