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Product Manufactured, Shipping, Finding a 3PL and Other Logistics | Effective Ecommerce Podcast #9

Published on: December 5 2022 by Travis Marziani

Product Manufactured, Shipping, Finding a 3PL and Other Logistics | Effective Ecommerce Podcast #9

Product Manufactured, Shipping, Finding a 3PL and Other Logistics | Effective Ecommerce Podcast #9

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00:00:00 00:00:04 everybody in this episode of the
00:00:02 00:00:05 effective e-commerce podcast I wanted to
00:00:04 00:00:08 tok about getting your product
00:00:05 00:00:11 manufactured shipping finding a 3pl a
00:00:08 00:00:12 third party logistiks company and all
00:00:11 00:00:15 the other logistiks that come with
00:00:12 00:00:17 starting an online store but before we
00:00:15 00:00:18 get started I did want to say thank you
00:00:17 00:00:21 to everybody who's left a five-star
00:00:18 00:00:24 review on iTunes and specifically I
00:00:21 00:00:26 think it's Murphy's studios you won this
00:00:24 00:00:28 month's contest so just send me an email
00:00:26 00:00:30 and you get a free one-on-one consulting
00:00:28 00:00:31 session with me we'll tok about
00:00:30 00:00:34 whatever you want in the world of
00:00:31 00:00:36 e-commerce so anyone else listening that
00:00:34 00:00:39 hasn't left a five-star review on iTunes
00:00:36 00:00:41 go to iTunes go to the effective
00:00:39 00:00:42 e-commerce podcast leave a five star
00:00:41 00:00:45 review and you'll be entered in a chance
00:00:42 00:00:47 to win a free one one consulting session
00:00:45 00:00:49 with me I pick a new winner every month
00:00:47 00:00:51 and the earlier you get in your entry
00:00:49 00:00:53 the more chances you have because the
00:00:51 00:00:55 more months that it will be ahead of
00:00:53 00:00:56 that time so thank you plus if you leave
00:00:55 00:00:58 a five star review it helps out the
00:00:56 00:01:00 podcast it lets me know that you like
00:00:58 00:01:01 what's going on and when I start getting
00:01:00 00:01:03 guests on the show it will allow me to
00:01:01 00:01:05 get higher caliber of guests because a
00:01:03 00:01:08 lot of guests won't go on shows with
00:01:05 00:01:09 only 12 5 star reviews which is what I
00:01:08 00:01:12 currently have so let's get that number
00:01:09 00:01:14 bumped up but without any further ado
00:01:12 00:01:17 let's get into today's episode and I do
00:01:14 00:01:18 want to say a lot of the topics I tok
00:01:17 00:01:21 about I do consider myself a pretty
00:01:18 00:01:23 qualified person to tok about it
00:01:21 00:01:24 not necessarily an expert with
00:01:23 00:01:27 everything but I know a lot about this
00:01:24 00:01:29 is a topic that I know some about this
00:01:27 00:01:31 isn't a topic that I'm an expert on by
00:01:29 00:01:32 any means and I do have some friends
00:01:31 00:01:34 that are experts that I'm gonna be
00:01:32 00:01:36 trying to get on the show in later
00:01:34 00:01:38 episodes and I might even edit this
00:01:36 00:01:40 episode in the future to include their
00:01:38 00:01:42 feedback but I have had products
00:01:40 00:01:46 manufactured I have done shipping I have
00:01:42 00:01:47 found 3pls so I do know a little bit of
00:01:46 00:01:49 what I'm toking about so I do want to
00:01:47 00:01:51 impart some of my wisdom but keep in
00:01:49 00:01:53 mind this is not the definitive guide
00:01:51 00:01:55 like I will try to make some of my other
00:01:53 00:01:59 episodes much more of a definitive guide
00:01:55 00:02:01 this one is just my experiences so far
00:01:59 00:02:03 so that being said let's start off with
