PRODUCT SOURCING

 Go to alibaba.com Sourcing Websites

 Create Buyer Account 1. Alibaba
 Search Primary Keyword 2. 1688
 Never judge Supplier by Images. 3. DHGate
 Check below List of requirements 4. Made-in-China
5. Globalsources
6. Tradekey
CHOOSING THE BEST PRODUCT SUPPLIER 7. AsianProducts
8. SaleHoo
Consider these things, when choosing a supplier 9. Ali express.com
1. Verified supplier batch 10. WorldWideBrands
2. Trade assurance 11. WholesaleCentral
3. Three gems 12. VietnamManufacturers
4. More than 85% response rate 13. Dropshipping sites and
5. He must be 2 years old on Alibaba many more.
6. On time delivery rate must be more than 85% to 90%
7. Must have options of logo design and package The top site is Alibaba.com
customization However, you can go for 1688.com
8. Competitive quotation (Keep the translator all set to
9. Quick communication communicate in Chinese). There are
10. Good quality samples certain products that have to be
bought from local suppliers, for that
you need a thorough analysis of the
TIP: Always deal in per unit supplier's profile and the website.

 Which sample had the best quality?

TIPS
 Which supplier communicated the fastest and clearest?
 Does one supplier offer more options than the others? 1. Always show as you are a
 Does one supplier have other products that you could manager of company, not an
use to expand your brand, at a later date? owner.
 Which supplier has the best pricing (at this point)? 2. Patent check and dummy
 Is there any significant difference in production time? listing is mandatory before
sourcing.
Evaluate each of these questions, narrow your list 3. In trade assurance, Alibaba
down to the two best suppliers. will hold some of your
amount until you receive your
first inventory.
Chinese Suppliers: Local Suppliers:
The main reason for sourcing from China is that we get almost everything in For this you often search
lowest possible price (we can secure profit margin) and low shipping costs like <Product Name_
sound even more intriguing. However, you can be scammed! Supplier_ Market
Name>
Listed below are few tips to consider while selecting a good supplier:
As a result, various
Communication Skills: You seriously need to have excellent skills to talk to
suppliers’ profiles are in
them and make them understand your point. Keep it simple and as
from of you. Once you
expressive as it could be!
open a profile, even
Supplier Profile: Have a look at the supplier's profile in detail. Extract
before contacting check
essential information of the company by visiting their website. There are
the website domain (if it
certain metrics that we prefer: Trade Assurance, Gold Supplier, Verified
is registered or free), the
Supplier, Supplier Online Performance Index (Gems) (prefer 3+)
website age, then
Star Ratings (prefer 4.5+), Years of Operation (prefer 2yrs+)
contact and send RFQs.
Friendly Tone: Chinese suppliers are very friendly. You need to
The age of website will
communicate with them in an equally friendly tone.
let you know if the
Payment Methods: Make sure to make payments through the platform, no
person you will be
method outside it. And before that make sure to confirm the payment
contacting is reliable or
methods by the suppliers.
not. There are free
No Vague Conversation: Be very specific during the whole conversation.
online sites to check the
Bargaining: We need to bargain our supplier by showing screenshots of
website age, trafficking
other suppliers offering less price. We need to save money by gaining lowest
and security.
possible price. Even the lowest possible price they give us has plenty of
profit for them.
You must have
Supplier Negotiations
 Buyer account
 Template of sourcing When you start negotiating with suppliers on
price, remember the following:
ASK THESE QUESTIONS FROM YOUR Know your budget: Review the amount that you
SUPPLIER are willing to invest, and use that to guide your
1. Are you able to provide customer packaging and decisions.
logo design?
2. What is the standard production time for each order Be authentic: You don’t have to divulge
(25 to 30 days are enough)? everything to your supplier, but make sure that
3. How many items usually come in 1 box or case? whatever you do tell them is truthful.
4. What are the dimensions of each case in cubic meters
and in kilograms? Show your potential: Even though you are a
for example (5*3*4=20kg) weight, length, width customer, your supplier is investing their time in
5. What is the price per unit (including logo & you and wants to feel good about their return.
packaging) at the following MOQ’s?
MOQ stand for Minimum order quantity Think long-term: You are building a relationship
Let’s break the MOQ's practically for example: - that will play a significant role in your success.
 100 pcs to 500 pcs
 501 pcs to 1001 pcs Your margins are (usually) bigger: This means
 1001 pcs to 5000 pcs that a $0.10 price change is a much bigger deal to
 5000 pcs to higher pcs them than it is to you.

