0:00 yes yes how's it going guys hope you're well and welcome to a brand new YouTube episode this is an emergency episode and I don't normally do this but due to the new announcement with Trump and tariffs these are very very turbulent times so it's very very important that we take early action on what's happening and I'm going to go over everything we need to know and everything you need to do in order to make sure that your e-commerce business thrives and succeeds in these turbulent times and doesn't get left behind so let's jump into it this is an emergency tariff briefing and I'm going to go over everything you need to do right now but let's jump into first of all what what's really happening here right the US just rolled out a 54% tariff on all Chinese imports along with
0:46 new tariffs hitting a lot of other major sourcing countries and this is important because it's normally just US and China which have the trade war and then other people consider well I'll go to Vietnam I'll go to Bangladesh I'll go to Myanmar I'll go to Sri Lanka I'll go to India I'll go to Turkey depending on what is your product but all those countries have been hit with tariffs as well and these are what's called reciprocal tariffs meaning if they have put tariffs on US goods entering their country then the US is going to put tariffs on uh their goods entering the US as well so a couple of key things here is that there's no dimminimous exemptions and for any of you who have shipped small parcels direct from China to your customer if it was under the value of $800 and sent by air it was exempt from duty which is also why like you know
1:33 Timu products and stuff like that are so cheap so that's also been removed as well they are now hit with duty there's no category exclusions these are all categories of products which are hit with these tariffs as well and there's no grace period so anyone who's got goods on the water right now you'll be impacted immediately so this is not a temporary inconvenience this is a direct hit to your margins inventory management and also your long-term production plan um it's very very important that we take action early that we understand what's going on and the early action takers are going to be the ones who are going to succeed so in this video I'm going to break down what these new tariffs actually mean for you and your ecom brand and it doesn't matter if you're selling on Amazon Shopify Kickstarter i'm going to show you how to overcome this current
2:18 situation i'm going to go over the real impact this has on your landed costs and your profit margins and your lead times and if you don't know what your landed costs are this is the time to find out and I'm going to go over that in this video with you as well and I'm going to give you a template and a framework for you to achieve that then we're going to go over strategic moves to protect your profit and calculate exactly how profitable you are per country that you want to import from and then I'm going to show you how to quickly find new suppliers in those exact uh in in those countries uh for your exact product on a screen share as well and I'm going to go over how to develop new products that leave you less exposed to higher tariffs as well so this is we're go over a lot i'm going to go over it as fast as
3:03 possible i'm going to go straight to the point this is no fluff this is just actionable advice that you can apply to your business today uh but this is a big disruption in what could be a long chess match between uh US and a lot of other countries as well so let's get into the strategies but if you don't know me already just want to do a quick introduction on myself my name is Kian Gozari i've been living and working in China for the past 15 years first time I went to China was November 1st 2010 in that time I've designed developed sourced and manufactured over two and a half thousand products i've visited more than 500 factories and I've attended more than 25 Canton fairs this has led me to work with a lot of different brands retailers licenses such as the MBA the Olympics United Nations as well as developing products for Amazon brands
3:48 and Shopify entrepreneurs some of which have gone over to sell over 1 million units on a single product i also do have a YouTube channel which is probably where you're watching this video right now h But if this is the first time you're watching this video definitely check out other videos on the channel and please do me a solid to hit that subscribe button if you are enjoying this content so far even though I've not got into it yet and I also do have my own sourcing school where you can see the link if you go to sourcingchool.com uh that's a a platform where I teach a lot of people about product development and supply chain okay before we get into it I just want to tell you my favorite phrase proximity is power and what I mean by this is something I learned from Tony Robbins is that you have to put yourself in proximity of the people which will get you the best results uh and that's how I managed to work with Real Madrid Barcelona the NBA and uh I
4:34 cover a lot of those strategies across my YouTube channel as well but my point is just by you guys listening to this episode today you're putting yourself in proximity to get the best results so thank you very much for tuning in today i really really appreciate it now let's dive in so I'm sure all all of you know exactly what is a tariff but I just want to explain very quickly it is a tax on goods coming from another country and it is a percentage value of the import and can vary based on which country the goods are coming from and what the products are now it's important to remember that the tariff rates right now are very high and they didn't used to be and historically it can always go up and down so tariffs are something that's always going to come and go but it's really really important for you to have a strategy to know what to do when they do fluctuate and go up and down right so initially