00:02:01 00:02:05 how to get your product manufactured and
00:02:03 00:02:07 I want to start this conversation by
00:02:05 00:02:10 letting you know anyone that
00:02:07 00:02:12 manufactures products for a living they
00:02:10 00:02:13 their job is to make it as easy as
00:02:12 00:02:17 possible for you
00:02:13 00:02:19 to find them to hire them and to pay
00:02:17 00:02:21 them basically to make their whole job
00:02:19 00:02:25 is to make your process of manufacturing
00:02:21 00:02:26 a product is easy as possible and I know
00:02:25 00:02:28 when I was first starting with
00:02:26 00:02:30 performance not butter I was really
00:02:28 00:02:32 nervous because I was like I've never
00:02:30 00:02:34 manufactured a product before I don't
00:02:32 00:02:36 know if I'm gonna be able to do this but
00:02:34 00:02:38 then I realized that I'm paying people
00:02:36 00:02:40 to help me that's the whole point of
00:02:38 00:02:42 hiring a manufacturers or paying them to
00:02:40 00:02:44 help you so they're gonna know stuff
00:02:42 00:02:46 that you don't know so I'll walk you
00:02:44 00:02:48 through the process of what I did first
00:02:46 00:02:51 off and obviously different products are
00:02:48 00:02:53 different I was doing a product made in
00:02:51 00:02:55 the USA if it's over in China it's
00:02:53 00:02:57 slightly different but you'll see how
00:02:55 00:03:00 that applies here because part of my
00:02:57 00:03:02 part of my product was made in China and
00:03:00 00:03:05 I'll maybe I'll even grab that in a
00:03:02 00:03:09 second here but anyways the main thing I
00:03:05 00:03:10 want to convey is I first tried to find
00:03:09 00:03:12 someone that was gonna do the co-packing
00:03:10 00:03:15 for me the actual manufacturing so I
00:03:12 00:03:16 just did a lot of googling around I went
00:03:15 00:03:18 to the grocery store and I looked at
00:03:16 00:03:20 competing nut butter products and I
00:03:18 00:03:22 called them up and I said hey do you do
00:03:20 00:03:24 any kind of co-packing
00:03:22 00:03:26 and sure enough one of them said yes one
00:03:24 00:03:28 of them said yeah you know what we have
00:03:26 00:03:31 some extra space we have some extra
00:03:28 00:03:32 ability to produce in our facility
00:03:31 00:03:35 because they're not always using the
00:03:32 00:03:38 machines they're like you know what it
00:03:35 00:03:40 makes sense for us to hire out that
00:03:38 00:03:43 extra capacity so they don't always use
00:03:40 00:03:45 the machines they want someone that is
00:03:43 00:03:46 willing to pay for use on those machines
00:03:45 00:03:48 and they're willing to lend their
00:03:46 00:03:51 expertise so that was the first step for
00:03:48 00:03:53 me was getting a co-packer from there I
00:03:51 00:03:55 kind of started asking them well okay
00:03:53 00:03:56 what do I need and I first hired them to
00:03:55 00:03:58 come up with the formula to some degree
00:03:56 00:03:59 I already had it narrowed down I already
00:03:58 00:04:02 knew that I wanted to be a coconut
00:03:59 00:04:03 macadamia nut in cashew product with
00:04:02 00:04:06 Himalayan sea salt I wasn't sure of the
00:04:03 00:04:09 exact proportions so I hired him and it
00:04:06 00:04:11 was $75 an hour and it ended up taking
00:04:09 00:04:13 him about ten hours which was a very
00:04:11 00:04:15 fair deal because that included some
00:04:13 00:04:17 shipping that included actual production
00:04:15 00:04:19 of the product and a few other things so
00:04:17 00:04:21 I was very happy with that rate
00:04:19 00:04:23 especially because my consulting rate is
00:04:21 00:04:25 higher than that and you know this guy
