222 Group FAQ - Product Sourcing

and Logistics
ZAIN UL RAFI·FRIDAY, APRIL 10, 2020·

Product Data & Pre-Requisites of 222 Group

Disclaimers:

-You need to watch latest Product Hunting & Product Sourcing videos on VBC

-Read this document at least 3 times.

-Do not place any order without explicit approval from Sir Sunny and 222
Experts.

-Take approvals from Sir Sunny after Patent check and then before placing final
order.

-Make sure to learn about your product from inside out. You should know better
about your product than anybody else.

Competitor

Q: How to select the Main Competitor?

A: You need to check top 5 sellers on Amazon in your target market. Then you
need to focus on three things mainly. Age of the seller(listing), Reviews under
1000 or 500 depending upon your budget, revenue of the seller and BSR history
of the main competitor.

Q: What to do if the main competitor is OOS or now not available on Amazon?

A: If you did you due diligence while selecting a competitor then continue with
the same main competitor as he may be out of stock or has some kind of
violations. If you find a better main competitor then we can change to the new
one as well considering the age of listing, attainable reviews, revenue and budget.

Q: What if the H10 search volume and revenue is declining for the main
competitor or niche?

A: You may need to monitor the main competitor for at least a week. You need to
check the historical data as well as the trend of the niche as well. If it continues
declining then you may need to drop the product after advice from 222 experts.

Q: When do we order the product from the main competitor?

A: If you have already selected one main competitor then you will place the order
from competitor Amazon listing while ordering samples from suppliers. If you
are confused between multiple main competitors then you can place orders from
multiple competitors on Amazon to find out little details and differentiation of
the product.
Q: My competitor is selling a pack of three of the same product, can I sell a pack
of 1?

A: No we have to sell a pack of three, the same as your competitor.

Q: If a competitor is selling a pack of 3/one unit sold means one pack sold or
three units inside one pack are considered separately?

A: 10 Packs of three items bundled sold means 10 units sold.

Q: From where can I know the dimensions of my product and competitor

product?

A: You can get this information from Amazon FBA Calculator to check Amazon
FBA Fee. You will copy the dimension of your main competitor.

Patent

Q: When do we need to check patents?

A: After you get final approval from Sir Sunny then create a 222 group and start a
patent check immediately.

Q: Where to check the initial patent by yourself and what to look for?

A: You can check the initial patent on Google patents. It is recommended that
this initial patent check is done prior to the submission of the product on portal
for approval.
Q: What is the difference between utility patent and design patent?

A: Utility patent covers the functionality, mechanism and design of the product
whereas the design patent only covers the shape, design of the product.

Q: What if your product has a design patent?

A: If a product has a design patent, we can come up with our own design. We do
analysis of best available designs being sold, designs patented, reviews analysis,
pick and choose what best feature a seller is having in his product.

We basically create a new mould of the product with features chosen from others
similar products.

One thing to keep in mind is that this new design should be able to perform well
both ergonomically and the specific task it is supposed to do.

Q: What if your product has a utility patent?

A: We drop the product. Its too risky to get into a product with utility patent.

Q: What to do if a design patent or utility patent is expired?

A: After mandatory checks have revealed that actual patents are expired, we still
need to see if they are EXPIRED – FEE RELATED OR EXPIRED LIFETIME.

We only work on products with Patents EXPIRED – LIFETIME.

Q: What kind of patent do we need to file?

A: We only file design patents.

Q: What kind of patent check should be done Global or target market?

A: Both target market and Worldwide. Like if your marketplace is US, we check
both US & WO.

Q: From whom to get a patent check done?

A: You can contact Fahad Sohail for a patent check. You can also hire different
patent professionals from Fiverr as well.

Q: How to get a patent check done for multiple component/pieces product?

A: You can contact Fahad Sohail for that and discuss with him before proceeding
with the patent check.

Trademark

Q: When to file Trademark?

A: You need to file a Trademark as soon as your product is approved and you are
getting acceptable profit margin in Germany and UK. If you are selling in USA
apply for TM through Amazon IP accelerator only.

Q: What are the prerequisites of Trademark registration?

A: Your trademark name should be unique. Get Domain for your trademark
name. Make sure you have filed for the trademark in text and logo form before
proceeding with branding of your product. Your product should have trademark
name and logo prominently visible on the product.

Q: Your company name and Trademark name should be the same?

A: No, company name has nothing to do with your trademark name.

Q: Under whom the TM should be?

A: The owner of a trademark can be anyone you trust. Recommended is to have

the same Amazon company details as the TM name and owner so that it brings
more value to your brand.

Q: Can i file the Trademark by myself?

A: In the UK, you can file the TM by yourself provided you have a UK or Europe
residential address. In the US, you need to get it through an IP accelerator. For
DE, you need to contact an attorney for TM registration.

Dummy Listing & Amazon Case

Q: What’s the difference between live and dummy listing?

A: Dummy listing is an example or sample list made before calling the sample
from the supplier. The main aim is to put a basic list to see if Amazon has any
issues regarding the product. You set the quantity to zero, it will be a dummy
listing.

Q: What are the prerequisites of Dummy Listing?

A: You need UPC for the US and EAN for the UK & Europe. You need to have
white background images of 1500px x 1500px which your supplier can provide.
You need to have your brand name selected as well.

Q: From where to buy UPC/EAN code?

A: You can buy from Speedy Barcode or nationwide barcode although buying
from GS1 is recommended.

Q: When to convert a dummy listing from FBM to FBA?

A: After successfully creating a dummy listing you need to convert it to FBA from
FBM and wait for 72 hrs.

Q: What to do after converting the dummy listing to FBA?