5:21 Trump introduced a 25% tariff on Chinese goods when he was first in office in 2018 and this was because he was uh annoyed that Chinese companies were ste stealing American companies IP and that's why the initial tariff came in then Biden's office decided to keep these tariffs that were imposed on China then Trump introduced an additional 10% before he came into office and then an additional 10% on top of that because of the inflow of fentanyl from China into the US now he's introduced the reciprocal tariffs on the rest of the world so tariffs can be used to control the inflow of products into a certain country but it can also be used in terms of uh leverage and negotiation when there's actually something else that you want out of that country now as I said
6:06 these are likely to go up and down in the long term tariffs are not good for either side these high tariffs in the short term you can see what it's doing to the stock market it's really hurting a lot of US businesses it's more of a long-term impact as well cuz just bear in mind if you have a high tariff cost then your cost of goods go up then you pass that cost on to your customer then you sell less units then your business is less profitable then you might start to let go of key employees then unemployment rates go up so it has a knock-on effect on the US economy as well and it's obviously not good for the exporters like China because they rely on a lot of exports to really help grow their economy as well so a resolution should be met at some point but we don't know if that's going to be in a few weeks a few months or a few years which
6:52 is why we're going to have the right strategies in this video so let me move myself over a little bit these are some of the reciprocal tariffs and and what Trump means by reciprocal tariffs is that in the first column these are the tariffs that these countries charge uh for US products entering their country right and these are also to do with trade barriers and currency manipulation so it isn't exactly accurate and what they've proposed that they're going to um reciprocate half of those tariffs on those countries so China's just been giving an additional 34% on top of the 20% was already there so China is now at 54% but a lot of other key sourcing countries are also hit with this as well so got to keep moving myself h these are additional tariffs and the highest impact countries are like China 34%
7:39 European Union 20% Vietnam 46% Taiwan 32% Japan 24% India 26% Bangladesh 37% Sri Lanka 44% and why this is important is that you know you might say okay well tariffs are too high from China let me go to Vietnam oh they're even hired in China all right how about India because India is very strong for wood cotton canvas leather handcraft so if you're into any of those products then it's like well let's go to that country but the now the duty rate isn't too different from what it was from China sri Lanka is very good for clothing apparel athleisure wear so a lot of countries are impacted but this is just the initial tariffs which have been imposed and now those countries are going to now reduce what tariffs they
8:27 charge the US and then the the US will reciprocate as well so this isn't set in stone this is just the initial tariff rates so it's very important to keep a close eye i'll update you guys uh so just keep a close eye on the channel and I'll report any changes as they are made now as a result of all this what does it mean for you well your goods are becoming more expensive but here's what you need to do to navigate these tariffs and reduce your cost of goods right number one is don't burn bridges with your current supplier right because this is also affecting your supply chain this is also affecting your manufacturer because as a result of the costs going up you're going to order less because you're going to sell less so rather than saying right I'm going to jump country I'm going to uh manufacture this in Philippines because that is the less uh the less import duty rate well
9:14 let's try and resolve it with our current manufacturer first right they know the situation they can see this on the news so if your let's just say your cost of goods from your current supplier is $100 per unit now is the time to ask for discounts because if you haven't negotiated your product price before or even if you have you can ask your supplier to compensate you half of the tariff cost increase so for example if it's a $100 product and you've got 34% tariffs then uh it's going to be $34 per unit that you're going to have your cost of goods increase so you can say to your supplier all right $17 per unit i want a discount i want you to contribute because we are in partnership together i'm the buyer you're the supplier if my