This idea will start best negotiation while ordering because Don’t be afraid to say “No” and move on: If a
we must start with minimum inventory. supplier truly cannot meet your needs, it is in
both sides’ best interest to move on.

Never burn a bridge: A supplier who doesn’t

Go to Ali-baba for FREIGHT FORWARDER (FF) meet your needs today might meet them
 Check and analyses the profile of (FF) tomorrow, so always be polite and respectful.
 Contact (FF) tell him the all dimensions packaging,
type of cases, boxes, weight, and other details of Have the right goal: The goal is not to get the
your inventory for rate. cheapest price possible; it is to get a good deal
that benefits both sides and gets you started on
Dimensions depend on your product type. your journey

What is the secret to getting the best deal?

There are two ways to approach the “best deal”:

1) Short term: If you have more than one

potential supplier, use that to get the best pricing
and MOQ for your initial order

2) Long term: Sell out your first batch of

inventory and place a second order.
15-Point Factory Questionnaire Contacting Supplier
Here is a list of all the questions you will want to ask Two ways to contact your supplier:
your potential product suppliers in order to vet a lot
of the bad factories quickly. 1. Search for your product. Just scroll down and shortlist
your suppliers just by clicking on add to compare. Now
1. What is the minimum order quantity?
compare all of them at one screen and evaluate. After
2. What is the cost per unit?
3. What is the cost for a sample? (on hand evaluation and finalizing at-least 10-15 supplier send
sample/custom sample) them a message. In compare windows, that message
4. What is the lead time (time to create the would be send each of them separately at once. Don't
product)? need to send them one by one
5. Does your factory make your own
2. RFQ (request for quotation) just post an RFQ and
packaging or do you have a preferred
suppliers will submit a quotation to you. In this way
supplier?
you don't have to search for suppliers. but make sure
6. Can you private label the product?
7. Is there a United States patent or a If you shortlist any supplier that must fall under your
trademark on the product? criteria.
8. Who is the main contact (representative) at
the factory?
Request For Quote
9. Where is the factory located (get an address Hi,
if possible)?
10. Can I visit the factory? My name is John and I am with XYZ Company.
11. Is the factory clean, organized and in good
I am interested in placing an order for Widget A. Before I
condition for the employees (ask for
pictures)? do however, I just have several questions:
12. How many employees work at your factory? 1. What is your minimum order quantity?
13. Does your factory have quality control tests
run to ensure the quality of your products? If 2. What is your cost per unit and at what quantity
so, please explain what they are. levels do you offer quantity discounts?
14. Who is the person/persons/organization
responsible for your quality control? 3. What are your payment terms for new customers?
15. Do you have an English-speaking I would also like to order a sample of Widget A before
representative that I can talk to directly? placing a full order. Can you please send me the cost for
the sample including shipping to:
Experience Sharing
John Doe
Requesting a quote: consider these main points 80 Spadina Ave., Floor 4
 Minimum order quantities (MOQ’s) Toronto, ON, Canada
 Pricing for samples M5V2J4
 Production pricing Thank you.
 Production time
 Payment terms John,
Few extra minutes to plan your email can XYZ Company
make a significant difference in the number www.xyzcompany.com
and quality of replies you receive. 416-444-4444
Few TIPS & Strategies:

 Start working on sourcing from the day your product is approved.