A: You need to open at least 3 cases on Amazon seller central to make sure we
don't require any certification in order to sell our product. If Amazon asks for any
certification then you need to contact your supplier and send it to Amazon till you
have permission from Amazon to sell the product.

Supplier Selection
Q: What is the template to contact suppliers?

A: There is one supplier contact template available in EC BC group. You can use
that.

Q: How many suppliers should I contact?

A: You should contact as many suppliers as you can if they meet EC supplier
criteria. 10+ suppliers initial contact is recommended to get an overall idea.

Q: From how many suppliers should I order samples?

A: You should order samples from 3 suppliers who are offering the product we
want which best matches the main competitor product.

Q: What is the cost for samples?

A: You can expect to pay $50 USD. You can also send multiple samples to a
freight forwarder who can ship all the samples to you in one shipment.

Q: What if I am not getting a good profit margin?

A: In this case, you can contact sourcing agents in our platform from whom some
are BC and 1-1 Students as well.

Q:What is expected to do with the sample?

A: Do use and abuse it to see what’s the quality of the product and how much
roughness it can sustain and make sure to do sample evaluation with your main
competitor product.

Q: What is landing cost?

A: The amount you pay to source your inventory including branding and shipping
till it reaches Amazon warehouse in your desired market is known as landing
cost. Product cost + Branding Cost + Packaging cost + Inspection Cost + Bank
Charges + FF cost = landing cost.

Q: What is lead time?

A: The production + shipping time of your product is known as lead time.

Q: What are standard payment terms with the suppliers?

A: The standard payment terms with the supplier is 30% advance payment and
70% upon production of your product.

Q: How to pay the supplier?

A: You should only pay suppliers through Alibaba Trade Assurance or PayPal. Do
not wire money directly into the supplier account.

Branding

Q: Brand name should be printed or stick on?

A: Logo and brand name should be printed on packaging and in some cases
products also.

Q:Should the product box be colored or brown?

A: If you are getting good margins with colored then go with this one and see how
your competitor’s packaging is, if it is simple brown then go for this one.

Q: What is a K-card and Is K card to be included in our production?

A: K-card is just a Thank You card. Yes as of now we do include it without asking
for reviews.

Q: How can we provide a product manual to my supplier?

A: You have to do research if your product needs a manual for handling. Go to

google maybe you will there or if a competitor is also providing it then you may
find the manual in his packaging. Make sure to never copy anything from the
main competitor.

Q: Do I need a website for my Brand?

A: Yes, you do need a brand website.

Inspection

Q:What is the best time for inspection?

A: You should already have an inspection clause in your contract with the
supplier. The best time is after production.

Q: Incase the inspection fails, who is responsible?

A: You fix terms and conditions with the manufacturer that he will replace all the
damaged products that came out during inspection and will pay for 2nd
inspection. This totally depends upon your relation with the supplier.

Q: Who can do inspection for me?

A: There are multiple companies who can make inspection reports for you. You
can contact some students as well to perform this job.

Shipment (Shipping Plan)

Q:In one craton Amazon accepts 150 pieces maximum, anything less than is
accepted?

A: Yes 150 is maximum, no limit on minimum

Q:What should be the master carton dimension and weight?

A: It should be less than 25 inch on each side inclusive of length, height and
width. The weight should be less than 20 KG.

Q: Where do we use FNSKU labels and Box Labels?

A: On products we need to stick FNSKU labels which we generate from Amazon
while creating shipping plans. We will stick Box Labels on Master Carton which
we also get from Amazon while creating shipping plans.

Q: What kind of markings do we use in Master Cartons?

A: You need to put Net Weight, Gross Weight, Carton Dimensions, No. of units in
each carton, Product Name, Brand Name (Optional), Country Origination
(Compulsory like Made in China/Pakistan).

Q: Before Creating Shipping Plan what do we need?

A: You need to upgrade your individual account to Professional Account before

making the shipping plan.

Q: What kind of freight terms we need from Supplier or Freight Forwarder?

A: From Supplier we need EXW or FOB pricing. From FF we need DDP pricing.
Your supplier may also offer DDP pricing, so please ask you supplier as well.

Q:How to find the HS code and duty percentage for your product?

A: The supplier will provide the HS code, the freight forwarder will give you the
breakdown of the DDP price to know all the rates.

Q: FNSKU should be printed or sticker pasted?

A: If the product packaging is not colored, the sticker would go and stickers are
cheap as well.

Q: Should I get insurance for my inventory?

A: It will cost you 4% of the total invoice amount. Considering the current
situation, you should go for insurance.

Inventory + Budget Calculation

Q: How much MOQ should be ordered for launch?

A: Considering the current situation of COVID-19, we are targeting inventory for

3 months + CPR-8 Days Giveaways by Helium.

Q: How to do inventory planning?

A: Considering the current situation of COVID-19, we are targeting inventory for

3 months + CPR-8 Days Giveaways by Helium.

General Formula for inventory planning: (Do not place order before approval)

Total Lead Time + CPR-8 Days GA + Profit Margin + Shipping Method

Q: How to generally calculate launch budget?

A: Launch Budget includes following:

Total landing cost of inventory + FB ADS Cost + VVRO Cost + PayPal Refunds
Cost + CPR-8 GA = General Budget required to launch a product.

Content Creation

Q: How kind of images to be used in listing?

A: 3D images or high quality photography.

Q: How many images do I need?

A: Generally you will need 7 to 9 images which included Main Image + Lifestyle
Images + Comparison Images.

Q: Where to get listing content?

A: You need to outsource this part and do you own research to gather all the
content for your Amazon listing optimization.