10:00 cost of goods increase by $34 and I increase the cost of the customer then less people are going to buy it and I'm going to get less sales and you're going to get less orders so if you want to continue to get orders from me we have to split this increased tariff cost 50/50 and if they're a good supplier if they really value your partnership if they really value your orders they will also take a short-term hit now they might not give you the full 50% they might give you 30% and they might give you more than 50% it just depends on how you negotiate but this is a perfect time to now start to have the conversation with your suppliers to ask for discounts right but just remember you're not alone in this you're not the only customer which has this issue so it's also a good like while you're trying to resolve this right now well so are a lot of other brands that that manufacturer is also
10:45 supplying so you can ask them what are your other customers doing in the US market or whatever other market are affected by these tariffs as well because they might have figured out different ways within the product development to reduce the cost of the product without jeopardizing the quality and that is essentially the next point is it can we decrease the cost of goods without jeopardizing the quality so for example if you're selling an outdoor furniture camping chair but the legs of the chair are aluminum well can we use steel instead and save 20% if we were doing a a backpack and we're using nylon fabric well can you switch it to polyester so it's it's still going to look the same it's still going to feel relatively the same but it's not going to jeopardize the quality so as we are product developers so are our manufacturers so let's ask them what
11:31 changes can we make to the product without jeopardizing the quality which is going to reduce our cost of goods then finally you can also ask your manufacturer are you setting up production in any other countries because bear in mind these tariffs aren't new right these tariffs have been around for quite a while and suppliers that I've been working with for a long time have been setting up production lines in other countries and getting their Chinese management uh production team to go over and run the production line and when I go to the Canton Fair I often see suppliers say "Oh we have a factory in Bangladesh we have a factory in Myanmar." But they've set it up and this is a WeChat chat conversation I just had with my supplier and um I was having a meeting with them and my supplier said "Hi Kan I'm going to Vietnam tomorrow i'll miss a meeting can we do it on Friday i'll come back on Thursday." I was like "Yeah sure let's do Friday have a great time in Vietnam."
12:17 I thought he was going on holiday he goes "Thanks i just set up a new factory there." I was like "Wow that's incredible i'd love to check it out." So our suppliers were also being proactive so rather than saying right I'm leaving my Chinese supplier talk to them to say are you considering setting up production in other countries u doing let's talk about discounts can we reduce the cost of goods without jeopardizing the quality so here's some quick things that we can do with our current supplier right now let's go number two it's very very important to have a China plus one strategy meaning China is most likely the best place for you to produce your goods right but then there's another country after China because of all the tariff situations because China seemed to be the hardest hit with all of this right they're always going to be the one involved in
13:03 the trade wars so it's very important to have another factory outside of China right but we can't just say "Oh I fancy Bangladesh or I quite like India or let's try Turkey." It's very important to choose uh carefully uh which country you should go to and to identify that we want to find out which country specializes in the raw material of the product that I make right so for example I mentioned India india is very strong for cotton canvas wood handcraft leather so if you're doing leather gloves India is a great next best solution for you to go right and then you can start to look at the import duty rate of those countries but remember those import duty rates are not final because they're going to fluctuate a lot based on now those countries entering into negotiations with the US now if you're
13:49 wondering well how do I find out you know which countries specialize in raw materials uh or where are the market leaders in my industry manufacturing their goods outside of China i use a website called Import Yeti which is totally free and I want to show you live on a screen share how um we can see where the industry leaders manufacture the goods so let's jump into import Yeti real quick as I said this website is totally free just go to importi.com and if I let's take the the backpack example right if I want to find out who is the Northace backpack supplier which countries are using which HTS codes are using I can find that out from import Yeti and basically what this is is that uh any shipping document any container that goes into the USA the shipping
14:34 document which is called the Bill of Lading document for some reason in the USA that is deemed as public information so Import Yeti have scraped the shipping records of everything that goes into the US and they've put it on this website uh which allows you to access who are these suppliers so if we go to Import Yeti and we type in the Northace company that everyone knows then it says the total shipments are 21,000 yep that's the address so we click on the Northace and then here we can see uh month by month how many shipments that they do and then here are all their suppliers for their categories of product so we can see that they have a supplier here in Bangladesh one in El Salvador Indonesia Vietnam Guatemala Indonesia Cambodia Nicaragua El Salvador
