Amazon FBA: How To Find Suppliers Abroad (Step-By-Step)


(logos whoosh) – Hey, there, I’m Rich Henderson, co-creator and chief mentor of The Amazing Selling Machine program, and in this short video,
I’m gonna show you exactly how easy it is to source products to sell under your own brand on Amazon from literally anywhere in the world. Now, I’ve just got back from
the Canton Fair in China, where I went to find more
suppliers and products. However, the true beauty of
this physical products business is that you can do this without
even leaving your house. Many of our most successful
members have done just that, and have never been to China. Many of them have said they
never have any interest in setting foot in China either, because they can do this all from the comfort of their own home, so let’s go inside and I’ll show you exactly how to do this on your computer. So, the best place to source
products from overseas without actually going
overseas is Alibaba, which is A-L-I-B-A-B-A dot com. You can see it on the screen. Now, it does have its pros and cons, but we have been using
it for seven years now, and I’ve tried all the
other options out there, and none come close. Now, this whole thing is a
pretty straightforward process, and it involves three main steps. The first is finding
suppliers for your product, then you’re gonna contact
suppliers that you found, and finally, the third step is
to choose the best supplier, and I will be covering all these steps as we go through this video,
but let’s get started. First of all, what is Alibaba? Essentially, it’s just a
directory of suppliers, including factories and trading companies, and as we said, it is the best place to find products overseas. The biggest concern
people have with Alibaba is that many of the listings
are for trading companies and not the actual factories, and you’ll hear many people say that, moving forward with a
physical products business, the only option is to deal
directly with factories. Well, this is simply not true. Building a relationship
with a trading company can be just as beneficial, and in fact, when you’re
first starting out, it can be more beneficial than dealing direct with a factory. When it comes down to it, it’s all about building relationships, and you’ll discover that as
we go further into this video. So, to get started, all you’ll want to do is
simply type the product you are looking for into the search box, so I’ve typed in
self-inflating sleeping pad. Now, first of all, I’m
not recommending this as a product you should be sourcing. This is just an example,
and I’ve actually used this product before in other training, but once you’ve typed your product in, it might well give you
categories and other options. If you see another option that looks like it might have more
results, then choose that, but in this case, I’m
gonna choose camping mat. I’m just gonna click on search. Now, at this point, you
can click on suppliers, but we strongly recommend
you stick with products. It gives better results,
but as you can see, we’ve got 3,560 products. That’s obviously gonna be
way too many to search for, so we’re gonna narrow down this list. The first thing we’re gonna click on here is Trade Assurance. This is something Alibaba offer
to give you more confidence in the suppliers, and it’s
basically a free service, you can see underneath, that protects your orders
from payment to delivery. So, if we check that
box, it’s gonna reload. You can see that most of the
suppliers on here have this, and we can take it a step further by clicking on Verified Supplier. Now, it’s worth noting here, Verified Supplier is something
that the suppliers pay for, but again, it also gives you
a little bit more confidence in the supplier. But I’m gonna check the box and you’ll see how many products we lose. You can see, we’re down to 500, which is a lot more manageable. So, we’re down to 500. Now, you can also choose the country you want to source from. The vast majority of products
on Alibaba will be in China. However, you’ll also find other countries, like Korea, Taiwan,
Vietnam, and the suppliers and products from these
countries are on the increase. So, we’ve narrowed down our list. Now, what we need to do is
start looking at suppliers and deciding which ones
we want to contact. The number of suppliers you
contact is completely up to you. Again, the more people you contact, the more likely you’re
going to get better results. At this stage, we’d highly recommend you contact a minimum of 10 suppliers. So, for the sake of this
video, we’re gonna assume we’re looking for
something just like this. You can see this sleeping pad
here, it’s meant for camping, and so, that’s the
product we’re looking for. In other words, we’ve done
our research on products to find a good, viable product
that we know we can sell, and this is the one we came up with, so we’re only gonna be looking
for products that match this. So, the first thing we look at here is they’re showing you the price. Now, under no circumstances assume that this is the actual
price you’re going to get. Just remember, these listings are intended to attract your attention, and you may find that, once
you start contacting them, that the price is different. Now, underneath the
price, if they show it, you’ll see the minimum order quantity. Now, for the most part, we want to be looking for
between 100 and 500 for our MOQ. This is saying 10, but again, you need to take that
with a pinch of salt. It might not actually be the
case when you contact them. But this is looking pretty good, the price looks reasonable, and what you’ll normally
find is the lower price is for a higher MOQ,
and that the higher end of the price range is for the lower MOQ. But you can also take a look at the images by clicking on the arrows. You don’t have to actually
