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.

============================

•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

========
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,
    Thanks for the wonderful podcast. Waiting for your webinar today!
    I don’t live in the US, so I need the supplier to send the products directly to the Amazon warehouses, so regarding to number 6 of the e-mail template, should I mention the zip codes of the Amazon warehouses?
    Thank you

  • Loved your book! It gave me all the motivation I needed to go after this.

    I believe I’ve found a good product that has amazing market space and from research can see there is revenue opportunity.
    I am however worried about the shipping costs considering its expected to be 13-15lbs per unit.
    Is this something that is worth letting go considering it would be my first product even if the numbers and market look so good?

    • Hey Mike, if the numbers make sense, i wouldn’t throw it away. Keep in mind though with any oversized products (over 2lbs or 18inches on any side) that you’re limited to 500 in Amazon at any given time as a new seller. That can make a big difference when it comes to product cost, order size and keeping in stock.

  • Hi Scott,
    I want to know more about shipping methods, and what is exactly FBA services of shipping and if it is recommended.
    What about fees? How can I calculate the fees on my product at Amazon?

    • Hey Daniel, shipping via FBA varies but the reason you want to be FBA is because it makes you prime eligible. That and it’s almost always cheaper than what you would pay for shipping yourself. Amazon has a fee calculator that you get access to as part of your seller account!

  • Hello Scott,
    I hope you are doing well today. I have a huge problem right now! I know what product I want to put in Amazon and I really really believe in it. I am in the process of finding a manufacturer and I am doing everything you are telling us to do but 90 percent of them are from Pakistan and they cannot do paypal or escrow payments. I am very frustrated right now and I don’t know what to do and the other 10 percent are from China but the price for each unit is way too high almost leaving me with not 0 profit. I hope you help me Thank you so much!

    • Hey Gianmarco, you don’t HAVE to do escrow or paypal, but it’s certainly helpful. While they may refuse upfront they will often relent if you offer to pay the fees associated with those payment types as well. That other option would be to use your credit card through alibaba or to do a wire transfer if you feel comfortable with the supplier.

  • Hey Scott I have a question about custom fees? Ive heard that once you source a product and that product is over $200. That the US customs charge us a customs fee. Is this correct and how could i find out this for sure? I don’t like hidden fees i don’t care where they come from. Appreciate all your feedback and thanks for your podcasts they’ve helped me a lot.

  • Hi Scott,

    I’m looking to set up a sellers account via Amazon real soon. As I’m short on time, how quick would you say I could start trading and seeing some possible profit margins?

    Cheers Rich, UK.

    • Hey Richard, you can start seeing profits as soon as you start selling, but I’d say it depends on what YOU’RE looking at making and how agressive you are with your launch.

  • Hey Scott, I recently created a facebook page and created an ad for the facebook page so that I could get enough likes to be able to launch my product to a large enough audience by doing a giveaway. I had to create a total of 5 different ads and accounts because every time, my ad would be disabled 10 minutes after being approved for “fraudulent activity”. I have no idea whats going on though because my payment info is correct and my ad content is not explicit at all. There is nothing I think I’m doing wrong at all unless of course I am missing something which i’m not aware of. Do you know any possible way to avoid this problem the next time I make a new ad. Do you know if there is something I need to do which I’m not currently doing to create an ad that doesn’t get disabled. If there is any way you could help me with this problem. I would really appreciate it.

    Thanks

    • Hey Mustafa without seeing the exact error message it’s tough to tell, you may want to reach out to Facebook’s support team for ads and ask them what the problem is!

  • Should we have our label/logo designed before we decide on a supplier? I have a good idea of what my first product is going to be but haven’t designed the logo yet. Also, do I need to send the UPCs and Amazon’s SKUs once the order is placed with Alibaba to the supplier?

    • Hey Cole, you wouldn’t have the label designed until you get the specs from the supplier so you need to pick them first! Once you’ve placed your order you would send them EITHER the FNSKU (Amazon) or the UPC as a part of the label design for them to print, you don’t want them to print both on the bottle, since Amazon requires that you have one or the other.

      • Thanks Scott! I really appreciate the response! So I am down to two suppliers that I am debating between. I am going to order samples from both of them. When I order these samples should I include my design/logo or is this more of a quality check of the product?
        Thanks again for everything you do! You make this whole process slightly less overwhelming! 🙂

        • Hey Cole, you don’t need custom samples to see the quality of the product and what your brand will look like. If you can get your hands on them, great, but I wouldn’t worry about holding up the process just to see your logo on the product!

          • So, at this point, if she wants to see how the final product is going to be she would need to ask for a pre production sample, is that correct? By doing this the process can be way longer, would you still recommend asking for a PP sample if you have customize or wanted you logo printed on the product? Thanks a lot Scott, you are helping a lot of people! 😉

          • You can get a custom sample with YOUR logo, or you can just have them give you a sample with someone else’s logo on it, if they’ve made the product in the past they usually have a few lying around. Those generally cost less and arrive faster 🙂

  • Hi Scott
    Your podcast is really amazing! I like to listen it and I’m very happy that I’ve found this program.

    I have a question. Please, tell me , why we have to order 2 samples? Not 1 for example. Thank you!

More from this show

5 STEP ON DEMAND TEXT BOX (Delete this when you add back to active)