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.

 

176 Comments

  1. Kevin

    Hi Scott – after months of trying to find the right supplier I am happy to report that next week I am finally moving forward and placing my first order. Thanks for your all your help along this road!

    When you place orders with the Chinese Manufacturers do you send them some sort of Purchase Contract that details the terms of your arrangement with them? If so do you have any examples of these contracts or a resource that you can point me towards? Thanks again Scott!

    1. Scott Voelker

      Hey Kevin, I would suggest completing the purchase using alibaba, that way everything is spelled out appropriately for both parties.

  2. Abbas

    hey scott, I am 42 year old, got laid off few months ago and struggling to get a decent source of income. today I stumbled upon your blog and has given me a ray of hope. thanks for the amazon seller guidelines. your audios are very helpful and hope u will be able to build a Scott army of amazon sellers 🙂

  3. sammy

    6. What is the cost per unit including shipping by DHL Air Express to United States Zip Code 89076?

    Somehow the supplier always answers back either the sample cost or that they don’t know that yet.

    1. Scott Voelker

      Hey Sammy, if they don’t answer directly, simply follow up with them and re ask the question. 🙂

  4. Carine

    Hi Scott
    Do I have to have a registered business to do private label? I live in Canada and want to sell on
    .Com and .CA. Still in the process of finding that product. Won’t give up until I do. Thanks

    1. Scott Voelker

      you can generally sell as an indvidual but i would suggest becoming a business asap.

  5. Andy

    Hi Scott,
    Interested in doing PL as RA and OA are becoming more and more difficult and time consuming. Came across your site and LOVE it! Currently going through all your podcasts from the first one and have already learned a TON!

    Anyway, I found some suppliers and am getting some samples and will negotiate an order after I inspect the goods. Have a question about the process of getting goods over here. Some gave me a quote based on EXW terms and some on FOB terms. I looked up what they mean but still not quite sure on what I’d have to pay and what amount I should put down for my calculations for profit.

    Say one manufacturer sells me something for $10 EXW price. I would then get a freight forwarder to pick up the goods and get it to me. Does that usually include customs clearance, brokerage, duties, and taxes or do I get charged that on top of the freight fees? When you negotiate your product, do you usually do EXW or FOB or does that not really matter?
    Just want to get my numbers right to make sure it’s a profitable product after all fees and advertising as well.

    1. Scott Voelker

      Hey Andy, generally you’ll want to ask for DDU or DDP terms, that’s going to include as much as possible (including transportation) other wise you’ll have to work with a freight forwarder to get shipping quotes for each and add those in to you per unit cost.

      1. Andy

        Thanks Scott,
        I’m still not familiar with these terms but does this only apply to getting stuff shipped by sea? I remember you mentioned that you use DHL by air and they take care of everything for you? So if I were to go that route with my supplier how do I go about it? Do I just get them to use their DHL account to ship the products and charge me for brokerage/duties/customs or do I tell my supplier that I’m going to get DHL to pick it up from them and send it to me on my account?

        1. Scott Voelker

          Ask your supplier for Door to Door Air Express shipping from fedex or DHL 🙂 that should get you squared away.

  6. sam wilson

    Hi scott, I am a total newbie, I have found a product and am sourcing suppliers using your templates. I live in the UK but want to sell on US Amazon, can you recommend a good forwarding company in US? also is there a checklist anywhere of everything a new product and listing will need? I am scared of having my product shipped and forgetting something really important, for example a barcode on the packaging. Thanks and love your work.

    1. Scott Voelker

      Hey Sam, if you haven’t already you may want to attend one of the free live workshops i do (theamazingseller.com/workshop) we give out a checklist at the end as well as answer a bunch of questions just like the ones you have. As far as forwarding companies go, DHL, UPS, or Fedex are usually the best when you’re just getting started.

  7. Camille

    Hi Scott,
    I want to start selling my product as PL. I am looking for a supplier now.
    1, Please could you reply on question 1 in your letter…how do I know which zip code in USA? Or should I give my ZIP code where the sample comes?
    Thank you.

    1. Scott Voelker

      Hey Camile, you would give your zipcode there.

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