June 2019 - Amazing FBA - How to sell on Amazon UK

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What is the need of pre shipment inspection? (Q & A Tuesday)

What is the need of pre shipment inspection?

Question from a Facebook Group member:

Hello! I would really appreciate some advice on Final Random Inspections [aka pre shipment inspection]

I’ve been quoted 299 USD for a one man-day inspection in China for 200 units of my product which cost around 6USD per unit. So this would add a significant cost per unit.

– What are the usual/acceptable costs for this service?
– Do you think it’s worth it? This is my first order of this product. [ie what is the need of pre shipment inspection?]
– Does anyone have any recommendations for good companies to use for product inspection?

Thank you!

Good questions. : 

“What are the usual/acceptable costs for this service?”

1. what exact kind of product is it? Obviously, you don’t have to reveal exact keywords but the more info, the better we can help you. 

2. The level of inspection expertise needs to be relative to the value and complexity of the product. If it’s pretty simple inspection, I’d expect to pay around $80-100 USD for a man day which should cover up to 500 units at AQL III (Highest quality level). 

I would only pay 299 USD for a very technical product. I generally avoid those personally, so I’ve only ever paid about $80-100 USD per man(person)-day. For a 6 USD product, I would *hope* that it’s not technically complex!

“Do you think it’s worth it? This is my first order of this product”

In other words “What is the need of pre shipment inspection?”

Let me say loud and clear:  a pre-shipment inspection  IS CRITICAL!!

NEVER send a product out of China without pre-shipment inspection. That goes double if it’s a new product line, and triple if it’s a new supplier. 

It’s 100% worth it. 

You are dealing with some of the world’s fussiest consumers at Amazon. Amazon themselves demand a sub 1% “defect” rate. The “defect rate” is an ORDER defect rate, not just about products, which can include negative feedback about the seller’s service even if the product itself is (and is seen to be) perfect. 

In this environment, you must not compromise on quality below a certain level. 

Your business model and unit economics (gross profit) must work with pre-shipment inspection included – otherwise, IMHO you shouldn’t be attempting to sell that product line on Amazon.


“Does anyone have any recommendations for good companies to use for product inspection?”

There are loads. I’ve personally used a couple of good companies and people. Happy to recommend one I’ve used if you can tell me what city and Province you’re talking about!

For lots more (free) info on sourcing, check out the sourcing category of the podcast. 

Too simple for you? For more interviews with Amazon experts for advanced sellers, go to 10kcollective.com and listen to our new 10K Collective Podcast.

Can you still Make money on Amazon in 2019? With Kevin King

Kevin King – is a 7-figure Amazon seller

Hosts $5000 events – $1 billion summit in Austin, Texas

Not part of Helium10 but friends of them

Lead mentor in Helium 10 elite – used to be Illuminati

Has spoken at 30 different events

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#332: Amazon Product Research: The Open Secret

Product research not equal market research

Being product centred and focussed on numbers – using tools like Jungle Scout, Helium 10, etc. –  on Amazon is what everyone does.

Hyper-competition = we HAVE to differentiate.

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#331 Amazon Business Marketplace is Growing and 50% of the Planet is Now Online (Amazon News)

Amazon News

Amazon Business

The Amazon Business marketplace is growing!
Amazon announced a major milestone this week. 3rd party seller products are now available to more than one million business buyers including hospitals, universities, daycares, government agencies, restaurants, Fortune 50 companies and sole proprietors in the USA

It also announced that sellers are offering a Business Price on millions of products making them more discoverable and appealing. This feature can be added in the “Business Price” column of the Manage Inventory dashboard.

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#330 “What 10 learnings have you had about the 7 Habits since the book’s release”?

1. The importance of understanding the difference between principles and values.   

Principles are natural laws that are external to us and that ultimately control the consequences of our actions. Values are internal and subjective and represent that which we feel strongest about in guiding our behavior.

Values govern people’s behavior but principles govern the consequences of those behaviors.

I have come to believe that humility is the mother of all virtues. Humility says we are not in control, principles are in control, therefore we submit ourselves to principles.

Pride says that we are in control, and since our values govern our behavior, we can simply do life our way. We may do so but the consequences of our behavior flow from principles, not our values. Therefore we should value principles.

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