00:04:23 00:04:27 has a lot of experience in the nut
00:04:25 00:04:29 butter business so it made sense to hire
00:04:27 00:04:31 him so I was the first step I got a
00:04:29 00:04:32 co-packer got a manufacturer I found an
00:04:31 00:04:35 expert that's already done this before
00:04:32 00:04:37 and I hired him the next thing I had to
00:04:35 00:04:40 do was I had to find all the different
00:04:37 00:04:41 nuts so for my last this current
00:04:40 00:04:45 production run that's about to take
00:04:41 00:04:47 place I went to a fair remember exactly
00:04:45 00:04:49 what I did first off trade shows I did
00:04:47 00:04:50 go to a trade show was part of it the
00:04:49 00:04:52 second thing was I asked him who do you
00:04:50 00:04:54 buy your nuts from so most of the nuts
00:04:52 00:04:56 the cashews and the coconut I bought
00:04:54 00:05:00 from someone that my co pack or the
00:04:56 00:05:02 manufacturer buys from all the time the
00:05:00 00:05:04 other one I just honestly googled it and
00:05:02 00:05:06 I just called a bunch of people I
00:05:04 00:05:08 probably called 20 different companies
00:05:06 00:05:10 that were based in some directory that
00:05:08 00:05:13 said that they sold macadamia nuts and
00:05:10 00:05:15 of that only one or two of them actually
00:05:13 00:05:19 had dry roasted macadamia nuts like I
00:05:15 00:05:21 wanted so that was most of the
00:05:19 00:05:23 walkthrough on how I did my
00:05:21 00:05:25 manufacturing now interestingly enough
00:05:23 00:05:27 there's two other parts to performance
00:05:25 00:05:29 nut butter one is the actual pouches
00:05:27 00:05:31 themselves because performance nut
00:05:29 00:05:34 butter comes in individual serving
00:05:31 00:05:36 pouches and the film you have to get
00:05:34 00:05:39 produced for that's very expensive I
00:05:36 00:05:41 asked my co-packer who do you use for
00:05:39 00:05:43 the film and he told me and so they had
00:05:41 00:05:45 all the specs already there so I think
00:05:43 00:05:48 this comes back to hiring experts to
00:05:45 00:05:50 help you out with things like this the
00:05:48 00:05:52 other thing and this was actually kind
00:05:50 00:05:55 of more of a challenge was the boxes so
00:05:52 00:05:56 I had to get boxes produced and for
00:05:55 00:05:57 anybody watching on the YouTube video
00:05:56 00:06:00 here I'll show you really quick what the
00:05:57 00:06:01 boxes look like so here's for anyone
00:06:00 00:06:03 watching on the YouTube channel here's
00:06:01 00:06:04 an example of what the boxes look like I
00:06:03 00:06:07 mean it's basically just a cardboard box
00:06:04 00:06:08 with some printing on it and when I tok
00:06:07 00:06:09 to my co-packer
00:06:08 00:06:12 and that saw I asked him if he had
00:06:09 00:06:14 anyone he recommended he did and there
00:06:12 00:06:16 were way more expensive he want the
00:06:14 00:06:19 person that my co-packer introduced me
00:06:16 00:06:20 to the minimum order was 10,000 and keep
00:06:19 00:06:24 in mind I only needed three thousand
00:06:20 00:06:26 boxes and the price per box was gonna be
00:06:24 00:06:29 49 cents at that ten thousand price
00:06:26 00:06:32 range I was able to go to China and get
00:06:29 00:06:34 it for 42 cents a box with the minimum
00:06:32 00:06:38 order of 3,000 saving me thousands of
00:06:34 00:06:40 dollars which was really was really nice
00:06:38 00:06:42 so I'd say I do have some experience
00:06:40 00:06:45 with working over
00:06:42 00:06:46 with getting products made in China the
00:06:45 00:06:48 big thing is I had to send them a wire
00:06:46 00:06:51 transfer which is a huge pain in the
00:06:48 00:06:53 butt but I mean you get it done it's not
