How to find a supplier

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How to find a supplier

Post by Kunimitsu » Sat Jun 30, 2018 12:08 pm

I have been involved in studying and getting a brand and logo etc. For about 3-4 months. I have found products where the numbers are good and have contacted multiple suppliers, found the best one (good priced and good communication). However this is always where it ends for me. Either MOQ is too much (first product they wanted a minimum of 5 000 with a $7.60 per unit price), however most often the product and shipping is too expensive to compete and have a viable margin. For example the last product was $3.80 per unit. 500 MOQ. $200 to put a logo on it if under 1000units. So we are sitting at $2100 to start... shipping is another $1500 plus another $100-$200 for customs by sea or $2800 by air.

So with sea shipping it is going to cost roughly $7.50 per unit. Amazon will charge $7.81 per unit if sold at $19.99 (based on competitor) so we are looking at $4.68 profit per unit, before any marketing or other expenses. This is one example, however the last 3 products have all been the same.

Can anyone give any advice (or a mentorship from Crescent could help too :roll: )

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Re: How to find a supplier

Post by Crescent » Sat Jun 30, 2018 1:11 pm

Estimating the product cost as accurately as possible while you're doing your product research is important to managing your expectations as well as saving you a lot of time if the unit costs aren't low enough. There's really nothing you can do if the MOQ or price is too high after negotiations, it's just how it is for that particular niche. The lowest prices you see advertised on Alibaba are typically for high MOQ's, like 10k+. Expect to pay the high price they have listed for your initial test orders.
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