Approximately four years ago, Jacky Chou and Albert Liu started their first dropshipping company in 2018 that sold home decor items. However, even after making $250,000 a month, the duo decided to shift their manufacturing base from China to Portugal and name their company Far & Away.
Jacky’s first dropping company started with a negative balance of $3,000. With his experience in eCommerce and digital marketing, it didn’t take him long to make a revenue of $240,000 per month. The company was making a regular profit of 30 to 40%. But Jacky wanted to make the business bigger and better for his customers. He had to shift to Berlin to start his company, while his family and friends stayed in China. After a year,
Reshifting the manufacturing base
It’s challenging to stay away from your friends and family for years. When Jacky shifted to Berlin, he would miss his family and the beautiful moments he had spent with them. He was looking to share his experiences with his family and friends. And that feeling triggered him to shift the manufacturing base and rename the company. Here are a few things that he learned from his first-ever eCommerce business:
- While it’s fascinating to lead a business successfully, you also feel for your family and friends who stay far away. You wish you could enjoy the success with them. The same thing happened with Jacky. He enjoyed success in Berlin while his family and friends lived in China. Initially, his company’s manufacturing base was in his home country, but the practices were not as smooth as he wanted. That’s why he decided that it would be better to shift the manufacturing base to Portugal.
- Using a 3PL to hold inventory in your primary market is better to ensure quicker shipping time and better quality control. Jacky cited the example of Aliexpress sellers and how they trim down their shipping times by working with agents in China where they can keep their inventories.
- Jacky spent a significant amount of time finding a company that would extensively test the products that his company sold. He finally stuck to Oberlo for product tests. In one of his interviews, he said, “I always keep an eye on the return on ad spend). Once our products reach a strong ROAS, we source from our warehouse. This process helps us cut down our shipping times and maintains the quality of our products.
- One of the reasons Jacky’s eCommerce business stood the test of time is that it could retain its customers. Jacky thanks the 3PL system that efficiently dealt with the drawbacks of his previous supply chain, where he had to pay additional VAT duties and had longer shipping times. Once he shifted to a 3PL system, it impressed the customers because of the short shopping time. As a result, they stuck to his company.
According to Jacky, learning from mistakes makes you a better business owner. He was clever enough to implement the changes that he thought would improve his business, and it did provide the results that he had expected at the planning stage.