 Always create an account on Alibaba through VPS of China, US, UK or some other developed country.
This will help you to gain supplier's trust.
 Create 2 IDs on Alibaba with different names and send inquiry from both the IDs with different content.
 Contact at least 10 suppliers and select at least 3 for samples. You will usually get samples for free if the
product is cheap but will have to pay shipping charges within China too.
 From one account, ask the supplier for the quotation of 50k, no matter how many samples you want.
 From the other account, if you want 10k units, firstly ask the supplier for the quotation of 1k. Then slowly
increase the price and get quotation for 2k, 5k and then reveal the quantity you want. In this way you'll be
able to get a reasonable price and you'll be able to compare it with the price you got from the other account.
[Content of inquiry from both the accounts should be different]
 Whether you are an individual, sourcing for your own product or an employee or a VA working for others
under a system, always tell the supplier that you are a manager of some prestigious company and talk to
him in plural like "We would be glad to know", "We are expanding our product line", etc.
 Tell him that the company in which you work is expanding their product line and one of the supplier's
product fulfills the requirement of the company and is interested to have a long-term relationship.
 Ask them for the price with/without packaging, with EXW, FOB, DDP.
And send the inquiry like this
Dear [Contact Name and Manufacturer]: Underrated Sourcing Tip:
My name is ABC and I work as a sales manager at [company name]. This company
The majority of people only use
is famous for the similar products you manufacture. We are planning to broaden our
WeChat messaging to negotiate
product line and are interested in one of the items you create, the [full name of
product]. and keep in touch with suppliers.
Now try to get on a call with your
Could you please provide me with the following information so that we can see? supplier or potential supplier.
This is for old and new suppliers
if this is suitable for our product line?
both where the Chinese supplier
 Do you provide customized packaging for your clients? can speak a bit of English and in
 How long will you take to produce a specific number of products? my experience, 90% of them can.
 What is the EXW price per unit (including packaging) and FOB price for This will help you get a better
50000 MOQ? relationship and more profit
Also, for estimating our shipping costs, can you please tell me the following: margin from your suppliers.
How many items a case carries?
What are the dimensions of each case in cubic meters and kgs? Build a solid relationship with
Chinese suppliers as you would
I appreciate your time and looking forward to a great start and a long-term relationship with a brand in the USA and see
with you regarding this product. the magic happening including
Regards, inventory on 30 days to 90 days
credit terms.
Name, Title
Do not skip due diligence at any
Company name cost.
Tips:

