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hey guys welcome back to my Amazon FBA
2020 miniseries this is part 5 and I'm
gonna be covering how to request an
invoice and send payments so that
production can begin on your first order
now I mentioned in the last video that
I'm going to be selling hand sanitizer
in this tutorial if you guys are
wondering the product is out there for
sale at fortified bio labs comm we are
currently in the last stage of getting
into brand registry so that we can list
this product for sale on Amazon's
catalogue that did not use to be a
requirement but it is part of the you
know ever-changing and evolving
landscape in 2020 so before we dive into
what we're gonna cover in this lecture I
just wanted to reintroduce myself on
Rhine Hogue I've sold over 1.4 million
dollars on Amazon and I've been teaching
at the college level since age 25 I just
turned 31 so that's about six years now
I wanted to let you know that I have a
free FBA mini course that you can
subscribe to if you follow a link in the
description below and I'll deliver a
daily lesson to your inbox walking you
through step by step how to get started
I also have a free Facebook group if you
want to ask me questions join a
community of like-minded FBA sellers
looking to learn the ropes or help each
other out you can find me in their links
also in the description and if you're
wondering why you should trust me
because you should be wondering that why
wouldn't you you can actually track my
journey as an FBA seller from the first
month of profits all the way through the
current month I've been publishing these
monthly passive income reports on my
blog and on my youtube channel since day
one and I have an Amazon FBA full course
it goes into extreme detail I call it
the most detail-oriented FBA course out
there I spent over a year writing it and
it's currently 20% off through tomorrow
as a part of my birthday promotion since
my birthday was over Easter weekend
alright last find your why why are you
looking to start a new business venture
why are you looking to make passive
income understanding why you're doing
this will help you stay focused and see
your goals through till the end you no
longer have the next
of like not knowing how to get it done
because you found my tutorial you know
I've got the full course follow along
with me see it through till the end
you'll be better off for it when you're
looking back at the grind this is the
grind this is the hard part
it only gets easier alright let's get
started on the lesson so first we're
gonna request a pro forma invoice or PII
as a lot of the suppliers the sales
agents you deal with may refer to it
basically what this is gonna do is
outline the order details all right so
did you do your two homework assignments
from part four you were supposed to pick
your product cuz you could really can't
move forward without selecting that
product and did you order samples
because without ordering samples you're
running the risk of not sourcing the
highest-quality product and if you are
against some you know competitor on
Amazon and they source the highest
quality product over time it is going to
reflect in the reviews and if they have
a higher you know average review rating
than you it's not gonna it's not gonna
look good for you as a prospect unless
there's like a huge price differential
or something like that in between your
products and you can justify lower
quality with a better cost but that's I
don't like going that route personally
speaking from experience alright so your
pro forma invoice it's not a legal
document it indicates in good faith that
you intend to work with the supplier so
you know suppliers know that you order
samples from not just them but from
their competitors and they know that
they have a 1 in X chance where X is the
number of other suppliers you're
interviewing of working with you and
they want your business when you send
the pro forma invoice that's like
indicating hey I've made the decision to
move forward with you guys and it's
going to include important order
information namely it's gonna include
things like what product you're paying
them to produce the quantity of units
that you're purchasing how the price is
agreed-upon or what price you agreed
upon per unit how it will be packed so
you're gonna need to know this when you
ship it in to Amazon so a lot of people
think that like you should pay your
supplier have it shipped to your house
so you can review and inspect it which
you can do but that's not like a
scalable thing so if you want to do that
for
first order because you're excited at
your first order fine you know you can
give him your home address and they can
ship it to your door but like you know I
personally don't do that I just have it
shipped straight to Amazon and when you
send it directly to Amazon you're gonna
need to tell them things like how many
units go in each master carton what is
the weight and dimensions of the master
cart and how many of them are you
sending knowing how it's gonna be packed
as important in case there's prep
required that is one of the steps when
you're creating what's called an inbound
shipment Emma's on know that you're
sending inventory in basically like all
these things you just want to iron these
details out upfront so that there's no
surprises along the way you also want to
state the terms of delivery now for your
first order I recommend just doing air
Express just having it shipped via air
it's quick it's easy it's a little bit
more expensive but it gets the product
to Amazon gets your listing live and
selling as quickly as possible path of
least resistance but after your first
order you're gonna want to work with a
freight forwarder and probably ship via
C and you can actually talk to your
freight forwarder and get their input on
you know it's not like a perfect
equation all the time but typically like
fo B means free on board the supplier
will get it to port for you but they
price that in to each units cost or exw
it's called X works where you're
responsible for having it picked up from
their facility and again work with a
freight forwarder eliminate headache
there's no need to freak out over how
complicated this can be if you have a
trustworthy freight forwarder which by
the way in my course I hook you up with
one that I've actually flown to China
and met in person just saying trying to
make this as easy for my students as
possible and another thing you'll get if
you opt to join my full course is a
purchase order contract template now
this is not a required thing to use
every time you place an order with a
supplier I've only really ever used this
when it's like my first time dealing
with the supplier I did lean on the two
lawyers that I have in my immediate
