TAS 006 The 5 Steps For Finding And Sourcing Products To Private Label And Not Get Scammed

One of the hardest parts of starting your Amazon FBA Business is sourcing a product from China or overseas. I have sourced two products so far and working on my third as I write this post and I've had good luck so far.

But, I feel it's because of the research and the suppliers I contact. In this episode I share with you my 5 steps for finding suppliers and feeling confident I won't get scammed.

The 5 Steps:

  • 1. Search for Products In Alibaba.com
  • 2. Use Filters To Find Highest Quality Suppliers
  • 3. Contact Supplier with Specific Questions (Very Important Step)
  • 4. Respond to Suppliers That Email Back
  • 5. Place First Order and WAIT!

I go into great detail on the podcast, so you'll hear all the ins and outs for choosing the right supplier.

The Podcast recording is down below or you can find it on iTunes or Stitcher Radio.

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•Email Template For Suppliers-

I mentioned in the podcast that I would include a basic email with the question to ask.

Hi, My name is ————– and I'm the purchasing agent for XYZ Company.

We are in the process of adding a ——————— to our product line and your product seems to be what we are looking for.

I have a few questions.

1. Do you offer samples and how much including DHL Express Shipping to United States zip code 89078?
2. How long to receive 2 samples?
3. Can we pay using Paypal?
4. Can we change the color ?
5. Can we brand with our logo?
6. What is the cost per unit including shipping by DHL Air Express to United States Zip Code 89076?
7. How long for manufacturing once we place order?
8. Do you accept Escrow payments?

Our first order of 500 will be a small test order and in the future will be ordering between 1,000 to 5,000 units.

Can we order 500 units for the first order?

We are looking forward to hearing from you soon.
Thank You!

John Doe
-Kitchen Express –  Purchasing Agent

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Tip: Copy and paste your email to at least 10 to 20 suppliers. You will weed out the ones that are late to reply and only attract the ones that could be possible suppliers.

 

Join the discussion

176 comments
  • Hi Scott
    Are you associated with Amazing selling machine? I was looking at doing their course but understand its very expensive around NZ$5,000. If you are not associated with them do you still recommend?
    Really appreciate your help and I love listening to your podcasts.
    Cheers
    Salesfast

    • Hey Salesfast,

      I am not associated with ASM, I did put together my own course over at privatelabelclassroom.com . If you are looking for a class, make sure you find one that resonates with both you and your wallet, the content will be similar, but the teachers and experiences will be different. Find the one that works for you and go for it.

  • Hi Scott, thank you so much for your generosity in sharing your wealth of knowledge, you have totally motivated me to create & take charge of my working life… cheers Sally

  • Hey Scott, I have to say I have been addicted to sell on amazon. I keep checking my seller app every half an hour (probably more often then this) to see if the sales number went up. I listened few other iTunes podcasts and you are the far best with your material, knowledge and I love how you talk fast and don’t drag or repeat same thing over and over. The recorded audio is so clear that I just love to listen. You are a pro. You are the best and I am very impressed. Can you please do a podcast on patents and legal threats that you get by selling on amazon from other sellers. I haven’t cached up with your podcast yet to see if you have already made one on this legal stuff but I love to listened to your podcast all day long. I am also trying to lunch my first PL product but I am not sure how to search to see if it is not violating any existing patent filed, and if it is then how do I know if my product is different? what do you do about legality before lunching your PL product? your help in this matter I would really really appreciate it. Thanks Scott. Keep it up !!

  • Scott, I am currently working with a Company that wants me to pay a fee to create the recipe but they want to hold the rights to it. I personally feel if you want me to pay for the recipe then I hold the rights and you don’t get to use it on other privet label stuff or sale it your self! Your thoughts?

    • Hey Shelly,

      Ultimately that call is up to you, but you will run into that a lot when you deal with custom made products (like health, beauty, supplements, etc.). Many manufacturers will be willing to work on that with you, but keep in mind that they will charge you accordingly!

    • Hi Dan,

      It’s basically a 3rd party bank that holds your money until you are satisfied with the order. Then they release when you approve.

      I’ll try to talk about this on an upcoming show.

  • Scott,
    By way of my feedback, here it is: you little ripper!

    Moving on: can you please do a cast related to a budget for total up-front costs e.g. product (samples and initial orders), shipping, Amazon fees, packaging, handling, software, etc? I can’t find anything like this within your existing material…cheers!

    • Yes – I also think the could be useful. Basically what BUDGET RANGES for everything related to startup costs (shipping, handling, manufacturing), as well as advertising budgets too. Basically the minimum and average costs one new to this would need. Even a ball-park would be helpful to know before diving in to this. Thanks so much!

      • It depends on which method you use, but most sellers generally start with between $2000 and $5000. You can start with far less than that and still be successful, but keep in mind that it will take a bit longer to get up to speed.

  • Hi Scott,
    Thank for your awesome podcast. I have a question relating to shipping products:
    Do you know how to send products directly from China to Amazon warehouse? because each time creating shipment Amazon require to put the shipping labels outside of the boxes.
    Thanks.

    • You will need to email the supplier the postage slips.

      They will tape them and use them when shipping.

      Good Luck!

      • isn’t this will create a competitor, and letting supplier know directly that you are selling their products on amazon. What if they sell directly on your listing cheaper then you?

        • Hey Ankit,

          As long as you are creating a private label product, you generally won’t have any issues with competitiors selling on your listing, because you will have packaging and branding on the product that they won’t have. If someone does jump on your listing, you would easily be able to have them removed, since the product wouldn’t be the same as the one you are advertising.

    • You need to ask the suppliers. Some offer it and some don’t. I look for the ones that do offer it.

  • Amazing content Scott, extremely valuable information. I am a newbie, looking forward to my first sale.I So far listened to Podcast 1-6 so far and they have been very useful. Thanks.
    PS Loved the rant on the sample shipping cost, it really makes sense.

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