Alibaba To Amazon FBA - 2021 Product Importation Masterclass (Part 2) | Sumner Hobart | Skillshare

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Alibaba To Amazon FBA - 2021 Product Importation Masterclass (Part 2)

teacher avatar Sumner Hobart, E-Commerce Entrepreneur

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

36 Lessons (4h 36m)
    • 1. Want To Learn The Secrets Of Sourcing High-Quality Products From SCRATCH At The Best Prices?

    • 2. Product Sourcing For Amazon FBA Simplified

    • 3. China vs. Other Countries - Which Is Better For Sourcing Products?

    • 4. Should You Hire A Sourcing Agent?

    • 5. How To Find Quality, Trusted Suppliers (and Avoid The Frauds) FAST

    • 6. USE THIS When Reaching Out To Suppliers!

    • 7. It Never Hurts To Have A Back Up Plan

    • 8. Simple Trick To Communicate With ANY Supplier in ANY Language

    • 9. WARNING: Does Your Product Need Certifications? Here's How To Find Out...

    • 10. Requesting Certifications From Your Suppliers

    • 11. Painlessly Negotiate The BEST Price For Your Products

    • 12. Gain INSTANT Negotiation POWER With This Secret Hack!

    • 13. How To Find QUALITY North American Suppliers (WITHOUT Using Thomasnet)

    • 14. Keep This In Mind When Ordering Product Samples...

    • 15. Know EXACTLY How Many Units To Order For Your First Shipment

    • 16. Don't Lose Track Of Your Inventory

    • 17. How Your Products Get From China ALL THE WAY To Amazon's Warehouse (Explained)

    • 18. IMPORTANT: Miss This And Potentially Lose THOUSANDS

    • 19. IMPORTANT: Miss This And Potentially Lose THOUSANDS

    • 20. Do You REALLY Need A Freight Forwarder?

    • 21. Which Shipping Option You Should Choose

    • 22. Bonds, Duties & Tariffs DEMYSTIFIED

    • 23. Keep This In Mind When Shipping To Other Countries

    • 24. Understanding Products ID Terms

    • 25. UPC Codes - Do You Even Need One?!

    • 26. Understanding How GTIN Exemption Works

    • 27. Shipping Labels You MUST Have (Biggest Mistake New Importers Make)

    • 28. Getting Your FNSKU Labels From Amazon

    • 29. Make Sure You're All Packed Up

    • 30. EFFORTLESSLY Create Your Amazon Shipping Plan (Step-by-Step)

    • 31. New & Improved Way To Create Your Shipping Plan

    • 32. IMPORTANT: Protect Yourself When Paying Suppliers!

    • 33. Let Amazon Help You With Other Sales Channels Order Fulfillment

    • 34. Do You Need A 3PL?

    • 35. Let Amazon Help You Reach New Marketplaces

    • 36. LAST STEP!

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About This Class

★★★ Effortlessly Source & Ship High-Quality, Profitable Products (from Scratch) from Alibaba to Amazon FBA in 2021. ★★★

(EVEN IF you have ZERO experience creating, manufacturing, producing or shipping products!)

Did you know THE #1 most stressful & consuming process for Amazon Sellers is sourcing & shipping products from Alibaba to Amazon FBA?

There are SO MANY things that could go wrong from not having the right labels, choosing the wrong supplier, not protecting your payment, and so much more!

The problem you face is that most courses and videos online are made by Internet Gurus who’ve never actually sourced or shipped a single product overseas in their life and give very little (or even worse - WRONG) information about creating, producing & shipping products from Alibaba to Amazon FBA.

Following this "advice" can lead you to lose your entire investment, go bankrupt and even get in big trouble for ignoring important (yet simple) laws you didn't know existed!

Not to fear - there is a solution!

Let me introduce you to the Alibaba to Amazon FBA Masterclass.

In this masterclass you will learn...

• The #1 MISTAKE first-timers make and how to easily avoid it. (Lecture 26)

• Confusing terms like "DDP", "freight forwarders", "duties", "tariffs" and more DEMYSTIFIED. (Lectures 20 - 24)

• Gain INSTANT negotiation leverage with this secret hack! (Lesson 13)

Amazon FBA shipping plan walkthrough tutorials. (Lessons 29 - 30)

• Insider method for getting your product samples 100% FREE. (Lesson 15)

• Spot FAKE Alibaba supplier like a pro! (Lesson 6)

• Best FREE app for communicating with Alibaba suppliers (HINT: It's NOT Whatsapp). (Lesson 7)

• Simple trick to communicate ANYTHING you want with ANY supplier in ANY language. (Lesson 9)

• Partner with PREMIUM North American suppliers WITHOUT using Thomasnet. (Lesson 14)

• Fully protect yourself before sending THOUSANDS of dollars overseas. (Lesson 31)

• Incredible tools & tips to help you manage and expand your e-commerce business. (Lesson 32-34)

• So much more!

Why do we (Sumner and Ali) have a single ounce of credibility to teach this topic?

First of all we are actual Amazon Sellers who have successfully created, manufactured, and shipped HUNDREDS OF THOUSANDS of dollars worth of profitable products from Alibaba to Amazon FBA over the past 3 years.

Secondly, we’ve helped literally HUNDREDS of students cut costs, save HOURS of stress & headache, avoid countless COSTLY mistakes, and ultimately create, produce & ship premium products at rock bottom prices.

Don’t take our word for it though!

Here are just a few raving fans created by this very course…

★★★★ “I’m usually not big on leaving reviews but I honestly couldn't believe a class like this was on here! I was really close to purchasing one of those (probably overpriced) Amazon FBA courses but this class included everything I was still so unsure about in such a perfect and clear way! It's literally a step-by-step class that just doesn't leave anything unclear. So happy I watched this!” - Steff S

★★★★ “Hi Sumner! Thank you for sharing with us what you learned first hand over the years selling on Amazon. Your explanations were concise (which is good) but at the same time very detailed, and they helped me a lot to better understand the whole shipping process, which for me was a bit messy at the beginning. I really liked the fact that you always gave your advice about everything, because, for one like me who is new to all these kinds of things, starting with a concrete plan of action is definitely better than starting blind. Thank you for the material you provide us too! The "purchase order agreement" template and the “AMZ Escape Plan FBA Feild Guide” pdf will be very helpful! So great job man! Keep it up!” - Andrea S

★★★★ “Thank you Sumner! This was an excellent intro for me into this world of sourcing Chinese suppliers. My number one concern was picking the correct shipping methods... DDP, FOB, etc... and shipping options. This quick overview was great for someone like me that has rarely dared to source outside of a customs union. (I'm in the EU) I HIGHLY recommend this course for anyone thinking of either sourcing from china, or starting an FBA relationship. Thanx again!!” - Peter G

★★★★ “Sumner is a great teacher who lays down everything in simple terms so anyone that has no knowledge in international business can easily catch up on. Recommended for anyone who wants to learn about doing business internationally and does no limit to being an Amazon Seller.” - Mike W

★★★★ “Excellent Sumner. Thanks so much for the detailed information. Very helpful! I will be watching again probably a couple more times as I go through the process.”- Mary L

★★★★ “If other Amazon FBA teachers went in-depth like this, then new comers will make less mistakes.” - Kingsley K

★★★★★ “Excellent step-by-step guide. Very clear instructions and very motivational!” - Maggie C

By the end of this class you are going to learn how to…

• Find QUALITY, trusted suppliers fast (and free)

• Produce the highest quality products ON THE PLANET for the lowest price (from scratch)

• Fastest, safest & cheapest ways to ship your products from China (or other parts of the world) to Amazon FBA

• Confusing terms & important laws demystified & simplified

• So much more!

BONUS: For students who enroll today you will ALSO receive exclusive access to my personal Supplier Templates Vault which includes...

• Alibaba Supplier RFQ.

• Supplier Agreement Template

• Pre-Made Shipping Labels

• Inventory Management Table

• And more!

START WATCHING NOW and get every single thing that YOU NEED to create, produce, & ship the highest quality products on the planet at the lowest prices today!

Meet Your Teacher

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Sumner Hobart

E-Commerce Entrepreneur




Hi, my name is Sumner!


I'm an e-commerce entrepreneur traveling the world on a quest to continually achieve a better life for myself and my family AND to share the life-changing knowledge I acquire in the form of affordable, detailed, & highly valuable courses here on Skillshare.


Do you want to…


Generate more income by creating & selling your own physical products on Amazon? Generate more traffic & sales to your website through Pinterest marketing? Build a brand you are proud of that stands out in your marketplace? Achieve your personal goals faster & happier than ever before?

