How to Find Suppliers to Sell Your Product on eBay and Amazon

Step by step process for finding the best suppliers online
Seth Kniep
April 12, 2018
Build your Amazon product
Suppliers are the people who make or build the products you want to sell on eBay or Amazon. Why are suppliers important? If you go out and find products at yard sales or on Craigslist, buy them, and turn them for a profit, that’s fine – but you only make money once on that product. You have to keep finding new products to buy and sell.

With a supplier, you can find a product that sells well, produce 20, or 100, or 1,000 copies of that product, then send the product to Amazon FBA and make money selling that product over and over again. That product will make you money while you sleep. With all the time you’ll save, you can find even more high-selling products.

There are two places I recommend for finding suppliers: Alibaba and DHGate.

Finding Suppliers on Alibaba

Once you identify a high-potential product on Amazon, you can search for that product on www.alibaba.com. Now, you have a list of potential supplies.

First, you want to find a supplier you can trust. If you see a little gold medal next to the company name, that means you’re looking at a Gold Supplier, meaning Alibaba representatives have physically visited the supplier’s factory and verified their trustworthiness.

 

 

The number next to the medal represents how many years they’ve been a supplier. Suppliers that are two-year Gold Suppliers or more are much safer than suppliers without the gold badge.

So, say you’ve found a nine-year Gold Supplier whose MOQ is 10 pieces, meaning you can test the product out without making a major financial commitment. Now, you can delve a bit deeper into checking out this supplier. Here, you can see this supplier can do 600,000 pieces of this product per month. They’ve had 111 transactions totaling more than $200,000 in the last six months. Their response rate is only 83.2%, which isn’t amazing, but their other details are still good.

Next, I’ll look at the supplier’s payment terms, which are the methods of payment they’re willing

to accept from you, the buyer. This supplier accepts Visa, MasterCard, T/T, e-Checking, Western Union, and PayPal. To be on the safe side, avoid T/T or Western Union with suppliers you’ve never worked with before, because if the product never reaches you, there’s no way for you to get your money back.

PayPal and Trade Assurance are both safe ways to pay. With PayPal, you can create a case, the money will be put on hold, and if you can prove the supplier never shipped the item, you’ll get your money back. With Trade Assurance, the money is held in a sort of escrow until you confirm you’ve received your product, meaning the supplier isn’t paid until the product is in your hands.

Once you’ve found a supplier you want to work with, just click “Contact Supplier.” The supplier is most likely in China, so there’s probably a language barrier. Keep the message simple and ask for all the information you need right away.

Here’s an example of the message I use:

Hello X,

I am interested in X.

What is the cost if I order just one sample?

If I order the MOQ of X, how much will it cost for you to ship it to me by express air and how much to ship it to me by sea?

Here is my shipping address:

XXX

XXX

XXX

 

Thank you so much,

Seth

Ordering a sample is important, even though it will cost you more money for a single item. Take the time to test the product out before committing to a large shipment. It’s also important to ask how much your product will cost to ship by air and by sea, and to include your shipping address so the supplier can accurately calculate the cost.

If you like what you hear when they respond, you’ll need to ask them to send you a Proforma Invoice (PI), which will contain a picture of the product, the order quantity, the cost, the shipping cost, and any related fees.

When you negotiate with suppliers, always ask for a better deal, because even five or 10 cents per item can make a huge difference when you’re ordering 10,000 of something.

Once you’ve paid for your sample or order, be patient. Some companies might already have the product manufactured and ready to ship to you right away, while others might not have the item in stock and will need to manufacture it, which takes time.

Finding Suppliers on DHGate

If you’re just starting out and Alibaba still seems intimidating, DHGate is a great place to start. DHGate is much smaller than Alibaba, and its rules are stricter, so you’re less likely to get scammed. You can also order much smaller quantities on DHGate. You’ll pay a bit more for these smaller quantities, but the shipping is free and much faster.

Let’s go to www.dhgate.com and search for the same item we looked at on Alibaba.

Below each seller’s name on DHGate, you’ll see a positive feedback percentage. The higher the positive feedback percentage, the better. You should also look for a seller with lots of 5-star customer reviews.

You’ll find some products on DHGate in a similar price range to what you can find on Alibaba, but for many products, the price will be slightly higher. When you’re ordering quantities in the thousands, even five cents can make a huge difference. However, since you can order smaller quantities, DHGate is a great place to start if you don’t have a lot of capital.

When you’re ready to buy a product on DHGate, you can click “Buy Now” and place an order. You’ll pay a bit more for it, but you’ll get it faster and won’t need as much money up-front.

These are just a few of the pros and cons to keep in mind when searching for suppliers on Alibaba and DHGate. At first, finding trustworthy suppliers can seem complicated, but once you’ve found a supplier you know you can trust, you can keep working with them long into the future.

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Seth Kniep

Married a pearl. Fathered 4 miracles. Fired his boss. Turned a single dime into $104,857. Today, a self-made millionaire, Seth and his team of 8 badass coaches teach entrepreneurs how to build passive income on Amazon.

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