Product Sourcing

What is Product Sourcing?

After you have found the product on Amazon that you want to sell, the second step is to find the
manufacturer/supplier. Product sourcing is to find the best manufacturer on Amazon who can supply
the same product with your own brand logo and everything. The top websites to find manufacturers are

1. Alibaba
2. DHgate
3. Global Sources
4. Eworld trade
5. EC Plaza

How to choose the best supplier on Alibaba

 Verified Supplier Batch

 Trade Assurance
 More than 80% response rate
 Time spent selling on Alibaba must be more than one year
 On time delivery rate must be more than 85%
 Must have options of Logo and package customization
 Quick communications(use any other communication software like whatsapp, Skype, Phone
number etc)
 Good Quality Samples(out of all the chose suppliers choose the top 3 and ask for a sample the
supplier with best sample will be the best choice)

After the supplier has dropped off your products you MUST send someone to inspect the products. As
said the supplier had the Trade assurance after there are no problems in the products you will give the
money to the supplier.

Inspection Company
www.qima.com

According to Google Qima’s team requires around 310$ for an inspection.

How to tell if you’re having a loss or profit in your sales?
Before you tell you’re supplier to produce you’re products you should have an idea of how much are you
going to sell the product for. You should know the price you’re going to sell for the shipping price.
Amazon provides a calculator where you can see how much profit/loss you are having. You should have
at least 25% profit off your sales.

How to use Amazon FBA calculator

As we do not know if we are going to have a loss or profit in our sales we use Amazon FBA calculator.
First you put the ASIN (Amazon Standard Identification Number) of your product. As we haven’t
launched our product on Amazon we give the ASIN of our competitor or supplier.

The ASIN is found below

Amazon FBA Calculator asks

 Item Price
 Production Cost
 Shipping Price(FBM Only)
 Price to ship to Amazon Warehouse(FBA Only)
 Monthly Storage cost(FBA Only)