See full profile

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1. Want To Learn The Secrets Of Sourcing High-Quality Products From SCRATCH At The Best Prices?: Hello and welcome to the Alibaba to Amazon FBA master class. My name is Allie Hobart in along with my husband sum there, we make a full time income by selling products on Amazon that we source entirely through Alibaba. And we're going to teach you how to do the exact same sorts of products is to be the most stress we're in scariest part of selling on Amazon. There's no need to worry because in this class, we're going to give you every single tool and resources that you need to successfully sorts high-quality and inexpensive products on Alibaba. In this course, you're going to learn how to avoid the biggest mistake first timing Porter's make how to easily spot in a void fake Alibaba suppliers Like a Pro, how to source and ship inexpensive and high-quality products from Alibaba to Amazon FBA fest, a secret website hack that will give you instant negotiation leverage, as well as the Alibaba suppliers, RFQ and supply agreement templates that we use 100% free tips for communicating with any supplier in any language, as well as an insider methods to get your product samples for free in so much more. All the tools and links we mentioned throughout the videos can be found in the projects and resources section of this class. If you have any questions, let us know in the discussions board of the class and we'll get back to you as soon as we can. And lastly, once you get a feel for the content, we would greatly appreciate if you could leave us an honest feedback that would immensely help us as well as future students of the class. We're so excited to have you here and to be able to help you as much as we can. So let's go ahead and get to our first lesson. 2. Product Sourcing For Amazon FBA Simplified: welcome to the supplier and shipping module of the course. So for me, when I was starting off this whole idea of how do I produce products in China and then get them into Amazon? Like, I feel like there's so many things that could go wrong. I feel like I could get scammed, right. It seemed like a very daunting process. And I've learned a lot from it. And really, for me, it was a lot easier and more simple than I thought It was in a lot less scary. So hopefully you know, you realize the same and it's kind of cover the general overview. But some specifics weren t be covering is, you know, finding a supplier. Okay, so we're going to find that someone or a company that will produce our product inexpensively with high quality. Okay. And this is likely we're gonna use Ali Baba is probably gonna be your option. Ali Baba is the largest business to business platform. This is basically where American businesses, you know, that want to produce products like us, reach out to Chinese suppliers. And I go I all videos going into more depth about this. But Ali Baba is likely your best bet. But I also show you how to find suppliers in United States as well. And we'll find and basically finding kind of weed through supplier to find the best high quality, inexpensive, you know, suppliers right to produce our products. Then we can enter in what I call the negotiation phase. So it's a lot less intimidating than intimidating than you think, in my opinion, right? And basically, we just make sure that we both have the same understanding that this is the product that we like to produce with all the specifications exactly how we like it. Meeting our exact profitability and all of that, right? Just basically, you know, communicating and making sure that this is a good decision for both parties on making sure that everything is good to go. Right. So once the negotiation process ends and we toasted supplier and we're excited to get going , we go ahead and start. We sign a agreement, pay a small amount up front, and then we begin production. So we produce so the supply will produce your units. In a certain given period of time. We will inspect those units to make sure that everything is perfect, perfect up to our specifications before trade the ship and we will. And then once we see that and everything's going to go pay the remaining balance and the items were then shipped, and I have again all videos about this items were shipped either by plane or by sea to the United States. They passed through customs and are taken to a specific Amazon in the warehouse, which I will explain how you know which warehouse to send them to will be sent to the Amazon in the warehouse. They everything Well, everything will be properly packaged and printed and everything. The products will be scanned and then available for sale on Amazon. OK, so that's kind of how everything very general overview and we get into real detail, making everything simplified, concise, make sure you don't know where I don't want to make. I want to make sure that you don't miss any step of the process, that everything is simple. Everything makes sense and works together because, like I said, I know could be really kind of intimidating for for us, you know, the first time that we're in Amazon or selling on Amazon to produce a large amount of units in China, likely and then send it into the United States, or or from wherever, right? It makes him very intimidating, afraid of scams, afraid something will go wrong. But it is. You know, I find that that is not the case. It's much more simple when I follow this step by step formula. So I hope that you do that. I hope you're excited, cause this is honestly, really exciting to create something new to to, you know, to create something that solves solves a need. So hopefully you're excited for this. I know I am. So let's go ahead and get into the nitty gritty. 3. China vs. Other Countries - Which Is Better For Sourcing Products?: Okay, so before we dive into Alibaba, I wanted to talk to you guys about the pros and cons of sourcing from China versus other countries. So starting with the pros of sourcing from China, obviously, they are known for this most likely that's where you know, the most for, is that they're inexpensive. Now, it does not mean that all of innocent inexpensive does not necessarily mean cheap. What I mean by inexpensive is that you can get the same, the same exact product mating China are all the same exact product, for example, made in the US for less, less money. So we have looked into, looked into other countries for a lot of our products right now. But China's still beat even with the added cost of shipping. It's still more, still less expensive than other countries, especially the US and other countries in Europe. So I also wanted to quickly touch about the quality because obviously, China unfortunately has gotten the reputation of cheap, not quality kind of products. And the truth is, yes, they can create cheaper products. Product I probably would not last that long, but they can also create good quality products. I mean, Nike and iPhones and so many other big companies. Quality with quality products are made in China. So definitely one of the pros is that you can get pretty much whatever quality you want. If you want a really cheap product, you can get in China. If you want a higher quality product, you can get in China in most likely even the higher quality products will be less expensive than other countries. Now, there are certain countries that are known for specific types of products. For example, India and Pakistan with some of their fabrics or, or rubber materials of certain places of the world might be a better source in place for a specific product. But in general, china will most likely beat in, in price, in honestly in variety to or quality a actually came me because they invest so heavily into manufacturing in it's such a big part of, of their economies. So they have many, many options for that. Second pro is that they're extremely flexible. And when I talk about flexible, talking about several things, one, they are very flexible in terms of customization. As I said, we were looking into a US company for another product, not a venture. There wasn't necessarily Amazon. And it's honestly very difficult. It seems like from our experience, I'm the US manufacturers. They do that and that alone is for you to deviate from it. They need a very detailed drawings. You probably need to hire a product designer. And they probably do not want to deviate too much from what they're used to, to creating. But not with China. There were staff, there has been so many of our products that not only they were willing to customize, even on the sample stages, we hadn't even placed the order, yeah, and they customize it for us. So we can improve a general product and make it more premium. Make a two, it solves more problems. So not only have they been flexible into customizing things for us, so many things in things that we request, sometimes even suggest customizations are improvements. And if you've heard about the Canton Fair, this is, I think it's a biannually event that happens in China where all of these manufacturing companies, they gather in the show their products AND show some of their own invention sometimes because, I mean, they are so used to seeing what works in what's being ordered. So, so much from their company that sometimes they develop new products. And if you have a good relationship with your supplier, sometimes they will give you those ideas as well and allow you to sell those as well. So they're flexible with customization. They're also flexible with order quantities. That is another thing that sometimes we're dealing with. Manufacturers in the US or in Europe, or even other countries in Asia. You, the minimum order quantity is a lot higher. So a few if you're just a beginner like we were. Well, you probably just want to test the grounds and go slower when you started on Amazon or even if you're in a less competitive market, which we usually, that's why we go for and that's what we advise Oliver. Everyone we talk about Amazon to start with would be a less competitive niche, then you probably won't need to buy as many units. So they are very flexible with, with order quantity as well, which is a huge probe. And lastly, communication. So obviously this looks like it should be on the coin list, but when you compare China with other countries, for example, India or Pakistan in our opinion, because I've communicated with these other supplies, they're much easier to communicate with it. They are very used to. The apps are sending you emails and communicating this way. Obviously it's not going to be the same as communicating in your own language or from someone in your own country. Obviously, there's the time zone difference most likely. And all that that you have to take into consideration. But honestly, a hasn't been that bad, especially compared to other places that I've heard. For example, I've heard that Indians, Indian suppliers in general tend to call you allot, call you all the time. Sometimes it's not productive. I mean, most of the time it's not productive. So in general, I would actually put communication as a pro because they're used to. We're gonna show you guys later in the course, had like tips and tricks on how to communicate with them with photos, videos, and all that. And they're very open to that kind of communication. So I definitely put that on the probe. Now, talking about Kahn's, The first one is that they are not liable for anything. For example, if you get sued in the US, if you're selling the US a product and there's something wrong with the product and the customer sues you, they are not liable. But if you have, for example, an American company, most likely they would be liable. So there are some certifications that you want to look for when looking for Chinese suppliers. But there has been instances, instances where death certification is not real, so it's definitely a step that you need a vet. And we're gonna talk about that when we're going through the Alibaba platform. But American suppliers in, I would assume European supply. And even though I haven't dealt with them, we haven't dealt with them yet. I would assume they had they do have high standards, they need a certain certification. There is higher pressure, I would say, of the government and all of these regulation agencies, for them to comply by all of those regulations, but not necessarily China. And in the second column would be lead time. Now, this is possibly a will be longer, but it depends. Honestly, this could this could be true or not, but most of the time, it would be a longer lead time because you not only if you don't know what the time is, just to explain, early time is all the time that it takes from when you place the order and they start producing your order and the order is delivered to Amazon. So that takes into account not only production time, but also shipping, shipping time. So if you do want to keep your costs lower, you might want to ship, for example, via C. And that can take a good, YOU could take even a month or longer than a month, depending on the terms that you then you go for. So you do have to take this into consideration. We started as wanting the cheapest, cheapest possible cost. And we realized later on in our Amazon journey that lead time is extremely important. So you most likely, you will have a long really timed in, in few source from a country that is near you. And lastly, there is a language barrier. And obviously sometimes it is a little bit frustrating trying to communicate something and then not understanding or not understanding them or the misunderstanding, but it does get easier. In the beginning, you might be a little bit frustrated and not really knowing how to overcome this. And there is also the time change. Sometimes you have to be communicating with them at the end of your day, you tired and it's just beginning their day, but you have to talk to them so they can get started on things. But it will get easier, you will get used to it. And it's kinda get, going to get better. So for us personally, all of our products right now are being sourced in China. We did source products from Pakistan for awhile, but we stopped with a supplier wasn't as it was, it wasn't as easy as it is with Chinese suppliers and they didn't want to do certain things like the labeling, certain things as Chinese suppliers who are more than willing to do for us. So for us it's less headache and it was less expensive as well to deal with Chinese supply. So with that being said, if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 4. Should You Hire A Sourcing Agent?: I also wanted to quickly touch on the subject, which is sourcing agents. And if you don't know, a sourcing agent is, is pretty much the middleman between you and the supplier. So a few are really scared about the whole process of sourcing from Alibaba. This can be a good option for you. But I'm hoping that by the end of this course you will no longer be, you be very confident about the whole process. I know when we started, we were very skeptical and afraid honestly of being scammed or doing something wrong. But I can, I can promise you that it does get easier and more natural a will come more naturally to you all of the decision-making or communication. But I did want to talk about sourcing agents and the pros and cons of hiring one. So the first pro is that they will save you time. And a lot of times depending on what you're responsible for within your company, you don't have enough time to talk to all the suppliers. I know it can get pretty time-consuming specially as you as you extend your line of products is in if you have different suppliers for you to be communicating with all of them, it can be time-consuming and if you don't have that time, then this might actually be your only option would be to hire sourcing agent. But in general, it like I said, it does get easier and we will tell you guys some tips and tricks, not only for communication where your relationship with the supplier, so it doesn't have to be this dreaded thing that takes you that long, honestly. And then the other pro, is that they, the sourcing agents will bring their knowledge, experience, and connections. So obviously, we're just, you're just now learning about this. We also, we knew nothing about sourcing from Alibaba or, or, or even if if it's not there Alibaba sourcing at all, We didn't know anything about the source. The agent does have the experiencing no, the, the niches they know. And certain things that it takes a while for you to understand. Like maybe the mike in China for example, they have the regions for certain types of products. So for example, the majority of electronics of in China are produced in the same zone or region, or the majority of fabrics or textiles are produced in another region. So this knowledge, for example, sometimes can make a difference, can make a difference in, in a more competitive price or faster early time in, most likely they're, they're less likely to get scammed as well because they already know Possibly all of the tricks and they have their connections. A lot of times you want another package made in the same area that your product is being, is being made. So you can easily bundle or put those together and they would have those connections. Even though, I will say most of our suppliers have been extremely helpful into with these connections like finding freight forwarders for us or finding a good a good company that would do the package. You're the insert card. So, so far, we have had great experiences, but sourcing agents can bring that knowledge and those connections for you. And you might be able to get lower costs as well. But there's my, you know, we're going to see on the cons. It might not make a big difference for you, do those better prices. But the last Pro that I wanna talk about is that day we'll be able to facilitate certain logistic things. One of them being, for example, they can bundle your samples for shipment. So especially in the early stages when, when you testing suppliers, you want to order a sample from each. It could get a little bit, it could get expensive to separately ship each one of those because it can range from like 30 to $50 just to ship one small package. But if you have a sourcing agent, you can send those to your sources agent, for example, in China, it can bundle all of that and then ship it to you. A lot lower cost. So yeah, so those are the pros. I'm sure there are other ones too, but those mapping or the biggest probes and the biggest cons though, are what dependency. So when you have a sourcing agent, you are completely dependent of them or of their communication symptom. Sometimes you completely lose the line of communication with your factory, with your supplier, and you're completely dependent on them. If they have a personal issue, for example, your sourcing agent and they they need they're taking vacation or their sake. And you need to get a word with your supplier may be a lot more difficult. Some of them do not provide the contact for you for you to have that relationship with the supplier. Not to mention, as we're going to talk about on the supplier tips, is that relationship is extremely important to suppliers. So they will be sending you Merry Christmas wishes or happy holidays for certain holidays for you. And they do want that good community, the good relationship with, with us. So when you lose that as I'm going to o as I stayed on the next Khan, which is type of priority, I honestly believe that when they lose that line of communication, you're not such a high priority for them because suppliers value talking to the decision-maker in people you can negotiate with. They like, they do like negotiating the life that that communication. And when you have the sourcing agent, you break that you don't know, you no longer have that and that could be bad for you in terms of priority if you need a Russian order or, or if you need a certain customization or something like that, they might not care so much today, let's put it that way. And then lastly, a can become more expensive because of their mark-ups. Obviously, sourcing agents need to earn their living by what they do. So you're either going to pay them by a commission of the order, your total order value, or it's an upfront fee, or sometimes they have a different payment structure, but especially when you're paying them from a commission, what incentive do they have into lowering the costs for you? I mean, there is the incentive of maybe if they lower the costs, you place a higher-order, but sometimes not. Sometimes if they get, for example, I don't know, 3% of the total order of the total order cost, then they have very little incentive to get the number lowers for you because you're going to earn less. So you do have their markups, they can be more expensive. And personally we do not use sourcing agents. And that's what I would recommend. So the, for the remaining of the course, we're going to talk to you about your direct line of communication with supplier and how you should do that yourself. But I didn't want to touch on the topic because you do have the option if you want, if you don't have time and all that. So I hope you guys found this video helpful if you have any questions, be sure to leave those in the Q&A below. Let's go ahead and get to the next video. 5. How To Find Quality, Trusted Suppliers (and Avoid The Frauds) FAST: Alright, What is Alibaba? Alibaba is like Amazon, but instead of searching for individual products for you to buy, you are searching for suppliers that will manufacture products in bulk for you. So Alibaba has actually made this whole sourcing process so much easier, has reduced and gotten rid rid of so many barriers that I can't honestly can I imagine sourcing and doing Amazon FBA without Alibaba in, in, in, I would probably be very skeptical and very afraid the communication. But Alibaba has certain criteria that you can select that will give you the best, the best suppliers that you can find for your products. And that's what I want to encourage you to do. A lot of people use Alibaba to find the best products are the best, the cheapest products. But I want to encourage you to use Alibaba to find the best suppliers for your products. Because as we talked about it before, suppliers are extremely flexible, specially in China, which is the majority of the suppliers that you find through Alibaba. It's, it is a Chinese company, even though there is Alibaba India in, I think there's Alibaba, Vietnam and other countries. And you can find other suppliers from other countries within just as well. But as we talked about, suppliers can be extremely flexible and customized products for you. So I honestly wouldn't even say try to find the most similar product to where you're trying to sell, which used to be our strategy, I would say try to find the best suppliers that you possibly can within that niche. So I'm gonna go ahead and show you guys all of the tips and tricks of using this platform. So first of all, you would go ahead and join Alibaba. It is free. You can create a free account, will have to pay. You just go ahead and join in, sign up with your and all that. I will say that you may end up getting a few emails, like marketing emails or all that. So be prepared for that. I don't know if you want to use a different email and just use your professional email for the communication with the supplier alone. Though, it is useful. Sometimes getting some of those e-mails from Alibaba. Like sometimes Alibaba is hosting a promotion like usually they do during September. And then you can ask your supplier about that promotion or that. But do whatever you want. Create an account. And then what you're gonna do is you're going to come to the search box and look for a product. So for example, we're going to use silicone molds. Alright, next, you're going to go here on this drop-down menu and instead of products. And before I do that, just for you to see, there are 8,310 results for soap. And the top ones who most likely be ads. People are there or paying suppliers that are paying for you to see their products. So it's not even necessarily the best products out there. All of this is the best rank. A lot of times just like Amazon, they have their, their PPC advertising strategy. So instead of products, we're going to look for suppliers. And from 8,310 results. Click search. Okay? Now we have 10000235 suppliers, so 1235 options. Next, this is extremely important. Make sure you check this box, which is trade assurance. And what that means is that your payment, if you paid her Alibaba through the trade assurance program, your payment is safe, is protected in a lot of times and a lot of people from the Amazon community says do not pay via Alibaba, only pay via PayPal. We currently only pay via trade assurance and we'd never had a product problem. We we actually have had to use the trade assurance I'm System to get some money back and it was completely fine. And I've, I've heard of many suppliers, oh sorry, many sellers that have used taking advantage of this protection and it has worked in their favor as well. So definitely check trade assurance and also cheque verified supplier. And verify supplier means that whatever they say that they do, if they say they have 50 workers, or if they say they have this certification or that they are a third party company has gone to that factory and they have verified that that information is true. So do not go into a partnership with a supplier if they do not have this verification, or I guess do at your own risk. But we only source from suppliers that have the trade assurance and verified. Alright, so now we're already down to 285 suppliers. So a lot less options, which is what we want. We want to find the best of the best. And so for that, let's go to this side menu here. And if you already know the market that you want to sell, and if you want a supplier that is used to that market, for example, North America or Europe, because they might be more familiar to the regulations and, and certifications and all that that it's needed. You can go ahead and check the, so I'm gonna go ahead and check North America and Europe, Western Europe. So you know, and you go ahead and click confirm. And it's going to now 249 and we're gonna keep going. Total revenue. This can be very deceiving, so I usually don't select any of them. I usually don't go for any of these because this, I think this is only like the revenue that they make through Alibaba knowledge outside of Alibaba. So I usually don't select any of this and then certifications definitely. I select the ISO 9,001. I don't know if that's I would say. But as I call it, which is the quality standards, then I select a BSC II, which is the business business social come alliance initiative, I believe, which is sort of like some standards and guidance that if they have this certification, you know that the factory abides by those guidance and I I always make sure I select that as well as the ISO 14,001. I don't know if that's how you say it, which is the environmental standard. So I usually cite those three and go ahead and click confirm if there's any other ones that you want to research needed, you can go ahead and select those. I usually don't do anything here on research and development and number of employees. Sometimes that can be that can be good or not. If you want to process big orders, you most likely one to get a company that has more workers, more factory workers. Otherwise, you won't be able to get a fester lead time. Or sometimes if you need a smaller a smaller IMO Q, which is a minimum order quantity, it then you might want to go for a supplier that has a less employees, there are usually more flexible and they can customize more of these things for you. But I usually don't, don't select the right away anything here, so alright, so I've already selected and confirm. Now we're left with 98 suppliers. We started with over 8 thousand results of products and now we have the best of the best. And now when I go through these, I usually want to get suppliers to have a more experienced. So this one, for example, 11 years of experience, I at least 11 years within Alibaba. Actually this is this can also help you avoid any scams. One of the ones came to has happened before is the fact that sometimes a supplier's brand new to Alibaba, you would go ahead and place your, your balanced payment on all your balanced framing your deposit payment with them. And they would just shut their Alibaba account. And when you see they have and usually that happens with suppliers or I have been on Alibaba for like a year. And I'm not saying that that is the case for everyone who's been on Alibaba for not so long, not such a long time. I'm just saying that it is one of the schemes that you might want to avoid just to be safe. You always, you also want people with more experienced people who know the time of year or usually when you should be placing orders, sometimes they will help you make those decisions and it's been so helpful for us, our suppliers honestly, I'm very thankful because we have avoided a lot of headache too, because of them, because of their advice. So before I open them, I will also say that you might want to look for, remember I talked to you guys about that usually a certain type of product, depending on the material they are producing, just a region of China. You, you probably know that region by looking at the most common location within these options. So the first word of their accompany, it's usually the place where their company is located, so changing and I'm probably mispronouncing this, but we see this one, okay, we see Dongguan, Dongguan here. Dongguan, alright, so here we can see that that is most likely the area within China where silicone products or most likely produced, which usually means that you get a more competitive price or you know that it will have more easily accessible sourcing materials. So because that regions very used to that type of product. So that's what I do. I usually go for those. Options. So for example, there's this 110 years don't want. So if you've already created your account, I'm using a brand new page here, so I'm not logged in, but if you've already created your account, I will go ahead and just favorite this and that's going to create your shortlist of all of the suppliers a you have favored. But because I'm not logged in right now, I'm just going to open within a new term, this 12. And honestly, I would advise that you contact around ten to maybe 15 suppliers. That does not mean that you're going to be communicating trying to decide between ten to 15 options, that means a lot of them will not reply honestly. So, but that means that you you're testing all of the options to see what is your favorite supplier in many terms that you're going to analyze many different aspects. Not only the cost, but how well the reply to you in how quick they reply to you and all that. So all that is very important. So I would encourage you to contact a least ten suppliers, but around ten to 15 suppliers is what we usually do. So just go through these and make sure you open some this 115 years and Dongguan and the location does not necessarily have to be have to be a deciding factor. You can open other ones. For example, this one that I saw in the beginning from changing, let's see the top. This one. Okay, So let's pretend I open ten or 15. You can go through these other tabs and take a look at their profile page. And sometimes we do have reviews just like Amazon. But at what I also like to look in every single one of those, is there other products? Because another thing that you need to be aware is that there are manufacturing companies and there are trade companies. So trade companies usually have a more expensive cost aid or they require larger orders. Also. Usually they have an extensive line of products so they might produce silicone in, I don't know, like silverware or electronics and in all these different types of products. So there are more likely to be less of, less of an expert into your specific product. So we usually definitely avoid trade companies in the way, one little trick that you can do is you can go to their products here in C, all of their selection. So they do have silicone, they have kitchen where just like I said, baby products in an outdoor products. So you see here that there are most likely a tray company in even if they're not in, you can, you can tell, you can see that maybe the supplier will not be as attentive to detail. They might not be as knowledgeable to what is required for that specific product, the silicone soap molds. So personally, I would not contact contact this supplier and I will just close. And then you can go, for example, to the next one will get products, silicone, silicone stationary. Here you can see that it's most likely all silicon products or at least the majority it is in. Then another tip is that you can scroll down and look at specific aspects of this company. Maybe some certifications that they have in it's actually good that he, you know, you look into those and even open these images in to later on testing and make sure it's legit. But also you might want to look into some of the information and customize a message for them. A lot of people do that and suppliers, specially Chinese suppliers, highly value that kind of, they're kind of attention to detail and interests that you express in their, in their company in the country and all that personally, we usually use our RFQ or requests for quotes template and just adjust for that specific specific supplier with the product, the product link, their names and all that. And that's usually what we do and it's worked for us so far. So where you would do next is go here into search in this store, in typing silicone, mold, the actual product that you're looking for. And then from here, you're within the story. You know the supplier is good, you can trust them, they're verified in all that. Now, I would look for the most similar product to what you're looking for. So if you want a heart-shaped or just the two mode with just two little spaces, or if you want with sex or whatever is most similar to the product they want to sell. Then go ahead and click on it. And then from here, you get a little bit more information specific to this product, not only the estimated price, depending on the quantity, as well as the minimum order quantity, which would be 50. Though a lot of times, like I said, they are flexible. They can work with you with minimum order quantity and we're going to talk about that later on. But this is very helpful alleles as an estimate. But I will tell you that do not get too attached to this price unless you want a very basic product. But that is not usually what we advise her advice to go for Quality, Premium, stand out, customize it, solve a need that it's not yet being solved by other, other sellers. So usually that price is going to change when you start customizing, when you start adding in nicer package and all that. But it's still very useful to, to have the estimate as well as lead time. You can kind of understand that from one to 500 Ely's basic products, it's about seven days. So from here what you would do next is go to contact supplier. And that's all we're going to show you guys in the next video, we're gonna go through our RFQ template and how to contact them. What is important to ask, especially in this first contact. And I hope you found this video helpful if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 6. USE THIS When Reaching Out To Suppliers!: Alright, so I'm logged in and now we're ready to contact our suppliers. So you go ahead and click on this button here. And then here's the supplier contact form. And this is actually a new interface. Alibaba obviously has been updating and always improving, hopefully improving their platform. But from here, you would see that first of all, a automatically fills, fills that quantity as the minimum order quantity. And what I like to do is I like to change this to maybe like a 1000. And even if you're not planning on ordering 1000 units, it's in my opinion, when the supplier sees a contact form or someone interested in a lot of units there most likely they're more likely to give priority into replying as opposed to someone who's only once 50. So actually do pay attention to that because sometimes you actually do want 1000 units and automatically fills as 50 and the supplier doesn't reply to you right away or doesn't give you that much details because honestly they're not that interested in very little quantity order quantities. So that's the first thing that I would do. Then they have all of these fields here that you can customize to be more specific about what you need. Even though all of these options are going to be in our template. So if you want to go ahead and choose one of these, go-ahead and it's fine. Especially if you know for a fact that is what you want. If you want to customize it, you can leave a blank. It's not mandatory and just place the main message here. Now, talking about our template. We're going to give you guys this template and all you have to do is added whatever is in orange, you just put your specific details here. So let's go ahead and get through those. So we start with Dear contact name and the contact them you can find here. Usually it says right over here. So dear Chris. My name is Allie Hobart, for example, and I'm the purchasing managed for Hobart products for example. And we usually we like to put purchasing manager as opposed to like CEO or owner or something like that. Because that gives you a little bit more negotiation room. You know, you can say, oh, you know my boss, you know, I would love to do this price, but my boss has to have this Lead Time or this cost or something like that. So as we talked about it before, they do like to talk to the decision maker. So you being a purchasing manager, you have the power to make decisions by you can also leverage that. I'm, I can really do a like that. My boss is the ultimate, ultimate decision-maker. And then we are in American consumer products company and you can change them if you're not American. And we're interested in the following products or products listed on Alibaba. So added that orange