15:22 China and then we can scroll down and show more and it tells us um how many shipments they do per supplier as well so it's ranked them in order of their best suppliers and then here it tells you the category of product that they're doing so here we've got backpack hoodie uh ready-made garments uh knit men's knit pullover uh jackets uh backpacks again so many many different suppliers for a wide category of different products and then if like I said if we want to find a backpack supplier I can just hit control and F and type in backpack and then it brings up the list of all their backpack suppliers uh let's see go to the top right okay so backpack uh they've got one in Cambodia here let's see any other countries so there's
16:07 got this one Puk in Indonesia so let's check out the Indonesian supplier right so if we click on them now we can see how many shipments they do per month and which are the brands that they supply so their biggest customer is Michael Kors they also supply Northface Adidas Eagle Creek Lululemon so okay those are brands that I align with so I'm interested to talk to the supplier and then all we would do is just do a Google search you can just search their name search them on Alibaba and Google search their name and it brings up Google uh listing for them and here you have their factory information you can go on their website here uh you can go on their Instagram so it gives you a lot of fantastic information that's just a quick demo and it's better you can only find out the
16:53 information if they ship products to the USA the brands that you're looking at uh so think don't look for like small little Amazon brands look for the market leaders and analyze you know which are the countries that these guys are manufacturing in so hope you enjoyed that quick little import Yeti demo now let's get back to the presentation okay so hope you enjoyed that quick little import Yeti demonstration and how we can have a China plus one strategy and another thing which is very very important to do is figuring out the exact landed cost of your item as well and then being able to price up China versus other countries as well so chances are you were producing your goods in China but now you're going to get prices from Myanmar India Turkey Bangladesh Cambodia and it's very very important to
17:40 be able to quickly analyze what are the cost of the goods from those countries the cost of the product but then also the import duty and then also the shipping rates as well so you can figure out your exact landed cost now this might seem like a lot of work but it's actually really simple and I have my own costings calculator uh and training within my own school community sourcing school.com so I just want to give you a quick little insight into what that looks like um so you can know exactly how much it costs to import your products using my costings calculator so let's jump into sourcing school and I want to show you how we can exactly calculate down to the cent our landed cost per product per country welcome to the inside of my sourcing school um you can go to school.com that's schoolwith
18:27 uh/sourcingwithkan or just go to sourcingschool.com to check it out and as I was saying I have a classroom section where I have lots of different trainings so here I've got a full course on product development another course on supply chain these have got like over nine 10 different modules and lessons all my resources documents templates forms i've got a course on the Canton fair as well if you're interested in that twice a week I do office hours which is a Q&A session where you can ask any question you want and there for different time zones as well and all the recordings are posted here as well so for the last call we've got notes on it AI notes you can jump to any of the and then also for Australia uh we have separate calls as well and for the Asia time zone so going back to the classroom section uh there's also
19:13 terms and conditions qualifying your manufacturers checklists uh purchase order templates pre- shipment inspections lots of other stuff anyway product profitability is what I want to focus on today and in here I've got a 17minute training video on this document here which I created to find out for you guys to find out exactly how profitable your products are so let me make this a little bit bigger and all the fields in yellow are what you can change and then all the fields in gray is what's calculated for you so if we jump into this real quick if we have if we want to order 1,000 pieces and you can change that let's say 500 pieces and everything updates but let's just say a,000 pieces right and our product cost is $100 just to keep it simple sorry our retail price
19:59 is $100 that's what we're selling it for now our manufacturing cost of goods is $23 and based on us ordering a,000 units that's going to cost $23,000 right then let's just say the supplier gave us a mold cost a tooling cost of around $3,000 that's going to add you know $3 per unit if that was to be $5,000 then it adds $5 per unit if it was zero it would be zero so uh we can just play with that based on the quotes that we get from our manufacturer then you know they might have charged you for samples in the past the freight of samples and the cost of samples let's just say that's $500 that's going to work out to 50 cent per unit and this is all for the first production run right and then let's say the freight cost the container price let's just say all in is $4,000 but based on you ordering a,000
