Throwback: From China to Mexico - Revolutionizing Your Manufacturing Strategy

In this episode, Josh interviews Amy Wees, CEO of Amazing at Home E-commerce Consulting. Amy shares her expertise in product development, sourcing, and sales, emphasizing the benefits of diversifying manufacturing—particularly sourcing from Mexico as an alternative to China. She discusses Mexico’s advantages in cost, quality, and logistics, and highlights common mistakes sellers make, such as not knowing their numbers or lacking supplier contracts. Amy stresses the importance of understanding unit economics, building strong supplier relationships, and differentiating products to succeed in today’s competitive e-commerce landscape. Chapters: Introduction to Amy Wees and Amazing at Home (00:00:00) Amy Wees is introduced as CEO of Amazing at Home, specializing in private label product launches and e-commerce consulting. Why Source from Mexico? (00:00:28) Amy discusses the importance of diversifying manufacturing, highlighting Mexico’s advantages over China for sourcing and supply chain. Mexico’s Manufacturing Capabilities (00:02:04) Explains Mexico’s strengths in injection molding, electronics, labor costs, and free trade agreements compared to China. Evolving Supply Chains and Workforce Trends (00:03:25) Describes changes in China’s workforce, supply chain challenges, and the need for businesses to adapt and evolve. Discovering and Building Trade Shows in Mexico (00:05:35) Amy shares her journey in exploring Mexican factories and starting a multi-category trade show for sourcing. Common Seller Mistakes: Not Knowing the Numbers (00:07:34) Amy identifies the main mistake sellers make: not understanding their costs, margins, and unit economics. Protecting Supply Chains and Supplier Relationships (00:10:12) Emphasizes the importance of contracts, vetting suppliers, and protecting products from being copied. Josh’s Key Takeaways for Sellers (00:12:16) Josh summarizes three action items: know your numbers, build strong supplier relationships, and differentiate your products. How to Connect with Amy Wees (00:16:35) Amy offers a free listing review and shares how listeners can contact her for e-commerce advice. Podcast Closing (00:17:05) Josh thanks Amy for joining the podcast. Links and Mentions: Tools and Websites  "Amazing at Home": "00:00:00"  "Alibaba": "00:08:59"  "Free Listing Review": "00:16:35"  Books and Resources  "Seller Accountant": "00:12:16"  Key Takeaways  "Understanding Your Numbers": "00:12:16"  "Supplier Relationships": "00:14:37"  "Market Evaluation": "00:15:57" Transcript: Josh 00:00:00  Today I'm super excited to introduce you to Amy Wees. Amy is the CEO of Amazing at Home E-commerce consulting, a world renowned company that has helped thousands of brands launch private label products on Amazon and beyond. Amy's knowledge in product development, sourcing, marketing and sales have enabled her to help countless entrepreneurs develop their own successful businesses. So welcome to the show, Amy. Amy 00:00:25  Thank you for having me, Josh. I'm so excited to be here. Josh 00:00:28  I love what you talked about in terms of, you know, diversifying your risk with manufacturing and supply chain, and you've been able to find a lot of that in Mexico. So why don't you tell us more about Mexico? Why have you been so invested lately into, you know, sourcing from Mexico? Amy 00:00:49  Well, you know, it's really we used to go to China all the time. You can go twice a year during canton fair times. And and I still sourced from China. I, I love my manufacturers in China. They're wonderful people. They're very efficient. Amy 00:01:04  Really great. So I don't think that there's anything wrong with China. But at the end of the day, one of the biggest things that all of us have to realize is that we have options and, and that, you know, we don't ever whether it comes to only selling on Amazon, putting your eggs all in that one sales channel basket or only using FBA. What happened during the pandemic? Everybody who is only using FBA, their stuff got stranded. Meanwhile, we tripled our sales because we were able to merchant fulfill. so that's that's, you know, a huge learning thing. And so many people are learning that the restock limits, we talked about that, you know, like, hey, maybe we need to start digging more into these other sales channels so that we are able to drive more traffic to Amazon and have even greater restock limits now that things are changing. Right. so I think it's important to never put all your eggs in one basket and to always know what your your options are. Amy 00:02:04  And so Mexico was a natural, solution. Potential solution. If we look at injection molding and manufacturing around the world. Mexico's number two in injection will be right behind China. So, you know, when we look at even electronics, Latin America is just as high in electronics manufacturing as China is. And a lot of people don't realize that. One of our speakers on the Mexico trip, he's he's an engineer and he specializes in helping electronics companies move their supply chain from China to Mexico. big companies like Seagate have completely moved manufacturing to Mexico. Chinese factories, major factories in China are now reopening new facilities in Mexico. Why? It makes sense, right? It makes sense. You've got free trade. As long as your product is 70%, produced in Mexico. You've got the free trade. So that's a wonderful opportunity there. You actually have lower labor costs in Mexico than you do in China. China labor costs have risen. and you have a highly educated and motivated workforce in Mexico, which that is also changing in China quite a bit. Amy 00:03:25  We're all finding with our factories and, you know, talking with my factory owners, every year after Chinese New Year, a lot of their employees do not return. It's very hard for them because e-commerce has really taken off in China. And so a lot of these, you know, it used to be you can walk through a factory in China a few years ago, and they didn't have, you know, they didn't sell it in e-commerce. Nowadays, that's nearly impossible to find a factory that doesn't sell. And so the workforce is evolving in China, and it's causing some, some issues in terms of supply chain, not only for labour. for quality control, you know, so there's even the Chinese are looking for alternatives to different places to open up factories and things like that. So I think that all of us have to evolve. We look at any company that does not evolve with the times what we find. You know, we look at like the toys R us stories and we look at, you know, the top 50 retailers in the United States of America. Amy 00:04:30  Also on the e-commerce websites. So it's very important for us to pay attention and make sure that we're looking at, okay, what's next. And also when we look at, you know, how many. Issues did we have with, with, ports being backed up and with our. With our supply chain just being at a complete stoppage. and we were all talking about men. For Q4 this last year. You better get your stuff in by August, because there's no way the October timeframe is dead. because there was so much, you know, caught back up and everything prior to this Q4. So this year it was a little bit better. We had some catch up, but we really need to be paying attention. And so for me, I'm right here in San Antonio, Texas. I traveled to Mexico a lot. I love Mexico, and I always see all these things,...

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