00:06:51 00:06:54 that big of a deal it had it cost about
00:06:53 00:06:56 50 bucks to send the wire transfer over
00:06:54 00:06:58 I had to go to my bank like four
00:06:56 00:07:00 different days in a row to send the wire
00:06:58 00:07:03 transfer they were totally confused by
00:07:00 00:07:05 it but anyways China there's a reason
00:07:03 00:07:06 that China is such a threat to US
00:07:05 00:07:08 manufacturing and it's cuz they can do
00:07:06 00:07:10 it for so much cheaper and a lot of
00:07:08 00:07:11 times better they actually a lot of the
00:07:10 00:07:13 stuff that they can do over there with
00:07:11 00:07:15 the machines they have they just don't
00:07:13 00:07:17 they can't do that with a lot of
00:07:15 00:07:19 American machines and it's because it's
00:07:17 00:07:20 cheaper for them they produce the
00:07:19 00:07:22 machines in China and so they have the
00:07:20 00:07:24 machines ready there to help with the
00:07:22 00:07:27 printing process if that makes any sense
00:07:24 00:07:29 it's it's too expensive
00:07:27 00:07:32 for a lot of American companies to buy
00:07:29 00:07:34 those machines and run those machines so
00:07:32 00:07:36 that's one of the big things I want to
00:07:34 00:07:38 tok about here so that's my overview of
00:07:36 00:07:39 how to get your product manufactured
00:07:38 00:07:41 it's really not that tough I think is
00:07:39 00:07:44 the main synopsis of this whole thing
00:07:41 00:07:45 there are people out there that are
00:07:44 00:07:47 literally doing everything in their
00:07:45 00:07:49 power to try to get you to hire them
00:07:47 00:07:50 they're really trying to help you out so
00:07:49 00:07:53 that's the first piece of the puzzle
00:07:50 00:07:55 we'll tok about the next thing I wanted
00:07:53 00:07:56 to tok about was shipping and this is a
00:07:55 00:07:57 question I've gotten a few times
00:07:56 00:08:00 actually just got it yesterday during my
00:07:57 00:08:03 youtube live and if you don't know I do
00:08:00 00:08:08 a youtube live on Wednesdays at 5:00
00:08:03 00:08:09 PST 8 est where I just tok about some
00:08:08 00:08:11 different e-commerce stuff and answer
00:08:09 00:08:13 any q and A's that people have
00:08:11 00:08:16 I guess just answer any ques people have
00:08:13 00:08:18 that the answer is implied there but
00:08:16 00:08:19 shipping someone asked me how do I ship
00:08:18 00:08:21 our products and I thought that was kind
00:08:19 00:08:23 of a funny question because it's so
00:08:21 00:08:25 self-explanatory to me it's so obvious
00:08:23 00:08:28 first off if you're only sending one
00:08:25 00:08:30 item a day or you're just starting out
00:08:28 00:08:32 you ship it just like you dip to any of
00:08:30 00:08:33 your friends if you had to send a gift
00:08:32 00:08:36 to somebody it's not that complicated
00:08:33 00:08:39 but obviously as you get a little bit
00:08:36 00:08:41 higher up and you start getting more
00:08:39 00:08:43 orders you got to do more shipping I
00:08:41 00:08:44 recommend using a platform like shipping
00:08:43 00:08:46 easy and the cool thing about shipping
00:08:44 00:08:48 easy is and there's a lot of them out
00:08:46 00:08:50 there but shipping easy is what we use
00:08:48 00:08:52 for my dance clothing company I do have
00:08:50 00:08:55 a link with them it's effective
00:08:52 00:08:56 e-commerce comm slash shipping
00:08:55 00:08:59 easy if you want to get signed up I
00:08:56 00:09:01 think your first month is free and I get
00:08:59 00:09:03 a little kickback so you'll get I'll
00:09:01 00:09:05 give you a free consultation session and
00:09:03 00:09:07 just to let you know I I saw that they
