2019 FBA Case Study: Part 2 – Finding Suppliers

In part 1 we found a great product for us to sell on Amazon.com. To quickly summarize, here are the stats for the product:

  • Estimated purchase cost: $6
  • Estimate shipping cost: $1
  • Estimated landed cost: $7
  • Sales price: $30
  • Amazon fee’s: $11
  • Estimated profit: $30 – $7 – $11 = $12

So the profit looks great on this product. It hit all the other requirements ( enough demand, not seasonal etc ). The only problem with this product is that it will be a bit difficult to manufacture. Since the product is made out of 2 types of material. And I got a feeling I can easily get scammed if my supplier replaces 1 type of material with a cheaper material.

Because of this I have to make sure to be extra careful with these following steps. I already have a very detailed guide on how to manufacture & import products from China. This method uses the traditional way of just browsing Alibaba. For this particular product I will use a bit more advanced method, together with the Jungle Scout Web App Supplier Database. I will explain exactly why this will be necessary for this product.

Jungle Scout Web App Supplier Database

Jungle Scout recently added this feature to their webapp and I will show you how I utilize it for this product. You simply search for the product you want to manufacture and it will show you all the suppliers for this product.

Jungle Scout Web App Supplier Tool

When I first tried out this feature I thought it was useless because I could simply search “Garlic Press” on Alibaba myself and it would show me the same results. Until I noticed the Top Customers tab. Jungle Scout somehow managed to link the companies who import goods from these suppliers into the US!

There is probably an open database where you can check every import record and Jungle Scout linked this to the suppliers.

Jungle Scout Web app database

Why this feature is awesome!

Now let me explain why I think this feature will be so crucial for me. The product I will source will be very hard to manufacture and I can easily get scammed. I only want to deal with high quality suppliers that are already dealing with reputable buyers. When I am dealing with Chinese suppliers they will always tell me they are dealing with very large US buyers, but they could easily be bluffing. Now I can directly verify what other companies they are selling to.

Example of High Quality Supplier

Right away we can see that this suppliers sells to a bunch a huge US buyers, like Costco. We can also see that this supplier sells to Oxo. Now let’s lookup the Oxo Garlic Press on Amazon. Here you can see that the product that comes from this supplier is high quality (rated 4.5 stars on Amazon).

Jungle Scout Chinese Supplier Database

Example of Low Quality Supplier

Here is an example of a low quality supplier. We can see that they sold Multi Egg Slicer to a company called Norpro. Let’s look them up on Amazon as well. Here you can see this product is low quality and only has 3.5 star review rating. These are the type of suppliers I would stay away from.

Jungle Scout Chinese Web App Supplier Database Tool

Using this method I handpicked about 20 high quality suppliers and all send them the same email:

Hi,

I am looking to manufacture product X ( see attachment for picture ).

Product description
Size: X
Weight: X
Material: X
Packaging: x
Color: X

Are you able to manufacture this product?

For my first order I am looking to purchase 1000 units FOB. Can you send me a quote for this?

Is it possible to add my logo on the product? How much are the extra cost for this?

What is the current lead time?

Thank you very much

Just a simple email to start the conversation.

In the next update I will show you how I communicate with these suppliers, negotiate with them & select the best ones.

Keep me updated!
Leave your email below and I will let you know when I post part 3 of this case study!

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6 Comments

  1. Hi, when you say “For my first order I am looking to purchase 1000 units FOB” is that because you want your supplier to deliver the good to the port to your freight forwarder (FOB) ? Also how do you arrange the supplier and the freight forwarder? Does your FF give you time and day they want your supplier to deliver to the port? That is the most confusing part of the whole process. Would much appreciate if you can help!

    1. Hi mate,

      Yes. FOB means I want the supplier to deliver the goods to the forwarder at the port. You just exchange the contact info between the supplier & forwarder ( the forwarder usually has a Chinese point of contact which makes it easier for the supplier ). They will then setup a delivery appointment and arrange the goods to be exchanged.

  2. I see a lot of people talking about building a brand outside of Amazon (on you own website and such), but to be honest it’s not really something I’m interested in dealing with as I’d rather just focus on my Amazon store.
    Is this something you’re doing with your products/brands or are you only focused on Amazon?
    Thanks

    1. I have a Shopify store for my products but I get almost all my sales from Amazon. So yeah I feel kinda the same way. Sure it is safe to diversify, but right now my time is better spend on increasing my Amazon sales.

  3. Hey there garlic press seller, I just want to say thank you for all the great tips and resources you provided us through your articles, they were quite helpful to me in discovering some amazing Amazon resources.

    I have two questions for you:

    First, can you remind me of the name of the company you used in your previous case study to combine all of the samples you got from your suppliers and ship it to your house ? do you still recommend their service?

    Also, after reading this article, I would love if you did a complete tutorial on how to use the new jungle scout app to vet suppliers, I feel like this would be pretty useful to me and save me time when I start looking out for suppliers.

    Thank you

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