 When asking your questions and formatting your

emails to suppliers it's best to number your Buyer beware
questions so that they can easily reply to each
Let's take a look at three of the biggest problems with
number. This keeps the questions and
sourcing suppliers from Alibaba:
communication clean and organized.
 When contacting suppliers overseas, email will Middlemen - As mentioned previously, Alibaba has
likely be your main method of communication. hundreds of thousands of “manufacturers”. However,
 In many cases, they will likely be using a translation many of these “manufacturers” are not
program like Google Translate to translate your manufacturers at all, rather middlemen that
email as well as their reply back to you. masquerade, marking up the price, increasing the
 Remember, computer translation is still an level of miscommunication between you and the
imperfect art so expect some errors and possible actual manufacturer while providing little, if any real
misunderstandings. value.
 To make sure communication is as clear as
possible, keep your emails short, concise, well Scammers - Middlemen are bad but they will only
formatted and spelling error free. take a bit of your money by charging you higher fees,
 This will not only help the manufacturer but it will scammers will take all your money. Although Alibaba
ultimately provide you with better replies in the end. has put forth a strong effort to combat and remove
scammers from their platform, there are still a good
share of dishonest suppliers on Alibaba that you need
to be cautious of.
Leave that supplier or find others, if you
Quality - Quality is another big concern when
think that your supplier has these ordering from overseas. Many products will be
things: advertised as premium or high quality, however it's
not uncommon to find that your opinion of premium
 Working with suppliers who are late in quality and the overseas supplier's opinion are vastly
communicating is a sign that your different. This is especially important if you're just
production will be completed late too. starting out with building a brand—your product
 Failing to answer your questions. quality will factor into your reputation with
 Working with suppliers who send pricing via customers.
email or text messenger is a newbie
mistake. Only use suppliers who provide Manufacturing vs Trading companies:
you with detailed quotes including all
specifications and terms spelled out.  Check suppliers’ profile in detail. Confirm that
 You should not be working with suppliers either they are manufacturer or a Trading
whose invoice and website names don’t company sourcing out from other suppliers.
match up when you buy from China.  Check what he sells other than this product.
You can have a good idea if all the products he
is selling of same material like all products
should be of plastic rather to have a different
material like plastic, fabric, wood etc.
How to check Shipment Status? Dealing with Trading Companies:
 Is my ocean freight from China on its way? Some trading companies act as a perfect
 Will it arrive on time? bridge between the buyer and manufacturing
 Where is my cargo right now? company and make sure the trade goes
smooth. Also, most of the time they have
As soon as the goods are seaborne, you should receive a
better rates because of their connections,
Freight Notification or Shipping Advise from your
forwarder, proving and providing the details of your sea even after they add their commissions.
freight shipment. Some reasons why trading companies are
The Shipping Advise usually contains these details sometimes going to be better for you and
your streamlined importing process:
 Name of the shipping company
 Name of the vessel  Generally, factories have much bigger
 Number of the “Voyage” MOQs than trading companies.
 Container number  If you are customizing then some
 Number of the container seal factories might not be able to or
willing to put in the effort it takes to
There will also be details about the places of departure and put a few different things together
destination, whether the goods were loaded in their own
but a trading company has a better
container (FCL) or your goods share a container with other
chance of meeting all your
clients (LCL), the departure date (ETD) and the estimated
requirements.
arrival date at destination (ETA). This information will give
you a guarantee that your goods have actually been shipped.  They have people who communicate
From the departure date in China, it is also possible to better and are more responsive.
estimate when the ship should arrive in Europe.  Sometimes we get better quotations
from trading companies. They have
If you did not receive such shipment notification, ask your little overhead and as they are also
supplier for a copy of the bill of lading.
local Chinese companies having better
For the tracking of the ship you actually only need one piece connections in the industry with
of information: the name of the ship (vessel name) manufacturers, so sometimes they
offer lower prices even after adding
Now go to marinetraffic.com (there are other sites offering
their margins. Rent is cheap in China
this service too) and click on “vessel”. Enter the name of the
and trading companies don’t need to
ship and see an overview of the carrier with technical data
and usually also a picture of the boat. You will find further be huge.
information about the current position, the speed, the draft as Usually we will get lower prices from a
well as the nearest port and the final destination port. manufacturer but meeting all the quality and
MOQ requirements if 1,2 or 3 matter to you
are getting that from a trading company then I
personally won’t mind going to a trading
company if margins are good.

If you find a manufacturer that can do 1,2 and

3 for your MOQ then that is always the best
option.
How to calculate PRODUCTION COST PRODUCTION COST:
For example;
500 pcs with their dimensions and packaging and logo =
PRODUCTION COST
Let’s solve it practically
5$ for logo & packaging = add 1$ per unit as FOB then LANDING COST:
again add 3$ for FF=9$ (LC)
This is your LANDING COST without DDP,

What is Free on board (FOB) cost?