open up the listing right now. You can see this looks
pretty professional. They’ve got some really good pictures, and that’s something to look for, too. This shows that this is probably
going to be a good company. Then, you can also look on the right here, and you can see that they’ve
been business 15 years, which is good. That’s a really long time. You’ll see a lot of these that have less. Personal experience with this, you wanna be looking for at least a year, and the longer the term, again, it gives you a little bit more
confidence in that company, and they’re still on here, which means they haven’t been getting a lot of negative feedback which
has led them to be removed. The response rate’s
pretty good, it’s 96.3%. To be quite honest,
anything over 75% is good. And they’ve actually got
76 reviews about them. Again, not overly concerned about this, but just like when you’re
looking for a product on Amazon, a higher rating and a
higher number of reviews points to company that’s
been around longer. So, these are all things
you should look at. At this point, I’m actually
quite pleased with this listing, and I am going to open this in a new tab so that I can go back to it, and that’s gonna be one of the companies that I’m gonna contact. So, we’ll keep moving down. This next one, Wenzhou
Kaisi Outdoor Products, they’ve been around two years. Again, that’s fine. 85% response rate, again, that’s good. They’ve only got five reviews, it’s 4.9. It’s not a big deal. We’re looking at the price here. You can see they’ve got a huge difference in price range here, $7.60
all the way up to $25. I would take a wild guess
and say $25 is for one unit, in other words, looking for a
sample, something like that. And again, they’ve got
an MOQ here, 100 pieces. So, actually, this looks
okay to me, so again, I’m gonna open this in a new tab, and this is the way I like to do things. I’ll go through and find at least 10 before I even start contacting them. So, this next one’s a
little bit different. You can see the image here. It’s not exactly the
one we’re looking for, so I’m gonna skip that one. The next one, this looks similar. Looks like they’ve got
two different colors. You can always scroll through the images. I like this, look, they’re showing that
it can be folded over. Again, it’s got good images, and remember, when you first launch, if
you haven’t got time or money to actually create images for yourself, you’re gonna be able to use their images. You can ask them. I mean, this would be a great infographic to put on your Amazon listing. Again, they’ve got some
fabulous images here. You can see they’re doing
multiple range of colors. This has got me quite excited. You can see they’ve been
around for nine years, response rate is good, they’ve got five stars on 40 reviews. Again, that’s really good. The price they’re saying is 16. You’ll notice straightaway that they’ve only put one price here. That’s not gonna be the case. They are gonna have multiple ranges. It’s about getting you to look, so I’m gonna open another one. We’ll go and grab one more example, just scrolling through these images. Not overly impressed with their images, but again, they’ve been
around eight years. You can see they’ve got
a good response rate, and they’ve got good reviews, so again, it might be another
company that I open up. So, this is how you do it. You just scroll through all these options. You can see how many there are. You can see just by me scrolling down, there’s multiple versions
and types of this. If we were looking for a specific one, you can see this is another example, but you’ll want to keep going through, and again, you want to make sure that you go past the first page. You can see there’s 10 pages of this. So, we’re gonna assume we’ve
been through all these. I’m now gonna open up
the individual listings. Now, something that’s important here, and it’s something you will see we ask for when we contact them is the lead time. They’ve actually got
it on here right away. You’ll also want to
look at customized logo, which means they can put a
logo on the product for you. You can see, to do that,
it’s a minimum of 50 pieces, but all of these things,
you need to verify. It’s all very well them
being on their listing, but to actually know for sure, you have to contact the
supplier themselves. So, when it actually comes
to contacting the supplier, there’s only one method we recommend, and that is to use the
Contact Supplier button within Alibaba, and we
recommend moving forward, when you go back and forth, that at least for your
initial negotiations, you stick to Alibaba. This is really important, because it means that
you’ve got a record of that, and also, Alibaba can see that, too, so that, if any issues come up and you’re using Trade Assurance, that Alibaba can see what
you’ve been promised, too. So, I’ve actually logged in. You can see the screen’s
a little bit different. There’s this button on the side, Contact Supplier, Chat
Now, and Browsing History. Again, you can use Chat
Now, but the best results you’re gonna get is
using Contact Supplier. Then, all you need to do is literally click on Contact Supplier. Now, at this point, sometimes
it gives you the option to say how much quantity you want. If it does, just put in 500 for now, and then, the message you send them. So, the first thing to
point out here is, again, you’re gonna see a lot of people out there recommend you just pretend you’re a buyer, but we strongly recommend
you tell the truth. You make the decisions, you’re
the company owner or CEO or whatever title you’ve
got for your company. Basically, this comes down to building a relationship
with your supplier. It’s absolutely critical that you build a strong relationship with your supplier, and that starts right