to say we're interested in the silicone mold, silicon soap mall. Listen on Alibaba and then you can just copy that link that shows here. Just copy this link. Well, you probably have to open a new page again to actually grab the. Url, so copy the URL. So just so there's no confusion about which so mold exactly it is. So place a product link here. And then our companies looking to add silicone, silicone soap modes to our line of products with the following requirements. And then here is just some ideas by you pretty much list everything that you are looking for. So quality definitely say, you know, high resistant or durable. It's important that you, even though it might seem obvious that you want a good quality product, definitely stress especially certain aspects. So I want something durable or sick or high-quality pink or purple silicone, so molds. And then you can put the way if you have, you know, obviously it's going to depend on your product. So just go through this list as well as other things that you might need to ask them for. So weight, size, if there's a custom logo and position, I would go ahead and say with this logo image attached because as you can see here, you can attach files. So you can go ahead and already send them the logo. And if you don't have that information, yeah, they don't send a yeah, you can always ask for them later and then they'll give you if they can, they'll tell you if they can include that in the same price or if it would be additional. And I'll talk about that very soon again. Let me just finish the list and I'll give you a little point of view at least about that. And also if you, if you want a certain design or maybe you, I wanted this pattern or twisted whatever it is that it makes sense for your products as well as if you want to bundle with something else, you might want to bundle to different soap molds that they, the same supplier offers. Or if you want a bundle with something else from a different supplier as if they are willing to do that. Certifications, anything that will have contact, especially because some people use those modes for kitchen. So if you anything that has contact with skene or if it's there's contact with something that you're going to consume, you most likely need FDA certification. And we're also going to talk about certification requirements soon in another video. But whatever certification that you should know, you should do your research and you should know if you need a certain certification for the marketplace that you're going to sell. So for example, the US, then you can request a here as well in any other addition, details that you want to talk about your products. But I will say moving onto the next one which is packaging. We, this is our strategy. We usually go ahead and send them a template asking about everything. And later on you can ask them, oh, okay. What if I don't have this? What if you what if my package is different? What if I do the package with a different supplier, which they're used to, it's not necessarily offensive to them that if you do something that they're not experts in. So if you do like a package, you're a paper things with a different supplier, it's not that big of a deal. Some people, however, and this is my point of view and it's an option. Some people might actually want to send them a very general inquiry and then later on go at different things because that way you can know. How much you're actually charging for every single aspect of the product. So you, let's say you just ask for a silicone mold in, in purple. That's a and then later on you said, oh, what if we want to add our logo over here and the position? Then they say, oh, that's going to be $0.10 more per mold as opposed to maybe if you asked all in one, all in one day, they might, they might actually calculate a higher price for that specific service or customization. But for us, one, because we have already a lot of suppliers to deal with. Also because we want to know from the get-go how well the supplier communication willingness to work with you is. We prefer to already asked them everything upfront. And later on if we want to change something, they will tell us Oh, that that would ok, then if you don't want the package anymore, that will be $0.10 less or something like that. If you are curious to know where every single thing costs. So anyway, just a parenthesis because you might want to choose a different strategy by moving on to our template. Next, we would ask about packaging. So we usually give them a little bit of detail and it's very useful to use photos as well. So we want this type of package that we want box or if you want a just an up bag, transparent bag with a head card, whatever it is, say image attached and attached to image to them, to the message. That's going to be extremely helpful in not just helpful but efficient. Sometimes you just want a nice package or a paper package and they're like paper package could be anything. And with them having a little bit more direction, they can give you a more accurate quote. And then product inserts is very important and it can be a great differentiation differentiator in actually packaging as a whole, we found a lot of success into paying attention to our product packaging. If your competitors are paying attention to their product packaging, then it's a must for you. And hopefully before you decide on this product, you are ordering your competitors products so you can see the size, the weight, or if it's too thin, you want thicker, or if they have a really nice packaging or a gift ready packaged and all that. So you can either be on the same level to really compete or even better. So for us, we usually will depend on your product. Some products require less attention to this, I would say in some require more, but definitely do packaging. And then Leslie asked them, is the package and described above included in the product price? In the final product price, you want to be very clear about this because sometimes they will say, yes, we can do this packaging and it's not really included in the cost that they gave you though, just how you later. So then after you describe everything and you're going to say considering your factory is able to supply the product as described above, please provide the information below. So we describe everything that we want or at least a lot of what we want. Then we're going to ask for costs and other information. So first the sample, you can ask, please provide the following. For DHL Express shipping, you definitely want a quick shipping for the sample so you can move on and make your decision fast. For the United States zip code. And then you can put your zip code. And then what is the total price as well as how long it would take not only to produce but to deliver so expected delivery time. And we will talk more about samples in when you shall order them and what to expect and how to communicate with suppliers about samples soon. But just so you know, you definitely want to be ordering and simple. You don't want to be placing in order with the supplier, even if they check all the boxes for you without actually seeing in touching the product. Next, you're going to ask them about price. So here you can edit how many units you want. But usually our strategy for quantities definitely ask more than 1 C. Let's say you're set on ordering 1000 units. Also asked them about maybe 503 thousand something, a lot more than maybe in the future you may want to scale, as well as something a little bit less that you can see if at some point you need to just place a smaller order. How how much more it will cost for you to places more smaller order. So I definitely recommend you to or to ask about Elise. Not at least, but I think three different quantity is a is very, very useful for you to have that sense. So, and I also like usually putting higher quantities, especially if it's for make sense to what your order quantity it is. If you are planning a 750, maybe you can ask for 5007501000 or 2 thousand to have that that spectrum. And then next you are going to ask about shipping. And it says on the template, what is the cost to ship the following quantities to the United States by DDP air zip code. And then this is the LA airport zip code. And we're going to talk about what DDP means. And this is a trade term and don't worry, don't get overwhelmed. We're going to talk about and explain what that means. But definitely ask DDP and zip code might not actually be, most likely won't be that zip code later on. But they will not give you a quote without having at least an idea where it's going. And the LA airport, the ellie port, it's usually where the products coming from, China will most likely go to. So it's a safe zip code. Later on, after you place your order, you can give them and you create your shipping playing. You know where to ship your products. You can give them an updated address and your costs may increase a little bit, but it honestly, it should not be that much if it's within the same country. So go ahead and ask for the same quantity of units, how much that would cost, because you need to know that before placing your order to know if you're going to be profitable or not. And then also production time. This is extremely important, as I said in the other video, we used to always only pretty much care about costs and the lowest cost possible. But lead time is extremely important. Imagine if you're running out of stock now. And you're ready to place another order, but it's going to take another 30 days, 45 days to produce. You need to know that in advance, how the number of days for smaller order or larger order sumps for certain products a might not vary that much because making a 1000 or 3 thousand of a batch thing, depending on the process, might be the same thing, but it's very important to know. So ask about production time and communication. Lastly, please provide your WeChat ID for Furda correspondents. You can also ask for their email address, whatever you prefer. But WeChat is usually there are preferred way of communication. Now, if you're in the US, WeChat has been banned from the US. Trump has been as alpha, I believe September of 2020. You can still get WeChat if you have a VPN. And we're going to leave the a VPN option that we use in the resources below. But if you have a VPA and you can select a different location for you to download the app and, and use it. That's why we use, that's what usually suppliers prefer. We know this. Now later after communicated with lots of suppliers, we know they prefer this. Whatsapp for a lot of people use WhatsApp, but WhatsApp is for them is like WeChat for us. It's banned in China, so they do need a VPN, so they might not be as quick to reply via WhatsApp. Hey, you can also communicate your Skype or email. It sort of decision. I usually don't like communicating via Alibaba Alibaba platform as of right now, the communications not gray is not great for sending photos, which we communicate a lot with photos, you know, using the drawing circling. Oh, I need to change this in replying to specific comments which these other messaging messaging apps provide. So you can ask for their WeChat ID and then you say Attention, please do not respond to this message on Alibaba. Some of them might still do that. Please respond through our WeChat and then you put your WeChat username, Skype or scattering UP your Skype ID, ID or email email address. As I said, I prefer you might prefer email. It's a lot more professional and formal and you have all of that communication saved, email threads and all that. But personally, in terms of communication highlighting things, I prefer these messaging apps, so I usually use WeChat. And then finally, I would tell them we plan to select a supply and complete our initial purchase within the next three weeks or whatever you prefer. We're currently communicated with two other factories. After our initial order, we will have repeat orders and hope to have a long-term partnership and increased order quantities. So this last paragraph is very important because one, it tells them that you have a deadline, so don't take forever to reply to a says that you're looking into other options, so yeah. If they wanted to give you a higher price. Now there are at least going to think twice because you will be comparing those costs. And you also want to tell them that this is the initial order. That, you know, it's a test order, it, so it might be a lower quantity, but you plan on, and this is key, a long-term partnership. They love hearing this. They really value, like I said, the relationship, but also that this demotivate gives them the motivation of like, okay, maybe we wouldn't really pay attention to this. We usually like bigger orders, but this is a test order. They want a long-term partnership with increased order quantities. I mean, it's going to be a partnership and that's what I encourage you guys to see this as the whole sourcing process. And your relationship with your supplier does not need to be something that you're dreading or that is stress for a frustrating which sometimes will be in honestly that's with pretty much all aspects of work, is that sometimes there will be stressful and frustrating, but it's extremely important that you actually make this easier for you and value this partnership in show them that you care about their company, you know, growing and having profits and carrying about their workers as much as you want them to care about your accompanying you having profits and new growing, it's going to be a mutual thing and mutual benefit if they give you, for example, good deals and customize things for you so you have more success on your, on your business and increase order quantities for them as well. So I definitely encourage you to not only see it that way, but tell them that this is important for you. So And lastly, you say we're looking forward to your response and then sign for your full name purchasing manager, Hobart products. I think that's what I said. So anyway, that is our Alibaba RFQ. And you see that this template to actually help you get a sense of the community communication with your supplier as well. Because even though you're putting all of the information here, you still going to get messages from supplier saying hello and then just waiting for you to say hello. And then how many units do you want or things in asking like one question at a time for things that you've already said on the template where other suppliers will give you like, you know, bullet points, very organized replies or not. You know, they might reply to everything or they might need some more information, certain things in it's fair. And I I try to remember if I've ever had a supplier, they reply to every single thing, very organized. But, but in general, you will get a very quick sense of how well they respond, how much they paid attention to your questions, how quick they will reply in that is also part of the selection of suppliers. So that's why I encourage you to reach out to ten or 15 suppliers. And then after you get the quotes, get your favorite suppliers seem What I mean is like not just the quotes in terms of costs, but see the other terms as well. Delete time in the English honestly, the communication, all that, I would encourage you to choose your favorite supplier, not necessarily your favorite cost or a favorite quote in, with your top favorite suppliers. Talk to them, ask them why, why is this price higher, for example, why can you not provide this or that and always ask why? And that's going to be actually one of the tips that sum there provides later in the course for you in the negotiation tapes is that sometimes you have no idea, you just assume that they gave you a quote because they're trying to scam you, where maybe they're the only ones actually quoting him for the quality that you want with the certification that you want and you never know. So don't be afraid to ask why. And after you go through the process of elimination, you probably going to end up with our, I'll maybe three suppliers, which is the, which are the suppliers that you would probably request a sample from in order to compare the quality, fuel, the product, few speed. And if they actually meant what they told you in, that's AB starts to become very real and then it's going to help you narrow down the ultimate supplier that you want to have the partnership with. So I hope you found this helpful. If you have any questions we showed you, leave those in the Q and a below, and let's go ahead and get to the next video. 7. It Never Hurts To Have A Back Up Plan: While you're in the process of selecting your favorite supplier, or even later in the process, if you already have your supply, you've already ordered with them many times, I would encourage you to keep the contact information of other suppliers that you've liked for the same product, meaning pretty much having a backup supplier. The reason why I say this, even though it is very important and we advise you to invest in the relationship with your supplier and wish for a long-term relationship. There will be time, especially times of the year, depending depending on where it is. If it's, for example, during Chinese New Year's or Q4, that maybe your main supplier cannot take more orders. Or if you've just ordered something in its midway through the process and they cannot add anything else. And it will just take too long for them to do it after this current production is done, it is very advantageous to have another supplier who can create the same product for you. Perhaps in a different way, part of the country or maybe in another country. But what I would encourage you to do is that after you, who you select to your supplier and you've gone through the process of manufacturing, you have your finalized product, get one of those samples in sanded to a new supplier and ask them to match that exactly. Because obviously you don't want to have a backup supplier that will give you a different product, different quality, a different way of packaging, then your main supplier does or then your other supplier does. So you have that inconsistent stock with you. So I would encourage you, even though I actually haven't heard anyone talking about this this option before to actually have that option because it can definitely come in handy even if there are more expensive, maybe there the second more expensive, but they have a shorter lead time. So usually throughout the year you are organized well enough with your inventory management to go with your main supplier and have a lower cost. But if you're in a hurry, if your sales spiked and you need something sooner, I would assume you would be willing to pay a little bit more for shorter lead time. So it's just an idea. You can take it or not the advice, but if you have any questions, be sure to leave those in the Q and a below, and let's go ahead and get to the next video. 8. Simple Trick To Communicate With ANY Supplier in ANY Language: in this video, I'm gonna show you how to improve your supplier communication and negotiation process using images and potentially also video, right, but specifically images in this case. Okay, so images and video are pretty much universal, right? Everyone understands when they see visual images off in particular, you know things. In this case of what part of the problem we want to change. Okay, So depending on your product, some will be more important than others. But this is very, very simple to do so when I'm using right now and what you see in front of you is Ah, keynote presentation. If we using Mac, I'd recommend using key note. And then if you're using Microsoft or you know you have a PC, did you use power Point? OK, you can do this. I just did this literally five minutes really, really quick on my my keynote on my Mac. Right. So what you can do right, if you need it, like, call out certain aspects of a product of things you want to change, it may be the supplier is having some trouble understanding or believe they may have some trouble, right? This could always be just a great first step to really explain and show what you want to change or improve about your product. OK, um or it could be good for clarifying etcetera, Right? Just really, really powerful, Really simple. And it's free. So what you do is just get an image that is most similar to your product on You want to search so you can search it on Google Because again, this you're not stealing anyone's copulate. You're just using this, for example, purposes. So you go to Google and type in, you know, your product name and then followed by P and G. Okay, what does that mean? PNG So PNG images or something like this, right? So you know, instead of having a background, you know, the purple thing here doesn't have a background. This does have a background. The the silicone soap molds here don't have a background. Okay? Those air not necessary that they are. But when he search, you know, whatever your keyword product Hubert is and then followed by P N g. Those three letters PNG. Then you find you tend to find images that look a little bit cleaner. Just preference. You don't have to, But these images look a little bit cleaner, so you'll do that. You'll find your product and then whatever kind of similar things or things you want to change. You go ahead and you'll write what you want to change with arrows. And then you know the image example. That's what I like to dio so really briefly, I'm totally made this up, like on the fly. I have no idea. Um, this is good or not, but, you know, we want to print logos on the bottom of cubes. Maybe I'd even say of each ships of each cube on. We can just kind of scroll that out of each cube, giving me a little bit of a hard time. There we go, even extend it out to make it a little bit. Yeah, some like that. So print logo on bottom and beach cubes, and maybe you want to etch it in, maybe to wear when someone's creating the soap. There's that kind of custom beautiful, like design or logo or whatever you want it to be. And I just randomly chose this minimalist logo, which, by the way, I really like this. Have a logo, though. depends on the product, right? This is more for minimalist, modern type products. Maybe one work for so mold. So, yeah, I just want to print this or etch this. We could say into the bottom of each so bold. And I did my best to kind of crop here, but obviously you can see this is not perfect and doesn't need to be next. We want to change the color. We wanted to be purple, and we want this purple, not pink. Okay, so what the overall, we wanted to be purple, not pink, And then the material or you could even be the silicone or whatever must be FDA approved just overall. You could even say it, like have multiple arrows or whatever, but pretty sure for right, right where you want to change include some images, right? Type in the keywords into google, followed by PNG to find the best options. And what you'll do is when you're communicate with suppliers, what you do is you create this in a keynote or PowerPoint slide, and then we could just take a screenshot. So just Google had to take a screenshot on your specific, uh, Mac or your Mac book of your PC or whatever you're using. Learn how to take a screenshot, really simple. Take a screenshot of this and then send that to them. And if they self questions right, you can kind of edit it a little bit or make it look a little bit nicer. Add some more things very, very straightforward, totally open ended its free to do its simple to do, and this will drastically improve your supplier communication process. Also videos or another great thing. For example, Let's say order a sample and there's a couple things that aren't right. You can use images as well as have a video showing, and while you're talking about it and pointing with your finger, it could be with your phone right of what you want to change or that's different. Maybe you compare it with two products. Maybe you're showing images, video or images of packaging, right? So So just don't limit yourself to just text. There are a lot of different options, and by the way, you may think, Oh, this doesn't seem really professional. Trust me, they will definitely appreciate it. Anything that can reduce time for both parties for the supplier and yourself is gonna be a win win. It's gonna be benefit, so just think about that. If incorporating images and videos, it's really easy. It's simple and it's free. So I hope this helps. Let's go ahead and get into the next video. 9. WARNING: Does Your Product Need Certifications? Here's How To Find Out...: So just a little bit more detail about how to figure out if your product needs certifications and requirements, at least what Amazon requires. They may not say everything that the country requires. You need to do that research yourself. But in terms of Amazon, you can follow this link here that we're also going to provide the resources below. And that's gonna take you here in its category product enlisting restrictions. So hopefully you already went through this list and less of restricted products through during your product research phase. But in terms of certifications, if you need any sort of standard or to anything, even if the product is now restricted, you can come here by a winning doubt. You amazon or help page in the search box on the top here, and also the help page, they're going to be extremely resourceful for you should just try to be as descriptive as possible. For example, if you're trying to create a a wood product, just typing would product restrictions or wood products certification standards and see what what the results are? A lot of times it's from Amazon or other people already had that question. You can read that in the forum, but just to give you a glance of what this page looks like, so you can scroll down and you can see there are some product compliance requirements also in terms of the labeling or safe safety. For example, a lot of times if it's seat food safety or if it's energy like your fridge or fan or something like that and it has that special label. There are some requirements as well as requirements for the images, just as the parentheses. A lot of times for food, for example, not a lot of times you have to put the nutrition facts as an image. And you should definitely go through this lesson. Take a look at the contents, see like the images and requirements. And then, for example, if you want to see something more specific, here's just a quick example. I went into restricted products and you can see the bread crumbs here, restricted products and then composite wood products as an example. So within the restrict or products that say you don't really know if your product is restricted or not? It would say examples of permitted listings. So products containing regulated composite would sorry if I'm mispronouncing that comply with EPA for formaldehyde emission standards and labeling requirements. So there you go, you can, you can sell wood products, but make sure you ask your supplier, does this combined with the EPA for formaldehyde emissions? And can you show me a certification and remember when we're looking on the supplier profile, you could go down and look at their certifications as well. For example, this one, it says that the certifications were verified by the SGX Group, which is a pretty rapid rubble company, the SCS and worldwide. But you can go here. Sometimes they're even asked to have to ask them, but you can come here and look at the certifications and in make sure, for example, that the company name matches the company name there. You can download a go through. I can't really see exactly. Yeah. Don't want I'm sorry, I can't pronounce this value. As you can see that the company name here matches this company name. So that's a good sign. So anyways, that's just a little bit more information for you to make sure you're compliant. We don't wanna go through all of this process. For at the end, you realize that the product is does not comply with the marketplace standards or even go ahead and sell the product and have an issue. And that's the whole legal problem, but not trying to scare you, just trying to prepare you. So make sure you go through that link that we're also providing below. And if you have any questions, be sure to leave those in the Q and a section. So let's go ahead and get to the next video. 10. Requesting Certifications From Your Suppliers: requesting certifications. If your product needs a certain certification or approval, for example, FDA approved. You want to make sure that you get the proper documentation and the proper that your supplier and your product will have the proper certifications to ensure that you don't get in any kind of trouble, like getting sued. Okay, so if you're planning on telling United States and your product needs a certification of some kind or an approval, that's one of times that would actually really recommend partnering with an American supplier. United States has very strict laws. And if you ask your supplier, hey, is this product FDA approved? They will generally give you an honest answer because guess what? If they give you a dishonest answer, you sell the product, you get sued. They're also liable to get sued as well. We're in China. If you get sued, you know they're in another country, totally different law. You can't take them and bring them into American courts. You know they're not liable. Okay, so just be aware of that and be careful of that. And again, that's why I recommended here. You need a certification and you're selling United States or in the European Union. Then, respectively. You know, get your product sourced and your certifications there and again, they're still Ruby profitable. And you still can't. I'll show you how to find potentially find American North American suppliers and the pros and cons as well. But for now, let's talk about certifications. Okay, so let's say you're dealing with the Chinese supplier, and you want to make sure you have the proper certifications. Okay, So number one do your own research to make sure you get all the certifications you need. Then, to make sure that the supplier has everything they need, you can ask them. Do you have X certification? You're either going to say yes or no. If they say no, can't do business with them. Obviously. Right. If they say yes, then you ask them who issued what agency? What organization who issued the certification to? You are into your factory in your company. If they tell you who it waas at this point, they may say, Oh, yeah, Actually, actually, we don't have it, but we can get it and they say, Yeah, we can get it. Ignore them. It doesn't matter, right? But if they say yes. Then you say All right, was it? You know, you make sure that it was issued in United States. Um, if it wasn't right, it could be totally made up, like they just make up a company or there could be a company in China. For all we know, that gives out false certification. It's like this whole scam, right? So, you know, if you need an American certification and certify in China, it means nothing. Even if it is truly certified, it means nothing. It needs to be certified in the area that you're going to be selling. So if they say yes, it was certified by an American FDA, the FDA agency? I don't know. FDA approved. So whatever the the body is for that you call the agency of the organization or the certification body and you ask them, Hey, did you issue this to your suppliers name and he had the ad, the Alibaba and you can request the contact information, the the shipping address and all that kind of stuff is well in the professional. You know all the information that they have to where you could give it to them, and they can give you a yes or no. So in that case, again vetting completely vetting and making 100% sure they have a certification, it could be safe in that regard. But if it doesn't check every single one of these boxes on doesn't follow each of these steps that I'd recommend staying away, choosing either a different product or looking to source in United States whenever area that you're selling in. Okay. So again, I wanna make sure you avoid any kind of potential scams. Make sure you do your due diligence in your research. Okay, Um, get anything that deals with, you know, anything that could be potentially dangerous, flammable deals ingested or is put on the human body. Those are some very good examples of things that we need certifications. So be sure to do your proper research beforehand, and then make sure that your supplier your product have the proper certifications to avoid any kind of problems, and you should be set. Okay, so, yeah, hopefully this helpful to have any questions, let me know. And let's go ahead and get into the next video 11. Painlessly Negotiate The BEST Price For Your Products: in this lecture, I'm gonna lay out some quick tips. They're gonna help you when negotiating with your supplier. This to be a supplier in China really, anywhere in the world. Thes Same principles are in general going to apply. So let's go and get into them now. Number one relationship. Your key. This is especially true if you're working with the supplier are planning a partnering with the supplier in China. So me being from the United States, I know this us as Americans or at least citizens of United States, tend to be very contractual based. Okay, we based performance. And we deem if a business relationship is good or bad, based on how the other party performs, based on the contract that we have, that the contract or or the document that we have that binds us together. What I've found personally and from interviews and from speaking with people, even one guy I know in particular, who has lived in China for over a decade, right himself not being from China, but living in China, originally from Scotland, uh, have really harped on the fact that the Chinese really prioritised relationships. Okay, so making sure that your kind. You're polite, your professional when communicating with suppliers. Right now, I'm just trying to get the lowest price possible. I'm treating them like human beings, which which I've found. And it's really unfortunate that a lot of new sellers and a lot of other even Amazon sellers do not do, which is ridiculous. But But anyway, relations are very important on keep that mind to wear. A lot of people like, you know, we have a contract that we're all good, that's that's great. But again there for Americans like that's all that we need. But in Chinese terms, they want they want to be able to do business people they like, and that's really true anywhere. What do you think about it? And this in Iraq? Okay, so what does it really matter? What matters for a lot of reasons in one reason that I recently learned about this very important is that there may be certain times of the year, for example, right after Q four, right after you know, after November, December, right, the Christmas Black Friday and Christmas rush In United States, they're gonna be a lot of businesses that are going to place reorders in China. And guess what? If you if you constantly provided better relationship, you order a decent amount, right? It's worth their time and business and all that right. They may prioritize you over a lot of their other customers, and you'll be able to start getting your products and faster than some of the other clients that your supplier has. Okay, so think about think about, you know, you're not the only They're not the only supplier that you could get your not the only client that they have our customer that they have, right? So think about that, and you ultimately want to become his bigger priority to them. It's possible it could reduce lead times, Uh, and a lot of their more willing to customize. They may even reach out to with new products and things that they don't tell their other clients about really, really cool stuff. Really important to keep in mind that that's like, in my opinion, the most important and again, that's true anywhere. Number two quality over price Again, your goal is not to get the cheapest to produce the cheapest product possible. Your goal is to produce the highest quality product possible profitably. At the end of the day, all that matters is profit on, and I much rather have a product that has a 35% profit margin in a superior, high quality product than a profit on a product, a product that has a 40% profit margin and is not that great, Because guess what. I'm not in one case. I have a much higher likelihood of making a lot of good amount of money in good amount of profit. The other products made me actually, here are my profit margins 40%. But if it's a poor quality product, I may get a bunch of returns, get my count shut down on and just get a bunch of negative reviews, all that kind of stuff and actually not make any money or make a lot less so you can actually make more money by your product. Costing more right cause better quality because, like I said before, especially Chinese suppliers, when you produce when when you ask and try to drive the price down as low as possible, they can likely do that. If you want to get your product produced for 75 cents depending what your product is. Your pride. Get it done. However, that means they're gonna use cheaper quality materials. You're not gonna be a priority of them. Your definite building. A good relationship with them. You're kind of enough to do business with them. But, um but yeah, qualities number one important. And they always focus on profit more than more than price. Although again, price is important. You want to kind negotiate work with them, Um, and I'll get to that in a second. Number three, considering others, you wanna be considerate of others. But what I mean by this is you want to let your supplier know that you are considering other options as well. Ok, And if you use my Ali Baba supplier template, which I give doll, it's included in the course for all the students. Uh, this in the bottom section, you'll see that it has a statement that says something to the effect of, you know, we're ready to make a decision, and we just want to let you know we are looking at other suppliers as well, right? And that kind of gives it a sense of scarcity. Right? And the reality is It's true you're not lying. You are looking out of the suppliers, and it's good, a kind of politely and professionally. Let them know that in my experience, in my opinion, although it's completely up to you. Number four using images and video. So a lot of new sellers that I speak with talk about even, especially if they're from, maybe not from the United States from other countries in Europe or wherever they may be mentioned. The fear of they can speak English, but their English is a little bit broken. And you know the Chinese. There are more English speakers in China that I think the rest of the world combined, or at least in the United States. I forget with this statistic is, but there's a lot of English speaking Chinese, but mainly for the most part, their second language. So if your second languages English and communicate with someone who's second language is also English, you may have a fear of miscommunication. Well, that's where images and video coming to play, so images and video transcend everything. It's something. It's so simple yet so powerful, right? Just having like an image of the product you want Or maybe they sent you a sample. You want change something about it Having like a red arrow pointing to that thing and with a little bit of tax just really basic really simple. Or making a video where your You have the sampling, you're showing them. Or maybe you have the product that you want to produce. I have something here. So you have the product that you want to produce, right? And you want to say, like, you know, we want the inside to maybe circle and red and say we want this material to be black or a different type of material or whatever or, you know, something like that. Video or image? Really simple. It's really, really basic and easy to do can actually go a long way and transcend all the communication . A lot of communication errors, okay. And again, like a lot people think about this for the amount of time. It's a faster you can communicate with your supplier, the more money you can make. Okay, So communication isn't just like, Oh, these are great tips. Whatever this. If you apply these rules, this can help you make more money like and make money faster. So you know it's not just about negotiating, it's it's about the ramifications of that. So, yeah, images, video. Very, very powerful uncertainty that more and more, uh, second to last, always consider other factors. So price of the product isn't the only thing that matters. And it's not the only thing that you can negotiate. You can also negotiate things like lead time. So how you know, if things like, you know, is there any way that we could produce this in a faster period of time or we would like to produce in a pastor period of time? What are some ideas that you may have or or could you please explain why it's taking maybe so long or take this length of time and maybe on your end, you can kind of help Give them some ideas for ways you can reduce the lead time? That estimate could be negotiated. Andi figured out as well, something good to kind of talk about minimum order quantity. So maybe for your first initial, or you just want to test this Amazon thing you want, you want to see if this actually works. So what you might do on. That's not really the right way thinking about it, but you just to say that you just want to test this product to see if this works to see if it appeals to the market. So you may want a lower quantity than what is required with the supplier says that there is required. Is there a minimum order? Quantity? You can say something like, You know, we'd like to order a smaller batch or smaller order for a test, and once we see that the product meets the demand of the market that it's that is profitable, it sells well or more from you in the future. Okay? And keep that again, the long term relationship in mind. That's point number one so you can negotiate more quantity packaging. Can you include packaging aspects of the cuts of the packaging? That could be the price could be reduced something with snickering. So UBC codes, you know, and other labels and sickening that you have getting these negotiated either for free getting them included or think or reduce the cost of that or whatever it may be. These are all factors that could negotiate just things to keep in mind and lastly, against super important. And this is it true? I think anywhere in life specifically, when dealing with suppliers, ask why If they say we this is our lowest price. Always ask why there is a time that I was looking into producing. I could tell you the product is, I don't know if it's a great product or not. Now, if if it is, go for it and use it. I'm not doing it. Doesn't go with my brand but black stainless steel silverware. That was originally gonna be my first product, and I'm so glad you go for with it. I think with tariffs now and all that with medals, it would be fairly X very, very, very expensive to produce up front. But it could be very profitable as well. They're basically some supplies were telling me that they could produce around my price. Point and others said that they couldn't and there's a There's a few that said they couldn't and instead of saying they're trying to screw me over there trying to scam me, you know that you know what I did is I asked why, why is that the case and they explained and said, The quality of this material, this is literally the cheapest. We get our material. And they showed me like this whole article on American article talking about stainless steel, the whole all this process without going into much detail explaining why it was the way that it was and it totally made sense. And I realized the suppliers that were giving me a lower, uh, price for the product were significantly worse quality. And they weren't telling me that, right? And I don't know the difference between this type of stainless steel versus this type right in terms of how quickly would wear dishwasher safe, you know, the coding scratching off or not even having coding things like that really, really important stuff. So asking why I found personally suppliers are especially good supplies were so willing to educate you on the product in the process. On, by the way, is a total side note. Um, later on, when you're building, if you're building out Facebook instagram your YouTube channel, things like that. Some great content of your website. Some great content toe have for your website is to show people the process right when it by asking why you learn more about the process and you could even ask to say, Hey, you know, it's all up to you to do this but it would be a pro. Would it be okay if you could send us a video of our products being tested, our products being produced? Or this aspect of it you can use that is content to share with your audience in your customers? Right? That could be really, really interesting because people are always interested how it's produced, especially if you're you know, iko friendly. You're you're safer, you have you you're producing it ethically, all these kind of things. People definitely want to see that and have that transparency. So that could be That's just another side note on you can find that out by asking why. Okay, So very important to do and always negotiate negotiation tips have helped me immensely and ultimately help me generate more money faster. And I hope they do the same for you. So if you have questions, let me know. Let's go ahead. Move into the next video 12. Gain INSTANT Negotiation POWER With This Secret Hack!: Okay, so I wanted to make sure to share this heck with you guys because it is somewhat known it within the Amazon community. But I also wanted to give you my opinion on, on how to use it and why sometimes it's not the best idea. So the heck is using the website called in what is this website? This website, it's kinda like Alibaba before within China, in, within domestic companies within China. And that means that you can find, a lot of times very similar products are the same products that you can find it on Alibaba, but from much cheaper because they're trading within their same currency and they don't necessarily need to know English or had certain certifications. And that is exactly why I would say that use this hack with caution as well as I wouldn't advise to necessarily go with a supplier that you find through this website because of the following reasons. So first of all, as I said, they don't necessarily need to know English. So the language barrier unless we speak Chinese, would be significant even if you try to use Google Translate is already a little bit difficult. Communicating with Chinese suppliers when they know English, sometimes a lot of things already get a little bit confusing. If you're dependent on translation to actually communicate with the suppliers, then I guarantee it would be very stressful and it could cost to a lot of money. So definitely don't always go for the cheapest option. And that is actually the next point is that you will most likely find cheaper prices on this website for the same product or so it seems like that. But a lot of times it's not the same product. The thickness is different, the quality is different, doesn't have a certain certification. There there are many, many reasons why the products here, even if the photo is the exact same, they can use a stock photo further listing, but sometimes the product itself, it's not the same product. So beware of that. So when you use this hack, which I'm going to show how to do it next. Just remember that and talk to your supplier. Be kind. Always go for the lowest price as Sumner already sound on the other video. Definitely prioritize quality over cost, especially if you already have a profit margin of 30% of more before advertising costs. So with that being said, I will show you this hack because we have used it before. It has helped us not only get at least slightly lower price, but also understand the differentiation of what our supplier was offering us in the quality and things that we actually ended up using honor listing to say, hey, this one is higher-quality because of this, it can withstand is heat or whatever it is. So without further ado, this is the 1688 heck, what are you going to do is you can login to 1688 in if you have Google Chrome, I believe you can translate some of if you want. So this is like simplify English. You can see some, some things are translated and what you can do is actually open Google Translator and input. For example, let me switch this silicone mold. So after you do that, you can copy and paste it here. And then click the button. This is the first, the first way that you can do this. And you can see there are certain things are similar to what we were looking for before. Like this is very similar. And what you can do is just open in a new tab. So I'm going to do the most similar things to your products. So this one is going to open a new tab. And the other way before we go to those results, the other way that you can do is actually really need, you can go to Alibaba in find the product most similar to what you're looking for in take a screenshot of that and then come to the camera icon here. And I already did. I already took a screenshot and then double-click and it's going to upload. Maybe let's try to get you might have to try a couple times. And there you go. It's going to find results that are very similar to that image. So you, you saw that it was kinda difficult to find the square and perhaps with six little units of the mold before just with the simplified English. And here you have lots of options with different prices too. So let's say, for example, we're going to do, we're not going to go for the cheapest. Let's go for something in the middle like this one. Open a new tab in what you can do is go to that tab and you see it's, it's varying the price based on the quantity. But even if you got the most expensive, let's, let's get that number, 59.960 yuan. I think that's how you say go ahead and copy. Then you can open the currency exchange here, the US dollar with the yuan, and then paste. And there you go. That, that same product or similar product, at least by photo, it would cost about $1.47. So you can use that number to actually compare with the quote that your supplier is giving you. Go ahead, you can screenshot DES or send them the link and say, hey, I found this a very, at least very similar product or the same product for a much cheaper from this other supplier. Can you match it or can you get close to it? Or why is yours much more expensive than then this cost? And they might tell you that, oh, they're not FDA approved. And for you to sell it on the USA, you need the FDA certification for example. So you actually can not go with this, but you can still use it as a negotiation technique and ask them, you know, if the price is way too different and the only difference is, you know, all the thickness you can say, okay, so match it and put it a little bit more for different thickness, something like that. You know, it depends completely on your product and on the price difference. Nevertheless, I wanted to share this hack with you guys, even though, as I said, be cautious of it definitely would not recommend actually going with a supplier from 1688. And, but just use it as a, perhaps a tool for communication with your suppliers that supply they already liked in like the quality, like the communications. So if you have any questions, be sure to leave those in the Q&A below. Let's go ahead and get to the next video. 13. How To Find QUALITY North American Suppliers (WITHOUT Using Thomasnet): what is the best way to find American suppliers if you want to produce and source your products from the United States, so I'll include a link to this website below. Although that's like the topic of the conversation, there's a cycle Thomas Net and Thomas that is sort of like the Ali Baba Four American suppliers, however, is not is. I say that loosely, it's a place that you can potentially find American suppliers, but I've actually used it again for the product that I am currently in the process of figuring out and proper and producing, and it just doesn't work that well, right? So I included a link to Thomas, not below, and you can kind of use it and, um, and see if it works well for you, but what I found to be best. And this is after speaking with seven and eight figure Amazon sellers who source product, and there are many that source products from United States. I asked them What's the best way for me, you know, as maybe a newest a newer cellar to find supplier American suppliers and reach out and contact them, and they all said they all said the same thing. Google, Google them. Okay, not even Thomas, Not just Google it. And I'm like, OK, great. So I started Googling and that's why I recommend you do as well. So use Google. It's free on that will be likely. And if there is anything changed, I'll let you know the best way to contact and identify American suppliers. Okay, Inspired from United States. Now, as I start Googling, I found a lot of more articles or things related, but I wasn't finding manufacturer websites and a few that I did find. I started realizing. American manufacturing websites are terrible in terms of search engine optimization. There just terrible terms of getting found. It's very difficult to find them. So I've come up with a way or actually, I've learned away Sorry to. Basically another Amazon seller shared this and I thought it was really great. So I'm gonna share this with you as well. And basically, what you can dio is type in keywords. For example, if we're looking for a silicone soap molds, we would type in silicon soap molds into Google, followed by one of the following, or could even be multiple of the following But I recommend, you know, starting off with one of the following words in quotations. That's key. What this does. Basically, when you put a word in quotations and the Google search engine, it forces Google to show you results that actually have the key word. For example, manufacturer in the search results. Okay, so you would simply type in silicone Sobel followed by manufacturing parentheses. Contact us and princes lead time pricing. And there could be more you can think of more these years. Four. Mainland's basically want to think what would definitely be on a manufacturer's website relating to you know your product. Okay, Manufacturers, obviously one of them, or manufacturing or maybe supplier, Contact us lead time. You know, the pricing, their pricing page, right? Things like that, especially. I think these two up here are very in lead time, right? This is very specifically for manufacturing, so this is definitely gonna help you find American suppliers and kind of cut through and really, ultimately find them. Then whether recommend doing is just send them emails if they have an email address, but is getting on the phone and giving them a call or if you prefer email. You can do that as well. Don't kind of recommend which way works best for you, but I just like to get on the phone. It's a little bit better and easier, so relatively simple, right? If you want to. You, Thomas now include that below. But again, I found MAWR better Successor results with this. As I've personally been producing my own product, use Google type in your product key words followed by one of these terms in pregnancies. Really straightforward There. Any questions? Let me know and let's go ahead and get into the next video. 14. Keep This In Mind When Ordering Product Samples...: So here's some things to keep in mind when ordering product simple. So first of all, products samples are extremely important. Not only doing the selection of your suppliers phase for you to decide which one has the best quality and all that. But throughout the whole manufacturing process as well about this very soon. But just certain things for you to keep in mind is that the CBO may actually cost you a lot more than a single product will cost you. Let's say you're trying to source something that it's, it's $3 per unit, but one sample, they may actually charge you 35 or $50. Usually the average range is between 3500. Then this is for a few reasons. One is because they need, they're not mass producing. So obviously they're only producing one thing for you. Customize it. It's, it's very time consuming. So there's that also. There's the shipping cost. Obviously, for them to ship just one unit via air express, it will be more expensive. And sometimes if you're asking for something customized, then they will probably need to create a mould. So that is very expensive and sometimes they will ask you to cover those costs in what a little tip is. And what I always do is that I tell them that I'm willing to pay for the sample sum. And I will say some suppliers Niven charge you for the sample. Just, I ask you to pay for shipping, which is more than fair in my opinion. But if they do charge you for the sample, what is fair is that I always ask them to refund that amount when you place the final order. So because we mentioned in the RFQ, they know we're probably comparing samples with other suppliers. And they don't want to just give you something free if they are taking the time to put in that work and all that, which is fair. By then you tell them, If I go with you, if I place an order with you, once I placed the order, will you refine the cost that you're charging me? And a lot of times they will do more times than not. That's what's happened to us. And you should also ask them to ship via DHL, DDP, air shipping via DHL, that's going to be the fastest one. You don't want to ship this via c, for example. You don't want to drag on this process very long. He and you want it fast and you want to save in, it's probably going to be a small package to so it's less likely to get lost. So just go ahead and order DHL air express shipment. In a lot of times it's between 30 to $50, that's what it will cost. And in most of the time, as I said, they will ask you to cover those costs, which is more than fair. And how he should pay them is only pay via either via PayPal or trade assurance. Sometimes they can create just a very small order on Alibaba just to cover the sample costs. And you can pay via trade assurance or pay via PayPal. Do not pay in any other way because you're not covered. You now covered there's no protection. There's no guarantee though actually ship you the product. So only pay via those two methods. And also consider ordering multiple samples. And that's going to play into account later on too, as I am going to mention throughout the different phases. But even as the first sample, you might want to test their consistency. If you have a logo, for example, on your product and, and for one product they it's right in the middle, but then the other one is misplaced. It's not really in the center. You want to test for their consistency because you're going to be ordering a mess for them to mass-produce that product. So you wanna make sure they can be consistent with their production of that, of that product. So consider ordering multiple from the same supplier as well as, as we already talked about, being from multiple suppliers in the beginning phases to compare and make that decision. Also, you can, when you receive your samples tested, tested as much as all of the details, as much as you can test it for durability, tests, how it works. If there is a zipper for example, or if a smells, or if a rips very easily, it most likely that suppliers will give you the best sample that they have. Something that they paid attention to detail so that you may place the order with them. But it's still important to, to test everything, like leave it out in the sun debate and it depends on your product obviously. But keep that in mind to test it and make sure it's durable. And then also consider using those samples to ask friends and family if you should have, if you purchase your competitors products, for example, ask friends that do not know, for example, which product is yours and which product is the competitor, which one they will buy, or what are their opinions or what would they do differently? We did that and it was very helpful and they helped us customize and improve our products, things that because we're so involved in the process, sometimes we overlook the the most obvious things too. So it's, it's very helpful to ask for friends and family in there to have their input as well. And then lastly, that's what I wanted to stress, is that you should order as a sample for every phase of your production, or at least keep that in mind in general. So you ordered the first sample before I even chose the supplier. You like it. Then when you place an order with them, ask them to send you a pre-production sample. That sample should have everything like it would be ready to go to Amazon. So you'll have to read the package ready, all of the labels. You want to see that they can do everything that you expect them to do for the whole order. So the first sample, the second sample's right before production, where as soon as it starts in obvious, especially if you made any changes between the first and the second. So the second sample, and then lastly, consider ordering a sample, asks them to pull one of the products that you, that you ordered from the, from the big Orders, let's say at 1000 units and ask them to ship one of those as well. And what it needs to happen, how you want it to happen is that the pre production sample in the post-production s2, I guess that's how you call it. Those who need a match, you need to make sure that they can produce one single product with the same consistency and with all the details correctly for when they produce a whole batch of products. So you would end up most likely, and ideally with those three samples, and you can go ahead and use your second sample, the one that it's preproduction in order to use those for photos, consider actually for those for that preproduction sample two, order three. I would say that's the ideal number or you can order more, one for you, for you to keep that test, order for you to compare the end. The other one for you to send to an inspection company that's going to be inspecting the products at the end. And they will be doing the same thing that you want to do is they're going to be looking at that sample that you gave them, as well as several of the products of the bulk order. Sorry, there was a lot of words, but yes, so they're going to be doing that comparison as well. You know that that single sample that you received is correct, that you approved it has the right colors, the right labels. So san one of those to the inspection. And lastly, send the third one, all of the pre-production sample to your photographer. If you're hiring one. So consider ordering those three. And it doesn't necessarily mean, for example, that one-sample cause $250. It doesn't mean that you would need to pay 150. Because if they need to create a mold, they create just one mode than in produce three or is it just one shipment for all three of the samples. So it doesn't mean that it's going to be incredibly expensive, but I hope this was helpful if it was confusing or if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 15. Know EXACTLY How Many Units To Order For Your First Shipment: How many products did you purchase for your first order? This is a question I get all the time and it's very, very important. O K. So I'm gonna cover two different strategies and you can decide what is best for you before we can kind of determiner calculate how many units to order will need to understand lead time. So lead time is essentially the amount of time it takes from when you hit the purchase button like hey, supplier. I want toe place another order until the time it becomes available on Amazon. OK, so this something very important, keep in mind Think about it. If you're selling product, let's say you know, you have just making this up. 1000 units you have 1000 units you bought in January. Or let's say, you know, march 1st by on March 1st and at the end of March, you know, near the end of March, you see that you only have a few left. You only have, let's say, like, 30 left in inventory, right. You're running lower and lower and lower, and then you're like, Oh, now I'm gonna reorder. But think about it. It takes time to produce your product, Time to ship and then time for Amazon to scan. So if you order it and you have only a little bit of inventory less guess what? While your product is being produced, you're gonna run out of inventory, your products being shipped, You're still out of inventory. It arrives at Amazon, takes time to scan your still out of inventory. What's going toe happen is and I talk more about this in the ranking in ranking videos, right? But your sales rank and Amazon's algorithm is going to say who this cellar, um, you know, runs out of stock. It doesn't properly plan, and it kind of hurts your ranking a little bit. Now you can absolutely recover when your products come back in. You know, let's say your sales rank right, because your sales rank starts creeping creeping up in terms of you know, you let's say you were you know, number 100. These you're going down to number 203 104 105 106 and lower and lower and lower every day or every couple days. You know that you're on a stock. Okay, so that's something to consider and avoid on. I'm gonna kind of talk a little bit more about that in a second, But just keep that in mind. So after life dollars do they order their first product, they sell out, and then they're like, Oh, I need a reorder and oh, my gosh. It takes a while for it to get in and my list that I have to re rank and do all the things again, right? So it takes more money in time than if they just would have ordered a larger quantity to begin with. Okay, so we'll talk about that, but also talk about another strategy. Okay, so So stay tuned. Um, is important. So basically, we have three different sections. OK, main sections. This is kind of oversimplifying, but main sections your production begins. Okay. Hey, Supplier X, I would like, you know, 1000 units. Okay. Production begins. Let's say it takes 30 days. It could take less. It could take more time. This is just an example. It takes 30 days, then the products are done. We completed. They're all packaged. Everything's ready to go. They've been inspected. You know, All of that takes 30 days and then. OK, great. We're gonna The products are ready, and they get shipped by air from air to when they arrive at Amazon. That takes 10 days again for this example. 10 days And they're still anywhere from, I mean 2 to 5 days for the products to be scanned. So we're gonna be a little bit pessimistic and say, five days for the items to be scanned and become available for sale. That's a total of 45 days in this scenario. Okay, so think about it. If you order 45 days worth of inventory the day that means that the day that you start selling on Amazon, you have to place another order. Does that makes sense? So if you were 45 days, that means you have enough inventory for 45 days. Okay, so think about it. It you have 45 days where the inventory. If you re order this the same day that you start selling, that means that by the end of the month, right over by the end of the period of the 1000 units, right, you run through 45 days at the 45th day, right? Your inventory is in its been scanned and Amazon ready to go, right? If you order, let's say you know you have 45 days worth of inventory. You order. Um, You know, two weeks later, that means you're gonna be out of stock for two weeks. If you if you place your order within one, like you know, you start selling. And then one week later, at the day you start selling, you place another order. That means you'll likely be out of stock for one week and see how that makes sense. You have a question about this? Let me know, cause I know it can be confusing for some people myself included. So, um so, yeah, this is lead time. How long it takes from when he start producing a product when it actually shows up. And it's available for sale on Amazon. Something very, very important to keep in mind. Okay. And once we know what our lead time is, we can calculate our initial test order. And here's where we have the two schools of thought. So one your lead time, which we calculate it was 45 plus safety stock is gonna be your initial order. Safety stock is basically how long this is. This is my definition of it specifically for Amazon sellers. Okay, this is my definition, which is more relevant to you. Safety stock is basically how long are you know, it's basically NBT It's a minimal, viable test. What's the least amount of time it would take for you to really understand if your product is a success or not? Okay. And I think 15 days is pretty low. I would like to see usually around three weeks or a month. Three weeks is a little bit better. So that's about like 2021 days so I could see her mawr closer to, like 20 days. But 15 is a good amount of time, especially if it's going about time on the lower end. Because basically think about this. Okay. 45 days. That's how long it takes for our lead time. Okay, so So if we just ordered 45 that means we would replace your initial order. He goes in Amazon, start selling the day that it's are selling that to reorder. Okay. When we order 45 plus 15 that means so we place your order, okay? And that means we have 15 days before we can. We need to re order. So that's 15 days of testing to see if our prices viable. I person prefer 20 days to test the viability of a product that, for me, is a little bit better. 15 days, though, could be. Could be enough time. It depends on how competitive your product is, How many proxy order and all that. The 15 days could be good, but again, I'd recommend more toward 20. But let's just go with this assumption. That would be 60. So we would need to order 60 days worth of inventory for our initial order based on this assumption. Okay, So in this means we order 60 days worth of inventory. We aren't gonna go out of stock. Okay? So we aren't You know, Alex, for our first couple, we're not going out of stock, right? And we never want to go out of stock. We always want to make sure we're reordering, um, to ensure that we never go out of stock. Okay, so that's that's how that works. And that's why, because running out of stock can be not time, it could be detrimental. But not detrimental. It's not a positive thing. You don't want to run out of stock. It's not in general. If you run a stock for one in two weeks, for example, there's actually a time it was so terrible. There's a few things that happened that we're just stupid on my part in terms of planning. But I ran a stop twice. So is it One was in one month in the rain out again in the second month and originally had a You know, I was out of stock for about a week. So when I was out of stock for a week, my sales rank went up, which isn't good, right Up, up, up, up, up, up, up. You know, like Interbk down against, you know, it kept dropping, I should say, Got worse. My sales right got worse while I was out of stock. That's not a good thing. Then when I got back in stock, I began to go back up, which is a good thing, right? So So And I ultimately got back to the same place, right? So let's say I was ranked number 100 while I was out of stock. I went to 203 104 100 boat, you know, and so on. For a week, when I got back in stock and started ranking again, I got back to the same place that it was. So if you're out of stock for 1 to 2 weeks especially, you know, one week, it's not something too much to worry about. That's why as well, if you only or let's say you order 45 days, which is your lead time, plus the 15 days. But you put instead of placing a reorder at the 15 day mark, you re order at the 20 or 21 day mark. That means you're assuming your lead times the same that you're going to be out of stock for a week. And you know, I'm not recommending that, but you should be okay within reason. Okay, so So that's something to keep in mind if you're out of stock for 12 weeks, especially with your first order. That may be something that you're okay with doing, but if you have the funds you've done your research. There's no reason for you, not, and you know, if you have the funds, no reason in order more now. Definitely. Order. If this is your lead time, I would definitely order at least 20 if not more up to, like, maybe 30 right for this. So 75 I believe, right? Yeah. So it so up to 75 days worth of inventory. Now, summer, How do we calculate how many days worth of inventory? Here's all you do is really simple. Go to Amazon, type in your main keywords and use viral launch and healing tend to look at the top 50% the top 50% organized by revenue on the first page. And make sure you're only looking at products that are specifically related to you. So go ahead and you don't even look at it. There's a price you're selling, you know, um, taco holders, right? And you see a silicone baking mat Show up. Don't include that's a totally different product. Or you see, maybe a, uh, a a some other kind of holder. I don't know, like a potholder, you know, that's completely unrelated. Don't include this products. Just look at the top 50% of sellers on for your main keywords and look at viral launch in Killington take the average of each seller in terms of sales. Okay, so look at how many sales each sellers making every month take the average of all of those so from violence and healing. 10. So, if you have, you know, let's say you're analyzing 15 sellers from viral launch 15 from Killington. You're going to take all those values, add them together and divide that by 30 right total. And that's the average. That's basically what the top of the average top seller is selling per day when he divided by, Well, that's per month. And then you divide that by 30 right? So you take the average seller. The average monthly sales divide that by 30. That's the average daily sales. Okay, so then you get your average daily sales. So, for example, if let's say the average monthly sales are 300 300 sales per month, divided by 30 days is 10. That's 10 sales a day. So that's 10 sales a day multiplied in this case by 60 right? That's 600 products that you need to order for your initial test order or more, or you know that 75 days times 10 that 750 um, proxy. Want order for your initial test order? OK, so that's one strategy, and that's that's a strategy of not of not going out of stock. And again, it's really simple to calculate. If you guys need more information on how toe identify, you know, the sales velocity. You know, the daily sales or the monthly sales let me know. But against pre straightforward, use the viral option. Killington Chrome extension. Look at the top sellers. How many are they selling a day? Average it out like See what? The averages of the top 50% of sellers. And that's an estimate for you because you want to be a top seller, and that's likely what you are going to sell. Okay, that's the best way to estimate, in my opinion. So yeah, that's number one. Number two. This is the last part. I promise. So is the last part. So me consider doing is just placing enough just a task. You may be saying, Sumner, I don't have a lot of money and guess what Nobody does, and I get I have video showing you how to generate mawr. Get started capital for your business. Okay, but let's say yours really tight on money. You really don't want to spend a lot of money you're not confident over. You should be confident, but let's see or not, for whatever reason, don't spend money. What you can do is place just a very minimal order. Meaning just enough product. And, you know, you're gonna stock out, you know you're going to talk out. You know that's gonna hurt the algorithm and that it will take more money in time for you to re rank for your new products. But maybe like summer, I just want to know that Amazon works that this is gonna be successful. And I don't care if I run a stock. I don't care if the product ends up not working out as long as I see that that Amazon works is a platform. And that's your mindset. Recommend doing his ordering one month's worth of supply. Okay, knowing that you're gonna go out of stock, I don't recommend it. But if you wanted to a minimal, viable test, the minimum amount that I would recommend is a month worse to supply. Okay, so that's enough for you to really rank so there's some inventory you'll need inward to rank. That's basically to get seen by potential customers. And then there's also you need to basically see, you know, once you rank, and once you sell product to rank, they need to see Okay, Is this working out organically? Am I selling products passively and organically? And if you follow the steps, you definitely should. Okay, you definitely should see that. And basically a month is enough time, in my opinion, for most products to rank and then also to see organic sales. It's basically the minimum viable test. It's the minimum test toe order, so I would recommend ordering a month so that could be instead of 60 units or 75 if you're really tight on money, if you really don't want to spend the money. Although I recommend that you there's ways, there's always ways. If you want it, there's always ways to get it. A month it would be the minimum, and really the best would be around around more 75 days. 30 days is very, very low. Don't recommend it, but but you could do it successfully just to see that there's success or and then once it runs out, then order that place another order, you know, and basically have to redo the ranking process and all of that. But again, you can still do it and still be successful. So keep in mind that if your first product you run out of stock for a month, you can still be successful with that same product. It just It kind of hurts the algorithm. It's a little bit harder to re rank, but it's absolutely impossible. And you can do it right. It's your choice so you can choose between one of the two options. 30 days is low. 75 is the higher end. Okay, and now you kind of know how to calculate and why. And if the key take away is if you really don't have the funds where I'd recommend doing is a looking at two types of products a products that sell last per month. Okay, so if you see products, I love my favorite times of products, and these are really everyone's favorite types of products. In terms of sellers are products that are relatively small and lightweight, then have high mark ups. Okay, again, I know someone who's selling a product. His product costs for shipping and product is $20. He's selling it $450. Okay, that's pretty great, right? And if you take it on a smaller scale, let's say you source something for five bucks or even two bucks. An insult for 25 35 bucks, right? That's an ideal product. There is a harder to define, but But if you're really, really worried about money, then you need You need to make sure that you're putting in more effort and work into the product research process. Just gonna be. There's less options for you in the product research process, okay, but I recommend looking at lighter products on. I'd also recommend looking at products that generate less monthly sales so higher profit products. So maybe yourself your per month, but they have higher margin to where there's still generate at least 1000 or $2000 a month and profit for you. That's what I'd recommend doing okay, So small and light high margin products. And of course, regardless of what you do, low competition really focus on the low competition because then, by the way, you know 60 days worth of inventory for a product that doesn't sell, you know, as many units per day versus something that's a lot more competitive, right is gonna be totally different. You could end up Spain. Let's just make this up $5000 in total cost for the first product versus $15,000 in total cost for the second product. And both, you know, in both cases, you be ordering 60 days worth of product. Okay, so hopefully made it clear. I know is a little bit kind of scatterbrained. It is, um, a little bit difficult to kind of convey. And if you have any questions, of course I'm more than happy to help. Hopefully, this helps, though, and let's go ahead and get into the next video. 16. Don't Lose Track Of Your Inventory: Now that you know where you lead time is in how to figure out how many orders issue order for your initial test order. I wanted to share with you guys is inventory management spreadsheet that we use in a we want to share with you. And this document will also be available in the resources below. And we use this to make sure we do not run out of stock. Not only that, but to plan how many units are already on Amazon if you have a different warehouses as well as as if you create a new order. And we also use it to plan our next orders in terms of total cost in keep track of how many sales per day and everything. So I'm just going to quickly go through this spreadsheet with you, as well as give you an alternative. If you have scaled your business, if you have multiple warehouses and several sales channels or different marketplaces, it does start to get more and more complicated to keep track of inventory as you expand. So I'm going to give you an alternative at the end of this video. So to start, first, we list all of our products and I like to separate them by color knowing for suppliers. So for the first supplier, it could be variation or not. This is the first color, the second one, the third one. Then you will input your product cost and your shipping cost. And this is just to estimate the total order, the total costs for each order. But it's not necessarily to keep up with inventory. But then here you're going to list what is the stock currently on Amazon, and you can always add here underneath this title day, you have input those numbers. So Amazon stock, December 28th, 2020, for example. Here you can input any stock that the way that we use is either already in the USA with in a warehouse somewhere that we can easily ship it to Amazon from there. Or it's already on its way, It's already paid for and it's going to arrive at Amazon soon. And the third column is the inventory ordered. So I use this a lot of times I use this to plane. So what if I, what if I order 200 and I go down and see the rest of the the results and you see what I mean by that. This is the inventory ordered or you can use it quickly just to plan if I ordered this much or this much, how long until I'd have to order again. And then here I put expected delivery. So anytime that I've ordered inventory, this is the expected delivery time, so he can help me with that planning. Next, we put the sales per day. And this can vary a lot and we usually use the software called Fletcher to get the sales per day bow, we're currently transitioning to the software called And I'll also leave those. Links in the resources below. But though they will help you with your profitable, with your profit accounting and as well as understanding your sales per day. So you want to know your sales speed. So that's where you input. You get, for example, 30 days and you divide how many cells, how many cells you had through those 30 days, and you divide by 30 and then you input it here. And this would definitely change through Q4 and in specific seasons of the year. Then here is just for planning purposes of how many days worth of inventory you want to purchase. So I don't want to worry about this for the next 30 days or I want to order three months worth of inventory. So you go ahead and put 90 days and it's going to tell you how many units to order based on sales per day. So that's why it's important as well for you to plan. And then here it's going to, we add also the inspection cost. But if, for example a few order both of these together from the same supplier, then you only need to pay for one inspection. So at the end you can you can subtract $200 or however much your inspection costs. I'm adding the inspection costs. It will give you the total cost of order based on here, product costs, shipping cost, and how many units you want to order. It's going to give it to you. So it's very, it's a very quick way to plan for with your cashflow as well as inventory. So that's why we like to keep it together. This ordering amount as well as inventory. How much, how many units you have an inventory, but you can get rid of these if you don't want, if you want to know just how many units you have it or not, you can get rid of these columns. And then no, tell you the total inventory. It's going to sum up all of these, the Amazon stock, how much haven't in a warehouse, how much you ordered? And then from sorry, from this total inventory here, then it's going to tell you, okay, this is how many days worth of inventory you have based on this total inventory divided by sales per day, then you have 94 days of inventory. So that's good. That means that if your lead time is x, so we've already talked about figuring out lead time, but I will say you might want to add an extra at least five days, especially lately on how long Amazon has been taking honestly, to check-in and scan the products after they have their delivered. I think it's safe to add at least another five days. And then here it says went to reorder. So I would only have to reorder in 59 days for this specific products, but for this one, it would be 13 days. In 13 days, if I don't reorder, I will most likely run out of stock if I keep up the same sales per day, if it goes higher than our signal, immediately goes down that number. So for example, if I start selling nine products per day, then I need reorder in two days. So usually you don't want to get the you don't want to let that number get very small because in our opinion, it's better to have a little bit extra inventory even if you have to pay for storage, then to not have enough because that means you'll have to relaunch a product going out of stock is, is really bad for ranking, even though Amazon has not made it easy, especially this year with the risk Kenya and the inventory limits. But this is just a narrow pin is very useful spreadsheet that we're using every week, sometimes for certain weeks when you especially busy busy times of year, I use it every day just to make sure there's nothing else to reorder. And then I also use these last two columns here for the reorder date when just so I know sometimes though it's only third 33 days apart, but then you want to know the exact day. Okay. Bye March or by the end of February, I need to have reordered, so it's good to have the date here as well, as well as any other nodes that you want to add. Ask your supplier to split the shipments, something like that. That's usually how I use this last column 4. And then lastly, as I said, I want to talk to you guys about this software. It's called so stoked or so stopped. I don't know how to say. I think it's so stoked. And to be honest, I have not used it yet. I have just heard about it because this year we have expanded to new marketplaces. So we had our inventory pool in the US is a different number than our inventory bull in Europe, as well as our warehouse right now that we have or third-party logistic company. So this software was highly recommended in several Facebook groups of experts that we follow. And I will be testing it soon and hopefully coming back and telling you guys how well I like it, but just so you know, it's called, let me go ahead and show you the URL. So yeah, it's called so And as I've heard, it's great for forecasting. It's great for you to create these groups. You can organize everything by supplier, or you can organize everything by warehouse or marketplace. So I've heard it's very, very useful. If you have used them, make sure to let the oldest, oldest students know. And if you have any questions, be sure to leave those in the Q&A below. And with that being said, let's go ahead and get to the next video. 17. How Your Products Get From China ALL THE WAY To Amazon's Warehouse (Explained): I know the shipping process, especially when shipping products from China to Amazon, may seem a little bit overwhelming or a little bit scary at first for new sellers. So I just wanted Teoh kind of outline the overview of the entire shipping process. There are a few kind of moving parts, but I'm gonna show you in other videos kind of how this all works together and how to make sure there are no issues whatsoever getting your initial test order from Amazon, ultimately to Amazon's warehouse and then ultimately into the hands of hungry customers. So let's start here. So you're very it's honestly appreciate forward. And this isn't overview. Okay, so there are some steps within this, but this is generally the framework that you want to focus on. So, first production, your product is being produced by your supplier, okay? And that takes, however long once production ends. Okay, the or this is either while you're proctor being produced, okay? And actually, I'd recommend that, you know, while you're practicing be produced, you use an inspection company to make sure that the products are meeting certain requirements. So this could be, you know, right after production okay, but before anything get shipped, you hire an inspection company. An inspection company is something you definitely want to invest in their very, very important. And videos on this specifically inspection company will ultimately make sure that everything, all the goods, all the products are up to specifications. If there are any potential issues or any specific product that they find that have issues, they will write a detailed report and let you know exactly what the problems are if there are right and this definitely helps you in so many different ways, right? I mean, just imagine if you order products and had no idea if there are any problems they show up. They get delivered to customers. Customers, right, negative reviews. They return the items you potentially if something's really wrong, depending on the product, it goes bad. It could shut down your account. So this is just a way to completely avoid all of that. And they're very, very Inspection Companies are relatively easy to use. It's not a huge long process. I'll show you exactly how I do it and very, very important. O. K. So your products are producer manufactured, then they're inspected by a company to make sure everything's good to go. Once you get the clear, everything's good to go. Then your products okay will be sent from the warehouse to your freight forwarder or your freight forwarder will pick them up from the warehouse. Okay, unless you have a relatively small order, you will not be using your supplier for shipments. Although in some cases you will be again if you have a smaller order for a decent sized order. And I talk more about this of when he should use a freight forwarder and why you will be using a freight forwarder. So this could be your freight forwarder, or it could just be your supplier here. But for a lot of us, and ultimately, as we scale her business, it's going. We're going to be using a freight forwarder, which is really great for a lot of reasons. Um, so Procter inspected, you know, production ends there inspected. They're good to go freight for either picks them up or the supplier sends them to the freight forwarder. Either way, they end up at the freight forwarder. The freight forward then handles all of the logistics. Either we shipped by sea or by air. Okay, we should either by sea or by air on the freight for handles everything until it gets to Amazon. Right there handles everything. So it's on its way ships, either by air or by sea, and then arrives either in an airport or a seaport. Okay, and depending, you know, and then obviously, the U. S. Government will decide if they want toe do inspection of your product, whether that goes through an X ray or it's a manual inspection. Obviously, manual inspections can take quite some time where X ray inspections can take just a couple days or not. Not very, very long and again, it depends on your product. If you have a more dangerous or hazards product, this is more likely that it will be checked and inspected by customs. Okay, and otherwise, you know it will be pretty quick, arriving and running through customs and ultimately from the port here. It will ultimately be delivered to Amazon's warehouse. Once it arrives. It disease like 3 to 5 days for your product to get scanned and become available online, so they need to get scanned in the inventory. Okay for them to become available online, and that is basically the entire process right from from from hitting the go, you know, starting the order with your supplier all the way to, um, your products being available on Amazon. And then obviously from there, Amazon ships and deals with all the returns and everything. And I get Mason kind of scary. That's why freight forwarders and inspection companies air so, so huge, really not that much more of an investment, and they just help immensely. And I, in my view, are a necessity. So that's a shipping overview. Let's go ahead and actually get into the nitty gritty of this process and you show you how simple it really is. 18. IMPORTANT: Miss This And Potentially Lose THOUSANDS: Today we're gonna be talking about inspection services for Amazon sellers. How to hire inspection services, who we recommend, what to expect, tips, everything you should know. So first, who do we recommend? We definitely recommend top when inspection. And there's actually a lot of really good inspection companies out there, very comparable to top when, and we've tested other companies as well, but we keep coming back to top when they are very obviously very reliable. But they also offer services across all of these different countries and they are constantly expanding. They also offer all different types of inspections and other services. Lab testing specific inspections for Amazon FBA, and their price is very competitive as well. And as a matter of fact, you can get a discount code by using code Hobart 25, and you're going to get 25 dollars off your inspection. And as I said, their price is very competitive. A lot of us use Alibaba and we can see on the order that Alibaba offers inspection services for what it looks like, very inexpensive, like $48, but we have tested that service before. It, even though was a good service, when we actually got the type of inspection that we're going to talk about soon. The price was very comparable to top when which is around $200 per inspection. But it obviously depends. So I'm going to leave their link in the description below, but you can also go to top when And now let's talk about the types of inspections. Top when performs all kinds of inspections and other companies as well. It's not this This video is not just about top when they are just the company that we recommend. But I did get this graph from their website, all these different types of inspections, There's factory audits to see the conditions of the factory if they are truthful to what they say when you hire them, let's say they say they have 50 employees, but they only have three, you know, all these kind of things that they start checking if they're all of the certification that they said that they have, if they really have. So there's all these types of factory audits. They have lab testings and all that. But today we're going to focus on product inspection services. Specifically, as you can see here, three types of inspection services. Ipi, DPI in PSI. So IPI stands for Initial Production inspection. And that usually happens right at the beginning of the production of your product when less than 20 percent of the products having produced. And the reason why you would wanna do that inspection is because you can catch any mistakes or anything that you might want to change right at the beginning, you can check to see if they have sourced the correct materials, if you're using the correct shapes or if the logo is placed correctly, there's there are definitely advantages of doing the initial production inspection. There's also the DPI during production inspection. And that usually happens when your supplier has produced between 20 and 60 percent of your products. And that the reason why is because there's still time for any corrective action. You can see more of the process. For example, if they've already started to package some of the products, you can see how it's going and change anything if something is not up to your standards. And lastly, there is the PSI pre-shipment inspection. When at least 80 percent of your products are ready and packaged. That way you can see not only the state of your product, but also the packaging requirements. If they have done the shipping labels, the shipping marks, everything would be ready to go to Amazon. So what I will recommend is that you at least get your PSI pre-shipment inspection for every single order. Trusts me, we've heard of cases where people just went through a few inspections with their suppliers and then just trust that they're going to continue to uphold the quality. And then the quality really, really lowered and they suffer consequences from that. So we always account for free shipping, shipment inspection for every single one of our orders. But I would also recommend that if this is your first order of your supplier, that you considered adding at least one of the other inspections, the initial production inspection or during production inspection. So you can really be on top of the whole process in every single detail of the production of this brand new product. They, you either haven't them before or you at least have not done with that supplier before. So I can't stress that enough. Highly, highly recommend that you that you hire inspection services and Elise, The pre-shipment inspection. So there are no surprises. And a lot of people to think that they might just do the inspection themselves, for example, produce everything and then shipped to your home, for example, in the US to inspect. But then what happens if you find problems with the inspection? It's going to cost you a lot more to ship it back to your supplier for them to fix it. That is, if they do accept the Shipman back if the order hasn't been completed yet. And all that, so highly, highly recommend. And now let's go through a couple of inspection tips. Before I show you the whole process of hiring top when and what you are expected to fill out and what you can do to make this process as smooth as possible. So first, make sure your supplier agrees to a third party inspection. The way that we do then is we actually talk to our supplier. We have them sign a purchase order agreement. And we stress this before we even close any deals with them, that we reserve the right to have a third party inspection. Because if you do not mention this before, it can get really stressful down the road that might not be willing to do that. And then you already pay them part of the fee and you don't really you should trust them or not even if they send you photos and videos of their own. So definitely make sure they agree. And then along those lines, also discuss with them the course of action if the inspection fails. So top, when when they scheduled it, they inspection with your with your supplier, they will tell them that if inspection fails, they are responsible for the ring inspection fees. But a lot of them to sign something or just say that they agree or they don't even notice that that has been said in the email. And then once inspection fails, they are saying no, we're not going to pay. So make sure that is very well discussed and agreed upon. That's actually good for you to talk to them about before you even start production. Because they are going to put even more efforts to produce a very high-quality product for you. So make sure you talk to them and make it very clear before you even pay them anything. Also, you're going to see that at least top when, but also the other special companies that we've used before. They will send you products specification sheet for you to complete. Way. You can put as many details as you want about your product before they go and inspect the whole, the whole production, the whole mass production. So I definitely recommend that you fill out and put as much detail as you can this product spec sheet. And we're going to go through that very soon. Also, very, very, very helpful is sent and approved sample to the inspection company. You should always get a, a final sample including the whole package, labels everything right before you start producing your products. And you should get at least three. And that is one of our tips. One of them is for you to keep. The other one is for you to maybe use it for photos. And the third one is for you to send to the inspection company. So they have something that they can compare to when they're inspecting the production. And you might be thinking, why like the simplest coming from the same supplier. Like what difference does it make if I send them one of their samples to what they're going to see later on. But one of the reasons why we recommend inspection services is because when you are mass-producing something, the quality of every single unit can easily lower and there is definitely details there might be missed. For example, if you're making like a t-shirt, they might be sending you a, a wonderful sample with no threads coming off or no stains or anything. But when they're producing a 1000 of them, a lot of them might actually have some defects, or the color might be a little bit off or the logo might be misplaced. So it's absolutely useful to send to the inspection company not only an approved sample, but also as many photos and videos as you can. And as we're going to show you very soon, not just photos and videos of your products, but also any product inserts, labels, everything that you can. Another tip is that you should definitely schedule in advance, even though we really like top when they have been very nice to us in terms of being able to schedule inspections within short notice. A couple of times it has happened that they have been completely booked and we had to wait a week or at least a few days until they could actually have an available agent to go. So as soon as you talk to your supplier and ask, Okay, when will the order be completed? If they say June 1st, then you're going to say, Okay, I'm going to go ahead and schedule the third-party inspection. So not only you can guarantee that day that you're going to have the inspection done and you're not wasting any time. But also puts a little bit of pressure on your supply to actually uphold that their word and not have any delays. So I would highly recommend that you schedule your inspection in advance. All right. So now let's see how you would go about booking inspection. You can go to top when as we mentioned before. And then on the Inspection tab, just click and you can easily book an inspection here. So here you can fill out all of the information, your own information, and the suppliers information so they can get in contact with them to actually book the inspection. And as I said, if you do go with top when make sure you come here and put the promo code, Hobart 25 and you're going to get 25 dollars off and then hit submit. And then top point is going to get in contact with you and send you a product specifications form. This is what it's going to look like. So here is where you would add as much detail as possible about your product or your product packaging about possible issues that that product might have or issues that customers have complained about in the past or that you've noticed in the past. So you can make your money's worth because inspection agent will do a very thorough job even if you don't add this. But if you put anything here, any detail. For example, let's say your product has a weird, has had a weird smell in the past. And if you put it here, there are going to make sure they're they're going to inspect the product for smell. Just add anything that you might be worried about here. And then you save this and send them will bind to the email that they sent you along with all of the photos and videos. And then they're going to be booking the inspection. There are going to go there, be sure you confirm with your supplier that they're there. And then after they inspection happens, it usually takes about 22 days, maybe three at the most. I don't think it's ever taking more than three days after the inspection for them to send us an inspection report and actually the results. And here's a little sample of what it would look like. So they'll send you a report of several sheets, but I'm just going to show you guys a few of them here with the overall result. And I will say the 98% of the time the results are painting because usually there's just something that the agent wants to make sure you are aware before they just approve it completely. So most of the time is going to be pending in you. They're going to say over and over referred to remark number one, number two, number three, and I'll show you. So it might be a little bit confusing, but this is just going to be the January information, how the quantity that they have inspected, the photo that they took, the day of inspection of the product or products, and the sample sizes. So for example, for us, we had 18 hundreds sex of a product, and they have inspected 125. So a few. Keep going to the next pages. They're also going to be very descriptive about what is the defect that they may have encountered. Sometimes it's the minors staying, or sometimes the product just wasn't really packaged, how you would expect. And then they would tell you here if it's major or minor, the total of the defects found in the result and here it has passed because it's been under the maximum allowed. And if you want to tell them they the maximum allowed is actually 3 or 5. You can tell them to the ER just using their standard numbers that they usually do for the majority of their inspections. And we usually go with their standards because honestly no mass productions are perfect. And as I said, 98% of the time they come back and spending and just go through the whole report in what I would recommend is that you take screenshots, any issues that you've found, especially if they're not too big or if not many of them have been found in what we do is that we get back to our supplier and say these need to be corrected. Make sure you correct that, makes sure you document the correction and show it back to us, the products all fixed so that you don't have to pay for a ring inspection. So I would say that nine out of 10 times this is how we would go about solving any issues that the inspection agent might have found. But we have had to happen to us where the inspection has failed before, where there has been way too many issues for us to just trust that they're going to show us everything had been fixed. So we just tell them that they are going to have to respect and pay for the inspection fees. But it's completely up to you. You might want to negotiate with them to a free inspection is needed. You might split the fee or anything that you prefer. Just make sure you're very clear in your communication with the supplier. And that said, this is why you should expect when hiring inspection services for your Amazon business. 19. IMPORTANT: Miss This And Potentially Lose THOUSANDS: in this video, I'm going to cover inspection services What they are, why they're important, Why you need them. OK, so inspection service is 1/3 party company in China. In this case in China that will either while your product is being produced or after your product has been produced. We'll go to your suppliers factory will in Spruell randomly select products and inspect the quality of the products and right and give you a detailed report showing you if the products are up to standard or not, as well as any potential issues. They're extremely thorough, extremely powerful, and you need them whether this is your first order or your 500 okay, and you can go ahead and ask any other big time Amazon seller, they will tell you the exact same thing. OK, here's the reason why so just kind of a a small horror story just to make sure you know how important this is. And this is actually what convinced me. I reject wasn't using inspection services until I had an issue with one of my product, and thankfully it was pretty minor where I kind of recovered from it. But there's a woman that I know sells on Amazon. Uh, and for one of her products, she had a two year relationship with their supplier for two years, right of consistently producing quality products. Reasonable price, All that everything was good. And then one day on one shipment, whether I forget if it was something went wrong with the process that implemented some new machinery or some new processes or some new workers or new management or something changed the process change and resulted in part of the product being defective. So this defective this whole batch of defective products were shipped to Amazon unknowingly , right? She didn't know. Um, you know, I don't know what this pliers thought of that, but shipped to Amazon was sold and the majority of products were returned. And it results in any type of negative reviews and returns. So Amazon, so Oh, they're getting all these returns to negative reviews. Boom. They're ranked dropped. And they weren't. They went for me on the first page for all. For most their keywords. Main keywords just dropping, not even being visible. And the review rating went way down to where they went from a very high star rating. to very, very low and just completely destroyed their listing and their ability to make money with that product. So So, yeah, this is very important. I don't say that to scare you. I say that just to show cause that's what really convinced me to start using inspection services. And I have never regretted it. And I will never, ever not source product anywhere. It doesn't matter where it is without using inspection service. Okay, so the inspection service that I use and recommend is top win. I love these guys. They do such a great job. And there you have to be careful in searching for inspection services because certain services have kind of like partnerships with suppliers to where they'll say, Hey, just pay us off. You know, you know, some rope a us you'll pay us, you know, the supplier will pay us and on, and we'll just kind of like, you know, look the other way, OK, it's very short term thinking, but, you know, and there are many, many, many, many inspection services in China. Okay, Many like prime more than there are suppliers, but so you got to be careful when you're choosing I did a lot of research. Reach out to a lot of different suppliers. Asked a lot of different seven and eight figure Amazon sellers What they use and top one came up a little times I've used them. I love them. That's why I recommend them. So go to top Win Inspection company dot com sits there. Sorry, top one inspection dot coms atop and then win. You go up here. What? You're there. Go up to the top left and quick on quick booking. And then here You just kind of fill out some basic information. So just make sure you fill out all this information. It is free to do, too, by the way. So this is all free. And by the way, you do not have to pay for an inspection. Uh, until you don't have to pay for the inspection until after it's completed. You don't have to pay part of front part later or everything up front, right? You can pay it all after the inspection's complete, so that's really great as well. So that's one Number two. If the inspection company service, you know, identified any issues well, at least is with topline if top one and identifies any potential issues they require. And obviously we both require the supplier to fix those issues. And also the suppliers required to pay for it to themselves pay for another inspection service. Okay, so So yeah, they're really, really great and help you to and make to ensure that you have the best quality possible. And also, you know, worst. Let's say worst, worst case scenario, which is not happen to me. Thankfully, it's a worst case scenario. Top one comes in. They complete their inspection, give you a full detailed report of, you know, here are some potential issues. It's really not up to your standard and and then, you know, reach back up. Suppliers said, Hey, you know, we will need this to be redone, you know, fix the issues and they say No, what you can dio again this worst case scenario. So hopefully this doesn't happen to any of you you can go to if you're if you have paid right, your initial amount that you paid them right, 30% up front and 70% later. If you strayed assurance you can approach Alibaba and say, Hey, this is our agreement and you have documentation right through the messaging. That's why I like I like messaging a lot through. We chat through Skype, right? Whatever. Messaging in communication, back and forth, you have that documentation. You have documentation that off how the product failed the inspection. You have both of that. They can submit to Alibaba and hopefully, ultimately, right. Get your money back. Okay? It's where you don't lose anything. Yeah, you paid for the inspection service, but on the company should also include that as well, when they're paying you back. So you should be able to recuperate all your money as well. So just toe mitigate risk as much as possible. Yeah, it is another kind of additional expense. But just calculate this in, by the way, if you use my code. So if you go down here to how did you find us? Make sure to save you money. You type in, you'll find a drop down list. You'll either see my name, which is Sumner Hobart, If you don't know that already. So Senator Khobar or Hobart? 25. Okay, that's what I have right now. That's just the default they gave me. But I want to have my name to its more recognizable summer, Khobar. Or how about 25? It will give you $25 off your your first inspection and inspections were generally about $200 just to keep that in mind when you're accounting costs. Okay, so just keep that mind you will one inspection service and want quick tip because you're like, Oh, my gosh. Don't want to pay $200. Nobody does. But if you're ordering a lower amount so maybe that you could do it kind of consider is if you're ordering, like, a really small test order, which is what I'm doing, actually one of my products and have a very specific reason. I'm doing that. Usually I order, you know, a couple of months worth of supply up front, at least, But in this case, I'm ordering a smaller amount. I'm shipping it to my abs, my home address. Instead of paying inspection service, I'm gonna do the inspection myself and then from my house, ship it to Amazon. Okay, so So that's just kind of how we do it again. It's a little bit more risky because, you know, I don't I'm shipping the product to my house. It could all be defective. And I've already, you know, maybe paid at that point. But that's why I also requesting a lot of images and video is very, very important again. It's very good. It's not enough. I would highly recommend inspection service, but images and video get inspection service. If you don't wanna pay the inspection service, make sure you get a ton of videos and images and then ship it to your home and you become the inspection service. Okay, on. You can kind of work that out with supplier. Just just another idea. Maybe a way to kind of help you save some money, all while also protecting yourself. So, yeah, that's the overview. You have any questions about it? Definitely. Let me know. And let's go ahead and get into the next video. 20. Do You REALLY Need A Freight Forwarder?: So by now you probably heard this term quite a few times, which is freight forwarders, water freight forwarders, and do you need them? So free foreigners would actually help you with the shipment of your product all the way from China to Amazon's warehouse or wherever you are sourcing from to wherever you want them to go. A lot of times they will help with packing, that will help with obviously the transportation itself. Rather it's C or air that will help through the customs process, which is very important. Someone who actually have the documentation and in being able to pay the fees for your sand Jew, how much it's, it's how much it costs for you to pay the import duties. And it will also help taking it to the final destination obviously. So when do we recommend you actually use a phrase border? So anytime that the total weight of your shipment is over 250 kilograms, this is just a rule of thumb. It's not every single case. But that's when you would recommend you to consider hiring a frame border. Not only you still have two options, you can still higher free forwarder or you can use your suppliers fray forward is because a lot of times they do have the company that they partner with. But if it is a smaller shipment because freight forwarders will charge a fixed fee for their service on top of everything else. You know, the actually cost of transportation because they would have this fixed fee if your order is very small when you want to divide that fee by all of those, by those products in my really increase the cost per unit to ship. But the bigger your order, the less that fee, that fixed fee, it doesn't matter how big your your shipment is so that the bigger your order, the lesser will cost per unit to have the fray for, do it for you. And in general, they do have a much less expensive quote. And you do need those services in terms of overseeing the customs and all that. When you have an order that is lower lower to 250 kilograms, the well, we usually do is we just shipped them via the Mort known carriers like DHL, FedEx, UPS, those usually cover all of the expenses in terms of DDP, though, you should you should always confirm with your supplier whoever's making those arrangements, or if it's you hiring the service yourself. They usually include all of the fees as well as they take care of all of the customs process and anything to go through the country that you tried to import those two. And when you do hire, afraid for yourself, you want to pay attention on those trade terms that we talked about. If you hire your freight forwarder to ship everything DDP, which is what we would suggest, then make sure that your cost that you're paying your supplier for the product is Ex Works is e x w, because that divides the responsibility perfectly. You are only paying your suppliers to produce the product and package them. And you're paying your freight forwarder to pick them up from your suppliers factory all the way to Amazon, so warehouse or their warehouse, whatever you choose. So just pay attention to those costs. You don't want to overpay, for example, pay for your supplier in the FOB terms to where the cost includes them taking the cargo to the nearest port or to, for example, your freight forwarders warehoused within China and then double pane by hiring your freight forwarded in the DDP terms. So just pay attention in that. I think that's one thing that we actually overlooked in our first ship and with our freight forwarder, you and we almost made it twice. But then they helped us realize and make sure that we were doing this correctly. So here's a company that we use. We use World crafts logistics company. They, as I mentioned in the previous video, they are 3PL and they also offer the fright services. We've used them with air services with C And we've had no issues with them. They're they're extremely thrilled. And one thing that you'll notice is that you need to have a bond to be able to import cargo into a country. So you could use, I could use, for example, my freight forwarders bond and they will charge you a little fee for, Or you could buy your own, your annual bond and they can help you with that process. They helped us a few. In their case. If you use if you use them three times or more throughout the year, it's definitely worth it to buy that annual bond with them. But if not, they're going to assist with everything that you need. So that that's one of the things. They also offer a very quick inspection upon arrival of their products to their warehouse. And they also ship products from their warehouse, their warehouse to Amazon's warehouses. So this is who we go with. I'm not saying that this would be the best option for you. This is just who we have selected based on our needs, the needs of our business, how many orders we have, the amount in size over orders. But just so you know, you have that in reference, I'm also leaving the link for them in the description below. If you have any questions, be sure to leave those in the Q and a, and let's go ahead and get to the next video. 21. Which Shipping Option You Should Choose: In this video, we're gonna talk about types of shipping. And this can seem, all the terminology can seem very overwhelming, the beginning confusing, but hopefully this is going to clarify everything for you and make it very easy. And I'll also tell you exactly what we do. So if you don't even want to bother understanding everything, you can just go for it for the least, our advice that what you should do. So let's start with the trade terms. What does that mean? So trade terms is the division of responsibility in terms of the shipment. So when a supplier gives you a quote, let's say they say, hey, this product is going to cost you $3 FOB, This is the FOB price and you're like, I have no idea what that means. So what is included in that price? Now we're gonna talk about every single term that they might tell you for you to understand. So that e, x, W or X works. That means that 100% of the responsibility of shipment is yours. So you, the price will not include the shipment from your product, your suppliers factory, all the way to the Amazon, to Amazon's warehouse. So if they give you a cost and say this is it's $3 EX wwe know that that's that includes nothing regarding shipment. If they if they tell you that it's a FOB free onboard, that means that the responsibility is split 50% your responsibility and 50% bears. That means that after production, after they pack everything, they are responsible of taking your goods to the nearest port. That can be a sea port or an airport. And from there, you're responsible, meaning you would have to hire someone, hire an agent higher afraid forwarder to get from the port all the way to Amazon warehouse. So that cost whatever they gave you cost FOB does not include any shipment from the port to Amazon's warehouse. Next, we have DY DU, which is delivery duties, unpaid and DAP duties at place. With both of these situations, you would have what I would say, 10% of the responsibility. That means that the supplier, including that, mean that price, the delivery of your goods all the way to Amazon's warehouse. But that customs duties and all of the tariffs, any fees that you have to pay when you import the cotton, the goods, when accustomed, they're not paid, they're not included in the price. It I would highly advise you against specially the duties at place because delivery duties unpaid means that when your goods or in customs, when they arrive at customs, they will be inspected and they were going to give you a bill. Okay. This is how much you need to pay. So that's going to delay the process, but still it's still at customs and you can pay and you can send them money there, you can pay there, or you're afraid forward it can let you know, hey, this is the total you pay your free border and they pay the customs agent. And that's still okay if you want to go that way, but for duties at place, do not do that if you're shipping to Amazon warehouse because that means that once the goods get delivered, then the carrier is going to charge the person who received the goods, the total fees. And Amazon does not accept that. They will now receive your cartons, your boxes, a few or a few, pay em by the the shipment under those conditions. And then lastly, this is the safest honestly, the goto, the stress-free option, which says the DDP delivery duty paid. That means that you have 0 responsibility. You pay your supplier or your free forwarder. And we're gonna talk about freight forwarders later. But you pay them, you pay the cost for them to take your goods all the way from the factory to Amazon's warehouse, including the fees and tariffs that they might charge you at customs. So you don't have to worry about anything. Everything is included in the price. A lot of people prefer the DY DU because they don't want to, they want to make sure that the supplier or the border are not overcharging you. Obviously, there are estimating as close as they can, but they're experts and it's usually really good estimations on the total and giving you the price. So they don't have the risk to maybe, oh, too much money if they have to cover something. So a lot of people go for the DTU, but for us we always ship DDP. It's the safest and there's no delays and you can be worry-free. Next, I want to talk to you guys about the types of shipping, comparing air shipment and see shipping. So for both air shipping, NC shabby and I'm going to move myself out of the way here. For both of those options, you have two options. So for air, for example, you have the air express or air standard. That's usually how your suppliers going to name it. They're gonna say air standard and the differences in between obviously caused in speed. So Air Express, it's usually around three to five days and it's usually with a carrier like DHL or FedEx or UPS Express and they can everything is included. If I'm not mistaken, it's always DDP. That always means it's DDP when you go with those companies. And it's very fast three to five days to be delivered for air standard, it can vary between 1715 days. And what happens is usually with air standard, the supplier is going has their own freight forwarder. And again, these can work for both supplier and Frey forward, but let's assume you're going with your supplier and they have their own shipping arrangements. So your supplier is going to give you products to the they're afraid forwarder, they're shipped. The shipping company. And the shipping company has a departure date. They're going to wait for several. Several goods and in, in, in boxes to arrive so they can fill that airplane in order to leave. So that plays into that range because from 715 days, so that plays into it because sometimes it takes a few days and especially if you're the first boxes to arrive in, also time accustom. So sometimes your products might be stopped, inspected at customs. So that's why that plays into the range in receipt. Shipping is similar. There's this C Express and they might not say expressed, but it is a faster, faster shipment and the C standard, so we have had products that the sea shaping time is between 1825 days. So you see 18 that's very close to even 15 days of air and significantly cheaper. And we've had also quotes for C standard, which is usually between 2535 days. So quite awhile, there's also, I would say, more risk obviously because the goods are longer. They are the boat for a long time. There was an accident. There's way too much time to VR an accident exit to happen. So yes. So the costs might also vary for I honestly don't know when you can. Some freight forwarders offer the the faster option in some don't even offer that whenever we ship with our freight forwarder, when it's not through our supplier, then it's usually a much faster see shipping. They, you know, they have their clients, they're given the attention and priority and it's much faster even when it sees shipping. But usually if you're going through, your supplier is going to take longer around a month. But it is a lot more inexpensive, a lot cheaper when you compare, especially when you compare, see shipping to Air Express. After Covidien, prices have completely spiked there there have been certain products that almost doubled for Air Express because they have a lot more limited quantities of planes that they can fly, especially from China into the US. So keep that in mind. And what is our strategy? What do we do? We, for our first-order, we always ship air. We can also mix it, which is what we especially do for following orders. We split our shipments into the first batch that goes much faster and gets to Amazon very quick by air, either Air Express or air standard depends on our inventory volume. And then the other batch that is C shipping. And that's actually an amazing strategy because you not only save money, not only save you money when shipping part of your order via C, a lot, a lot cheaper this weight, but also you're saving money from storage if you shipped everything via air, let's say you're shipping at 1000 units, you're going to be pinging storage for those units that are not sold during that time. So the best strategy and we worked, it has worked well overall for us because it is also a gamble. You might actually sell your products that you shipped via air very quickly and your other batch is still on its way in the sea somewhere. So it is kind of a gamble. But as you sell worn Amazon, as you understand more of your inventory in sales volume, you can, you can be more calculated about those quantities and how to split your shipment. But for us it's worked really well. We save money. We save money on shipping quotes and also storage overall. And I hope you, I hope this was helpful to you as well. If you have any questions, be sure to leave those in the Q and a willow. And let's go ahead and get to the next video. 22. Bonds, Duties & Tariffs DEMYSTIFIED: when shipping products the United States. There are some things you need to keep in mind, so there's a old saying that goes right. There's only two things they're guaranteed in life, death and taxes. So the top three different types of taxes and I just want to keep this in mind. In general, it is much, much, much more profitable to source products from outside of the United States. Even with the tax is associated with that, then ship and produce your products within the United States. Okay, in general and again, there certain circumstances that this isn't true, but in general, especially for for a lot of Amazon sellers, this is absolutely the case. So I just want to keep that in mind. That may seem Oh, my gosh, all these taxes, all these expenses, all of these. You know all this money, right? We have to think about it over the long term and also think about your investment. And again, I believe that Amazon F B. A, in terms of investing in terms of building a private label, product based business in terms of the investment amount is significantly better than real estate in terms of cash flow and and ultimate, your total are y sending with the stock market? That just my perspective. So you know, it may seem like a lot, but you have to think about this in the grand scheme of things. Okay, it's for me. It's been absolutely worth it. So let's go and get into it now. Bonds. All right, there's these things called Bonds, not stocks and bonds, but relate to shipping and bonds. When you ever hear this term relating to shipping, this is the right to ship goods. United States. So it's it's, you know, the right to ship goods from outside the U. S. Into the United States. And there are either annual bonds you can purchase or monthly bonds. If you're using afraid for they watch you ask you and kind of walking through a little bit and kind of guide. You at least my great border did. And that's why I recommend World World craft logistics because they've done a phenomenal job. I they taught me a lot, too, by the way, and it really helped me through the process, and that's actually where I learned a lot of information from so bonds or the right to ship against United States. And you get an annual, I believe, or monthly obvious different price points there. And the freight forwarder will walk you through that duties. So duties are the actual tax in their tax based on the type of good. Okay, what you can do this is very important, guys. What you can do is you can ask your supplier for your duties code. Okay? So ask them. I would like the my duties code so I can calculate, you know, my duties tax right, so different. Certain products have a 0% duty on them. Others have 25%. What that means is you will pay anywhere from 0 to 25% of the cost of producing those items . So let's say it costs you. I'm just making this up. Let's just say it cost you $2000 right? 25% of $2000. 500. Okay, so that's obviously very, very high. So your duties would be $500 in that case, if it 0% you pay $0 right? So it depends on the type of good, and there's an online calculator. Just look up do. Maybe we could link to this as well. There's a calculator. You just look up. Duties tax calculator. You basically enter in your product code into the calculator hit. Enter and it will tell you what your duties percentage is. Okay, so So yeah, and the percentage is the percent off the amount of money you spent on producing product from your supplier. Okay, so that's duties Tariffs. He's a really fun right? And of course, you would see this. The United States tariffs are in additional tax on top of duties, So this is basically, like a double duty or a its attacks on top of that. And depending on when you're watching this video, it changes, especially recently, been changing relatively frequently. So you kind of look at you know what the tariff rate is at the particular time you're watching this video, because again, it will definitely change either increase or decrease. Right? So so you can kind of look into that a swell it's readily available on Google and then customs. Okay, Customs, this isn't This isn't am door. This isn't attacks. It's not another tax. This is something to keep in mind. That If you're sourcing more flammable or dangerous products from outside of United States , you're more likely to get chapped inspected by customs. Okay, um, if you're familiar with the Elon Musk. Elon Musk was shipping flamethrowers around the world I think you have been importing. I didn't forget where he's getting them produced, but he labeled on the crates, not a flamethrower, to try to get through customs. So flamethrowers, you know, knives ingestible Zell's right, like vitamins and supplements, flammables batteries. These are all more likely to go through customs t get inspected by customs, and they can either be inspected via an X ray, which is relatively quick. It's not super long like, I think it's like a couple days, I want to say, to go through X ray. There's also physical inspection where a human being, what they use, canines or whatever. That's kind of the U. S. Government wants to keep this a little bit ambiguous, but it will take up to 2 to 3 weeks by by a human being actually inspecting products. Okay, there's something to keep in mind. There's one time that my my product was inspected. I think it was a few days it was held up in customs, just something to keep in mind when shipping product. But many times you know your product will go through customs without any issues. It won't get held up for two or three weeks getting inspected. But just something to keep in mind that obviously all products coming into the United States will be not that every single product is opened and inspected right but on the goods will be inspected, and it is potential that you could have a manual inspection. So just to keep that in mind and one way to kind of avoid getting this manual inspection is Teoh just, you know, to be honest and completely fill out all the information required again. If you're using a freight forwarder, they will provide lots of information they'll ask you about. You know, the bonds. They'll ask you some information, calculate duties and tariffs and all that. They'll give you some mind. You will give me some insight on customs and interest things to kind of maybe watch out for . So that's another reason I love using great Borders. They're so helpful. But yeah, pretty straightforward. If you have any questions, let me know and let's go ahead and get into the next video 23. Keep This In Mind When Shipping To Other Countries: I wanted to make this quick video just as a reminder that if you're planning on shipping products from China or wherever you're sourcing them from to Canada or other countries, make sure you do your research into what is needed, what is required for you to import those, those shipments if few, for example, Canada, which is very common for people to start expanding to Canada or start in Canada. It will depend if you're a Canadian citizen or not to where if you need to register your business in Canada or not in order to receive those, those shipments into the country, as well as all of the other countries that unfortunately cannot cover all of them here because every single one not only has its own requirements or specific things, but that is constantly changing. So if we have explained everything that you need to do, especially considering the USA market. But if you are planning on shipping to any other country, including Canada, that so many things are very similar to the US in you're not Canadian. You definitely need to make sure to do your research and be sure that you have all of the requirements to fulfill that importation. And a lot of times afraid forward or it can help you with that. So that is another perk of hiring and freight forwarder. You can ask if there's anything that you need, if you need a certain registration number. So just a friendly reminder to do your research and make sure you're compliant with all of the necessary requirements. So if you guys have any questions or anything that you want to share with the other students, be sure to leave those in the Q&A below. And let's go ahead and get to the next video. 24. Understanding Products ID Terms: Another quick video to just clarify, hopefully, something that confuses a lot of sellers, which is barcodes and Product ID terms. So when you hear GE TIN, UPC or E AN, they're talking about these numbers. They you will purchase, you need to purchase. The government or someone owns these numbers, honestly, I'm not sure who owns them, but you need to purchase this code as an ID for your unique product. So what these words stand for as do TIN is global trade item number, UPC, I believe it's universal product code and EA N is European, European article number. And it can vary the number of characters as well. I believe UPC is 12 digits, EA, EA N is 13. Can purchase them from Europe or the US, or a GTI N with a lot more digits. The main important thing for you to know is that this should be a unique number for your products. If you're a private label seller, that means that no, no one should be able to find the exact product anywhere else. Either you put your logo on a, you made a different package. It's a different color, you customized it, then ideally, that is a very unique product, so you need a unique identification number. So that's why you need to purchase this. Now, this is the lead, say, global and universal ID number for a product. You don't necessarily need to show this number on your product. You're going to need this number to create your listing. When you're creating your listing, it asks you for your product ID. You would put the digits and then product ID type you would put if it's UPC, EA n and all that, you're going to need this number only for this stage if you're selling on Amazon FBA. Next, once you create your listing, Amazon's going to give you a unique ID as well. This is called an a basin, and the basin is pretty much the Amazon ID number. This is how you're going to easily locate your product on catalogs. You can easily see what an AC number is of any specific product. For example, on Amazon, it would be these are if you can see and make sure you go. It usually starts with the letter B. Sometimes it doesn't, which is fine, but it's these numbers over the combination of letters and numbers over here. And you're also going to be able to see that in your seller Center account right underneath the title on manage inventory page. And then lastly the Fnet skew or F in SKU. I don't know how most people say what's the correct term, but evidence, F and SQL, it's also an Amazon label that you absolutely need to have, and it's a combination of the barcode so Amazon can scan your product when it arrives at Amazon's warehouse. So absolutely important when it arrives and every time he get sold as well, they need to scan it for inventory management with the number right underneath the number that Amazon. Sometimes that can be your ACE and sometimes it's not, but it's a unique Amazon number. Underneath it's the title in it right here says my Amazon product description, but it's the title. And then in the specification usually it's the beginning of the title in the very end. So if it's a variation, it's gonna show at the end the color. And then underneath it's the condition which most likely is going to be new. So this is the label that you're going to get to print or get the file and sent to your supplier so that they may sticker on the product. You might want to print on a package if you have a box baggage you but honestly, in my opinion, it's a lot easier to just make them as stickers specially because later on if you want to change your title, every once in awhile, it's good to update this this label if you change your tied or color name or something like that. And then it's easier to just send a new file to your supplier and they print the new one in sticker on your product. So this is that when we talk about UPC, specially UPC indefinite skew, people can get very confused thinking that this is what you send to your supplier, but it's not specially specifically if you're selling on Amazon FBA. Now, if you're creating a product package to sell on, I don't know, Walmart or Target or another place or a grocery store, then you would need the barcode on the package so it can be scanned for all of the sales. But hopefully this is no longer confusing. I hope you found this helpful. If you have any questions, be sure to leave those in the Q&A below and let's go ahead and get to the next video. 25. UPC Codes - Do You Even Need One?!: Okay, so I already explained what UPC barcodes are by how do you go about purchasing them in what are valid? You PCs. So a quantitative Amazon, they verify the authenticity of each UPC code against the gs one database. So what they say is that they recommend obtaining your UPC is directly from a GS one database because if not, it says here is the your UBC is found invalid, your product will be removed, you may lose your selling privileges. Your account can get shut down and all that. So you definitely wanna take this seriously. However, a lot of other Amazon sellers have had experiences with buying much less expensive options. But I'm going to show you guys all of this right now. So the gs one website that Amazon recommends is this one. But as you can see when you scroll down, this is the, this is the phi. So it is a little bit expensive for, for each, for each barcode as well as the renewal fee that you need to have every single year. Now, here's a little tip. You actually don't need to buy your DS1 code from Amazon, from the GS want us. And you can buy from gs one UK. Those are cheaper options. So it's still against the JSON database. Even if you're going to sell on Amazon US, you can buy your bar code from the JS One UK and you can, as you can see, it is less expensive, less expensive option. In what I was mentioned, mentioning before is that some sellers do risk binder codes from websites like nationwide barcode or barcode mania. In the end, I want to make it very clear you may get really bad consequences for, as I mentioned, you may get your account shut down and all that. But a lot of sellers do that without any consequences as off right now. And you can see the price is significantly lower, like $12 for just one barcode. And when you buy it in bulk, it gets less and less expensive. So a lot of people do use this website to gather your UPC codes. But the best option if you do not have the money and if you do not want to risk in your selling Private Label Options is actually getting GTI AN exemption. And I'm going to leave this link in the resources below, but you can find it through your Seller Central account. And this shows who was eligible to request to check GTI and exemption. That means that you do not need to buy a UPC barcode. You do not need to buy a number. And you can, you can create your listing with just an Amazon is going to give you an assassin. You're going to have a product ID, but it's only going to be the JSon. And you can do that if you're planing, especially if you're planning to only sell on Amazon. And there are eligibility is here that you can go through and read. But if you're one of them that indicate that you are eligible is if you are selling private label products. So if it's your own product and you only selling on Amazon, there's really no need for a universal code. So that's why they grant DTI AN exemption. And you can apply this link over here. And you have to apply first for each category that you want to sell in. So you find a category here, then you put your brand name and you apply for it. And second, you have to do this before you even create your listing in once you're approved and you're creating your listing when you select the, when you input your brand name on the brand field of the, of your listening, you're listening creation. You might get an error, which is okay, it's now common. That's the way that Amazon's verifying all of the information. You might get an error saying that you cannot, that brand is not registered, so you cannot create it with that brain. So what you need to do is contact Amazon Seller support that. Unfortunately that's their protocol and now you have to contact them. You have to send them photos of your product to request that GTI an example for you to use your brand name as well. Even if you're not brain registered, you send photos with your brand name on the product. And later on we're gonna talk about types of labels in one of them is all delivers that you need to put on your products. So you might actually put your brand name just on the label. You don't need necessarily to have your brand on the product itself like printed or carved, DO whatever it is. So you can actually use one of your samples that you got from your supplier with that label, that pre shipping, pre-shipment sample that we already talked about. And you get it from your supplier and you use those to take photos to send it to Amazon Seller support so they can completely approve you. And this is a lot less headache. You're not getting, you're not running the risk of getting your account shutdown for purchasing cheap and invalid barcodes and you don't have to spend a fortune. So I that's what I would advise. Some people do run into certain issues when they're applying for a UTI in be patient Amazon. This is a somewhat new program from Amazon and I believe they're going to keep improving it as well. So if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 26. Understanding How GTIN Exemption Works: So today we're gonna be talking about how to apply for GTA in exemption. But before I show you guys the whole step-by-step process, I want to talk to you guys about the pros and cons of applying for GTA in exemption. I know I already mentioned what it is a little bit in the video before this one, but I wanted to really hone in and talk to you guys about the pros and cons. So you know where you get into an actually decide for yourself if you want to apply for the exemption or not. Okay. So let's start with the pros. The biggest and probably only benefit of a plan for GTA and exemption is that you get to save money. Now I'm not seeing this as anything small because barcodes, as you probably know, are pretty expensive. If you go to the GS one website, which is what Amazon Recommends, it's about $250 per code plus $50 renewal fee every year. So that can easily add up. And at least this is for the US website that just want US website. And there is a hack that we've already mentioned here before. They, you can go to the GS one UK website and it is cheaper, but it's still quite expensive, especially if you're launching a lot of products at once, or if you're just testing out products, which is not usually what we do, we usually go all in one product and develop as much as we can work on the brand. But a lot of Amazon sellers just want to test out lots of products at once. So having to buy all of these barcodes can get quite expensive. So apply for GTA and exemption can definitely, definitely be a benefit to save money. But now let's talk about the kinds. The first kind is that you are limited. The sales channels that you use are limited because some cells channels actually require you to have a UPC code associated with it. One of those examples is Walmart, walmart marketplace. If you want to sell them warm Walmart in the US, you have to have a UPC code associated with every single one of your products that you list. So having the GTA and exemption and now having to buy the barcode is good if you're selling mainly on Amazon. And I mean, you can still sell on other sales channels like Etsy for example. And you're not obligated to have a UPC alleles as offering now, but for other sales channels, you have to have it. So just know that you might be saving money right now if you're suddenly only on Amazon or a few other sales channels, but you're limited. The other kind is that if your brand ever changes, as I'm going to show you guys, when you apply for GTA and exemption, you have to choose the exact name of your brand. If your brand ever changes, you are going to have to create a complete new listing on Amazon. They won't just simply change. You can just go on the back end of the listing and then change the brand name to your new brand name. So just keep this in mind. This is not a big problem if you've already been registered. That was our case. We actually did apply for GTA and exemption and we were already been registered, so we haven't had any problems with that because we haven't had to change our brand. And then the last kind is that you, it's possible that you may get some backend difficulties are some issues. And this is now like an official thing. It's just from personal experience. We as I said, when we apply for duty anion exemption, we actually had separate listings at the time and when we try to make them into a variation family, it was a very, very, very difficult and especially because they think that existing parent ASN was already associated with other listings there had UPC codes and trying to merge the new ones that did not have was extremely difficult. But at the end we were able to savages took a lot of headache and a lot of calls to Seller Central. So I just want you guys to be aware of all of these cards and all of this limitations. But obviously the benefit of saving money is a big one and we know that's why we have applied before for GTA and exemption in you may be interested as well. So with that being said, I'm going to show you guys exactly the step-by-step process now. And starts by going to this link right here, which I'm also going to leave it below. Once you click on that link, you'll be taken to this page which talks about everything about GTA and exemption. What product categories are required to have a UBC numbers and which ones you actually cannot buy for GTA and exemption. And just in general, I believe the majority of you guys are actually going to be private label sellers. And for almost every single category, if you are selling a private label product, you are able to request UTA and exemption, but you can go here and download the list of brands that required a TIN in. You're going to be able to see if you're selling one of those brands, which usually it's for people who are doing retail arbitrage, or if you're already selling a product that already exists and it's a well-known brain. Or even if it's not that well-known, you have to download this list to see if you actually can apply for GTA and exemption being in that category, you are having that brand or not. So once you review that, you can also go to this link right here, which I already have open. And it's going to show you exactly by category if you need to, if it requires a UPC or if you can request UTA. And so here, for example, baby products. The major brands do require UPC code, just like we talked about. But exemption may be requested for a private label brands. So that's what I was saying. If you're selling a private label product, almost every single category you able to apply for GTI in exemption. So back at that first link, you're going to be able to scroll down here. It's going to show you the exact step-by-step process of applying for GTI in and before we actually go ahead