From supplier warehouse to nearest port including DDP stands for Delivered Duty Paid. In DDP
trucking, shipping, loading, unloading, this is called FOB, incoterms, the seller is responsible for
making the products and responsible for
What is Freight Forwarder (FF) cost? delivering the products on final destination.
When your inventory will be reached at nearest port in Buyer is only responsible to unload the stock
china, a company will take responsibility to ship it direct when reached on final destination.
to amazon warehouse
FOB stands for Free on Board. In FOB
incoterms, the seller is responsible for
sending products to the nearest port and
 Choose 10 suppliers, they will send their package
then buyers have responsibility to select
 Shortlist 3 of them for sampling
freight forwarder or any third party to send
 Client will pay for everything
stock on final destination.
 Compare sample with competitor's product
EXW stands for ex work. In ex work
incoterms, the manufacturer is only
Always insist the supplier to reduce the production responsible for making products and keeping
cost and check quality of product stock in the factory. Buyer is responsible for
everything like picking stock from factory and
ship to final destination.
Recommendation Value Added Tips for Client:
Go for DDP if that fits on your profit margin, it will save
your time.  Potential of the Product
 Patent & Trademark Check
 Study of negative reviews of the
competitor for improvements.
 Brand Name + Logo Design
 Dummy Listing, with opening a case
CURRENCY EXCHANGE with amazon to review & advise us for
It can destroy all our calculations. Most suppliers provide issues, if any certification or approval
in USD. Whereas, some provide product price in USD required.
while transport fees in Yuan. So, we have to take care for 
currency exchange.
Tips for sampling
Tips
1. Sample gathering within china will cost around 5$
 Once you get the lowest rate of
2. 40 to 50$ for shipping from china to Europe or
supplier, share it with other suppliers to
anywhere in Asia
bargain but remember keep their
3. Always pay through PayPal
4. Track the sample continuously identity hidden.
5. Get the invoice of sample  Do not praise the product.
6. Deal in 30% advance in first order then after 70%  Tell him that you are already in loss
completion. and want to get production on less
7. Gather 4 to 5 samples at one office of any price.
consolidation company then ship them to your  Always start from MOQ's to break price
client for checking slowly.
8. Get invoice and tracking number of your sample  We can also compare suppliers on
then send it to your client. Alibaba, it will also save time.
 Always check boxes and tell supplier to
write (Made in china) on every box.
SPRING FESTIVAL HOLIDAY
China's 2021 Spring Festival is from February 11, 2021 to
February 17, 2021. Remember
 For Air shipment it takes 5 to 14
Many suppliers will have a holiday a few days in advance. days because it's expensive to
Shipping will be cut off around start of February. choose minimum days
It is suggested that if the quantity of goods is large, it is  Ocean shipment takes almost 20 to
best to let the supplier advance the delivery date. 25 days
Try to get 15% inventory by air-ship
Chinese Supplier celebrate holidays & they may not reply because you have to list and rank the
in these days. listing. Further can be shipped through
port
Which countries are alternative of China for Sourcing?

One can consider these below countries:

 Pakistan Demands of Freight Forwarder:

 Hong Kong  Dimensions of master carton
 Vietnam  Weight of each carton
 Thailand  How many units in each carton?
 Malaysia  UK or USA warehouse where your
 Indonesia inventory will be delivered.
 Taiwan