from the first message you ever send them. We’re telling you, you’re
going to be contacting at least 10 suppliers, but you know, at this point, you don’t know which supplier
you’re gonna end up choosing, so building that relationship
with them from the start is vitally important, so
always be straight up. Now, we’ve got templates we
use for contacting suppliers, but we always try and
change them up a little bit so that every supplier doesn’t get exactly the same template. At the end of the day, you just want to be asking
them specific questions. So, here’s an example of what you can say at the start of your email. So, you start off with my name is, and then you obviously
insert your full name. I am the owner of, and the company name, a company specializing in products for, and then, basically, put your
industry or area of interest. We are currently looking
to expand our product line, and are interested in one of the items that you’re manufacturing, the, and then you insert the product name, and you can insert a link to
that product on Alibaba, too. What you’re going to ask them
next is critically important. Now, going back to the whole thing about building a relationship, you don’t want to ask them 20 questions in the first email you contact them with. There’s numerous reasons for this. The main two are, first of all, it’s just gonna be very confusing for the person trying to answer you. As time goes by, these
companies, these suppliers, these manufacturers,
these trading companies, they’re getting better and
better at communicating. They’re employing more and more staff that speak fluent English,
but at the end of the day, you need to remember you
need to keep things simple. Asking them 20 questions means they’re gonna have to answer 20 questions, and obviously, that’s more complicated. Plus, if you do this, you’ve got less to talk
to them about afterwards. This is about building a
level of trust with them, and to do that, we
recommend you do it slowly and do it over time. Trying to rush them through
in making a decision in the space of a week
is not going to get you the best results, and also remember, you’re contacting a lot of
suppliers, not just one. So, the first thing you
wanna know about is the MOQ. You want to know what their
minimum order quantity is, and obviously, the price for
that minimum order quantity. The way we teach this has become
pretty much a standard now in the industry, but you want
to put something like this: what is the price per
unit, including packaging, at the following MOQs? 100 to 500 pieces, 501 to 1000 pieces, 1001 to 5000 pieces, and 5001 to and higher? We use this approach because
we want the supplier to think that in future, we could be
making much bigger orders. They may come back to you and say, “Our minimum order quantity is 1000.” That’s fine. Remember, you’re contacting
multiple suppliers, so it’s less of an issue, but it’s better to find
out right from the start whether they’re able to do this. Using this formula here means that, if they give you prices for all of them, you know straightaway, great, we can order something
between 100 and 500. Then, there’s a few other
questions you want to ask them. The first, you see right here, what is the standard
production time for each order? Now, more often that not, they’ll just give you a base figure. They’ll say 30 or 60 days
or something like that. Next, are you able to
provide custom packaging? Again, using this terminology means that they know what to expect, that they know that you know
what you’re talking about, which is also critically important, and more often than not, most of these companies
will be able to do that, so it’s an easy win for them. They get to say, “Yes,
we can do that for you,” and they’ll probably quote you
a minimum MOQ for doing that. And again, that’s great. If it’s a product that comes in colors, like our sleeping pad
right here, obviously, comes in multiple colors, so what colors? You know, you can add to that, obviously, like what colors do you provide? What colors are you capable of? Are there any differences in cost? Whatever, something along those lines, and then ask them about the package size, the package dimensions when
they’re gonna be shipping them. Again, it’s showing them that you know what you’re talking about,
but it’s also showing them that you’re thinking about
actually placing an order, because if you don’t ask
about shipping costs, then, you know, you might be just
contacting them out of interest. And then, you just want to give your name, title, and company, and that’s it. That’s your first inquiry, and that’s enough to
get you moving forward, so you would just send the inquiry. Obviously, I’m not gonna send it now, because I’m not interested in buying this and I don’t wanna waste their time, and then you would just send the inquiry. They will receive it, and
then they will respond, so again, we recommend
you do a minimum of 10. If it’s 20, that’s great. Remember to change up the wording on your templates a little bit. We just follow through the process, so here’s the next one
we opened in a new tab. You just click on Contact
Supplier again, and off you go. Now, before we go any further, I just wanna touch on this whole relationship-building
thing again. Building a relationship
with people is a huge part of any business, but it’s so critical when it comes to dealing
with your suppliers. At the end of the day, having a supplier that
wants to work with you as much as you want to work with them is going to make your
business much more successful. Building that relationship
will probably guarantee you’ll get the best deal possible, and remember that, when
you’re negotiating that offer, yes, you want to get
the best price you can, but at the same time, if
