amazon FBA

Alibaba Purchase Order Contract

Before we place our order we want to be sure that our supplier knows what we expect from him. We will use a Purchase Order Contract for this. That sounds very serious, but will provide invaluable during disagreements. In this document, we will simply write down all the specifics we have discussed with our supplier. We recommend setting up a PO contract on big orders, for the budget conscious seller, a clearly formatted excel or Alibaba’s built in contract service will suffice. For example, if we have agreed with our supplier that he will manufacture a garlic press, made from 304 stainless steel…

amazon FBA

Amazon FBA Launch Strategy: Discounted Giveaways

Giveaways are a great way to increase your sales velocity, which will increase your ranking. You are not allowed to explicitly ask for a review in exchange for a free product! However, you are still allowed to give away your products in order to generate sales velocity. LIMIT MAX ORDER QUANTITY! When setup up a giveaway it is extremely important to limit your Max order quantity to 1. Since we will be creating discount coupons to giveaways between 50% – 99% discount. And we only want our customers to purchase 1 unit at this discount. It would be a disaster…

amazon FBA

Alibaba Wire Payment: 30/70 TT

In order to start the production the supplier will need some kind of deposit. The norm is to pay 30% upfront and 70% when the production is finished. You can see this as a down-payment. The supplier will use the 30% to purchase all the raw materials he needs for your order and to make sure you won’t bail in the middle of the order. If you are a little unsure about shipping a large amount of money overseas you can always use Alibaba Trade Assurance. Since we have selected this option in step 1 your supplier should have this option. Once we are satisfied…

amazon FBA

Alibaba Package List

Before we can request a quote from a freight forwarder we need to know the size & weight of the shipment. The supplier will give this in the form of a Package List (PL). When requesting the Package List make sure it has the following info: Weight of total shipment. Size of shipment in Cubic Meters (CBM). How many units go into a carton (QTY/CTN). Carton size & weight. We will need all this info in the following shipping module. Click to rate this post! [Total: 0 Average: 0]

amazon FBA

Checking Profit Margins on our Amazon FBA Niche!

We want to aim for at least a 30% profit margin. How to calculate profit margin? Profit Margin = Sales price – Purchase cost – Shipping cost – Amazon Fees Purchase cost We can check our purchase cost by looking up our product on Alibaba. In the results, you will already see some prices. However, these prices vary greatly based on quantity and other factors. So to get an even more exact price you can send a couple of suppliers a message asking for a quote. Make sure you understand the difference between FOB & EXW at this point, so…

amazon FBA

5 Best FBA Product Research Tools

Amazon won’t tell you directly how many sales a product is doing per month. However, it will show you the Best Seller Rank (BSR) of a product. The Best Seller Rank is a ranking showing you the best selling product per category. So #50 Best Seller Rank in Kitchen means the product is the 50th best selling product in the Kitchen category. Best Seller Rank (BSR) Please keep in mind that this BSR is per category and each category greatly varies. For example, a product with #4,000 BSR in the Kitchen category can have more sales than a #1,000 BSR…

amazon FBA

What is Private Label on Amazon FBA?

This project is based on the assumption that we are going to sell our own private label product. What is a Private Label Product? A private label product is an existing product that we slap our brand / label on. This can be in the form of simply adding our logo somewhere on the product. Or creating a kickass package design for our product. Why is this great? There is already a demand for the product. Since we are not creating 100% unique products we already know there is a demand for our product. We can analyze the demand, as…

Creating Amazon FBA Shipping Labels & Plan

When the supplier is done manufacturing our products they will put our products in cartons. These cartons need to be labeled with our Amazon Shipping Labels so the Amazon warehouse will know where to store them. The labeling can be done on different occasions. But it will be the cheapest to have our supplier put the shipping labels on the cartons while they are still in the factory. Most likely they will do this for free. How to create Shipping Labels? To create the Shipping labels we will need to create a shipping plan in Amazon Seller Central. Login your…

amazon FBA

3rd Party Inspection for your Alibaba Order

We highly recommend to plan an inspection before you pay the remaining balance and while the goods are still in the factory! People make the mistake a lot that they think they can just inspect the goods themselves if they ship it to their house first, and then to the Amazon warehouse. What are you going to do when you find out there is something wrong with your products? Are you going to ship everything back to China and hope your supplier will give you a refund? (Hint: They won’t). We will do an inspection by hiring a 3rd party inspection company who will visit the…

amazon FBA

Amazon FBA: Follow up E-mail (Jump Send, Helium 10 or Feedback genius?)

Setup follow up e-mail Follow up e-mails are a great way to increase your review count! Through the Amazon message system, you can contact your customers and manually send them a follow-up email asking them how they like your product and if they could leave a review. Of course, this is loads of work to do this manually, so we rather have a tool to automatically e-mail our customers after they received our product. This is a great way to get in touch with our customers, let me know we care about them and asking if they could in return…