Alibaba has suppliers from all over the world, we can

apply filters for suppliers in Alibaba.
PAYMENT OPTIONS
TIPS FROM EXPERT
After understanding price and MOQ, you will likely want to know
how you can pay the supplier. There are several common methods of 1. Create accounts at alibaba.com and
payment, each have their pros and cons for both the buyer and the dhgate.com to find suppliers for your
seller. potential products. I know it's trivial, but
1. Upfront TT (Bank Transfer) just don't forget to do it!
Risk Level for Buyer: Risky
2. The best way to find a sourcing agent in
With a bank transfer, the supplier will receive full payment before
China is by asking a community, which
production starts. This payment method bears a high level of risk to
actively uses them. They can help and
the buyer and generally is not recommended when dealing with an
unknown supplier. There is little if any recourse to get your money recommend the right person!
back if something goes wrong. 3. To vet a potential sourcing agent, start
2. Letter of credit small. Ask them to give you a sample, then
Risk Level for Buyer: Fairly Safe ship it. Start small and slowly develop a
A Letter of credit is fairly safe for both parties, however a letter of relationship. Never start with ‘send me all
credit carries some complex procedures and is generally only you’ve got!’
recommended for larger purchases ($20,000 and above).
4. Don’t work with a sourcing agent if they
3. Western Union won’t give you any information about the
Risk Level for Buyer: Very Risky factories. Honestly, it's that simple.
A risky payment method for the buyer that's not recommended when
it comes to paying suppliers if the payment is not protected by 5. To see if you’re getting a good price
escrow. Western Union generally should only be used when dealing from your supplier, search it on
with people you know very well. There is no recourse if something 1688.com. Translate the webpage to
goes wrong. English and then compare it to your
suppliers’ price. If it’s lower, use it as
4. PayPal
leverage to get a lower price.
Risk Level for Buyer: Fairly Safe
PayPal is a popular payment method for buyers as it presents a much
lower risk, ease of use and generally pretty good buyer protection. Although it's a popular option with buyers, it's
less popular with suppliers due to difficulties in withdrawing money, high tax rates and potential charge backs
from less than honest buyers.
5. Escrow
Risk Level for Buyer: Fairly Safe
When using an Escrow service, the buyer's money is held by a 3rd party and is only paid to the supplier after the
buyer confirms satisfactory delivery of their order. Escrow is a fairly safe payment method for buying and selling
online because Escrow protects both the buyer and supplier.
Generally, when you are just starting, you’ll probably want to look for or negotiate with suppliers to either accept
PayPal or some type of Escrow service to give you the highest level of protection.
Creating dummy listing:
A dummy listing/inactive listing is a list which has 0 inventory, so until our inventory reaches FBA warehouse,
this listing remains inactive. Purpose of creating this list is to make sure whether Amazon is allowing us to sell
this item on their platform or not. If they allow, does this item require any further certifications to be provided to
Amazon or not? For this process, buy UPC from an authentic website preferably GS1, and use that code to “Add a
product” in your amazon inventory. Fill up all the required fields, ignore the additional fields for now. For
images, use your supplier’s images. When the listing is created, open case on Amazon in three alternate timings.
Send them picture and other details regarding your product, and ask them professionally if we can sell this
product or not. If we get positive response in all three attempts. Then we are good. In some cases, Amazon would
demand a certification. To arrange certification, we’ll contact our supplier and he’ll provide us a legitimate
certificate.
Contacting the freight forwarders:
This step if done before placing order is better, to identify the total cost. However, before contacting freight
forwarders, take idea of following information from the supplier:
1. Net weight of product.
2. Total number of units.
3. Gross weight of product.
4. Master carton weight and dimensions.
5. Number of master cartons.
6. Product dimensions
7. HS code (provided by supplier)
8. Pick-up address.
9. Destinations address.
Provide this information to multiple freight forwarders and get a quote. Start negotiating keeping in mind your
targeted budget and margin.
There are two types of freight forwarding: Ocean and Air. In the past, EC students have been doing the hybrid
model with both methods (half Air + half ocean). But now we try to adjust only with ocean shipping because Air
shipping charges have been increased with almost 200% - 300%. It’s obvious that ocean shipping is slower so we
keep in mind the lead time and ship our inventory accordingly.
