This document provides guidance on finding reliable suppliers when sourcing new products. It discusses evaluating suppliers based on their qualifications, product fit, pricing, and soft skills. Specific tips include casting a wide net initially, then doing deep dives on the best candidates. The document also covers where to search for suppliers, how to communicate with them via RFQs and follow ups, and best practices for payments to balance risk and cash flow. Templates are provided for RFQs and evaluating supplier responses.

1. Jungle Scout Million Dollar Case
Study– How to find a good
supplier when sourcing a
product
Presented by Gary Huang
80/20 Sourcing
www.8020sourcing.com

2. Roadmap – How do we find good suppliers?
1. What to look for in a supplier
2. The good, the bad, and the ugly – how to spot
them
3. WHERE do I find them?
4. Gotta PAY to play - Making payments safely
and lowering your costs
5. Takeaway bonus and next steps

3. Jungle Scout Million Dollar Case Study
Products
Baby towels with Hood Magnetic Tiles

4. Finding a trustworthy supplier – the dating
game
• Goal: Long term, mutually beneficial relationship
• KNOW what you want – and be specific
• Relationships are a two-way street
• Tell them a little about yourself and your business
• Ultimately you want to get to be interested in doing
business with you

5. Turning the tables – what do suppliers look
for in BUYERS?
• Knowledge - Knowing the product
– being specific in RFQs
• Price – fair but not overkill
• Order size
• Long term business potential
• On-time payments
• Guanxi

6. Break the ice by sending a Request for
Quotation (RFQ)
1. Introduce yourself
2. Define your product and be specific
• Product measurements
• Material
• Specifications
• Packaging
• Any other critical points – safety, branding, etc.
3. Call to Action – Ask questions and request a quotation

7. RFQ template – best practices
• BE SPECIFIC
• Key questions
• Can they manufacture this product?
• Past experience with this product?
• Product modifications
• Request price for volume order and sample
• BUT don’t just interrogate them, talk a little about yourself to build
TRUST

8. Sample RFQ for hooded baby towels
Hi there,
We are looking to purchase Baby hooded towels for the US market. See attached photos. Our primary sales channels will
be online. We estimate up to 20,000 to 30,000 pcs annual purchase volume after a trial order of 500 sets and samples
evaluation.
Specifications:
-Size - 34in x 34in (92cm x 92cm)
-Hood should have "ears"
-Material: 100% Bamboo, organic preferred
-Quality: high thread count and very soft
-No loose threads
-Color: white, no dyes
Do you manufacture these types of bamboo baby towels with hood? If so please provide the following:
1) Photo, Specifications and EXW Quotation
2) Are you a manufacturer or trading company?
3) What is your lead time for samples and trial order?
4) Where can we add our company logo to this item?
5) What is the sample cost with shipping by express to USA?
Appreciate your reply. Thank you.
Gary
80/20 Sourcing

9. How to evaluate suppliers and responses?
• AUDITION THEM - 80/20 Rule

10. First cast a wide net, then go deep diving
• First cast a wide net – filter out the non-qualified
• Then go deep diving with the remaining suppliers to find the right
match

11. Where do I find them?
• Online • Offline sourcing

12. The Yin and Yang of a good supplier
• Balance of Hard skills, capabilities
• Can manufacture the product
• Fits the common thread test
• Has experience and qualifications
• Price is in the ballpark
• Soft skills, intangibles
• Good communications and language
• Responsive
• Cooperative

13. The Art of Alibaba
• First things first
• Yellow pages – gotta do your homework
• Getting started – open an account
• Enter search term
• Evaluate results – products and/or suppliers
• Contact them - Cast a wide net and then deep dive

14. What to look for in a good supplier
• Gold suppliers with a track record
• Qualifications
• Product fit - Common thread test
• Quality fit – Country test
• Factory direct
• If they pass the initial screening then contact them

15. Signs of a bad supplier
• Lack of experience
• Lack of product fit
• Pricing is way off

16. Avoid these guys
• No reply
• Does not answer all of my questions
• Dishonest

17. Trading companies

18. Track responses in spreadsheet
• Supplier Name and location
• Contact person’s name and contact info
• Date RFQ sent and reply
• Price quotation
• Sample cost

19. Communications best practices
• Initial contact through Alibaba
• Follow up by Email
• Wechat for quick questions, pictures, and video

20. Pay to Play - Payment methods
• Paypal – good for samples and small orders
• Bank Transfer aka “T/T” – medium and large orders
• Red flags
• Bank account name doesn’t match company’s name
• Western union

21. Payment Terms for orders
• Goal – Pay less upfront
• Reduce your risk
• Maximize your cash flow
• Recommend:
• Start out with 50% advance, 50% before shipment or 30/70
• Warning: Do not pay 100% advance
• Best practice: Put this in writing
• Exception: product samples – pay 100% upfront

22. Introducing 80/20 Sourcing
• Advanced training video courses
• Private Coaching
• Learn sourcing best practices through free email newsletter
• For more details visit: www.8020sourcing.com

23. Thank you – Here’s your free bonuses
• Get your free bonuses
• Request for Quotation (RFQ) email script
• Alibaba best practices worksheet
• Signup for newsletter
• www.8020sourcing.com/jsmillion
• Contact Gary at gary@8020sourcing.com
• 80/20 Sourcing: www.8020sourcing.com