Module 3 - Choose Your Supplier

3.9 Finalizing Price & Delivery

If you are satisfied with your sample, then you’ve found your supplier! May this be the beginning of a long and profitable collaboration!

1. Order Price

Now you need to finalize the order price from them, with your desired terms outlined. The quote should cover:

  • The number of units you are going to order, which is based on your first 3 months worth of estimated sales
  • The cost of the product (including any changes you make)
  • Any additional discount the supplier has offered for a slightly increased order, if it’s within your budget
  • The discount equalling the price you paid for your sample
  • The labeling & packaging (as we’d hope your chosen supplier is assisting here)
  • Preparing the stock for shipping and acceptance into Amazon’s fulfillment centers, and
  • The order payment structure

There are a lot of moving parts from now on, of which many will happen simultaneously. It is imperative at this stage that you get a clear understanding of what needs to be decided now, prior to placing the order, and what will happen after.

2. Delivery Schedule

You also need to finalize your delivery schedule. Below is what you need to consider:

1. Will they be handling the labels and packaging?
  • If so, do they need it designed first, prior to the order, or can it come a little later?
    • If they need it finalized now head to Module 5 – Design Your Labels and Packaging.
    • Sometimes they will simply need to know the basic design; is it a sticker, an insert or a screen-printed logo on the item, to be able to quote the works.
  • If they are not helping with the label, when do they need it?
2. Are they familiar with shipping stock to Amazon?
  • If so, work out any additional cost for this now, or will they provide you with a second invoice at the end?
  • If they haven’t shipped to Amazon before, be sure to read Module 7 – Ship Your Product to Amazon. You will want to be careful with shipping, to minimize the risk of any shipping issues. Make sure you pass along the product specific details to the supplier to ensure the correct units/box and package prep are done.
3. Do they need to order stock/parts to make your product?
4. Do they need to wait and schedule your order into the manufacturing queue?
5. Is their policy not to start any orders until they’ve proofed your label?
6. What are your responsibilities, what do they need from you when?
7. Are there any other expected delays? When ordering from China it’s important to know holiday seasons such as Chinese New Year around Jan/Feb which means a 3-week shutdown for all factories.
8. And lastly, get your payment schedule and options.

You don’t want to be the reason why the order is held up. The quicker you can get selling, the quicker you can make back your initial investment, and get your 2nd order in. The schedule doesn’t need to be set in stone, it will change and you’ll be going backwards and forwards with the supplier over the smaller details.

But for now, you just need an estimated timeline so you know what’s expected of you and by when.

Do what is necessary to get a quote with your supplier. If that means progressing through Module 4 – Create Your Brand and Module 5 – Design Your Labels and Packaging to determine the particular details, then do this now. You want everything possible to be on this quote so that there aren’t any additional surprises later on. Look over your quote once you’ve obtained it and ensure all of the details are as per your agreement.

Caution: Remember, never select a supplier that requires payment in full up front!

Time To Take Action!

This Module contained a lot of information on how to choose the ideal supplier for your product. It’s time now to use that knowledge and take action! Next up are the action steps you should take for choosing your supplier.