family my dad and my sister for help
getting this written up and if you think
for some reason you might get scammed
this is a nice way of scaring away
scammers right before you send them some
money now let's move forward and talk
about the ways that you may consider
sending
money internationally because you do
have options and also I just want to
preface this by saying I've never really
had any sort of problem with even almost
getting scammed like everybody that I've
dealt with thus far using the process
that I've already shared with you guys
has been completely legit so I wouldn't
be too scared about sending money
internationally alright before we talk
about how you can send money
internationally we just need to talk
about how costs work now you have two
options typically you can send 100% of
the money
right upfront the pro of this is there's
only one transaction fee now depending
on what service you use to send money
you may have a flat rate transaction fee
per transaction so you'd be saving money
the con here is that if you've never
worked with the supplier and you do get
scammed you're out you're out of your
money you're not gonna see it back most
likely and that's that the alternative
method if it's your first time working
with the supplier is you can do the 30%
deposit upfront 70% after goods are
produced method now this offers a little
bit more protection because you're not
just out all your money upfront and the
con is you will have to pay multiple
transaction fees which may or may not
actually matter it all depends on what
method you use to transfer funds now
before I talk about the methods I've
used to transfer funds and what I
recommend I just want to tell you
upfront what to avoid you should
absolutely avoid Western Union and
letters of credit all right you do not
need to avoid wire transfers this is
actually the most common method of
transferring money overseas now when you
go into your bank depending on where you
bank you may be able to actually do this
online from your home but I like I think
BB&T offers that you can do it on your
own but last I checked it costs sixty
five dollars per bank transfer so
needless to say I did not opt to move
forward with BB&T I personally currently
use Capital One and I have to go
physically to the branch in person I
bring the wire transfer info I typically
print it out and then give it to the
person that's assisting me and they
input that into their system and they
can transfer the money out of one of my
accounts to the business they give me a
receipt we call that the bank note
I always take a picture blank out my
personal information and email that to
the supplier and I'd let them know that
the money has been transferred today
because it's not always an immediate
thing that shows up in their in their
bank account it sometimes takes days
I've seen it take up to a week there is
a spectrum of things you'll experience
but I wouldn't be scared about wire
transfers and if the information is
incorrect and there's no recipient that
hits that receives it it will bounce
back into your into your bank account so
if you put the wrong info in it'll go to
somebody else's account and then you're
in trouble but I wouldn't worry about
that I've never had that happen all
right
another option PayPal now if you're not
transferring a lot of money like my
first order ever was $2,400
production plus shipping I just sent the
money via PayPal it was easy
I used my business credit card added it
to my PayPal account got a little cash
back from using that credit card if you
guys don't have a business credit card I
would check that out and I'll put a link
by the way to one in the description
through Capital One the Quicksilver card
that I think gives you one or 1.5% cash
back in case you want to check that out
but this offers security for buyers but
it comes at a cost because PayPal's ease
of use obviously does manifest in the
form of around 4% fees transferring
money and if you think that the supplier
is going to eat that cost you're
incorrect they will price that in when
you say that you want to use PayPal to
pay so it just it is what it is
unfortunately but easy to use
everybody can open a PayPal account you
know for free the third option you may
want to consider is Alibaba secure
payment so I already showed you how to
find these suppliers on Alibaba
typically communication then takes place
off of Alibaba not always maybe you guys
just communicate there but it's very
easy to use alibaba's payments again
you'll put a credit card on file and it
kind of works the way that PayPal would
but in this case the money is held in
escrow until you approve the order so if
you're really worried about getting
scammed scammers are not going to use
Alibaba secure payment so they because
they can't come out ahead doing that at
least not that I've ever heard of but
the supplier must be pre-approved and
there's a 5%
so it's even higher than PayPal fees on
average that is charged to the supplier
but again believe that's gonna be priced
in if you want to use the ababa secure
payment typically you'll probably see
that the contract that the supplier
sends you so they'll send you it through
Alibaba by the way and each of these
suppliers has their own preferred method
of accepting payment so it's not like
you have to come prepared and tell them
how it's gonna go down they'll probably
like tell you how they'd prefer to
receive payment all right so your
homework for tonight is to place your
order get it paid for get production
started alright next time I'm gonna show
you how to create the product listing
once the product listings created we can
generate labels that we're gonna ask
those suppliers to place on our products
that they produce so that when Amazon
receives them they can scan the barcode
and it's ID'd in their system as well as
the master cartons themselves they're
gonna have Amazon specific labels on
them so when Amazon receives them they
scan they know exactly their system
knows exactly what it is what to do with
it etc that's how this works don't worry
I'm gonna demystify it for you and
everything's gonna be smooth sailing all
right guys and I just want to remind you
if I can do it so can you
it's tough as you go through it for the
first time like most things in life
which is actually not a bad thing
because it creates a barrier of entry
and people that are quitters
they give up but not you hopefully
you're gonna see this through till the
end and you'll be successful and better
off for it when you're looking back at
the process thank you guys for watching
the video till the end do me a favor hit
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thank you
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you
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