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Million Dollar Case Study: Europe – Session #3, Supplier Outreach & Product Selection

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Join Greg Mercer & Kym Ellis in the third session of the MDCS: Europe. In this session they covered:

- Kym's advanced product research findings
- An introduction to working with Chinese suppliers
- How to start your supplier outreach to get prices for your top product ideas
- How to do your initial profitability calculations to decide which product to launch

They also announced which product they were going to launch in the UK marketplace!

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Million Dollar Case Study: Europe – Session #3, Supplier Outreach & Product Selection

  1. 1. SESSION 3: Supplier Outreach & Product Selection T H E M I L L I O N D O L L A R C A S E S T U D Y E U R O P E
  2. 2. Enter at www.junglescout.com/giveaway 3 Winners selected every week for all of 2017! 1 Prize for Each Winner ▹ 1 Jungle Scout Lite Extension ▹ 2 Jungle Scout T Shirts ▹ Featured on the Website! Part 2: Session 3 Giveaway
  3. 3. Part 2 I Session 2 Winners Brendan Mulholland (Web App Standard) Ayelet Michaeli-Arbel (Web App Standard) Jonathan Hsieh (T Shirt winner)
  4. 4. MDCS: Europe Progress Map Session #1: Generated a list of product ideas for the UK THIS WEEK: Supplier outreach, profit calculations & selecting our product Session #2: Advanced research & narrowed down that list to the top 5
  5. 5. … and growing!
  6. 6. Catch Up - Follow Along Catch up with MDCS Part 1 where we launch a product in the US – www.junglescout.com/mdcs-us Follow along with MDCS Europe here – www.junglescout.com/mdcs-europe
  7. 7. What We Are Covering Today ◍ Taking a look over Kym’s Advanced Product research findings ◍ Carrying out Supplier Outreach to get a better idea of cost ◍ Profit calculations (including factoring in VAT) ◍ Deciding which product we will launch on Amazon.co.uk
  8. 8. Our Advanced Research Findings...
  9. 9. Let’s check out Kym’s HW
  10. 10. Quick Overview (More Next Week) ◍ English? Chinese? ◍ Chinese business culture ◌ Long term business relationships ◍ Payments? ◌ Alibaba Escrow ◌ T/T (wire transfer) ◌ PayPal (small orders or samples) ◍ Trade Show? Visit China? ◍ Contracts/Agreements ◌ We’ll give a template at a later date
  11. 11. Top Tips For Using Alibaba ◍ Try using a few different keywords to search alibaba ◍ Look for more established factories that have trade assurance or the gold supplier badge ◍ Use your favorites to keep a list suppliers ◍ Create an email template & a dedicated email address ◍ Use the Alibaba messaging function
  12. 12. 👍 Hi There, My name is Kym from Jungle Creations. We are looking to purchase sleeping bags for the UK market. See attached photos. Our primary sales channels will be online. We estimate up to 10,000 to 15,000 pcs annual purchase volume after a trial order of 1000-1500 sets and samples evaluation. Specifications: ● Size – 190 x 75 x 30 cm and 210 x 80 x 55cm ● Material – Water resistant Polyester outer shell, windproof lining for insulation, 300GSM hollow fibre filling for use in 3 seasons. (+10°C to -10°) ● Colour – Blue, Grey and Black. Orange inner lining showing contrast in the hood section. ● Style – Mummy style, with a compact, waterproof carry case ● Additional Features – Internal pouch to store ...Do you manufacture these types of high quality sleeping bags? If so please provide the following: 1) Photo, Specifications and FOB Quotation 2) Are you a manufacturer or trading company? 3) What is your lead time for samples and trial order? 4) Can we add our logo to this item? If so, where can the logo be added? 5) What is the sample cost with shipping by express to UK? Appreciate your reply. Thank you. Kym Ellis Purchasing Create A Solid Email Template https://www.junglescout.com/session3-HW
  13. 13. Outreach Guidelines ◍Aim to contact 25 suppliers ◍Attach images of a similar product to give a visual ◍Keep an eye on your inbox AND the Alibaba message center ◍Sort responses into folders ◍Be ruthless!
  14. 14. Watch over our shoulder How to carry out supplier outreach using Alibaba....
  15. 15. Calculate Your Profits Remember to account for ◍ FBA fees - junglescout.com/fba-calculator/ ◍ Landed cost ◌ FOB Price ◌ Duties - https://www.gov.uk/trade-tariff ◌ Shipping (ROUGH estimate - £6/kg Courier, £4/kg Air Cargo, £0.5/kg Sea) ◍ VAT (20% in the UK) ◍ 5% for PPC and marketing costs Profit = Retail Price - PPC&Marketing - FBA Fees - Landed Cost - VAT
  16. 16. Profit = Retail Price - PPC&Marketing - FBA Fees - Landed Cost - VAT Example: Retail Price = £26.99 Marketing/PPC = 5% of £26.99 = £1.35 FBA fees = £6.14 Cost per unit (FOB) = £5.44 Shipping = £0.5 (for 1 kg) Duties = 12% of £5.94 = £0.71 Landed cost = (£5.44 + £0.5 + £0.71) = £6.65 VAT = (20% of £26.99) = £4.50 Profit = £26.99 - £1.35 - £6.14 - £6.65 - £4.50 Profit = £8.35 125% ROI on Landed Cost (aka my investment) Note: Landed cost = cost per unit + shipping + duties
  17. 17. Which product do we think we’ll go for?
  18. 18. Sleeping Bags Join us to see us launch our new FBA product on Amazon.co.uk
  19. 19. Follow Along: Your Homework 1. Using the the supplier outreach tactics we shared, start contacting suppliers for your top products 2. Carry out deeper profit calculations with your supplier outreach results 3. Decide which product you are going to launch 4. Join us next week ready assess supplier responses! Download the new template at: https://www.junglescout.com/session3-HW
  20. 20. Join Us Next Week Join us next Wednesday where you will learn how to assess supplier outreach responses and which suppliers to order samples from! Register for FREE at junglescout.com/million

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