Seller Sessions Amazon FBA and Private Label

Sourcing and Manufacturing Options Outside of China - With Mike Michelini


Listen Later

Sourcing and Manufacturing Options Outside of China - With Mike Michelini Introduction

In this episode of Seller Sessions, host Danny McMillan interviews Mike Michelini, an expert on sourcing and manufacturing in Asia, specifically Thailand. They discuss the pros and cons of manufacturing in Thailand compared to China.

Key Takeaways
  • Thailand is known for handmade, natural products vs China's expertise in electronics and injection molded plastics
  • Northern Thailand specializes in wood, handmade goods, natural products. South Thailand near Bangkok has more traditional factories.
  • Response times are slower in Thailand - you have to follow up more but once engaged, they commit
  • Use Facebook and Line app to source suppliers in Thailand
  • Higher minimum order quantities (MOQs) in Thailand - educate on holding inventory
  • Packaging options less abundant than China - focus on great branding
  • Overall quality has been higher for Mike in Thailand vs China
Comparisons of Manufacturing in China vs Thailand
  • China is the "world's factory" - expertise in electronics, injection molded plastics
  • Thailand better for handmade, natural products - wood, dried flowers, clothes
  • Northern Thailand known for wood, handmade goods, natural products
  • Southern Thailand near Bangkok has more traditional factories with port access
  • Response times slower in Thailand - have to follow up more aggressively
  • Once engaged, Thai suppliers very committed
  • Source Thai suppliers via Facebook and Line app vs Alibaba
  • Higher minimum order quantities (MOQs) - educate to hold inventory
  • Packaging options less abundant than China - focus on great branding
  • Quality has been higher in Mike's experience with Thailand vs China
Sourcing Suppliers in Thailand
  • No Alibaba-like platform - use Facebook and Line app
  • Search Facebook in Thai for suppliers and products
  • Engage via Facebook Messenger then move to Line app
  • Get friendly with emojis and build relationship
  • Recap terms in a quotation for clarity
  • Prepare to educate on holding inventory for lower MOQs
  • Packaging options less abundant - develop great custom branding
  • Overall quality has been higher than China factories
Tips for Manufacturing Outside China
  • Expect higher minimum order quantities (MOQs) and educate to hold inventory
  • Develop great custom branding and packaging to stand out
  • Build relationship with factory through messaging apps
  • Don't assume same level of urgency - follow up aggressively
  • Confirm terms: pricing, MOQs, delivery timelines, inspection process
  • Leverage inspection companies expanding across Asia
  • With lower volumes, consider negotiating payment terms favorable to you
  • Be prepared to educate on your needs like lower MOQs
Mike's Joint Venture Brand in Thailand
  • Mike partnered with long-time plastic manufacturer in Thailand
  • Started joint venture company and private label brand together
  • Mike has 30% equity stake, manufacturer holds 70%
  • Manufacturer finances inventory for launch around $150k
  • Mike's company makes payments over time to pay back capital
Cross Border Summit in Thailand
  • Mike's signature event connecting Amazon sellers and experts
  • Started in China alongside Canton Fair schedule
  • Moved to Thailand and postpones 2 years for border reopening
  • Occurs annually in March/April timeframe
  • Valuable for networking and meeting suppliers
  • 2023 summit scheduled for March 30-31 near Chiang Mai
  • Check CrossBorderSummit.com for details
Conclusion

Thailand offers a compelling option for sourcing quality products outside China. With the right expectations and preparation, you can find great partner factories to produce your products. The Cross Border Summit provides an opportunity to network and meet potential suppliers in Thailand.

Keywords: Thailand manufacturing, China manufacturing, sourcing outside China, finding suppliers in Thailand, Cross Border Summit

...more
View all episodesView all episodes
Download on the App Store

Seller Sessions Amazon FBA and Private LabelBy Danny McMillan

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

62 ratings


More shows like Seller Sessions Amazon FBA and Private Label

View all
Capitalism.com with Ryan Daniel Moran by Capitalism.com

Capitalism.com with Ryan Daniel Moran

729 Listeners

Shopify Masters by Shopify

Shopify Masters

372 Listeners

The GaryVee Audio Experience by Gary Vaynerchuk

The GaryVee Audio Experience

16,799 Listeners

The Ecomcrew Ecommerce Podcast by Mike Jackness and Dave Bryant | eCommerce, Shopify, and Amazon FBA Experts

The Ecomcrew Ecommerce Podcast

298 Listeners

AM/PM Podcast by Kevin King

AM/PM Podcast

211 Listeners

The Game with Alex Hormozi by Alex Hormozi

The Game with Alex Hormozi

4,331 Listeners

The PPC Den: Amazon PPC Advertising Mastery by The PPC Den

The PPC Den: Amazon PPC Advertising Mastery

100 Listeners

Serious Sellers Podcast: Learn How To Sell On Amazon FBA & Walmart by Helium 10

Serious Sellers Podcast: Learn How To Sell On Amazon FBA & Walmart

524 Listeners

The Full-Time FBA Show - Amazon Reseller Strategies & Stories by Stephen & Rebecca Smotherman

The Full-Time FBA Show - Amazon Reseller Strategies & Stories

232 Listeners

The Smartest Amazon Seller by SmartScout

The Smartest Amazon Seller

145 Listeners

My First Million by Hubspot Media

My First Million

2,620 Listeners

My Amazon Guy by Steven Pope

My Amazon Guy

37 Listeners

Ecomm Breakthrough by Josh Hadley

Ecomm Breakthrough

77 Listeners

OPERATORS by OPERATORS

OPERATORS

45 Listeners

The Marketing Misfits by The Marketing Misfits

The Marketing Misfits

2 Listeners