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
  • Scott: just a quick note for fun… .the “Hayabusa Girl” .. she’s probably a badass motorcycle rider .. Hayabusa is a Suzuki brand motorcycle that is considered to be the fastest street bike in the world.

  • Scott, Thank you for your reply.

    I am planning to sell my first product as capsules, so I am planning to buy in USA. How can I find distributors in my area for capsules.

  • Hi Scott,

    Great podcast

    Regarding Logo Can I name it any or is there any restrictions with Amazon or Do I need permission from any body.
    Where we need to purchase upc code
    Where can we get private label shipments

    • Hey Mouni, your shipments would come from your supplier. You need to purchase a UPC, there are a variety of sites, like Cheapupc.com that would work for that. You can name it just about anything you want (stay away from profanities) just keep in mind that trademark laws would still apply.

  • Thank you so much Scott, YOU ARE DA MAN!!!
    Keep up the awesome work.

    I had a question about the number of reviews of a product that I’m researching within the sports & outdoors category. Here is the #of reviews and BSR’s for the 10 top listing:

    1st place: #828 reviews, #3,411 BSR
    2nd place: # 464 reviews, #2,104 BSR
    3rd place: #101 reviews, #5,952 BSR
    4th place: #406 reviews, #4,624 BSR
    5th place: # 54 reviews, #10,414 BSR
    6th place: # 255 reviews, #1,737 BSR
    7th place: # 407 reviews, #1,581 BSR
    8th place: # 641 reviews, #4,337 BSR
    9th place: #29 reviews, #48,819 BSR
    10th place: #95 reviews, #14,735 BSR

    What do you think of the competition? Since this is my first time Private Labeling I want to try to be as successful as I can be, that way I won’t get super frustrated. Would you say this is a good product to proceed with?, what would you choose something else or continue with this one?

    I respect all you day and thank you for all of your help.

    • Hey Jeff, the competition in terms of reviews doesn’t look too stiff, I would double check your numbers and make sure you’re going to hit your sales goals if you squeeze into one of those top 10 spots!

  • Thank you for the template. Also the directive to contact 20 suppliers is a much needed challenge. After listening to your podcasts, I better understand why this important. forcing myself to complete the task….

  • Thanks Scott for all your advice. Quick question: Why do you not ask the seller in the first email for the price per unit based on the number (eg: 1000 units) that you will order. Is that not the most important info so we can see if we have the profit margin? or does the supplier just break this aspect down in question 6. From what I understand the FOB advertised on the supplier website is often not the actual cost of the item.

    • Hey Michelle, I do ask them for the price per unit based on the order size 🙂 (don’t forget to ask them to include the full shipping costs into that) It’s included as a part of the template!

  • Hi Scott love what your doing thank you for all the great info and advice but i wanted to ask you when sourcing a product with Alibaba when doing the email setup do you use your real name or a fake name and business name and i need to setup a different email or can i use my own thank you Scott

    • Hey Robert, you can use any email address to sign up (it really doesn’t matter). I would suggest setting up a different email address for use with the site. Just so your regular inbox doesn’t get slammed with emails!

  • Hey Scott, so when the suppliers ship products to you, they’ll contact DHL themselves and tell you how much that will cost (Which you then pay the suppliers)?

    • Yes sir! Just make sure you ask them for a shipping quote and to use their DHL or FedEx account. They will let you know how much shipping is and you can pay the supplier for the whole thing. It makes it easy AND tends to save you a little on shipping since they get volume discounts!

      • Hi Scott,
        Thank so much for sharing your expertise.. I just placed my samples from 3 Alibaba suppliers and yes all of them have trade assurance & gold .

        My Q1? The UPC and FNSKU codes are different?. If I purchase on Ebay etc and email to the supplier this would be acceptable by Amazon?

        Q2?) I have my logo in vector format ready but you recommended to combined the logo w/UPC?

        Q3?) Can I have a white label sticker with m/logo name and placed on each opp bag of my products as a brand/private label or you think this will look to cheap for the customer? .

        Q4) I prefer to have my shipment by air also so the fees are about $1.00 per unit Plus the custom fees how much?.Thank you!!!.
        Liz

        • Hey Liz,

          UPC codes and FNSKU codes are different, as long as you’re the only owner of the UPC that should be fine.

          Your logo doesn’t have to be with the UPC, but you would want it to be within your package file. So if they are putting the logo on the front and the UPC on the back, you could send them 2 different files.

          You can have a sticker placed on the bags, it’s not all that uncommon especially when you’re first starting out. If you don’t like how it looks you can always get nicer packaging down the line!

          Your customs fees would depend on your product. Your supplier should be able to let you know!

  • Hi Scott – Great show! I’ve learnt a lot.

    Just a question about shipping –

    I’m not sure if you get the supplier to contact the shipping company e.g. DHL and you just give the supplier the address and they will sort out everything? Or do you look for a shipping company yourself, contact them and tell them to collect the items from the supplier’s factory and deliver to Amazon?
    Thanks a lot

    • Hey Chris, I have the products delivered to me so that I can inspect them before sending them to Amazon my self.

      If you’re using a shipping company like FedEx or DHL, they simply need the address to ship to and your supplier should be able to work with them to get them everything else they need.

        • Hey Chris, you should be able to get your supplier to handle DHL for you. That’s almost always the way to go since they will get better rates than you would in almost any case!

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