20:45 units that's going to be $4 per unit if you were ordering 500 units and your container cost is $4,000 notice how it jumps up to $8 and doubles in cost so it gives you very good insights as you play around with the numbers how much exactly everything's costing you now let's get to the topic of today which is the import duty rate right the Chinese import duty rate has gone up to 54% so now let's get to the import duty based on a 54% import duty rate on a $23 cost of goods that's going to be $1242 now before this used to be 17% then 25% now 54% so $1242 which is going to add that's
21:32 basically half right of your cost of goods is also the import duty rate as well then let's say they charge you $500 for additional packaging inspection i always do a pre- shipment inspection it's going to add 22 cent uh based on a $220 inspection charge then your 3PL might charge you $1,000 to receive the goods now down to the scent like the cost of the product the cost of the import duty rate the cost of the samples uh the cost of the packaging the cost of the inspection and this landing in your warehouse is costing you $44.64 but the actual cost of the product was $23 but it's costing you $44 to actually get it into your warehouse and a lot of people just look at this number what's the cost that my manufacturer is charging me but they tend to neglect what is the actual
22:17 landed cost this is so important to arrive at this number right and based on you ordering a,000 units your total landed cost is $32,000 right but we can look at our profit margin our gross profit margin is 55 um.36% and your total profit per unit is $55 now you might say "That's fine my margins are healthy so I'm happy to absorb this increase in tariff costs." Or you might say "I don't want to pay any increased tariff costs i want to now sell my product for $115 and when you put it at $115 look what happens to your profit margin so now it jumps up to 61% and you're making $70 profit per unit so this allows you to really figure out what is your total landed cost based on
23:03 the country that you're importing from right and what we could also do is take this bottom slide this slide and then duplicate it and then just name this one Philippines do another one Bangladesh do another one India and then play with the different import duty rates and then see what is the import duty rate per country but you're also going to change the unit cost uh per country as well and now we can compare now the reason I put first production run is that now that you're going to be getting um quotes from another country well if you're doing an item for the first time you're going to have mold costs if there's any setup costs involved in your product right but for your second production run well you don't have those mold costs anymore because that was just a onetime fee and maybe you don't have those sample costs anymore because it's already gone through the back and forth process of
23:49 arranging samples and maybe your order quantity will increase so you've got a discount from 23 down to $20 so you might look at your first production run and say you know what 55% margin I'm not happy with that but consider what would be your profit margin on your second production run and now it's at 68% because we've removed the mold costs and the sample costs and it could be that the freight rate changes as well you know I've put $5,000 a container right now it's actually a lot lower than four so as that fluctuates you can um play around with that as well so this really gives you an indication to the scent how profitable you are for your first order and for your second order and now you can play around with that per country as well so if you're interested in a training like
24:36 this plus much more that's just one of the modules and here there's full courses and there's a lot of other trainings as well uh if you're interested in that just go to sourcingschool.com or school.com/sourcing now let's get back to the presentation on Trump tariffs okay so I hope you enjoyed that quick little demonstration inside of my school community so that was basically us costing up China versus other countries knowing exactly how profitable we are now let's consider even if the prices are equal from China versus Cambodia versus Bangladesh there are other things there are other factors to consider outside of price right so it's not all about just getting a better price a lower tariff duty rate right let's think about the advantages that China has
25:22 versus other countries China has got an extremely wellestablished infrastructure meaning the roads the ports the very large workforce that they have not only a large workforce but a large skilled workforce as well right their ability to scale production what is their capacity so you might start off with a product that you found on Alibaba and you did like 300 units for your first order then it went up to a,000 units then it went to a,000 units a month now it's 10,000 units a month right with China you can quickly rapidly scale production what if you find a factory in Myanmar Vietnam Bangladesh Philippines well okay they can maybe get you a good price but can they do 10,000 units a month right do they have You see the production lines in China you see the large volume of
26:08 machinery that they have you see the large workforce that they have you know if you go on Alibaba and you click on verified suppliers you can see the number of workers that they have in the factory some have 50 workers some have a 100 workers some have a thousand workers some have 2,000 workers so based on your scale of production that either you have or you're striving for is very important when you go to these new countries to ask them what is the scale of their production china also has pretty much 24/7 customer service i can get on the phone or I can uh we chat or text or email my suppliers and they tend to respond at midnight their time they respond on weekends they're never really inaccessible apart from when they're asleep and even at those times honestly I've had replies um whereas when I've worked with suppliers in other countries sometimes they take a long time to reply