00:09:05 00:09:09 had an affiliate link so that's why I
00:09:07 00:09:11 signed up but we have been using them
00:09:09 00:09:14 for years they are a great company and
00:09:11 00:09:15 integrate really well with Shopify and
00:09:14 00:09:17 all the different ecommerce platforms
00:09:15 00:09:18 but basically how it works and I might
00:09:17 00:09:21 do a video about this sometime soon is
00:09:18 00:09:24 it pulls in all your orders and you can
00:09:21 00:09:26 buy postage right from that right from
00:09:24 00:09:29 there and print postage and we print
00:09:26 00:09:31 postage using a thermal printer which
00:09:29 00:09:33 sounds fancier than it really is it's
00:09:31 00:09:34 basically and I'll show this in a future
00:09:33 00:09:38 video but it's basically a printer
00:09:34 00:09:39 pretty small and we get stiker paper
00:09:38 00:09:42 that goes with it and instead of it
00:09:39 00:09:45 using ink its thermal stiker paper so
00:09:42 00:09:48 it uses kind of a heat source to make
00:09:45 00:09:49 black ink basically instead of instead
00:09:48 00:09:53 of using black ink it almost like burns
00:09:49 00:09:57 the paper so it it prints using burned
00:09:53 00:09:59 marks instead of ink so shipping easy is
00:09:57 00:10:00 what I would recommend as far as that
00:09:59 00:10:03 goes
00:10:00 00:10:04 now let's tok about 3pls which stands
00:10:03 00:10:05 for third party logistiks a lot of
00:10:04 00:10:07 people don't want to do the shipping
00:10:05 00:10:09 themselves and especially if you only
00:10:07 00:10:11 have one SKU so for instance the
00:10:09 00:10:14 performance nut butter I might use a
00:10:11 00:10:16 three PL because what would happen is
00:10:14 00:10:18 I'd send them a thousand boxes let's say
00:10:16 00:10:21 and every time I get an order they ship
00:10:18 00:10:23 it they take care of all the work and I
00:10:21 00:10:25 just sit back and collect the money
00:10:23 00:10:27 which is really nice because then I
00:10:25 00:10:29 don't have to deal with warehousing it
00:10:27 00:10:32 so different 3pls have different things
00:10:29 00:10:34 you can also use Amazon Amazon obviously
00:10:32 00:10:36 has fulfilled by Amazon so you can send
00:10:34 00:10:39 in products to Amazon and they will ship
00:10:36 00:10:41 it for you but on top of that they'll
00:10:39 00:10:43 also ship out orders that aren't made on
00:10:41 00:10:46 Amazon orders that are made on your own
00:10:43 00:10:48 Shopify website for instance so you can
00:10:46 00:10:50 look into that but and I think it's a I
00:10:48 00:10:52 think it's pretty cheap the problem with
00:10:50 00:10:55 that is if you use Amazon it comes in an
00:10:52 00:10:56 Amazon Prime box which to me is like
00:10:55 00:10:58 free I'm giving you're giving out free
00:10:56 00:11:01 advertising and I don't think it's as
00:10:58 00:11:04 good of a user experience but that's up
00:11:01 00:11:06 to you to determine 3pls can range in
00:11:04 00:11:08 price I looked into it for performance
00:11:06 00:11:11 nut butter
00:11:08 00:11:13 and one person wanted 535 flat-rate
00:11:11 00:11:15 shipped anywhere in the United States
00:11:13 00:11:17 which isn't awful because keep in mind
00:11:15 00:11:19 they're doing warehousing they're
00:11:17 00:11:21 shipping it for me they're packing it
00:11:19 00:11:23 for me they're doing all the work all I
00:11:21 00:11:26 have to do is sit back and click the
00:11:23 00:11:28 check so it's not awful a lot of 3pls
00:11:26 00:11:29 will their pricing structure is
00:11:28 00:11:31 different they want to charge you a
00:11:29 00:11:32 monthly fee they want to charge you
00:11:31 00:11:35 storage fees they want to charge you all