Being in contact with supplier and keeping him alert!!
This step holds a prime importance. Meanwhile the production is under progress, ring your supplier time to time
and make video calls with him to show your products and ask him how the production is going. Bluff him that
you will get his factory visited by a friend. Tell him that you’ll conduct an inspection of your inventory during
and after the production. Play with his psychic and keep him alert and keep him realized not to keep any kind of
deficiency in your production units.
 KNOW YOUR PRODUCT WELL
You should know every part of your product.
What materials are used?
Does the supplier make those materials in-house or buys them from another factory?
What machinery does his factory use?
What is the manufacturing process of your product?
How can you improve the product?
The more you know, the safer you will be.
Get the factory audited.
Production Alternatives:
You don't always have to source from China. A seller I know moved production out of China. He ended
up increasing his profit margin by 9%, he really knew his product well. My company had to sign NDAs
when working with him for inspections in China. If you know your product well, you can work with a
local manufacturer to import materials from China and get your products manufactured locally in Pakistan.
You can also source products from Vietnam, Malaysia, Indonesia, Taiwan and Thailand. There are plenty
of excellent suppliers in these countries, I have seen setups that are far better than in China.
Backup Suppliers:
ALWAYS have at least one backup supplier, if you know your product well. Finding alternate suppliers
will be very easy. You may also find your supplier cutting you off and going to Amazon directly. This is
a well-known risk; right now, only bigger sellers are getting affected. Soon it will be the smaller ones as
well, you can’t beat your own supplier at quality and price.
You still want to source from China:
If you are still more comfortable with sourcing from China, stop using Alibaba. Use 1688.com to find
your products. 1688 (Pronounced Yao Liu Ba Ba) is where local manufacturers list products that are sold
to shops, Taobao sellers (Chinese Amazon) and traders on Alibaba. 95% of the products on Alibaba can
be found there at much cheaper prices. It’s not easy, but worthy. I’ve never bought anything off of Alibaba.
Even Taobao is cheaper than Alibaba for a lot of products. The only problem is you would need to know
at least basic Chinese to handle 1688, most suppliers there don’t speak a word of English, it would also
be harder to manage freight. I will elaborate on this on another post.
Quality Fade:
Quality fade is the slow, gradual degradation in the quality of a product over time, and it is a common
issue in Asia. A brand can be known for its quality, and the factories they’re working with can have a
good history. But, over time, slightly cheaper materials are substituted in, in small increments. All the
while, quality is slowly starting to fade and, since the increments are so small, no one seems to notice.
Then, one day, a big problem manifests itself that leads to a recall or a rash of customer complaints and
returns. And, although it seems like it happened suddenly, it wasn’t really sudden all. The degradation just
happened very slowly. You need to stay on top of your quality control and be proactive instead of being
reactive.
 FAQs
1: What is difference between sourcing and procurement?
ANS: The main difference is sourcing focuses on direct goods and services, while procurement focuses
on indirect goods and services. Sourcing and procurement typically work together, but that doesn't have
to be the case with all purchasing needs. You don't always need a sourcing team to find and vet suppliers.
2: How do I check my china suppliers?
ANS: How much inventory we have to plan
1. Use search engines & Chinese suppliers' directories for our first launch?
2. Make a phone call. Ans:
3. Check business licenses.
4. Ask for references. Competitor Average Monthly Sales × 3
5. Get a sample.
3: What questions should I ask a manufacturer?
ANS:
1. What are my payment terms and are they negotiable?
2. What will my total costs be?
3. Can you give me a liability insurance certificate?
4. What happens if materials don't arrive?
4: What are sourcing companies?
ANS: A Sourcing Company or a sourcing agent helps a company find sources for products and supplies
at a low cost and/or of a certain quality or attributes. Some may represent a few select factories or serve
multiple companies.
5: How can I get an Alibaba agent?
ANS: First, the agent must be part of a trading company listed on Alibaba (so these are not individual
freelancers — these are middlemen). Second, the company must have been a “gold supplier” for at least
3 years. In other words, they must have been paying for Alibaba's services for at least 3 years.
6: Can you trust Alibaba suppliers?
ANS: But is Alibaba safe? The short answer is yes, Alibaba is absolutely safe. ... the longer answer is that
