Product Sourcing

CLASS - 3
 HOW TO CHOSE A COMPETITOR

Check the sellers with low reviews and high

on first page (Make sure to choose those
Selection by
01
sellers who are selling for at least 4 -6 Revenue:
months)

Analyze and Search the best design of the

product which is predicted to be sold in
02 Design Filter future. (Read the negative reviews to
make improvements)

Plan how you are going to add value in Value Addition with
existing offer (You may check other markets to 03
get an idea) Cost Effectiveness

Selection of competitors Select those competitors who have consistent

04 having good BSR on avg. moving BSR over targeted keyword. By
Targeted KW doing this you will get an idea that how much
sales you need initially to capture the demand
Patent Check

➢ Utility Patent
➢ Design Patent
➢ Make sure your product design
/ Keyword is free from any
restriction
 Product Sourcing
Product sourcing is the process of finding
products to sell. It means finding reputable
suppliers to buy quality products at a good
price.
What is
Product Product Sourcing Process Flow
Sourcing?
Product Selection -> Patent Check > Sourcing
Suppliers -> Evaluating and Selecting top 5
Suppliers -> Order sample from 3 -> Assure the
sample's quality -> Re-evaluate best suppliers in
terms of pricing and sample quality -> Place an
Order via Ali Baba Trade Assurance
 1. Ali baba gold supplier membership: 3+ years
2. Response rate: Less than 6 Hours
3. Trade assurance

Supplier 4. Verified Supplier

Selection 5. Get quotes on FOB or DDP terms
Check 6. Should have relevant certifications related to that product
list on
or product category
Alibaba
7. Payment terms: 30% advance and rest before delivery
8. Mode of payment: PayPal, Credit card, T/T, etc. via Ali
baba Trade Assurance
Alibaba (DEMO)
How to Contact Suppliers
(Recommended Templates)
Supplier Contact Template File:

https://drive.google.com/file/d/1K_3TI9al2vft
fXitMerGjZu0Y-u5avg7/view?usp=sharing
 Shipping Incoterms (International
Commercial Terms)

1. Ex Works (EXW) – 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.

2. Free on Board (FOB) –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.

3. Delivered Duty Paid (DDP) –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.

For air shipment, it take 7-14 days, and you get more expensive if you
choose minimum days and for Ocean, it take 30 to 40 days
 Profit Margins
We recommend to have at least 25% Profit Margins per
sale, so while negotiating with the Suppliers, First get the
idea of what your cost should be in order to attain 25%
Profit margin per sale.
To calculate Profit Margins, Use AMAZON FBA Calculator

• Insert your competitor or your ASIN in FBA calculator

• Add your selling Price
• Cost of the Product + Shipping to amazon cost and
calculate Profit Margins and then lower or increase the
cost to check Which cost is suitable for you to get
maximum profits ☺
Ordering Samples
Your Order Should be secured with
Ali baba Trade Assurance Number

Once you place the

order you will get an
email from ALIBABA
along with Trade
Assurance Number,
like in the screenshot

Trade Assurance ID

INVOICE Contents Title

Important Doc

A detailed list of a ship's

cargo in the form of a
receipt given by the
master of the ship to the
person consigning the
goods

BILL OF LADING

INVOICE Contents Title

 ➢ Amazon FBA Fee -- varies from size tier of a product
(dimension and weight)

Under ➢ Amazon Referral Fee (Sell on Amazon Commission) -- varies

from sale price and type of category
standing
➢ Amazon Monthly Inventory Storage Fee -- based on cubic
different feet of a product and charged on monthly basis
types of ➢ Advertisement cost (or any promotional discounts) --
Amazon variable cost and vary from consumption to consumption
fees ➢ Deal Fee (Lightning or 7-day Deals or Prime Day Deals etc.)

➢ Returns or Refunds

➢ Any other Amazon service fee if we avail such as: Amazon

partnered carrier service, Prep & Labeling Service,
Inventory Placement fee, etc.
 Assignment
Start Sourcing of the product you added into EPAS
and apply all the steps we practiced today except
PATENT CHECK or Sampling and submit by creating
a presentation file on power point before next class.
THANK YOU