If you are not manufacturer of your own products, so when you are looking for manufacturer or wholesaler, you want to rely on a trusted source to buy products from. For sourcing purpose you might consider looking at Alibaba.com, GlobalSources.com, DHgate.com, 1688.com, MadeinChina.com, Trade shows or contacting and visiting factories.
Tips on How to Chose the Best Supplier for Your Product:
- On Alibaba you want them to have Verified Supplier Batch
- Good signal would be when supplier is trading on Alibaba for more than one year
- Important factor of good supplier is that they have Trade Assurance
- Quick Communication and their Response Rate higher than 80% is going to save you sleepless nights while negotiating and placing orders
- On Time Delivery Rate must be more than 85%
- Logo and Package Customization is definitely important option
- Pricing is not least important factor, so look at Competitive Quotation
- Good Quality Samples are what you want to see from supplier for your long term business going smooth
Options of Shipping International Commercial Terms:
- Delivered Duty Paid (DDP) – Supplier/seller is responsible for delivering goods to the named place in the country of the buyer/customer and pays all costs in bringing the goods to the destination.
- Free on Board (FOB) – Supplier/seller suppose to load the goods on board of the ship, chosen by the buyer. Costs and risks are divided when the goods are actually on board.
- Ex Works (EXW) – Supplier/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.
In general, delivery from China to Europe takes approximately 30 days by sea in port to port mode. For air shipments, it would be about 5-14 days.
Recommended Profit Margin for FBA selling on Amazon:
The recommended Profit Margin per sale via Amazon FBA after all fees and expenses is at least 25%. So while negotiating with the Suppliers, first get the idea of what all your expenses would be in order to maintain desired 25% profit margin.
To calculate Profit Margin, use Fulfilment by Amazon Revenue Calculator:
- Type in your your ASIN or ASIN of the competitor listing in FBA Revenue Calculator
- Add your selling Price
- Cost of the Product + Shipping to Amazon cost (including all shipping related expenses) to calculate Profit Margin
- Don’t forget about expenses for PPC (pay-per-click advertisement), expenses for product image production/editing and other expenses you might considering if you decide to hire professionals to help you with launching process
- Then lower or increase the cost to see which cost is suitable for you to get maximum profits
Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.
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