00:11:32 00:11:38 these different things I would say avoid
00:11:35 00:11:40 that if you can I I was I got someone
00:11:38 00:11:41 reached out to me from a 3pl that they
00:11:40 00:11:44 had the flat rate and I thought that was
00:11:41 00:11:46 really smart and kind of a cool idea so
00:11:44 00:11:48 if you want information about them just
00:11:46 00:11:51 send me an email Travis at effective
00:11:48 00:11:53 e-commerce comm and today's episode is
00:11:51 00:11:54 gonna be relatively short because I
00:11:53 00:11:57 think that's that's most of the topics
00:11:54 00:11:58 that I wanted to cover and if you have
00:11:57 00:12:00 any questions about any of that stuff
00:11:58 00:12:01 please feel free to reach out email me
00:12:00 00:12:03 or leave a comment if you're watching
00:12:01 00:12:06 this on youtube leave a comment below
00:12:03 00:12:07 the video obviously as I said at the
00:12:06 00:12:09 beginning of the show please go to
00:12:07 00:12:11 iTunes leave that five star review it is
00:12:09 00:12:13 the most important thing to me just like
00:12:11 00:12:15 you need reviews on your ecommerce store
00:12:13 00:12:17 just like you want reviews on Amazon
00:12:15 00:12:18 this is like that for me like you know
00:12:17 00:12:20 how you get a new review on Amazon it
00:12:18 00:12:23 just brightens your day it's the same
00:12:20 00:12:25 way for me and iTunes so there's that I
00:12:23 00:12:26 did just launch the online store a
00:12:25 00:12:28 twosie course it's a five-week course
00:12:26 00:12:30 where I'm gonna take a group of ten
00:12:28 00:12:32 people and we're gonna go all the way
00:12:30 00:12:33 from an idea all the way to a finished
00:12:32 00:12:34 ecommerce store and at the end of the
00:12:33 00:12:36 five weeks you're gonna have a finished
00:12:34 00:12:37 e-commerce store it's gonna be really
00:12:36 00:12:39 dialed in cuz I'm gonna be helping you
00:12:37 00:12:42 with it and you're going to also have
00:12:39 00:12:44 marketing we're gonna end the last flat
00:12:42 00:12:45 the last week week five we're gonna do a
00:12:44 00:12:47 complete marketing plan which should
00:12:45 00:12:50 help you out for the next few months
00:12:47 00:12:51 next year ahead of your business so
00:12:50 00:12:54 really excited about that I think that's
00:12:51 00:12:55 gonna be very helpful to a lot of people
00:12:54 00:12:57 it's what I wish I would have had when I
00:12:55 00:12:59 first started my business because I was
00:12:57 00:13:01 going in so many different directions I
00:12:59 00:13:04 wasn't sure what the clear path is my
00:13:01 00:13:06 hope is to help people with that and
00:13:04 00:13:08 funny enough I'm gonna be launching
00:13:06 00:13:10 performance nut butter at the same time
00:13:08 00:13:13 so I'm gonna be doing it again for a
00:13:10 00:13:15 second time launching a new company so
00:13:13 00:13:19 there's that you go to effective
00:13:15 00:13:20 e-commerce comm /az lowercase a Z and
00:13:19 00:13:21 this is something I'm going to be doing
00:13:20 00:13:23 every few months
00:13:21 00:13:26 wouldn't be launching this course over
00:13:23 00:13:28 and over again taking people through out
00:13:26 00:13:29 through the course graduating it so you
00:13:28 00:13:31 can definitely check that out I do have
00:13:29 00:13:32 some courses as well
00:13:31 00:13:34 effective e-commerce comm if you want to
00:13:32 00:13:36 check those out pretty much gonna leave
00:13:34 00:13:38 it there though I'm at that was already
00:13:36 00:13:40 a lot thank you so much for listening
00:13:38 00:13:43 and or watching this video and I hope
00:13:40 00:13:43 this was helpful