26:54 to you they don't respond on weekends they can get very very busy the other thing as well is payment protection right the value of our order let's say it's $25,000 well are you happy to wire $25,000 to a supplier in Bangladesh right what payment protection do you have whereas when we use websites like Alibaba we can get trade assurance you know we can uh do payments on a credit card we can do a letter of credit so there's a lot of payment protection that we can get using Chinese suppliers as well but whatever you decide to do whether you decide to you know find new suppliers in China or whether you want to find new suppliers around the world it's very important not to put all your eggs in one basket and to start with a small trial order first to assess their production before going all in right and
27:42 that's just not to make sure that the quality of goods is fine but that's just to make sure that they ship on time that's to make sure that their quality is okay that the goods pass through customs clearance okay that you don't get many returns that they pass a pre- shipment inspection that if you do get returns are they a responsible supplier so there's so many different things that we need to assess the supplier for and not just give them a big order of 10,000 pieces and cancel production with our existing suppliers right then um while we're being hit with all these tariffs bear in mind that every product category has a different tariff code right and then within those product categories every material has a different code as well so have you been importing your products at the right import duty code right there is the
28:28 hts.usitc.gov that's the official website so you can put your tariff code into that website and find out exactly what is the tariff on your product so one thing I like to do is check myself i like to go on the HTS code website um I don't necessarily want to open a website and go into it again because that would be like another uh live demo but excuse me you can type in the first four digits of your number to find out the category then the subcategory but you can start to play around with the categories right so if you're doing a towel for the beach but you've been using cotton material but actually if you scroll down cotton might be 12% but in microfiber is is 3% then I'm like "Oh great well I'll I'll just change the material in order to save 9%." Right but I've also said here check with the factory because while
29:13 your factory is producing products for a lot of other brands in your market you can also ask your factory hey for the other 10 or 20 brands that you manufacture for what import duty code do they use and then you might find the better one that way to reduce the tariffs by quite a few percent then check the HTS code website yourself and I like to double check my tariff code with my freight forwarder as well because your freight forwarder is the one which clears your goods through customs for you so your freight forwarder has a conversation with US customs your freight forwarder has a customs department which checks all these codes so if you say "Hey I'm importing these backpacks from China to the USA can you double check this code of 42024189 is correct or would you
29:58 recommend any other code?" So we can check for the factory we can check for HTS code directly and we can check for our freight forwarder and one that I found really useful recently is using chat GBT right so you can say to chat GBT I want to import these blue light blocking glasses from China to the USA what's important um specializing in the raw material of the product what would be the next best countries you could even put the reciprocal tariff rates uh that just got announced recently are from these countries which would you suggest is the best country to manufacture for blue light block and glasses while keeping my import duty uh duty rate low and obviously whatever information that
30:44 gives you you want to feed it into that costings template which I showed you so that you can figure out the exact landed cost of your product as well then finally you might want to consider is the US too much of a headache because you might have a um Shopify store you might have an Amazon store and you only been selling in the US but you know UK is a big market Europe is a big market Japan is a big market Germany Spain France Italy these are really large markets so why not then you know of course we want to fight these tariffs and you know figure out the best solution but a quick fix might be can I launch my existing product in another market can I just take my existing product and sell it in the UK and now I've just opened up myself to a much larger customer base but I'm actually profitable i'm not being being hit with
