CHAPTER 3 GUIDE
Scouting Suppliers
In short
If you make everything yourself, you can skip ahead to Chapter 4. But many small shops sell at least some products they don't make.
Where suppliers are
There are a few common places to look:
- Big online wholesale marketplaces, like Alibaba, where lots of manufacturers list products.
- Wholesale sites and distributors closer to home.
- Local makers and manufacturers.
- Trade shows, if you can get to one.
The sourcing bot
If the bot needs to search a site that requires an account, you sign in yourself. Don't give the bot your password.
Comparing suppliers
Give the bot your product and ask for a comparison. It searches and comes back with a table.
Prices on wholesale sites
Prices on wholesale marketplaces are often shown as ranges, and the final price depends on how many you order, shipping, payment method and more. Treat the listed price as a starting point.
Asking for quotes
A quote request is a message to a supplier asking for a price on your exact order. The bot can draft these for you.
Samples
Always order samples before a big order. It's a small cost that saves you from a big mistake.
Shipping, duties and import rules
Importing products brings in costs and rules that a lot of new sellers don't expect:
- Shipping costs, which can be a large share of the price for small orders.
- Duties and taxes charged when goods cross a border.
- Customs paperwork.
- Rules about certain products, like anything that touches food, children's items or electronics.
Keeping track
Once you're talking to a few suppliers, ask the bot to keep a simple tracker. One line per supplier: what you asked, what they quoted, sample status and notes.
Choosing
When the samples are in and the quotes are back, you choose. The bot can lay out the options side by side, with the total cost per item including shipping and duties.
Walkthrough: comparing three suppliers
Here's how the spice jar search went at Shelf Life.
What went wrong: the missing shipping cost
The first time the owner compared suppliers, the cheapest one looked like a clear winner. Then the quote came back with shipping that cost more than the jars.
Questions people ask
Should I start with an overseas supplier? Not necessarily.