and start applying for GTA and exemption, be aware that you must have these requirements right here before you apply. So you need your product name and a minimum of two or maximum of nine product images showing all sides of your product. It needs to have the brand on the product or packaging. Also, if you're applying for detain exemption, your packaging cannot have any barcode, any UPC barcode showing also the brand needs to be on the product itself or on the package, like engraved on it, printed. A lot of people have asked if they can use just a label like a sticker label in. I actually did hear of a lot of people who have been approved just with a label on the product packaging, but they have gone to lengths to make that label varying, professional-looking. So having the brand name very well printed, maybe some design on that sticker, really well-placed on the product packaging, packaging as well in they had been able to use that as the brand of the product that it is required when you are applying for GTA and exemption because as you're going to see, you need to have a brain associated with that product when you are listing. Or you're going to have another option. And I'm going to show you guys what the other option is. So you can just go here and click on this link, Apply for GTA in exemption. All right, once you're here, just go ahead and select the product category that you want to sell it. So for example, I'm going to go ahead and choose Home and Garden. After you select your product category, you're going to choose the your brand and the brand that you want to associate with your product. If you do not have a brand, as it says over here, you can just list generic, but you have to, it is case sensitive. So be sure you put the g as uppercase letter and then everything else lowercase. So you can do generic or you can do your own brand in. You can apply for GTA, an exemption for several brands in, for several categories up to ten. So you can always click here if you want more product categories that can add more here, and you can add more brands as well. So let's say you're going to have a brand. I'm gonna go ahead and choose like Hobart products, for example. And then you can click here and check eligibility. Okay. As you can see, you are automatically approved for the generic brand. And I'm going to show you guys how to add a product next for Hilbert's products, because that brand is not registered yet. If I went ahead and had selected my brand that I already was brin register for that we have here, then I wouldn't have this issue. I would have been automatically approved as well. But since this is a new brand, that maybe it's your case, you do not have a registered brand yet, then you're going to see here that this requires brand approval. So all you need to do is contact seller seller support. And mentioned that you got the error code 565. In. Along with that case there you're going to create, you need to spell out the brand that you're trying to get approved for. So Hobart products, again, it's case sensitive. So if you have the uppercase H and uppercase P, You have to spell out the exact same. And also as we mentioned before, you need to have the photos of all of your, all of the sides of your product. The brand does not need to be on all of the sides of your product. It can be on just one of the size of the product or packaging, but they still want to see the whole all of the sides of your product in the images as well. And lastly, do not take screenshots or just send them any manipulated photos. They won real photos UK even have like your hand holding the product itself. You can take it with your phone or does not need to be offensive photo. They just wanted to make sure it wasn't manipulated at all. So you can just go ahead and do that if you want to elicit for Hobart products. But since we've been approved for generic, this is how you would go about adding a product. Now with GTA, an exemption, just go ahead and click Add a product in. Now you just have to follow all of the same steps of adding your products and we've shown here before. But I'm gonna go ahead and show you guys everything. So let's say I'm adding a product not sold on Amazon, which will be a private, private label products. Go ahead and click on that. Or I had to move myself out of the way because the sun was starting to catch up. But once you're in this page, or you have to do is actually find the category that you applied for in your exemption. And for us was home and garden or home and kitchen. I think it would be here. So go ahead and select that category and go down the path until you find the exact unique category that you want to list your product in. Let's say, for example, that we want to selling home decor. And we want to sell clocks. Key and let's see what else. Let's see we wanna do alarm clocks. So select category. So once you get here, you're going to see that you are not required to put a product ID number. It would be highlighted in red and have the asterisk here if you were required. But since we apply for an exemption, you see that this is no problem. But you do have to have the product name brain and manufactured. So let's just say we wanna do modern digital. Let's just say this is our title for now, then for brand, where you're going to have to do is this, as you saw, we were approved for the generic brand. So you're going to have to add the word generic here. So it needs to be case sensitive. So it needs to have the capital G. So once you do that, in this case, for this product category, it is asking for a manufacturer. Honestly, in our experience, we just put anything unless, you know, the manufacturer, we can just put lake Hobart products. And then you just have to fill in the offer here with let's say we're gonna do 101999 and then condition new. And all you have to do now is submit, save and finish in your product is going to be created and you didn't have to spend a lot of money to buy your barcode for this product. And for the other case, as we already mentioned, if you have to prove your brand, you need to contact Seller Support mentioned the error code, send them all of the required photos, and that's it. You're ready to go this as the Amazon GTA and exemption process. And I hope you found this helpful. And let's go ahead and get to the next video. 27. Shipping Labels You MUST Have (Biggest Mistake New Importers Make): In this video, we're going to talk all about types of labels. And this can be very confusing throughout the process of selling your product on Amazon because these terms a lot of times are used with slightly, in a slightly different way, in different meanings as well. So it kinda confusing, but hopefully this video will clarify everything in all of the labels that you need or should in our opinion have. So the first one is the f and SKU label that we've already talked about. If you're selling on Amazon FBA, you need to go to your Managed Inventory page and download the print item labels. And that is the f and SKU. We're going to show you this specificly on our tutorial when we're creating the shipping plans. But we're going to show you exactly where to go. Just know that you need, as you know, as we already showed before, the f and SKU label each product by its each product, each unit that you sell needs to have that label. And what do I mean by unit? If you're selling just one, but what about OH, for example, when it's $10, that water bottle, whatever packaging it as needs to have a label. If you're selling a set of ten water bottles and it's whatever $50 for one set, that set needs to be packaged together and have a one label. Okay, so that is what I call by unit. Next, you need to have the country of origin on the product itself, as well as the box which we're gonna talk about is soon. But this is a national requirement. I think it's an international requirement. But definitely for the United States, you need to show, for example, Made in China on your product. Now when they say on your product, it could be on a label like a sticker that you put on your product packaging, but it needs to be visible and it needs to be there. So what we do, I'm going to show a very symbol. We actually combine this requirement with two others. The next one is the suffocation label. So you need a warning whenever your package is. If you're packages a bag, a lot of times a lot of packages are those transparent and bags. And if that bag when flat, if that opening measures more than equal, we're more than 12.7 centimeters, you need that suffocation warning. Now some bags already come without warning printed on the bag, but you might not one that I might honestly not look very professional, looks very industrialized now that premium in my opinion. So there are other ways that you can fulfill that requirement in the, the next labor would be the brand. And what we do is actually we combine the country of origin, the suffocation label in the brain. You're not required to have the brand, your brand name on the product. Okay. But it can be very useful if you are applying for DTI, AN exemption, as we talked about, because they will ask for photos and there should be your brand name on the product, so that could be on the label on the sticker. So all we do is this. We usually have a label like this with our product name, then the warning. And then made in China. If it's made in China, if it's made somewhere else than to have it the other country. But that's how we fulfill it. In. Another tip is if you have a fabric, a fabric product or something that requires a washing label, you can implementing that same label as well, and you can copy this design. It's not honestly a very unique design, but you can be very creative as well to make a beautiful label if you want for your package. Next, we have the shipping mark and a lot of people ignore this, so don't even know that there are requirements for this. But the shipping mark or a carton label, some people call it a carton label, but I I usually call as shipping mark and usually that's where the industry understands. Looks a little bit like this. There's certain information that one you're required to have on the box itself. So let's say there are 100 units within that box. So there's certain information that you need and there's certain information that would be very helpful for you to have, especially if you're working with a third party logistic company, a warehouse where if you're storing things yourself well, in order to keep track of your inventory. So I actually got this from our FIFO order. This is how we structure our shipping mark, which is our company name. Then what is that product? So like it says like red shoes. And next, how many units are inside that carton? Those three are not required. What you're required to have is the weight, the dimensions, and the country of origin as you seat next. So you need the total weight of that box in. You're going to need that weight also to create a shipping plan for Amazon. You also need the dimensions of that box printed on the box. And you need the country of origin and you can ignore that last part of the product ID. You can put your product ID, you can put your ace in if you want. But that last part with the barcode is specific to the free forward that we use, so you can ignore that. But the number one reason why products are stopped at customs to get inspected or why it takes so long at customs is because they don't have the country of origin on the box. So this is extremely important and make sure your supplier has this and it is in our purchase agreement as well, we make sure but always make sure the inspection company also inspects for that a and one thing that it's valid to know is that it does not need to be printed on the box. Necessarily. It can be printed on the paper and then sticker on the box. And preferably on two sides of the box to the opposite side. 28. Getting Your FNSKU Labels From Amazon: In this video, I'm gonna show you how to download the item labels, the f and SKU labels that you need to send to your supplier so they can attach to every single one of your products, as we already talked about this requirement. So from your salary Century account, hover over inventory and then click on manage inventory. From here, we're assuming that you're listing is still under the fulfilled by merchant category. So if your listening is already under fulfilled by Amazon, you can skip the next few steps. But if it's not, I still want to show you guys how to make sure you change it to fulfill by Amazon if that's the fulfillment of your choice. So just click on the little arrow that looks similar to this next to the Edit button. I'm covering it. But click on that little arrow and then click on change to fulfill, fulfilled by Amazon. From here, you can select either an Amazon barcode or if manufacturer barcode, actually you can only select that a few have used that UPC code or GTI encode. A few went for the GTI AN exemption, you can only have Amazon barcodes elected. To be honest, it hasn't really played any difference to us. Select a manufacturer barcode or amazon barcode, but you can always change it back. So select one of those and then click on Convert only. Next, you're going to have to fill this, the Dangerous Goods information. So just click on that link. And then from here, make sure to read it and select if it's yes or no. But most of the time, and if you follow our advice, it would be no. And then click on submit. And finally just click on save and continue. And that's going to convert your product. It might take a few minutes, maybe about 15 minutes to convert your product from fulfill my Merchant, two, fulfilled by Amazon. And then once that's completed, you can go back to the Managed Inventory page and click once again in the little arrow next to the edit button, and then select print item labels. From here you can input however many labels you want to print and send it to your supplier and just click the button, print item labels. Then you're going to be able to download a PDF file that you can email it to your supplier. And they used to, they know how to print it and attach it to your products. I hope this was helpful if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 29. Make Sure You're All Packed Up: Alright, now that you know about all of the different types of labels, it's important to always check for Amazon's packing requirements. So here's the link and you, I'm going to leave those in the resources below as well that you can copy. And it looks like this Amazon show tells you about all of the packaging and prep requirements in that's going to be product specific or Categories specific. So I can't cover every single one of them here. So make sure to click on this link and go through everything in two very common questions that we get on our Facebook Group is that can I combine all of the F, F, F and SKU label, the warning label in the country of oranges all even one label. And I would advise you not to. Some people do and it's fine. But there are certain requirements, as you can see, of the size of the font, the text, as well as the spacing around the tags are whitespace around the text. And so I would advise you not to mess with that design or the proportions or anything. Just download the file as it comes from Amazon and send it to your supplier because you don't want to run the risk of your labels not being up to standard and then Amazon having to relabel them and you're having to pay a fee for every single unit that they relabelled. Another common question is that if your product already has the UPC code printed on it, well, do you need enough in SKU label? So the answer is yes. Not only you would need an F and S EU label, but you need to cover the existing UPC code with that label. No other bar codes should be showing that it is not. That hasn't doesn't have anything to do with Amazon. We do have the box barcodes and outside of the box, but Amazon once efficiency for when they're scanning your products or when you get an ordering, you have no delays. So you need to make sure the labels, the crabs, the packaging is all up to standards. This link is going to tell you what is the max weight that each carton can have MX dimensions. So be sure to read through everything to make sure you're not overpaying or you're not having headaches, having to redo things. And I hope this was helpful if you have any questions, be sure to leave those in the Q&A below and let's go ahead and get to the next video. 30. EFFORTLESSLY Create Your Amazon Shipping Plan (Step-by-Step): In this lecture, I'm going to show you how to create your Amazon shipping plan. But basically you need to let Amazon know that you're playing on shipping products into one of their warehouses. So Amazon's going to tell you which warehouse is best to send your products into. And you're also going to be able to create shipping labels to put on your products as well. So you'll want to make sure you do all of that and I'll cover that step by step by step in this video. So first we want to do is login to your Amazon Seller Central account. Next, go ahead and head over to manage inventory. Once you were there, find the product that you want to create a shipping plan for which I've already done here. Click on these to kind of up and down arrows here. And what you're gonna do is click on Send slash replenish inventory, because we're going to be sending inventory into Amazon's warehouse. Alright, and then once you click on that link, what you wanna do first is go down here to ship from. So we're gonna click on this ship from another address. So go ahead and click on that. And you're likely not going to have any of this information here are probably learning it out anyway. Can sensitive information, I'm going to scroll down and show you what to do. So here, you're going to enter in the ship from address. So this is where the products are shipping from. Really straightforward. Honestly, this whole process is straightforward. There's just a couple of kind of specific parts I want to point out. This is one of them. So you'll enter in your suppliers shipping information here. Now, with some sellers have done successfully, is they'll enter in an address in California and in specifically near the Los Angeles area. And you may be thinking, why would they do that? Well, the reason for that is that they get a higher likelihood of getting their product set to an Amazon warehouse in LA. So most products are shipped to Amazon. I at least for a lot of new sellers are gonna come from China, okay? So most products shipped from China go through the LAX or go through the port in LA, right? And Los Angeles, California. So from there, right? If you're getting a where, if the product that you're sending so you get it into through customs, right? Your products right there. If you can get them to LA's or Amazon's LA warehouse. And one of the warehouses that's really quick to get your products in and get them scanned, right? If they need to get shipped across the US, Let's say good luck to you in New York or Florida or somewhere else, right? That's, that's still significant journey that products need to travel before they even start getting scanned in. So this is a way to kinda a hat to kind of reduce your lead time to get your product is up and running on Amazon as soon as possible. That is up to you if you would like to do that. But technically, you know, what you are supposed to do is when Amazon asks of you and that is your suppliers shipped from address. Okay. So you go ahead and fill that out. I've got hadn't done that already, so I'll go back up to the top where we were. Alright, once you fill that out, just to make sure that you have create a new shipping plan, check which it should be. And then here for packing type. And again, if you're ever stuck on a, on a, on a question or things slightly changed for you. For whatever reason, you can go ahead and find these little, like what is this links that will really help you out as well? Just to kinda keep that in mind, always look for those links. But here we're gonna go ahead and choose case pack products unless individual products are if you are within one carton, right? One of those big boxes that I talked about before, a, you have multiple different types of products and that like, let's say, an orange T-shirt, a blue t-shirt or read teacher, all different kinds of colored t-shirts, that would be individual products, right? Becase pact, which is most likely going to be the case for you. Is the same product. So it's a red T-shirt. They're all red teachers, or in this case, maybe blue teachers, right? So all blue t-shirts in every single case and something else I want to keep in mind. I just want to let you know as well. This is very, very important to make sure you keep this in mind. So remember I talked about little boxes and big boxes, little boxes or just the box or the bag that your product goes in. The big boxes are what your products go into that, you know, it's called a carton sometimes so or a case, right? So in that big box, right, you wanna make sure that you have in all of those big boxes that you send to Amazon, all of your cartons, your cases, that they have an equal number of products in each. So for example, let's emphasise shipping to cartons of products into Amazon's warehouse. And one of them has 49, the other has 50. That's a problem. You want to make sure that either both have 49 products in them or both have 50 products, okay? So you want to make sure that when you are ordering product from your supplier, you may need to order like a few more or a few less of the product to make sure you have an even number of products per big box rate per case per carton. You just wanna make sure that there's an equal number in each okay, to prevent any issues. So I just want to make that very clear. If you have questions about it, let me know, but should be pretty straightforward. Once you do that, click on case pack products, click on Continue to shipping plan. All right, and we're going to enter in the units per case and the number of cases. Okay? So let's just say we have 50 products per big box and we're going to have two big boxes. Ok, so we're ordering, and this is again totally hypothetical. We, there's probably be really low, but we're ordering a 100 products. 50 of them are going in one box. Fifth, you're going in another box or 51 case and the other in another case, really straightforward. So, yeah, go ahead and enter that in there, and then click Continue. Alright, and then here we have the section of who preps, OK. So you either have the option of Amazon prepping or merchant. Now what does that mean? Who's, who's prepping? What are they prepping. So what prepping is specifically in regards to your shipping label? You could have Amazon do it for you, but it could be very expensive a lot, or I should say a lot more expensive than you just doing it yourself or having your supplier do it for you. So in every case I would recommend, you know, merchant, it's up to you, but that's what I do. That's what most other sellers do. It's, it's, it, it's not really that much effort and it's a lot cheaper. So I don't see why not? Go ahead and click that and hit Continue. Here. I've already shown you how to print your labels, right? Earth specifically your rescue. So at this stage you can just go ahead and hit Continue. Alright, from here, we're going to make sure we're gonna name our shipping playing, which I'd recommend that you do. So right here, I'm gonna go ahead and delete this and I'm gonna put the example shipping plan. But you can put it in your product name and the date that you made it. This will be really important to do to make sure you kind of keep track of everything on an organized otherwise it can get very messy. So just make sure you you name this properly. Okay. Urge name it. Again. It doesn't it's not important just for you internally, so you name it whatever you like, just to keep track of things. Go ahead and hit approve and continue. Once you get to this stage, you'll see that Amazon has generated a shipment ID for you and just go ahead and verify that the information is correct here and click on work on shipment. You'll scroll down to get to this section here. And 99% of the time you are shipping method will be small parcel delivery. You are packetizing. If you're using pallets, you may select this one here. If you have no idea what I'm talking about it, if you're not using pallets, then you're likely going to select the small parcel delivery for shipping carrier. We're going to use, in this case, other whatever. If if you see the one you're using, if it's DHL or FedEx or whatever it may be, you can go ahead and enter that in. But a lot of times it'll be other, so I'll go ahead and hit are entered in other and scroll down. Alright, shipment packing. Is everything going to be in one box or we can have multiple boxes. So remember how we showed that we had two boxes, right? We had a 100 units, 50 in each box. We have two boxes, so it's going to be multiple boxes. And this country me out. This is why I'm kind of going through this. I'm step-by-step is, remember Amazon used the terminology case. Remember I had a small box, big box, big boxes where all the products go into. So these are called Big Box term case. Now there's calling it box. So it can be a little bit confusing. That's what I'm trying to walk you through. But when they say here, write multiple, multiple boxes, that's multiple cartons, multiple cases, multiple big boxes, okay, not individual like product boxes. So if that makes sense. Alright, so we're gonna go ahead and use the web form that's the easiest, right? Scroll down here. And then for shipment quantity yet we have a 100 units per box. We have 50 per box, number of boxes. Remember two boxes, right? All consistent. Make sure it gets the same information they had before. And then you'll go ahead and enter in your box. Weight in pounds and inbox dimensions in inches, okay? Where a lot of people do is your supplier will give you your box weight, possibly in kilograms and the dimensions in centimeters, right? Because the metric system, so you wanna make sure you're just follow directions. Your box weight is in pounds, Buxton Mencius is in inches and they show you convert correctly and enter in the information here. Just want to call that out. And then we can go ahead and click on confirm if everything looks good. So we click confirm. Once we do that, this grayed-out area kinda right here, we'll, we'll open up. You'll be able to kind of edit and actually, and actually I'm do stuff with it. So once you hit confirm, you will be able to print, although that's really just downloads, you can print your shipping labels. So go ahead and download are shipping labels. And you can send those to your supplier to affix, to every carton that you have, right? And then you're good to go. That's pretty much it. So yeah, I know. Super fun, but I just want to call a couple of things out. If you have any questions about this, definitely let me know and I'll help you as best as I can. But hopefully this was helpful. And let's go ahead and get into the next video. 31. New & Improved Way To Create Your Shipping Plan: Amazon has recently changed their shipping plane creation interface. So I wanted to make sure to create this video to give you guys the most up-to-date process. However, the step-by-step process that some that just showed in the last video. That is still how it works. That is still the workflow for a few occasions. For example, if you're creating a shipping plan within Europe or you for now can still choose to go back to the old version of shipping plan so you can use the step-by-step that you learned previously. But I do think that Amazon is going to completely switch to this new, to this new interface once people get more used to it. So let's go ahead and get to it. So from your Seller Central homepage, go ahead and hover over inventory and click on manage inventory. From here, click on the arrow next to the edit button from the product that you want to send to Amazon and select sand slash replenish inventory. From here, you should be able to select the link for the ship from address. And if this is the first time that you create any shipping plan, it will require you to put the address from scratch. So you can just click on this option, add contact. And if you're using your suppliers address, if you're shipping from China's straight to Amazon's warehouse, Be sure to ask them for the city, province, and district, because Amazon requires those three fields, not only city and provinces, sometimes they don't give you all of those three details, so make sure you ask them about that. So then you can successfully save that address to your contacts. Or if you already have different addresses, you can just click on Select, like I'm showing here. And if it's in the future, if you're just coming back to this page, be sure to make to see if the ship from address is the one that you want. Because Amazon automatically selects one and usually it's the last one that you use. So if you need to change it, be sure to click on the link and change it to the correct one. Also before we move forward, a lot of people also ask what if they should use another another address for the ship from option in order to get a warehouse closer to the port of entry. So a lot of people tried to do a warehouse in California because most shipments from China usually come, usually go to the LA port. And you can try. A lot of people have tried this before. We have tried this before. But I will say that Amazon is getting more and more picky about where they send their products. It's not necessarily the closest to that address. But if you want to go ahead and try, the only risk is that the ship from address, obviously that's where they would send a items back to if if there's any issues with the shipment. So if you just pick a random address within California, for example, if you're not working with a 3PL. Working with the 3p LD and absolutely use the warehouses address for the ship from address. But if you're not, if you're just picking random edges, you do run that risk. So anyways, moving forward, you're going to go ahead and create a new packing template. So click on that. And then here you are going to put all of the details about that packing template. You can name it how I like to name my packing templates as just the name of the product and how many units are within that box. I find it the easiest to keep track of the different backing templates. A few end up creating multiples is for example, water bottle, Blue, 150. If it doesn't really matter the variation, if they're always going to be packed as 50, you could have like water bottle 50, then you can easily no, from the drop-down menu that I'm going to show you soon. How many, which template that is in the configuration of the boxes, then you would keep going and put how many units per box. So you would put 50 in this example. Then the box dimensions as well as the box await and make sure you do the conversion because your supplier will most likely give this to you in centimeters and kilograms. So be sure to change that. And an input here in inches and pounds. And then for prep, you usually are, if feudal need Amazon to do anything, any special bubbling or anything like that, which is in most cases, you just select the drop-down menu input, no prep needed. And lastly, who labels that unit? So who put the f and SKU labels in each product? And I would encourage you to do it yourself or, or as heavier supplier to do it in each, in both cases, you would select by seller. Amazon does not care who labels as long as it's not them, you would select seller and then you would make the arrangements and then click Save. From here. You would now have access to this drop-down menu where you could have what you could see your new packing template, as well as select the option of creating a new one if you want. And once you create several, if you do have several different shipping arrangements for that product, you would see them all listed there. You can also click on view and edit. And if you need to adjust something, well the weight or dimensions or anything like that. And then here you are going to put the number of boxes that you want to send within that configuration. So how many boxes of 50 units each do you want to send? So for example, you put two, it will give you the total just to confirm, then you click confirm. You cannot send that many units if you have inventory limit, Amazon will give you the arrow and then you would have to create a mock click on modify, and in lower the number of boxes. And then once you've confirmed it, it's all good to go. You'll be able to click on confirm and continue. From here, you're going to click select the shipping date. You do have to select it. It doesn't have to be exactly. Perfect, but try to find a day that you think your supplier will be shipping this around. And 0s here you would select the shipping mode if you're shipping loose boxes or if it's going to be in the palette. In most cases it's the small parcel delivery. And then you will see that Amazon is going to give you the destination warehouse or warehouses, the addresses that you need to ship your products to. And how many boxes of each. In this case, it was only two boxes, so he did one each, but it would give you the details if it's more boxes as well. In a lot of people try to avoid this and they try to delete the plan and recreated. But I actually would encourage you to see this as a good thing. You never know the quote that you might get to splay your shipment by, might actually not be that much higher. We've had instances where there were no price differences, no increase or decreasing price in it actually can be a good thing because that is what Amazon will do once they receive your, your shipment. If you've got just one warehouse, Amazon will receive your products and from there, they will start distributing across the country, across their different fulfillment centers. So it's easier and faster for them to fulfill orders across the country. So if you actually go ahead and split and you have split, split shipments yourself, you might actually get your products can in and available on much faster. So either way, grabbed the address details and send it to your supplier to get the updated quote, because sometimes it's not the same as the one that you ask them previously. And then here you're going to select Amazon partner carrier. You can select, oh sorry, non Amazon partner Kara, what carrier is going to be shipping your product? And if you don't know, you can just select Other, if you know, it might be helpful to put DHL or FedEx and select that. And then finally, you're going to accept charges and confirm shipping. So usually it's $0 if you haven't asked for any labeling from Amazon or PrEP, if there was no prep needed, then it's usually going to be $0 unless you are shipping from an address within that same country. So if you haven't address within the US, let's say you're shipping from your home or if it's shipping from a 3PL within that same country, then Amazon's going to offer you a, an option to purchase the carrier label through Amazon. They have partnership partnerships with the post office and you actually get discounted prices. Oy, I would highly encourage you to take advantage of that. And they will show the total here. And you can accept or not accept it would show the option here. You can still not except if you don't want to go with their prices and do your own way or if they have that option available, it would show here and then you can accept charges and confirm shipping. And then finally you can actually after you're done with that, you'll be able to rename your shipments and you just have to click on this little link And then this box will pop up. And I highly encourage you to name your rename your shipments because Amazon gives you a standard combination of letters and numbers ID, but a king as, as you create more and more ship shipments, it can get kinda confusing to try to find one if you need to. And this can make you very much organized in what I like to do is I like to put where it's coming from. So if it's coming from our 3PL, I would put WC owl on the world craft logistics, then the product name. And if there is a variation, for example, water bottles, blue, and then the, the shipping number. And if I'm splitting, I would put for example 1.1 and the next 1.21. If either even either if it's split by Amazon like this case, or if I'm sending from that same order, I'm sending it partially via air and partially via C. I usually do that 1.1 for air and 1.2 for c. And then you can go ahead and click Save. And then finally, you can print your labels and then send those labels to your supplier. You just have to click on the Print button over here for each one. So you have more, if you have more than one warehouse, then make sure to print for both. And you will be able to see your file and download it as a PDF and send it to your supplier so they can attach it to the cartons. So if you have any questions, I hope this was this wasn't confusing. And if you have any questions, be sure to leave those in the Q&A below. And let's go ahead and get to the next video. 