All of the steps involved in coming from a product concept to sourcing domestically or internationally. Rachel talks about how to use the benchmarking process to ensure that your product is what customers expect. Then, she covers the importance of e-commerce ready packaging.

1. Overview of domestic and international sourcing. Pro’s and Con’s
with research starting points.
Overview of why benchmarking can make you more profitable.
Overview of the role and importance in packaging.

2. ▪ In this context, sourcing is finding a producer capable of producing
your designated product.
▪ You are looking for *similar* not exact products.
▪ You don’t need to find something in their catalog – in fact,I
recommend against that, because someone else is already going to
be selling that, given how crowded this business has become.You
need to modify,and verify your market prior to sinking in the money.

3. ▪ Legal liability and insurance
▪ CPSIA – Consumer Product Safety Improvement Act
▪ Lead times
▪ Pricing/Profitability
▪ Marketing

4. ▪ Legal liability and insurance
▪ Lead times
▪ Pricing/Profitability
▪ Marketing

5. ▪ Global Sources is preferred over Alibaba,but either way you can get a “top price” – these
are their listed prices, they expect to be haggled down
▪ Use your comparison product to learn what your target price points should be from the
factory
▪ Rule of thumb: ocean freight Shenzhen to Los Angeles a couple months ago was $1100 or a
full container.Anything else is so weight/size dependent, you’ll need to get quotations on a
per shipment basis to get a final number for transportation costs
▪ Compliance costs are on average $600 for testing,and $309 for quality control inspection

6. ▪Research potential factories
▪Create your initial inquiry
▪Determine MOQ you can afford based on initial“top price”
research
▪Arrange for samples
▪Understand Payment Terms
▪Set up your Supplier Agreement/Purchase Order

7. ▪ Normally, as a product developer at a large company,you’d have access to your
own quality audit rated to the company’s specifications.This is a luxury new
Amazon sellers don’t have
▪ Ask for their existing audits or factory certifications and review – there are three
types of audits,but most sellers should only be interested in quality audits for the
purpose of selling on Amazon
▪ Ask for a PPT presentation showing:the shop floor, the product design area,
QA/QC,examples of products and machinery, and any other information they can
give you without violating any other customer’s IP.

8. ▪ Use a clear subject and introduce yourself and provide your contact details
▪ Include your detailed specifications for:
▪ Size
▪ Color
▪ Material
▪ Product Weight
▪ Style
▪ Quantity
▪ Logo
▪ Processing
▪ Testing
▪ Packaging

9. ▪ You must clearly state expectations of the factory up front
▪ We use a sample supplier agreement (~3 pages) plus purchase order
▪ The Purchase Order includes four addenda:
▪ Product Testing Protocol (listing out required testing,certificates,registration,labeling,
etc)
▪ Quality Control Inspection Checklist
▪ Packaging Expectations
▪ Any other requirements – such as confidentiality,use of logo/trademark,social
responsibility,etc.

10. ▪ Marketing: understand what customers are looking for in your chosen product,and
how to ensure your product specifications include what they’re looking for
▪ Testing: validate the benchmark ASIN for key performance indicators, and include
those in your product testing protocol addendum to the factory to ensure your
quality level will be achieved
▪ Sales Opportunity:don’t go into a market that is too small to make your money
back – you need to come close to or at least break even on your first shipment
(inclusive of one time startup costs)

11. ▪ What are the features of the product?
▪ What is the configuration customers want to see?
▪ What kind of brand name will work for your product line up and
future products?
▪ Verifiable third party reviews:panels and laboratory testing

12. ▪ Select the appropriate benchmark item
▪ Work with a lab or consultant to determine how to create testing
methods to validate your marketing proposition
▪ Test to “fail”
▪ Examples – tear strength,bursting strength in fabrics, over application of
electricity (simulate a surge),insertion/extraction testing,static load and
dynamic load of seating items

13. ▪ You should aim to make your money back within 1-2 months
▪ This requires a mid range sales volume of about $10-40k/monthly for
products in your target niche
▪ Don’t hold yourself back based on size or fragility of products!
Different methods need to be used to ship and package these items,
but if they’re what you want to do, then go for it

14. ▪ ISTA 3A/B
▪ Frustration Free Packaging
▪ Product Quality and “Used Sold as New”

16. SOURCING
▪ Benchmarking
Consultation
▪ Benchmarking Testing
▪ Sourcing Factories
Consultation
▪ 3 sets of samples
recommended
▪ Carrier Shipment for
samples or reviewed in
China
▪ Customize Contract
▪ Agree to PO (30% down is
typical)
▪ Prototype Testing for
quality at lab
▪ During Production
Inspection at factory
▪ Develop Packaging
Prototype Consultation
▪ Design Package, Insert
Cards
▪ Photography (white
background and lifestyle)
▪ Get Approved by FFP (on
hold)
▪ Production Testing in
laboratory
▪ Product Compliance
Consultation
▪ Freight Quotation from
Carrier
▪ Customs
Classification/Docs
Consultation
▪ Customs Filing by Broker
▪ Detail Page Creation and
Sponsored Ads
Consultation

17. ▪ We’ll discuss product testing, inspections,and how factory audits help you best
work with a factory
▪ We’ll do an overview of logistics – freight forwarding, HTS classification,Customs
clearance
▪ We’ll go over timelines for each of these steps and what you can/should expect to
be a problem along the way!