Esimplifiers [Year]

Product Sourcing Tips:

After hunting product, we have to find best supplier for sourcing. Finding a supplier
for Amazon business is a complete science.
I have done some efforts to make notes on this science. Hope this will help my
friends.
Let’s Start,
Thing to do after Hunting the product.
As we know product hunting is a time taking process so what we need to do
after hunting is to quickly start sourcing process to launch the product as early as
possible.

We have to do some important things before sourcing to secure our listing in future.

1. Check Patent:
What is Patented Product
A product patent provides exclusive right to prevent third parties from making,
using, offering for sale or selling that product. Once we select the final product,
first check the patent of the product.

After hunting the product 1st we have to check either product is patented or not.
There are two type of patents. That we have to examine.

1. Design Patent
2. Utility Patent
Design Patent: A design patent is a form of legal protection granted to the design of a
functional item. Base more on design, we will find patent for each design, for
example we will find different design of glass or any product. If we found
design patent in our product, we still have opportunity to go in different
design.
Utility Patent: This type of Patent is about usage that how it will use, for
example, Glass is use for liquid intake. If you found utility patent, then you don't
need to go in this product and you need to change the product for client.

Usually we can check patent on (patent.google.com). But we have to hire a professional for
detail check.
 2. Dummy listing:
To check if product category is gated or not we make a dummy listing by
selecting the right category and using our supplier images. we create
dummy listing to check either Amazon have any issue for this product.
Open case: Another thing we have to do is to open a case on Amazon that
I want to sell this item do you have any issue. Ask them 3 time a day until
they reply you.

Things to Finalize Before contacting supplier

 Focus on top 5 to 6 competitors without sponsored ads.
 Select listings that have decent revenue but with targeted number of
reviews. Don’t select competitor who has high reviews.
 Amazon must not be a top seller in your competitors
 Must not be a big brand is your competitors
 Finalize 1 or 2 competitor
 Save the ASINs, link of their listing and also search the keywords that
used by your competitor to rank on top.
 Read the negative reviews of your targeted competitors and right
down, it will help you while ordering product. After reading negative
reviews we are able to understand what is the main issue in that product
people are facing. It will help you while negotiating with supplier. We
have to resolve the problems in the product with quality
improvement by asking the supplier.
 Save Exact picture of the product and its bundling.
 Analyze with variation is doing well and target it.
 Convey all the improvement to supplier and start negotiation.

3. Finalize Your Brand Name:

It is also necessary to finalize Your Brand name in early stages after patent
check because it is time taking process. It will protect your listing from
hijackers.
If you are VA, tell your client about Amazon IP Accelerator program and
discuss its duration and cost. And also inform him other ways of brand
registry.

After finalizing brand name and logo send them to your selected supplier.
Brand logo: It is preferred that your brand logo consist of two color theme
instead of more. Because more colors of your logo more you will bear the
cost.
4. Select your supplier:
Where to find supplier?
There are many online whole website markets but these are the most reliable
markets for sourcing.
 Alibaba.com
 Dhgate.com
Mostly sellers are preferred Alibaba for sourcing from China.

Criteria for Selecting Best Supplier on Alibab.com:

 Gold supplier at least 1 to 2 years at Ali baba and if 4 years it will
be best.
 Also have Trade Assurance
 3 Gem
 Response Rate more than 80%
 On time delivery rate more than 85%
 Must be verified supplier
 Having options of logo and packaging customization is a plus point

Select 10 or suppliers matching above criteria and short list 3 according to

their rating.

Tips for Negotiation

 While contacting supplier, Don’t show him you are individual.
Always communicate him as company employee.
For Example, tell him I am a procurement manager of XYZ company.
 Tell him I am already a top seller. I have annoyed by my supplier.
 Can you fix things from my product?
 What is the price after fixing the issues?
 Increase your MOQ (Minimum order quantity)
100,300,500,700,1000 gradually.
 After receiving sample don’t praise the product because you
have to finalize from top three.
 Don’t show heist, tell him I have another supplier.
 Show him big picture. For Example, tell him you have big order
(20000 items a year). This is just for testing purpose.
 Once you get lower rate. Share screenshots with other supplier to
bargain. Hide company name.
  Order exact product as same to your competitor, don’t compromise
even little color variation.
 Finalize the supplier who match your competitor’s exact quality.
 After finalizing supplier tell him about for same price for at least
next six months. And take screen shot of your email.

