On today’s episode, Kunle is joined by Jason Wong, Founder of Wonghaus Ventures and Doe Lashes. Jason helps other brands streamline sourcing and manufacturing as well as leverage influencer marketing. He is also a consultant and advisor to brands like Universal Music and Adidas. All this at the age of 23!

Many new entrepreneurs can’t resist the lure of the dropshipping business model. When we think of dropshipping, we tend to think of Aliexpress. But we also think of the all-too-familiar reports of unreliable products and dubious/fake suppliers. Jason speaks about the problems of sourcing products from China and how his firm simplifies the process for companies in the West. He has made it his mission to “clean up” dropshipping’s bad rep.

Jason talks about why product design is vital, and how you can work out an entire branding & marketing strategy by working backwards from a mascot. You will also get to hear about why influencer marketing works (and doesn’t always cost a bomb).

This episode has a bit for everyone, right from sourcing and manufacturing to product design to marketing and branding. You will hear about how you can stand out (even in a saturated market) and hacks to bump up your AOV.

Here is a summary of some of the most important points made,

• Language is the biggest barrier when sourcing from China
• Finding the right source can add 20-30% to your margin
• Influencer marketing lets you kill 2 birds with one stone
• Product design helps you stand out in a saturated market
• Keeping the price low = more inventory turnover = lower purchase cost
• Leverage data to create an effective subscription model

Covered Topics:

On today’s interview Kunle and Jason discuss,

• Product Development
• Sourcing
• Influencer Marketing
• Branding
• Differentiating in a saturated market

Timestamp:

• 2:12 – Meet Jason Wong – 23 year-old founder, influencer, product designer, marketer and consultant
• 8:45 – Wonghaus: The brand development incubator
• 9:45 – How Wonghaus’ robust service offerings attract clients of all sizes
• 11:18 – Common challenges when sourcing from China or Asia:
  • Not enough due diligence on the supplier and the supply chain
  • Not communicating effectively with vendors enough
• 13:00 – How Wonghaus fills the gaps in sourcing:
  • On-site verification of factories
  • Supply chain audit
  • Price negotiation
• 16:25 – Why Jason launched Drophaus to provide dropshippers everything Aliexpress doesn’t
  • Get genuinely wholesale pricing
  • Tie-up with China Post for reliable shipping times
  • Option to move your inventory base to US/Canada
  • Leverage marketing services offered by Saucehaus
• 21:00 – How long it usually takes for dropshippers to transition to DTC
• 23:52 – Why influencer marketing works better than many other channels:
  • It can be more affordable than paid advertising
  • Achieve dual goal of driving traffic and creating content
  • Leverage power of word-of-mouth
• 27:05 – Standing out in a saturated market
  • Create an Objective better product
  • Create out-of-the-box branding
  • Leverage social media to the fullest
• 37:56 – Create a solid branding & marketing strategy by working backwards
• 41:27 – How keeping the price low eventually brings down costs
• 44:30 – Hacks for bumping up AOV
• 47:40 – Why (and how) you need to understand your product’s repurchase window before building a subscription model
• 50:30 – How Doe Lashes uses SMS marketing
• 52:23 – Tips for building your SMS and Email lists
• 55:10 – How Jason is helping heavy hitters in the music industry go DTC
• 59:20 – Lightning round

Lightning Round:

1. Q: What advice would you give to yourself 5 years ago?
   A: Lear and read more
2. Q: Are you a morning person?
   A: Not at all
3. Q: What are 2 things you can’t live without?
   A: My Phone and ice coffee
4. Q: What book are you currently reading?
   A: How to influence friends and people
5. Q: What’s been your best mistake till date? A set back that’s given you the biggest feedback.
   A: Building the wrong team

Takeaways:

• Lack of due diligence is the biggest challenge when sourcing from Asia
• Influencer marketing has a “word-of-mouth” effect
• Product design can help you differentiate in a saturated market
• Any subscription model must be built around the product’s repurchase window

Links & Resources

• Okendo
• How to Win Friends & Influence People

Tweetable Quotes:

“Dropshipping as a model can be sustainable if done correctly.”

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SPONSORS:

This episode is brought to you by: