My Amazon Guy Fraud, Bribery, Inventory Quality Control with Sajag Agarwal of Movley Inspections #124
Amazon seller turned inspection company Movley. Why do inspections make financial sense? - I can walk through the calculation, how just $3k of defective products can pay for 7 years worth of inspections! How does fraud & bribery work when it comes to inspections? - Common misconception is that this is a zero-sum game. Inspectors routinely commit fraud with or without bribes. Great chance to talk about how to prevent it.
Take aways:
- Make sure you test your products. Sell a paper cup? Put water in it.
- Inspections are not a one off thing.
- Supply chain comes down to the human element. Inspectors can often be "honest thieves."
Bio: Sajag Agarwal previously lived in China, is a former 7-figure Amazon seller, and the current founder of Movley. In 2015, he founded and grew his first e-commerce brand to $2M/yr in less than 2 years. Plagued with quality control problems, Sajag moved to China for 6 months, opened an office in Shenzhen, and spent most of his time on the factory floor. While there, he watched his inspectors fraudulently pass his bad production orders and did his own inspections. Out of frustration, in 2018 he founded Movley to make manufacturing overseas easier and more controllable. Movley brings tech, data analytics, and better process to do inspections better & more efficiently. Sajag loves to share his knowledge with the community on everything manufacturing, with a side of entrepreneurship.
Entrepreneurship & Life
- My story: from Minecraft and flipping electronics on eBay, to a $2M/yr e-commerce brand, moving to China, to starting Movley
- What was it like to live in China? Funniest story? What was it like to meet factory owners in real life?
- What’s your motivation for being an entrepreneur? Has it changed since you started?
- What were some of the challenges you faced as an entrepreneur? (Failures & Growth)
Product Inspections
- Why are inspections so important? Do you need to do them every order? Different types?
- Is it better to inspect products at the port, or at the factory?
- What makes an inspection effective? Product tests? Setup sample size? AQL?
- Is an inspection necessary if the supplier says they do their own inspections?
- What do you do when an inspection fails? What if the supplier refuses to work with you?
Movley
- How do Movley’s inspection reports differ? What insights does Movley’s tech platform provide?
- The average cost of an inspection is $300/day, how do companies offer them for $100?
- How does Movley price inspections? Do your quotes improve with time?
- Movley has a back-office in the Philippines
Manufacturing in China
- What do you see as the future of manufacturing in China? COVID? Trade war?
- What are some things to look for when vetting suppliers? When should I do a factory audit?
- Would you recommend listeners to visit China? How do you plan a trip like this?
- How can you negotiate better pricing and trade terms with your suppliers?
- Are supplier contracts enforceable or effective? What contracts do you use?
- What are the common mistakes you see people make when sourcing in China?