Saturday, July 20, 2024

I Made Over $1,000,000 On Amazon Using Chinese Re-Sellers.

🚀 How Working with a Trading Company Helped Me Scale My Business

Starting a business from scratch can be a daunting task, but with the right strategy and resources, it can be a rewarding experience. Last year, I started a business from scratch and grew it to $50,000 per month in just a few weeks. I documented the entire journey on my channel, and if you haven’t seen those videos, here’s a quick rundown.

Basically, I found a product on TikTok, cross-referenced it on Amazon, and saw a giant opportunity. I changed and improved some things about the product that I saw I could fix, and I launched it to the markets, and it did very, very well. There was one thing I never mentioned, though. Basically, I accomplished that whole thing and saw that success with the help of essentially what is a reseller, otherwise known as a trading company.

📈 Why Working with a Trading Company is Important

Maybe some of you guys watching this video don’t know exactly what that is, and maybe some of you guys do know and are wondering why I would partner up and work with a trading company. Essentially, in China, there are two different types of suppliers: there’s one, the factories who actually make the product for you, and trading companies, the ones who just basically resell the products to you from factories.

If all you’ve done is watch YouTube videos, then you probably think that these trading companies are just middlemen who sell the product to you at a premium. Most sellers absolutely hate trading companies and will do whatever it takes to avoid them. With that being said, let me explain why I actually love working with trading companies and why, without them, I don’t think I would have seen the success that I did.

When launching a product, there are a few key metrics you obviously have to follow. You probably know this by now: good profit margins, good ROI, and high demand. Those are all a given, but there are a few other ones that you absolutely need to have if you want to see huge success on Amazon. The first thing, aside from the obvious, is you need to have speed. The faster you can get into the markets, the more money you’re going to make. That’s kind of a given. The second thing you need is a good selling proposition, otherwise known as a good differentiation. And three, you need to be able to scale fast, launch more products in the market, and grow your brand. So, I guess the third one kind of is like the first one, but it’s about growing fast, so again, it has to do with speed. And that’s exactly where a trading company comes in to help.

Without my trading company, I wouldn’t have been able to source the product because when I found it, it was a very, very new product, and there were very, very few manufacturers actually selling it. They helped me source it fast since they are in China, they speak the language, and they know exactly where to go. And two, they helped me source a differentiation. Imagine not only finding a product that’s very hard to find but also being able to source a differentiation that I had to work on. They essentially acted as my boots on the ground to help accomplish exactly what I needed to get done.

Some people hire sourcing agents; I hire trading companies. I couldn’t hire a sourcing agent who maybe doesn’t have as much experience in that particular niche, or I could have spent a ton of time finding someone who does have experience in that niche and getting them to go to China to message suppliers and figure out exactly where to get my product for me. Or I could pay a small premium to a trading company to get this done way, way faster and who has a ton of experience in that space. Also, by paying that premium, I’m actually giving them a vested interest in the success of the product because if the product does really well, they’re going to get that small percentage on an ongoing basis. Basically, I’m giving up a small piece of the pie to make sure that the sourcing is done correctly.

And somebody may be thinking, “Why would I give that small percentage up to a trading company on a recurring basis on every single order?” To that, I say Jeff Bezos is the richest man in the world, and he actually only owns about 10 percent of Amazon. And if you look at Elon Musk, he owns only about 20 percent of Tesla. And the reason they do this is that they know and understand that if you give the opportunity and incentivize other people around you and give them the opportunity to get rich as well with you, you will get much richer in the long term.

The trading company I work with also helps me source new products. They deal with problems in manufacturing with me, they deal with negotiations, and they act as a completely free warehouse for me as well. They are also my inspection company and they are my right-hand man, the boots on the ground in China for me. And I know this probably goes against basically everything you’ve heard on YouTube and many probably courses and stuff like that, but if you find a good trading company, it’s literally the easiest way to scale.

🤔 Pros and Cons of Working with a Trading Company


– Faster sourcing

– Access to a wider range of products

– Expertise in the local market

– Better pricing and quality control

– Free warehousing and inspection services

– A vested interest in the success of your business


– Additional cost (usually a small percentage of the order value)

– Dependence on a third-party supplier

– Potential language and cultural barriers

– Risk of fraud or poor quality products

🌟 Highlights

– Working with a trading company can help you source products faster, access a wider range of products, and benefit from their expertise in the local market.

– A good trading company can also provide better pricing and quality control, free warehousing and inspection services, and a vested interest in the success of your business.

– While there are some cons to working with a trading company, such as additional costs and dependence on a third-party supplier, the benefits often outweigh the drawbacks.

– By partnering with a trading company, you can focus on the aspects of your business where your skills are best suited, such as marketing and product development, while leaving the sourcing and logistics to the experts.


Q: What is a trading company?

A: A trading company is a type of supplier that acts as a middleman between manufacturers and buyers. They purchase products from factories and resell them to buyers, often providing additional services such as sourcing, quality control, and logistics.

Q: How can a trading company help me scale my business?

A: Working with a trading company can help you source products faster, access a wider range of products, and benefit from their expertise in the local market. They can also provide better pricing and quality control, free warehousing and inspection services, and a vested interest in the success of your business.

Q: What are the cons of working with a trading company?

A: Some of the cons of working with a trading company include additional costs, dependence on a third-party supplier, potential language and cultural barriers, and the risk of fraud or poor quality products. However, the benefits often outweigh the drawbacks, especially if you find a good trading company.

Q: How do I find a good trading company?

A: To find a good trading company, you can start by researching online and reading reviews from other buyers. You can also attend trade shows and exhibitions to meet with potential suppliers in person. It’s important to do your due diligence and thoroughly vet any potential trading partners before working with them.