Alibaba is completely safe when you know the signs to look for. It's important to choose the right supplier.
7: How do I check my Alibaba supplier?
ANS: When searching for products/companies through Alibaba, check off the button that says “Trade
Assurance.” From there, you'll be able to look at products and suppliers who have signed up with Alibaba's
trade assurance policy.
TERMS USED IN SOURCING
Verified Supplier: Verified Suppliers are sellers who had their company profile, management system, product
capabilities, and process controls certified and inspected by independent third-party service institutions.
Assessed Supplier: Facilities are assessed by a third-party inspection company and an Assessment Report is
available to download.
FCA – The middle ground between FOB and EXW, when the supplier will bring the goods to the port but then
you will be responsible for the rest (trucking etc.).
Gold Supplier: A premium membership for suppliers for a fee which includes onsite check and promotional
opportunities to improve their appearance in search results.
Lead Time: The number of days it takes from the point of placing your order with your supplier to the point
where it’s ready for sale.
Manufacturer: A supplier that manufactures products in their own factories. Typically, products are of the same
niche/category/material.
Minimum Order Quantity (MOQ): Refers to the minimum amount that can be ordered from a supplier. This
number may be negotiable based on other factors - future orders, past business and reliability, etc.
Onsite Checked: Onsite operations are checked by Alibaba and the existence of the production location is
confirmed by a third-party verification company.
Reorder Point: Assessing when you should reorder, based on how many units of inventory you have in stock.
Request for Quotation (RFQ): A document that a business submits to one or more potential suppliers to solicit
pricing for a product or service.
Safety Stock: Surplus of product that is held as extra insurance inventory against a stock out.
Sales Velocity: How fast you sell your inventory, based on how many units you sell per day/week/month/year.
Trade Assurance: A free service that protects your orders from payment to delivery. If you have a dispute with
your supplier, you can submit a claim to Alibaba to review. It covers claims if products are not shipped on time &
products do not meet the quality standards as per the contract with supplier.
Trade Capacity: On a supplier’s profile page, this will show the breakdown of the countries and marketplaces
they export to.
Trading Company: A supplier that acts as a middleman, and will source products from manufacturers and then
sell them to you.
INSPECTION
 Try your best to hire a professional Please ensure these things are being covered by
inspection company after production of either yourself or inspection company whoever you
your inventory. decide to go for before shipment.
 (www.qima.com ) this is good website for  Quality of product is high, new and
inspection. consistent?
 There are no noticeable scratches, cracks or
 Give them supplier address, location, and dents?
detail about inventory,
 The product colour and design matches the
 Request them that send photos, videos of
image provided in this email?
inventory
 Black logo [your company name], printed on
 Almost 200$ are enough for inspection
[describe where, also attach an image]?
 Does the product package appear to have
experienced any crushing or dropping?
 Does the product package include a clear
and correctly placed logo?
 Does the product package include a UPC
barcode and ‘Made in china’ label?
 Are there any openings, tears or holes in the
product/packaging?
 The package includes: [list out items
included in your product package]
 Shipment Mark Label is correct?
 [Your company name]
 [Product name]
 [Destination e.g. UK]
 [G.W.]
 [N.W.]
 [Carton Dimensions]
 [Box dimension]
 [Order Number] (obtain from your supplier)
 [Carton Number e.g. 1of 50 or however
many cartons you have]
 [Made in China]
 Carton Box Label is correct?
In addition to all of this, you should also ask them
to provide you with photos and videos of our
product and labels.
Ps a good percentage of products you would want
your inspection company to inspect is 10%. So, 60
randomly picked units out of a total of 600.
(Saqib Azhar)
What to do when inventory is in manufacturing phase?
 Get your listing done with bullet points, descriptions, title, attributes, use Helium10 scribles to
adjust it
 Make dummy listing
 Open 3-time case with amazon in the gap of every 8 hours to ensure our gated category
 Product photography (3D including main images)
 Ask supplier to send 1 item for photography
 Always hire a professional photographer
 Ask supplier to send photos of inventory but don’t use those for live listing, we only use
supplier's photos for Dummy listing
 Make a website it will solve your many problems in refund time, 100$ are enough for website