Business management

2. Product Sourcing
CLASS - 3

3. 01
02
04
03
Selection by
Revenue:
Check the sellers with low reviews and high on
first page (Make sure to choose those sellers
who are selling for at least 4 -6 months)
Design Filter
Analyze and Search the best design of the
product which is predicted to be sold in future.
(Read the negative reviews to make
improvements)
Value Addition with
Cost Effectiveness
Plan how you are going to add value in existing
offer (You may check other markets to get an idea)
Selection of competitors
having good BSR on
Targeted KW
Select those competitors who have consistent avg.
moving BSR over targeted keyword. By doing this
you will get an idea that how much sales you need
initially to capture the demand
HOW TO CHOSE A COMPETITOR

4. Patent Check
 Utility Patent
 Design Patent
 Make sure your product design /
Keyword is free from any
restriction

5. What is
Product
Sourcing?
Product Sourcing
Product sourcing is the process of finding products
to sell. It means finding reputable suppliers to buy
quality products at a good price.
Product Sourcing Process Flow
Product Selection -> Patent Check > Sourcing
Suppliers -> Evaluating and Selecting top 5
Suppliers -> Order sample from 3 -> Assure the
sample's quality -> Re-evaluate best suppliers in
terms of pricing and sample quality -> Place an
Order via Ali Baba Trade Assurance

6. Supplier
Selection
Check
list on
Alibaba
1. Ali baba gold supplier membership: 3+ years
2. Response rate: Less than 6 Hours
3. Trade assurance
4. Verified Supplier
5. Get quotes on FOB or DDP terms
6. Should have relevant certifications related to that product or
product category
7. Payment terms: 30% advance and rest before delivery
8. Mode of payment: PayPal, Credit card, T/T, etc. via Ali baba Trade
Assurance

7. Alibaba (DEMO)

8. How to Contact Suppliers
(Recommended Templates)

9. Supplier Contact Template File:
https://drive.google.com/file/d/1K_3TI9al2vftfXit
MerGjZu0Y-u5avg7/view?usp=sharing

10. Shipping Incoterms (International Commercial
Terms)
1. Ex Works (EXW) – The seller makes the goods available at its location, so the
buyer can take over all the transportation costs and also bears the risks of
bringing the goods to their final destination.
2. Free on Board (FOB) –The seller must load the goods on board of the ship,
nominated by the buyer. Cost and risk are divided when the goods are actually
on board.
3. Delivered Duty Paid (DDP) –The seller is responsible for delivering the goods to
the named place in the country of the buyer and pays all costs in bringing the
goods to the destination.
For air shipment, it take 7-14 days, and you get more expensive if you
choose minimum days and for Ocean, it take 30 to 40 days

11. Profit Margins
We recommend to have at least 25% Profit Margins per sale, so
while negotiating with the Suppliers, First get the idea of what
your cost should be in order to attain 25% Profit margin per sale.
To calculate Profit Margins, Use AMAZON FBA Calculator
• Insert your competitor or your ASIN in FBA calculator
• Add your selling Price
• Cost of the Product + Shipping to amazon cost and calculate
Profit Margins and then lower or increase the cost to check
Which cost is suitable for you to get maximum profits 

12. Ordering Samples

13. INVOICE
Trade Assurance ID
Contents Title
Once you place the
order you will get an
email from ALIBABA
along with Trade
Assurance Number,
like in the screenshot
Your Order Should be secured with
Ali baba Trade Assurance Number

14. Important Doc
INVOICE
BILL OF LADING
Contents Title
A detailed list of a ship's
cargo in the form of a
receipt given by the
master of the ship to the
person consigning the
goods

15. Under
standing
different
types of
Amazon
fees
 Amazon FBA Fee -- varies from size tier of a product
(dimension and weight)
 Amazon Referral Fee (Sell on Amazon Commission) -- varies
from sale price and type of category
 Amazon Monthly Inventory Storage Fee -- based on cubic
feet of a product and charged on monthly basis
 Advertisement cost (or any promotional discounts) --
variable cost and vary from consumption to consumption
 Deal Fee (Lightning or 7-day Deals or Prime Day Deals etc.)
 Returns or Refunds
 Any other Amazon service fee if we avail such as: Amazon
partnered carrier service, Prep & Labeling Service,
Inventory Placement fee, etc.

16. Assignment
Start Sourcing of the product you added into EPAS and
apply all the steps we practiced today except PATENT
CHECK or Sampling and submit by creating a
presentation file on power point before next class.

17. THANK YOU