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…

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 when selling on Amazon. 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…

In order to start the production of your Amazon goods 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…

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.

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 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…

This project is based on the assumption that we are going to sell our own private label product on Amazon.com. 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…