In the eighth series of Amazon FBA, I want to illuminate the purchase of the sample and products via Alibaba. What you have to pay attention to and how it all goes. In doing so, I refer myself to my experiences around it better to present.
When you get to that point, you should be damn sure about your idea and about your product. After all, this is about a lot of money and a total loss is always possible. Conversely, the supplier/producer of the products should be the best to meet all your conditions, as described in the previous article.
It doesn’t help anyone, especially if you’ve found a top product, but your supplier only delivers from 10,000 pcs. The supplier is your confidant for possible future business and if it is critical at the beginning, it will not get any better later. For some, this will be self-evident here, but there are always people who are rushing to this matter. We are talking here about several thousand euros that we may be putting in the sand here.
First, the single piece
So the contact is established, the supplier has clarified all the questions, you agree, so the business can start. But before ordering a large number of goods, you should always order a so-called “sample“. It is a single piece or your product in 2-3 variants.
Why order a sample first? Trust is good, control is better, it is said in the vernacular. Through the good contact with your producer, he can tell you a lot, but we all know that from private life. You can see the advertising of a perfect burger, but when you sit in the restaurant, it looks loveless. This can also be the case with the product.
This does not rule out the possibility that the right product is perfect, but it minimizes the risk of buying complete rot. The sample will be unique for you, if the sample is not right for your taste, because the quality does not fit or you have imagined it quite differently, you have two variants. One is that you are looking for a new supplier and the other is to write to the supplier again and describe the defects or your ideas and whether they can change them. With that he sends another sample and you decide.
The sample will be replaced and reordered until the final product is best for you! Again, it’s no use to trade half things, in the end the product ends up on Amazon and as people are, if something doesn’t suit them, there will be a bad review and that would be a downfall.
Payment of the sample
With the sample, Paypal should not be a problem as a payment, for a sample this would even be an argument for me, which the supplier has to fulfill. It will also be quite expensive. This is a product that is produced only once, so don’t be surprised if your product, which you can buy in the German retail trade for 10€, will cost a good 50€. One has to bear in mind that the machines only need to be changed for one product and other steps that can hinder the entire production.
Of course, this applies more to products that you make completely yourself. For example, many suppliers have a prefabricated pattern for footballs from which to choose. The sample here will certainly be cheaper, because a ball is simply taken out of the running production. But the disadvantage is obvious: the ball has no unique selling point. In the end, someone else in this world has him too.
If you want to have a ball with your own pattern instead, because it is perfect for an idea, the production is only changed for this one ball and that can be expensive. That’s just on the sidelines, not that you’re wondering. The price also includes the delivery costs, which must also be covered by you.
Also ordering the sample should always be done via Alibaba, so that there is always evidence in case of problems. Of course, I do not want to insinuate that the suppliers are criminal, from my experience they are quite professional and willing to deliver a good product and to establish a long relationship. In the end, your gain is also your gain. A win-win situation..
The purchase of bulk goods
If the sample satisfies us, it is now time to order the mass-produced product. This happens the same way, preferably everything at Alibaba in chat. The only difference could now be the payment method. Here the supplier can now request a normal bank transfer. This shouldn’t scare you in the first step. For him, too, safety comes first. But those who have arrived well up to this point have already had a good time and a lot of conversation has fallen with the supplier.
When paying abroad, as always by credit card, is best, as fees are rarely charged here and the money is much faster over there than with a normal bank transfer via Giro.
What is interesting fact is that the payment address will be more than cryptic. Example: 7D05, Middle Of 4th Building, Seg Science Park, Huaqiang North Road, Futian Dist., Shenzhen, Guangdong, China (Mainland). Who then makes the transfer, notices: These are too many signs! Well, that is indeed very confusing. But a lot of it is then rather additional like floor, number, ect. If you are unsure, just ask the supplier, he will be happy to help you!
Customs and taxes
A difficult topic is the “customs and taxes” here it is very important to your suppliers. If the supplier sends it as “taxed and duty-paid” there is no cost for us here, the supplier does this himself. This usually happens when the supplier also has a plant/store/warehouse in Germany. As a result, it usually not only sends your product, but also several containers at the same time, since the load usually does not fall into the weight.
But if he sends “unpaid and untaxed” everything weighs on us. When the goods arrive in Germany and arrive at your doorstep, there is a nice letter asking for the transfer of import VAT/customs.
The second case, however, is very rare, as I have seen in others.
In the next part, we go to the made-up. Amazon stock is filled.
- Amazon FBA #1 – Planning
- Amazon FBA #2 – Product Research
- Amazon FBA #3 – Authorities and Documents
- Amazon FBA #4 – Is my idea right? Compare sales figures
- Amazon FBA #5 – What platform do I use to purchase products?
- Amazon FBA #6 – How do I choose my supplier?
- Amazon FBA #7 – Co-stroke with producers, what to consider
- Amazon FBA #8 – The First Purchase
- Amazon FBA #9 – Post articles on Amazon, optimize and SEO – coming soon