you’re driving them down so low they’re not making money, too, then the chances of
building a good relationship and moving forward and
using them for years is going to be slim. This has to be a two-way thing. Both sides of the equation have to win. If you get to a point where
you win and the supplier wins, you’ve got the best
supplier you possibly can. You’re also probably going to
get the best quality product. They like you, they trust you,
they want to work with you, they’re going to make sure
that they do the best they can for you to get the best
quality product you can. It’s the two most important elements of any physical products business, is having a great product
and having a great supplier. Also, moving forward, this
whole tit for tat thing, you know, you’re going to
be in a better position if you build a relationship with them to get improved terms
further down the line, and that doesn’t necessarily
mean the best price. It could mean you get terms
like paying 30% up front, then paying a further 30% when they ship, and then maybe 40% long
after it’s arrived at Amazon. The length of time that they’re willing to accept payments over is so important. It’s not just about the actual price. If you can get them to
be more open with you to doing deals like that and
accepting payments later, it means the cash flow for your
business is so much better, so building that relationship
with your supplier is so, so important, and
that’s why going backwards and forwards multiple times
with your emails is okay. It’s a good thing. So, that’s how you get started. That’s how you’re gonna go and do this. Obviously, once you’ve
sent that first email, they’re going to respond,
and then, you know, once you’ve got the answers you need for those questions you just asked, you can start asking them other questions. You can ask them about
what’s their payment terms? You can ask them can they
get high quality photographs done for you? Another great question to ask them, but not straightaway, in
the second or third email, is ask them where their factory is, and the way you do that is you say, “Can you tell me where your factory is? “Because, obviously,
we’d like to have someone “come and inspect the factory,” or, “someone come and take
a look at the factory,” or something along those lines, because not only does that
show that you’re serious and that you know what
you’re talking about, it’s also showing them
that you’re not an idiot. You’re going to get
your product inspected, because at the end of the day, that’s a great question to ask when you’re asking them about samples. Obviously, the process here is you’re gonna contact 10 or more, and the more you contact, the better. You narrow down that list. We recommend you narrow
it down to two or three, and then you’re gonna request
samples from those three, and that, as I say, is a
great time to say to them, “Oh, by the way, we’d
love to have our agent “come and visit your factory. “Whereabouts are you based?” Something along those lines. Now, there’s going to
be a cost with samples. They’re not cheap. Don’t necessarily ask
them for a free sample. There’s two things you can do. You can ask them, “Hey, if I
cover the cost of the shipping, “are you okay covering
the cost of the sample?” Or, to be honest, the easiest
way is just to say to them, “When I place my order,
will you take the cost “of this sample off my first order?” Again, it’s about building
this level of trust. If you’re just like
trying to save pennies, if you’re like, that’s
what they’re gonna see. They’re gonna see, well, this guy’s trying to save a few dollars. Can they be a real company? Are they a real company? Would a real company do that? What does that mean for us going forward? So, again, you’re gonna
see other people suggesting different ways of getting
the samples for free. I would say it’s the
least of your worries. Basically, just say to them, “I’m happy to pay for the samples, “as long as, if I place an order, “we take that off the
cost of the first order.” They will say yes automatically. I’ve never seen someone say no, and obviously, over the years, we’ve contacted a lot of suppliers, and have had hundreds
of samples sent, too. So, that’s basically the process of how you find suppliers
overseas for your products that you’re going to sell on Amazon. Just to recap, step one is use Alibaba.com to find suppliers for your product. Build a list of 10 to
15 or more if you want, and then, step two is contact
a minimum of 10 suppliers. Again, the more time and
effort you put into this, the better your results are going to be. Step three is, once you’ve contacted them and had a series of emails
backwards and forwards with them to discuss your product
and things like MOQ, price, and production time, then narrow down your list of suppliers to the best three that you’ve contacted, and then, the last step, order samples from those three suppliers, and when you get them, use those samples, along with the information
you’ve collected about these suppliers to make your choice of the best supplier for your product. Now, if you want to know
more about selling on Amazon, and specifically, more about
finding suppliers abroad, then we have some awesome
free training for you, and you can find that at
AmazingSellingMachine.com. The free training there
covers every aspect of starting a physical products
business selling on Amazon, so if you want to see
more content like this, and see a more in-depth overview
of how you find suppliers, then go to AmazingSellingMachine.com. That’s it for today, take care.

5 Replies to “Amazon FBA: How To Find Suppliers Abroad (Step-By-Step)

  1. Wow! It's a great, informative and extremely helpful video for all those starting an Amazon fba business, just like me.
    Thanks a lot!

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