Get quotation from suppliers,

 Ask him about price with respect to quantity
 Always ask about free samples first.
 Ask about price with packaging
 Get the invoices on your legal business name
 Ask about price with INCOTERMS (International Commercial Terms)

What are the INCOTERMS?

These are the set of rules published by the International Chamber of
Commerce (ICC) that are widely used in International commercial
transactions or procurement processes.
Normally there are many types of INCOTERMS but three are the mostly used in
Amazon FBA sourcing.

1. DDP (Delivery Duty Paid): The seller is responsible for delivering

the goods to the named place in the country of the buyer and pays all
costs in bringing the goods to the destination.
2. EXW (Ex Works): The seller makes the goods available at its location,
so the buyer can take over all the transportation costs and also
bears the risks of bringing the goods to their final destination.
3. FOB (Free on Board): The seller must load the goods on board of
the ship, nominated by the buyer. Cost and risk are divided when
the goods are actually on board.

Tips for getting Samples with low cost:

If you order samples separately it will be costly for you.
You have to hire a consolidation company from China and give the address
to supplier of that company to courier samples on that address.
Consolidation company gather samples and pack them in one box and
shipped to us. This will
minimize your cost. Because approx. shipping fee of single item from china is
$40 to $50 per item.

Always compare sample with your competitor product.

Payment Tips:

Always pay through trade assurance

Normally suppliers demand 30% upfront before starting production and 70%
after completion.
After 30% advance try to convince him to ship 100 units by air after 15
days. Although this little bit expensive but it will help you to rank your
product early until your remaining shipment arrived.
If you are VA tell client that we have to launch the product and we are
getting late.

Inspection:
After completion of your 1st order you have to do inspection for quality
assurance. To Examine your product, hire an inspection company from
China. Many options are available on Ali baba also.
If you found any issue in your product that is ignorable, don’t ignore it. You can
push supplier to decrease price because of this issue, tell him I will bear lose
because of this issue.

Things to do During Production:

 Get your listing SEO done during production.
 Do photography of your product from a professional.
 Always create 3d images
 Ask supplier for one piece for Photography
 Get infographic done with sizing during production.
 Also design an E‐Commerce website it will help you to get the traffic
it will also help you in negotiation with your supplier.
 Setup many chat and FB ads also link your account with Helium 10.
How to hire Freight Forwarder?

Compare your supplier’s prices with DDP with freight forwarder prices. If
your supplier offers higher prices with DDP shipping, then you an option
to contact fright forwarders.
You can find freight forwarder on Alibaba by applying criteria same as you
find suppliers on Alibaba.
Normally freight forwarder payment trend is 100% upfront.

FAQs:
Q: What packaging we used for our product?
Ans: Always copy your competitor packaging. But if customer complained
about packaging then improve your packaging according to the customer
nature.
Q: How to find freight charges?
Ans: Get the dimension and weight from your supplier and send to your freight
forwarders you selected on Alibaba and also share your picking location
and destination with freight forwarders they will provide you freight
charges.
Q: How to find Bank Charges?
Ans: Pay pal charges are 4%
Trade Assurance 3%
Q: What if main competitor lose rank?
Ans: You can change competitor.
Q: How many competitors to use for reverse ASINs?
Ans: Use 3 Competitor for reverse ASIN. One is your competitor, remaining
two are the top sellers.
Q: Can I change design of product?
Ans: No design should not be changed. We have to use exact design of our
competitor.
Q: Can I sell the quality higher than my competitor?
Ans: No you can’t sell higher quality product than your competitor. It will
increase you cost and price from your main competitor.