Manage episode 232417854 series 1770904
When sourcing an Amazon business, there are many complex factors that go into finding the right product and getting the right margins. Today’s guest founded Sourcify, a SaaS product that helps people source the product and improve the manufacturing process. Sourcify takes a look at every factor possible when building out margins and lead times to optimize the logistics behind the ordering process. By decreasing costs, revenue increases and therefore the value of your business goes up.
Nathan Resnick started this fast-growing b to b software-driven sourcing company in 2002. His fascination with e-commerce and foreign imports goes back to when he was living in China as a high school exchange student and started importing products to the US, making a few thousand dollars a year. He started a Shopify store at age 19 and reached his first six-figure income year. Nathan became fascinated by the process and the capacity of these factories. Sourcify makes it easy for you to bring products to the marketplace, streamline errors, and cut unit costs.
- How Sourcify’s offices are structured for optimal global presence.
- The current tariff policy issues and how Nathan recently landed in the press.
- Ways a strong team and strong factory relations benefit both sides of the sourcing process.
- IP protection and factory relationships.
- Percentage margins sellers should look for in a factory.
- Shortcuts to avoid with suppliers.
- The importance of having quality control parameters in place before shipment.
- Markets where Nathan sees production increases emerging apart from China.
- One of the most common problems with Amazon business when it comes to inventory management.
- Avoiding duties and taxes via Mexico. The domestic and international laws that can allow for this at certain values.
- Mistakes in creating and retailing that Nathan sees and his tips for going around them on the manufacturing side.
- How important/beneficial it is to visit the factories for e-commerce entrepreneurs.
- Scaling up and understanding the factory’s capacity to match that scale.
Joe: Mark, one of the biggest challenges for startup entrepreneurs much like Amanda talked about on the podcast is sourcing great products. There’s lots of experts out there with podcasts that help and they’re very, very good information but sometimes people need a little bit of a boost; a little hand-holding. And I understand you had Nathan Resnick from Sourcify on the podcast to talk about just that.
Mark: Yeah, absolutely. So he founded Sourcify.com which is a SaaS product. They have thousands of pre-vetted factories, hundreds of product categories, and what they do is they help you source that product and also improve that entire sourcing process. Because there’s a lot of complex factors when it comes to A. finding the right products and then B. making sure that you’re getting the right margins out of those products and getting your timing right. I mean Joe how many Amazon businesses have you looked at where the owner says well if you could just figure out the inventory ordering system because I missed out and ran out of inventory business could have done so much more. It’s like every single business, right?
Joe: Every single one I asked the question have you ever ran out of inventory? The answer is always yes, the follow up question is how much revenue did you lose during that time period and then how do you overcome that? And yeah it’s often working capital, better planning, software, things of that nature. It’s always a challenge though.
Mark: Well, so the software does this. It takes a look at …
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