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Sourcing

Private Label Sourcing -Private Label Strategy (step 6 of 10)

What’s the most critical prelude to sourcing?

Define what you’re looking for first!
China manufactures 80% of the world’s products. Its selection is just vast. Your job is to drill down.

The simplest starting point is: alibaba.com

Elimination is the name of the game

  • Filter on Alibaba: √ Gold supplier √ Assessed Supplier
  • Filter by responsiveness: Do suppliers answer your email? Answer your questions?
  • Filter by Sample: No point negotiating unless the product is quality. Time to get a sample!
  • Run the numbers: Go over your entire supply chain for your projected Profit & Loss. Know your numbers before you negotiate.
  • Negotiate: Agree Price, Quantities, Design & Freight.
  • Quality Control: Define exactly what you expect and all possible defects. Clarify that you will inspect.
  • Place your order: Detail everything then exchange documents & arrange to send money.

 

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.

326 Habit 3: First Things First – time management for ecommerce entrepreneurs (part 2)

Time Management for e-commerce is an absolutely critical skill area. Time management can be the single biggest block to even starting an e-commerce business. And for an established, busy e-commerce business owner,  managing time is just as critical.

In this episode, we focus on the learnings from the wonderful book (and also audiobook) –

“7 Habits of Highly Effective People” by Steven Covey

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325 New Trade Tariffs imposed by USA on Chinese Imports

New Trade Tariffs from USA imposed on China [Trade War News]

US Tariffs of 25% imposed on $234B worth of Chinese Imports

New Trade Tariffs have been imposed by the US government on imports from China.

President Donald Trump escalated the trade war with China on Friday, imposing new trade tariffs on $200 billion worth of Chinese goods, now at 25%, up from the previous 10% rate.

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259 Growing an Amazon business for sale with Matt Ward

Do you want to build an Amazon business that sells for more than seven figures just one year from the date of launch? Of course, you do! Well then listen up. On today’s episode of the show, I’ve brought in Matt Ward. He’s an expert on scaling fast, and he’s also the co-creator of the highly respected Amazon Podcast FBA ALLSTARS and the cryptocurrency capital solution corl.io.

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242 How to sell on Amazon – Amazon Private Label Life part 2

On the last episode of The Amazing FBA, I talked about the realities of private label selling on Amazon. Consider this part two about how to sell on Amazon. Today I’ll be talking about some more practical tips. Don’t forget! If you want to sign up ETTR (Escape the Rat Race) Workshop, we’ll be covering all this and much, much more!

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