32. IMPORTANT: Protect Yourself When Paying Suppliers!: So you've chosen your supplier and you have approved the sample now before you send them any money in before you start production. Well, we do. And what we're advising you to do is to create this purchase order agreement and send it to your supplier for signing. It is a structure. It is structured as a contract, but it's not legal binding, meaning that if something does not follow what you both have agreed in this document, you don't you cannot use it as a legal contract to sue them like they're in China, it's different. It's especially for me. I always had their Chinese. It's a different sort of legal system, so it's not really legal binding. However, it has several pros and one of them actually, our supplier has actually upheld their agree, our agreement. You're going to see one of the sections we talk about production time and if it goes way over it, there agreed to give you a discounted price. So one of our suppliers, when we unfortunately have had to use it with a completely agreed to honor their word and what they said and they did give us a discount at the end after all the delay. In. Another another reason why we like to use this document is because first of all, everything about your order is going to be laid out here. So this is a great document to refer to. If either one of the parties, you or them do forget or cannot find a certain piece of information through your messaging or email. Everything is going to be laid out here. This is a great way to actually get information to give to inspection company with all of the details it's organized if there's any confusion, if you've made lots of changes throughout before, you know, like from when you create the first sample until before you start producing if you made way too many changes, this is a great way to summarize and make it very clear what the production is. That all of the details of the production, however, I will say that some suppliers might take it a little bit offensive, let's say, because even though in the US it's very not only normal, but it's almost necessary to always have contract were very contractual based in it. It's not offensive at all. It's very straightforward. In China. They are very relationship-based like as we talked about in, in, it could seem like the US giving this to them because you don't really trust them. But while we usually do is when we talked to them, we say that this were American company and this is accompany policy and that's why we need to and so far, none of them have had any issues. And as a matter of fact, sometimes they go through the agreement, they kept certain things that we've missed or want to make sure oh, you wrote that. I'm a 100 sets, but remember you said that you actually needed to be a 120 for reason eggs and you forgot. So this is a great way also to be very clear with them about all of the details, as I already said before. So before I go through the agreement, let me just remind you that not only this document, but all of the documents that we mentioned throughout the course. They're all available in the Facebook group. So be sure to join the group. I'm going to leave the link in the resources below. And it's filled with amazing resources, documents like this. There's the whole community where people are sharing questions and, and experiences mu of my find good support there as well. A few have questions were a few. Or going through a certain stage of the process that we might not have referred to it here. So okay, let's start in the beginning. It just starts stating that your company name, so for example, Hilbert's products, known as first-party, agrees to enter into this purchasing contract with your supplier company name known as second party. This is just to establish that anytime throughout the document that you say first-party, that means you or second party that means then. And in the first section is all about production. And here's where you're going to put all of the details about your your goods, the specific product, for example, all of the dimensions, the colors, how many sets, if you're bundling, put it here. All of the pieces that are going inside the bundle if you want, if you want it to be arranged in a certain way, put that in that order, that arrangement here, all of the details that you can and can think of. I would put here colors. I think I already said that, but anyways, everything. So you can refer this to and it's also a great way to later on just grab this section of of your agreement and send it to the inspection company. So they have all of the information even though they will send you a form for you to fill out. So it's a great way to refer very quickly to all of the details. So put here all of the details of all the things about labels as well. And then here says the first party, you agree to the cost of X amount of dollars. And you can even say if you want, that means y. For example, $2 per cent times 200 sets and that is the total. So the next section says that if production time exceeds the accrete agreed upon time and then you put how many days they told you they're going to take them to complete. The first party requires advance notice and release three days and respond appropriately. And it says later that if it goes beyond three days, they agree to enforce a 5% discount in and you can change that number as well. You just like the other document, the RFQ, just go ahead and change all of the orange colored text as well as anything else that you want to change. If you want to add more information or remove if you don't really want to take off this, this whole section about the delays all up to you. This is just a resource to help you. Um, and then if it also says that there are any flaws discovered during production, the second party, your supplier agrees to remedy, fix all the flaws in all of that. In the next section is about inspection. And it's very important for you to stay that you reserve the right to have a third-party inspection. Do this before production even starts on for two reasons. One, because I honestly think that they will put more effort to pay attention to every single detail of your production if they know that someone else will be inspecting, they're not just going to be, Hey, it's ready, Give us the rest of the money and we can ship. If they know someone else might be inspecting. There are going to take extra. Care when they're producing. And also because I highly recommend, we highly recommend and we talk about this in the course as well for you to definitely have a third-party inspection company every single time, but especially in your first-order before you ship your goods to the United States or wherever you're shipping to. But also here you see that you also requests them to send you photos and videos of the products being produced as well as when they're ready and all of the cartons and carton labels and everything. And that is important to one. It's an additional step of the inspection and you might actually catch something. I'm in time to do any changes or anything like that in two, these are actually very useful for social media content. You can have used it on our Tiktok account, on our Instagram, you know, the behind the scenes production and people really liked that too. So we, we also request them to send those photos and videos of the production. And in the next section is all about shipping. And it starts by saying that the second party agrees to deliver items to. And then you put the Amazon address here. If you haven't yet. If you still don't have the Amazon addressee having yet created your shipping plan, then you can just put address to be determined, but within the country, within the United States. And then you talk about the second party agrees to provide the first part with tracking information. So anytime that you ship anything you always want tracking information, do not go with any shipping arrangements where they will not provide you that. So always agree to provide shipping information and then if it is DDP, the second part is agrees to cover all of the fees and duties associated with the shipment because it's TDP, meaning that all of the duties are paid already. And it says how many cases via air fright if you're splitting a shipment, you can put another bullet point saying how many cases are going via air, how many cases are going VSC and all of the details here. And then after that, you ask them to confirm that it will be printing the shipping mark or case labeling according to the list below. And then you can structure this as the way that you want. We already talked about shipping labels the way that we do with our company name, product name, but at least these last three options, those are required as we already talked about. The next section is all about keeping all of your product information confidential. Not only confidential, not only not share with other clients, but also not use your own photos or videos, which has happened before. A lot of people have said that their suppliers started using the photos that you created and paid for on Amazon on there listen, Alibaba. So with this, you're making sure and asking them to agree to not do that with Alibaba or any other website, as well as keep your whole everything, design and ideas or patents, anything confidential from any one, only within the company. And then the last section is about payment. So you just going to say here how the payment's going to be structured. And this is very important. While we usually do is we send them 30 percent upfront. That is the deposit and they're very used to this. I don't know. I've only had one supplier that requested that we sent 50% and that is because the material was significantly more expensive than usual. So they do need to make that purchase upfront in order to start production. So they asked us to do 50% but never do more than 50 percent indefinitely. Do not pay everything upfront. So 30 percent of the total amount of the production, along with 30% of shipment or not. You can, you can decide with your supplier if you want to do shipping later. Sometimes we do only 30 percent of production and we figure out shipment with them after when we're paying the deposit. So it's all up to you, will be paid via trade assurance, Alibaba trade assurance or PayPal, which is absolutely the only two methods that I would suggest you do. Now when you're being via trade assurance, let me just go to our slide to show you. This is what it looks like and you have a few options within trade assurance that the checkout, you can pave your credit card via wire trends for Western Union and all that in your payment can still be protected because what you're doing is actually where you're sending Payment 2 Alibaba in Alibaba will withhold that payment from the supplier until it's confirmed that the order is okay, and then they are paying them. So you can pay there are several different methods of payments that you can use, but make sure it's all within trade assurance. We have used a credit card, we have used wire transfer, and it's all worked completely well for us. Do not send them a wire transfer if it's not through Alibaba, you have 0 protection. You can also use PayPal. Paypal does have a about, I believe, around 4% fee that you have to pay when you're paying for a service in order for you to be protected. And when you pay your credit card with trade assurance as well, there is a small fee as well, not a small fee, percentage fee, and as well as the tradition, so everything has a processing fee. You just have to see what works best for you. We've used credit card a lot because we travel a lot and we use our miles credit cards so we get cashback, we get miles. So for us it's a has been worth it. Despite the fees. It's being better than sending them via wire, wire transfer or PayPal. But you're going to stay here. The method that you're going to be paying them. And you can put this subtotal, subtotal, and then the remaining 70% of the balance and you can stay here or there 70% is, will also be paid via Alibaba after production and finish after production is finished in in. You are also responsible for all all responsible for all of the processing fees required. And then I usually add their company name as well as their address. And then the last section are the approval. So this agreement is enter into on date for the date your accompany name is supplier company name. In here's what you would you would be signing and dating and in skin and send it to them. And then finally, what I would suggest is that you ask them to send it back to you that read and agree with it and send it back to you with a stamp, the red stamp. And the reason why is because only the manager has access to the stamp. So the person, the representative that you are speaking with, if he just wants to move forward and it might not be held responsible for this and he just wants to go ahead and move forward without much responsibility. He cannot give that stamp, he would just sign. So ask for the red stamp and then you should be good to go. As I said, this has worked really well for us. Let's go ahead and get to the next video. 33. Let Amazon Help You With Other Sales Channels Order Fulfillment: When you have products that are fulfilled by Amazon, you can actually take advantage of Amazon's fulfillment program and their services to complete orders that you sell on different sales channels. For example, if you have your own website or Shopify website, if you have, if you have expanded those same products to Etsy or eBay or other sales channel in your selling within that same marketplace. For example, the US, then you can actually use Amazon's Fulfillment to Amazon's program and logistics to fulfill that order within Amazon itself. And I'm going to show you how to do it now. So from your Seller Central account, go ahead and hover over inventory and click on Manage inventory. From there, click on the little arrow next to the Edit button of the product you want to fulfill and click on create fulfilment order. From there you're going to have this all of these fields that you need a complete, which is all of the customer's address and information of the order that you've received. So for example, let's say you've received an order from Etsy, this product. And Etsy is going to give you all of the details, the customer name and address and all that. So you can just input everything here, the name, address, postal code, the phone number is optional. And then you already have your product here. But if you want an, a different product or add products, you can use this search bar. And it's also going to tell you how many you have it in inventory. Let's say the person bought two. You don't have to just, you don't have to create two fulfillment orders. You can fulfill two items at the same time by just changing this number. And then finally, you can choose an order ID of your choosing, or if you leave blank, Amazon's going to generate one for you. Well, while we do, what I like to do is that I like to get the order number from that sales channel. So for example, the xy order ID number 0145. Then I put on the order ID, I put Etsy dash 0145 because I can easily go back to my orders later and make sure I can easily find it just by searching for Etsy because I know what marketplace they came from or what sales January came from and their order number. So that's what I like to do. If the person has had a congratulation message or a gift message. You can also add it here, the packing slip, slip comments. Unfortunately, Amazon does not do any additional gift wrapping or anything, but you can add a message in the little paper that will come with the order. And then once you fill this out, Amazon's going to fill out the prices depending on the shipping speed and the estimated delivery date as well. So usually you will have this standard, the expedited, and sometimes you also get the priority option. And it will give you the different prices. And you just have to click on Place Order with whatever option that you have selected, you are agreeing to pay that price to Amazon and you just click on Place Order, and that's it. Amazon's going to charge you that amount from your from your payments or your next payment reports. Or if you're negative, it's going to charge your credit card on file and then you have a you don't you don't even need a three PL or you don't need to ship it yourself if you want to start expanding to other markets within the same marketplace. Now, you cannot do this if it's an international order unless, I believe if you have a media product like books or DVD, something like that, I'm not completely certain. But if most products as of right now, you cannot use this program internationally. But you can within the same country they try to fulfill. And it's an amazing opportunity because it can save you a lot of time, a lot of money. A lot of times these 3PLs Wu charge you a fixed fee and you only have scarce orders. So this is definitely useful. And lastly, you can actually automate this process by clicking here to learn more. And you can actually integrate this fulfillment multichannel fulfillment program with your other sales channels depending on what it is. So you can just click on that link to learn more. And I hope you found this helpful. And let's go ahead and get to the next video. 34. Do You Need A 3PL?: In this video, I wanna talk to you guys about third party logistic companies or 3PL. And what are they insured? You consider them, in our opinion, this is extremely important to consider, especially as you start scaling your business. Why? Because Amazon Fulfillment, Amazon FBA fulfilled by Amazon, can only go so far for you. Not only can only go so far, it might be more costly in my, they definitely will not prioritize u over the thousands, if not millions of salaries that they have. You don't have this guaranteed when you are working with our 3PL, you can have that partnership. Sometimes they will customize things for you. They can offer services that you might need such as storage or fulfillment. Taking that order, for example, especially if you have other sales channels like your own website, taking their order from the customer from there, a warehouse trade to the customer and making that fulfillment is shipment. They a lot of times they offer control of inspection or customization or how to or packing and trapping or Freight Forwarding. So there can be a lot of advantages of working with the three Biao as opposed to Amazon or along with Amazon as you scale your business. So when we talked about three BLs, I like to consider four factors when choosing your 3PL because there's not just 11 3PL, that is perfect for all businesses. It absolutely varies on how many orders you get per month, the size of your business, how many sales channels you have each fish shipping internationally and all that. So the first is cost. And when I talk about cost, obviously it's very important, but I'm talking about everything. It related to the services that you want. So storage, for example, compare the storage of the same amount of units during that same time of year because it does vary aliased with Amazon during that same time of year, for the same amount of storage with a 3PL and with Amazon, you might actually see that most likely it would be significantly cheaper, especially during Q4 doing the last quarter of the year because of the holidays, Amazon storage fees are so high that sometimes even if, when you sell even more, some sellers are not even profitable because it depends on how much storage you have that Not to mention in 2020, amazon announced that they were going to be limiting storage depending on your IPI number score, which is inventory performance index number. And in 2020 the threshold was 500 score. So anyone who had below 500 could only send so many units to Amazon sometimes was very small and definitely win kinda crazy. And during the holidays a lot of people getting out of stock us included. And because because of that they are reducing the threshold to 450 points for 2021, but still a few have lower than 450, You Wu experience limits for your inventory. So because of that, it is very important that you consider storage on other 3B tells you might not only save money. But you can help me with the whole logistics. For example, if you might save money with storage, but you also might save money with product sourcing because if you're only shipping from your supplier to Amazon, only, then you can only order so many units because most likely your supplier might not keep the remaining of the units for you. So that results in a higher costs for your item. With with the other option, you can actually order a bigger order, paying less per unit, ship, whatever you can or want straight to Amazon. The remaining you would ship to a 3PL and within the United States or whatever country you are trying to sell it in. And when your inventory is getting lower on Amazon, just quickly ship it from your 3PL to Amazon and we'll get there much faster for cheaper than if it was air expressed from China as well. And you would have them ready that you, so we wouldn't have to start producing it all over again and run the risk of going out of stock. So there's, this is one of the benefits and you want to consider the cost of that storage and as well as cost of fulfillment. So when I talk about fulfillment, sometimes a lot of 3PL and they would charge you a fixed. So like between 1200 orders per month, this is the cost and from 200 to 500 words and other costs, sometimes this is how they charge and it might not be worth it for you if you don't have as many orders per month or sometimes it's per order like a dollar per order, $2. I don't know. It depends. So definitely wanted to take that into account to your profit calculator to make sure that you're still profitable, used to have a good margin. And also consider the costs of several other services that you might be interested in if it's fright, freight forwarding or a fates packing and prepping, let's say your supply can not do that and they cannot labor your products or I put them how Amazon wants them to be packaged, then you could ship it to your, to your 3PL and then from there they prep and ship it to Amazon. So consider cost. Second, consider a location. And this could be this very honestly, as depending on the size of your, of your company or your needs, this might not be as important, but it's also a good thing to consider. So if you're only selling on Amazon FBA, it might not be as important because Amazon will not, usually they're not as consistent of giving you the destination warehouse. Sorry, they're usually not as consists of giving you the same destination warehouse every time. So one time you create a shipping plan and your destination warehouse might be in California, another time in North Carolina. And other timing text says, so it sometimes you think I'm going to get a a warehouse that 3PL in California. So I'm really close to the warehouse. Sometimes that's not the case. But you should definitely take it into consideration, especially if you start seeing a pattern that all of you shipping planes, for example, are going to North Carolina, maybe you get therapy on the East Coast or, or California. And I will say that sometimes when you do create a shipping plan, if it's not a really busy time of year or if your product is not a special product like Dangerous, Good or a small enlightened Riemann role in this following my program, Amazon. I do think that most of the time they tried to get a a warehouse that it's close by. So if most of most of the shipments, if you are sourcing from China, they do come through the LA port. So a lot of people go for warehouses in California because it would be very fast not only to go from the port when it's delivered from your supplier to the warehouse. But also, like I said, a lot of times Amazon will give you a California. That's a nation warehouse, so it will be very close as well. But also if you live in the United States, so if you live in whatever country you're trying to fulfill your orders. If you live there and you want to be nearby, if you store some things they own play. So if you want to have that close relationship with the 3PL, you may also want to find a location near you if you want to maybe save some money on that. So locations definitely something that it's important to consider. Third, the third factor is speed. Not only their processing speed, because so how long does it take from when they receive an order to actually ship out their order from when they receive their order for that package to leave the warehouse, even even if you're not fulfilling just one, you know, individual orders, even if it's okay. I'm running out of stock of Amazon. I need a new carton to be shipped asap. How long does that take? 24 hours a week. So you definitely want to be asking them that not to mention a certain warehouses, they do qualify for merchant fulfilled Murcia fulfillment Prime program. They guarantee the speed that Amazon requires for you to apply for the merchant fulfilled Prime. And it does take a while for you to be able to be eligible to apply. But if you don't want to deal with Amazon, FBA Fulfillment By Amazon issues or you know, if you want to control the returns or, or if it's really expensive for Amazon to fulfill that. If you have an oversized item, for example, you might want to consider fulfilled by merchant and consider a warehouse that can do the prime fulfillment. They can guarantee this speed that Amazon requires for you to be prime because that will absolutely impact your sales. And then last but not least, consider the other services that they provide. Even if you don't want it now, you might want to use the other services later. For example, if it's a if it's a warehouse that also also offers inspection, even if you're always going for the inspection company in China. Sometimes you hear something happened during the ship in and you want to have that that the possibility of someone inspecting it again to see if everything is okay if something happened during shipment and they can do that for you. Or one thing that we wanted to consider when we're looking for our warehouses was returns. So when people returns, an Amazon deems that product unfulfilling and that you need to remove that product. In a lot of times those products are not damaged. Sometimes the buyer just selected that something was wrong with the product because they didn't want to pay for the return or whatever reason, and the product is not even touched sometimes. So a lot of BLs will also offer to inspect those small packages in C and C tested and see if it's broken or not broken and repackaged for you to join your stock of sellable products. So definitely consider this. A lot of them will also offer freight forwarding services, which is what we do. We partner with a warehouse that also offers this in those day or our freight forwarders, which we're going to talk about in the next video. But before we go, I just wanted to share you guys, share with you guys this link, which is from the e-commerce optimizer website. And they have gathered this list of 3PL all over the country and abroad of companies that you can click here, you can get the link. It is, it does say which services they offer, but I would encourage you to to double-check this to see if they really do offer this, or maybe there are no longer offering you if they added a new program. So maybe look at What's most important for you, let's say for PrEP and ship or fulfillment is most important for you. And then you contact these warehouses in see what else that they offer. And I will say that there are two parts of the statement and a lot of people miss the second part. But there you go. Here's this great table that I want to share with you guys, obviously giving the credit to e-commerce optimizer, which is who gathers this amazing list for us and do my one more than one 3PL you might want one for storage and one for fulfillment. It might depend on the costs and all that. So have this at hand, and hopefully this was helpful if you have any questions, be sure to leave those in the Q and a below, and let's go ahead and get to the next video. 35. Let Amazon Help You Reach New Marketplaces: If you're planning on shipping your products to Europe, then you have to consider a vet. Vet stands for value added tax. And there's a few circumstances, a few instances where you're going to have to pay money to the government in order to import goods and sell within those marketplaces. So this is very important to understand, and I'm gonna leave the link below, this link below of Amazon services and all of that resources for you to understand more of what it is. And because it varies depending on your circumstances, marketplaces you plan on selling to, I cannot give you the exact explanation. War, you have to do my you can come here on this link and then you can scroll down and actually fill out this form and figure out a few have to register for a VAT number. So there are two things that you need to consider about vet. One is registering for VAT and getting a number almost like registering your business, your business and getting an EIN number. So you need to get that number sometimes in order to sell in certain countries and to import goods to those countries. And Amazon, after you fill this, it's going to tell you if you need a register or not. And also that is also what we would call the sales tax in within the US. So sometimes depending if you're a vet, if you have a vet registration number or not, you are going to collect VAT on your product and that should be included in the price and then collect that amount and then paid to the government afterwards, you need a file like filing taxes in the US. So this is extremely important for profitability to, so you have to understand, either way you're going to end up paying taxes to the government. Rather, that is doing importation of your goods or it's doing the sale, you're going to have to account for that amount in your price. So usually what we do and what most people advise you to do is that to increase your price on those marketplaces by about 20%, because that's usually how much you have to pay the government. For example, when you're importing goods. If you have a 1000 pounds worth of goods importing to the UK, then you will most likely have to pay around 20%. So I'll round around 200 pounds. So you definitely want to account for that within, in your profit calculator because it can completely eliminate your profit margins or really, really diminished, making it worth it for you to sell on the market anymore. But the good news is that everyone's on the same boat when selling to that marketplace. So the prices, even if you increase them should still be very competitive, just like it is in the US. So you have to you have to figure out first if you need to register for a VAT number, and then later if you need to collect VAT within your price, within your sales price and file those. With the, with Brexit in the UK leaving the European Union starting 2021, a few things have changed because some people were using the remote fulfillment, the pan EU program, meaning you could import goods to the UK, for example, which is a very big marketplace for Amazon and from the UK ship it to other countries. But now with Brexit, you're no longer able to do that. And, uh, you might have to consider chipping your products, for example, to Germany and using the pan European program that way from Germany to the other marketplaces. And also one of the changes is that I believe in certain circumstances, Amazon will actually do the collection of that for you and the filing. So you need to figure I know it can be a little bit frustrating in dreadful to try to figure this out. But this is absolutely an amazing opportunity you've already developed a product, or you need to do is ask your supplier to ship that same product to a new marketplace. You already have your Amazon listing. A lot of times you can use the same. The reviews are transferred because it's already within Amazon's catalog, so they already have reviews for that lazy, you don't need to do a sober product launch all over again in the new marketplace. So it's definitely an opportunity to consider. And the great news is that Amazon actually is offering to do this service for you of registration and filing for free for one year, for the first year. So definitely take advantage of that. We're taking advantage of that. And at the end of the first year you can cancel and I'll pay anything you can say that you went to register, for example, your vet number and and then not have to pay anything for the following years. Especially if you don't have, if you don't get as many sales. So now I'm going to show you guys how to register for vet and the vet services within Amazon using Amazon's help. Okay. So you have to follow this link that I'm going to leave it in the resources below as well. And it's gonna take, to take you to this page called my services within your Amazon Seller Central Europe. Maybe I forgot to mention you need to have created your European account, your UK or Germany or all of them. That account first before you can access this page because you need to be logged in. So once you're logged in and you click on this link, you can select this option right here, vet services on Amazon, and then click Register. Next. It's going to take it to a new page where you can get even more information about this. And if there are any updates specially with Brexit, if you're considering the UK, then you can read all about it and learn even more about vet services on Amazon and what Amazon can do for you to facilitate this. But then you would click on get started. Next, you're going to confirm all of the information about your company. If you're a sole proprietor or if you're a company and then click confirm, as well as your business name and the country of establishment where you have established your company. And then click confirm as well. And after you click on those to confirm those to, this button will become available, agree and continue. Before you click on that. If you do already have existing VAT number that you would like to, to add for any of these markets, you can do a here and you also don't have to register for all of them. Let's say you only wanna do Spain or you only want to do the United Kingdom. You can remove any market, any market places if you want. But what I would advise you is that because this is free for the first year, I would advise you to register for all of them in test the market, test the market and see if you got traction. Because if I know, it will cost you to file those in the next year, but it might still be very profitable for you to do so. So sometimes you have no idea and you could be incredibly profitable and successful in Poland and you wouldn't know if you didn't test it. So because it's free, I definitely encourage you to test all of them and then click on agree and continue. Next is going to just state it one more time that you agree with the terms and conditions of this program. And you go ahead and click I agree. And then it's going to take it to this page where you're going to input your merchant token. And don't worry if you don't know what it is, you can, They're going to direct direct to you through this link. You can just click on the link and copy and paste it. The email address you want for communication because an accountant firm is going to help you set this up and accountant in one of those countries. And then your email address contact information in WeChat ID is optional, as well as confirming if you do want or not for the text service provided to create this registration for you, apply for this number for you, and then you would click yes. And then next. Finally, which number do you need if you need because of Brexit? If you need just the UK or one for the EU or both. We went ahead and went with both, as I said it before, and also click Next. And you're done. You have successfully applied. You still need to wait for an email from the accounting firm or from the the service provider, the text service provider that Amazon has partner with. Wait for their email. They might have additional questions or they might just want to confirm that you indeed one to apply for all seven countries which they have with us, they confirmed with us. And you just say, Go ahead. Yes. Then they're going to give you your vet registration number. And you can always go back to Seller Central and check on the status of your VAT number by hovering over reports and then clicking on manage your vet. And it's it should say here, the status of by country, the status of your veteran number by each country. And that's it. I hope you found this helpful. This might change, and especially with Brexit, they might start adding new rules in changing this a little bit, but always be on the lookout for Amazon's email and Amazon's news because they're always trying to facilitate this with us. They want new sellers. They want sellers to expand to other marketplaces and definitely take advantage of this free first-year program. And if you have any questions, be sure to leave those in the Q&A below, and let's go ahead and get to the next video. 36. LAST STEP!: Congratulations on completing the Alibaba to Amazon FBA masterclass. Seriously, did you know that only 10 percent of students make it this far to this video in the class, which literally means you're one of the top students who has ever enrolled. So congratulations again to you. And there are only two things left for you to do. So first, all of the information in the world means absolutely nothing unless you take action. So what I encourage you is you now have all of the knowledge, tools, and resources that you need to make serious improvements to your life. Take one thing, even if it seems small from the class and apply it today. And I want you to promise me this because even if you take a small step, this is going to create a snowball effect that can have a tremendously positive impact on your life. And of course, I want to encourage you if you have any questions or hesitations or anything that you need help with, or you'd like to share your success in the future with me. Remember I'm here all times to help you in any way that I can. So don't hesitate to reach out. And number two is if you could take 60 seconds to leave your honest feedback about the class, that would be tremendously helpful to both myself as well as hundreds of other Skillshare students and we would greatly appreciate it. And lastly, if you enjoyed this class, be sure to check out our other top rated classes here on Skillshare, ranging in a wide variety of topics, including Amazon, FBA and e-commerce, Pinterest marketing and advertising, goal setting, business branding, YouTube, SEO, and much more coming very soon. So be sure to check out those other classes in case you're interested. And again, thank you so much for choosing us. We're so excited for you on this journey ahead. And again, we're here at any point for anything that you need. So don't hesitate to reach out, wishing you all the best and look forward to seeing you in future videos.