Lecture no: 4

Product Sourcing
Instructor: Chaudhary Kamran
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What is Product Sourcing?

Not every seller manufactures their own

products. Therefore they need to rely on a
trusted and authentic source for the
preparation of his/her products.
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Reliable and trusted B2B website:

Alibaba.com is the largest most reliable B2B

marketplace where buyers and sellers from
around the world can connect and carry out
transactions. It is a secure and trusted
platform used by millions and millions of
businesses

Other B2B Websites:

• Globalsources.com
• Madeinchina.com
• Dhgate.com
• 1688.com
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Important terms to know:

Ali Baba Trade Assurance:

Ali baba trade assurance is a service offered by Ali
Baba that is designed to help create trust between
supplier and buyer.

Trade assurance promises two services:

 Quality
 Time of delivery

Ali Baba Verified supplier:

Ali baba verifiedd supplier batches are provided to
those manufacturers who performed well and are
verified by Ali Baba.
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How to find a right supplier ?

Go on alibaba.com, enter your product’s

keyword or image and choose the supplier
fullfilling the following criteria:

 Must have trade assurance badge

 Must be a verified supplier
 Must have 3+ diamonds
 Must have rating of 4.5+
 Must have experience of more than 3 years
 Must have atleast 90% on time delivery
rate
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How to find a right supplier ?

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What to do after finding the right supplier ?

1. Chat with him

2. Introduce youself
3. Ask prices for different MOQ’s
4. Negotiate on prices
5. Contact atleast 6 suppliers
6. Finalize atleast 2
7. Order the samples
8. Choose the best one
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Template to send your supplier:

Hello !

I hope you're doing good .My name is (name), I’m contacting you of on behalf of my company. We're
currently looking to expand our product range, and we're interested in your (product name).

We need a product with these specifications “(Specification)“

Material : xyz
Package Dimensions: 10 x 10 x 10 cm
Package Weight: Max 2 kg

Provide me DDP (United Kingdom )price and EXW with corton details.

Also tell me the price if MOQ is

1,000/2,000/3,000 /4,000 pieces individually.

We'd like the opportunity to try out this product through customer test phases before aggressively
expanding. We require an order of 1,000 to complete this test. This is for life time deal .We look forward to
hearing back from you at your earliest. And also send Your CATALOGUE may be we will order more
products. I am an honest buyer if you give me good price then i'll send you sample address right now.

Thank you.
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Important terms to know:

EXW Price:
In EXW, manufacturer will manufacture the goods only.
He will not be responsible to ship it anywhere.

DDP Price:
In DDP, manufacturer will arrange the shipping upto the
address of the freight forwarder inside his country.

FOB Price:
In FOB, manufacturer will be responsible to ship the
products upto your designated place all over the world.
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Sourcing the best products:

After calling the sample, do the following things:

1. Check patent
2. Order your competitor’s product
3. Compare your sample with the competitor’s product
4. Choose the best quality
5. Order 1000 pieces and release 30% initial payment.
6. After the completion of manufacturing, release the
remaining 70% payment.
7. After that hire a freight forwarder and ship your
products. (Practical)
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How to check Patent of product:

Go to fiverr and hire a patent checker.
Any Questions ?