31:29 all these tariffs so those are some things to consider as well then one of my favorite things is product development right so this increase in tariffs can also improve and affect our product development so here's some things to consider for any new products that you're working on now more than ever uh if you haven't already it's very very important to differentiate your product from the rest of the market because when you have an innovative product you can charge a higher retail price now the higher retail price is the more margin that you have and the more margin that you have the less the tariffs affect you you can absorb it into your margin and then also the more innovative the product is the higher the barrier to entry for someone to copy you because if it's a innovation and then you have a mold cost and the mold cost is $20,000 and you have a
32:15 patent on the product well no one's really going to copy you because they don't want to get hit with any losses nor do they have the 20k to go in and compete with you so you can absorb the margins and you have less competition so focus on the more innovative products in your product development strategy then also consider the products with higher margins so these are maybe more expensive products but then the profit margin is greater as well so it's important to know uh your profit margins like we looked at with that costings calculator and then decide if you want to temporarily absorb these higher costs because as I said at the start of the video these tariffs are not sustainable this is not going to last forever this is just a short-term negotiation bargaining power tool and leverage tool so if you can write this out for longer
33:02 meaning you can just absorb these costs and absorb these um reduce margins for now your competitors were will fall off and then when the tariff rates go back to normal then you you always maintain that position and you rank number one uh online then what you also want to do is work closely with your suppliers on product development to release new products that they have been working on right and the Canton Fair is perfect for this and that's where this image is from so it's my good friend uh Andrew and if you are interested to come to the Canton Fair I go every six months and I've got loads of YouTube videos uh on my channel about the Canton Fair h and I've got a Canton Fair course within my school community as well and I do meetups in the Canton Fair in Guangjo every time I'm there as well so if you're interested in any of that let me know if
33:48 you uh want more information about the meetup in Guangjo just DM me on Instagram i've put my Instagram there Kean_JG h just hit me up on that let me know what you thought about this episode whether you like it or not whether you got some good value from it or you if there's room for improvement but just DM me on Instagram and just say "Hey I'm heading to the Canton Fair and I'll send you details of the event which I'll be uh hosting for you there." But uh while we develop products so do our manufacturers right and if you can work with the manufacturer to say "Hey what what what what are you guys working on what's new for this year?" And they tend to bring these new products to the Canton Fair which is why I mention it but if you're just talking on to them online just say "What are the new products that you're working on?" And they might say "Well you know what we've got this really cool product that's working well in Japan or we've got this really cool product that's working well
34:33 in Germany why why don't you try it for your market?" So we can actually not come up with the new products but benefit benefit from our manufacturers's product development expertise and then launch new products as well and get that first mover advantage um to really help us differentiate from the competition and avoid the tariffs then as I talked about on the HTS code website the materials that you use in your product can greatly play a part in the import duty rate right so I always request what's called a bill of materials or bomb uh from my factory on any product that I'm developing now normally because I'm so involved in the product development process I specify I dictate to the factory what materials they should be using but if you don't know what materials are in your product now is a perfect time to ask your factory for them to send you a bill of materials and then use the HTS code website to
35:21 identify um if there's any materials that you can change to get a lower import duty rate and uh as I said I've got a full product development course uh in my school community as well if you want to dive really really deep into product development as well so let's just summarize a little bit of what we talked about tariffs are going to go up and down don't burn bridges with your current suppliers work with them have a China plus one strategy consider the other advantages um of working with China just apart from price price is an important factor but it's not the only factor look carefully at the correct import duty code and then focus on your new product development so those were six big topics that we covered which should really really help you uh navigate these tough times with
36:07 tariffs right um just if you want to get in contact with me if you took value from this video I'd greatly appreciate if you like the video it will help with the old YouTube algorithms and if you have other friends in e-commerce please send this video to them please share the video with them because they will greatly benefit as well and we should all help each other out to navigate these tough times uh hit me up on LinkedIn Instagram Kean_JG and also I'd love to see you inside my sourcing community as well so that's it for me today hope you enjoyed the video and let's all get together and help each other and crush these tariff situations and have very very profitable e-commerce product all the best to see you soon and I'll see you guys on next
