SESSION 3:

Supplier Outreach & Product Selection

T H E M I L L I O N D O L L A R C A S E S T U D Y

E U R O P E

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Part 2: Session 3 Giveaway

Part 2 I Session 2 Winners

Brendan Mulholland (Web App Standard)

Ayelet Michaeli-Arbel (Web App Standard)

Jonathan Hsieh (T Shirt winner)

MDCS: Europe Progress Map

Session #1: Generated a list of product ideas for the UK

THIS WEEK: Supplier outreach, profit calculations & selecting our product

Session #2: Advanced research & narrowed down

that list to the top 5

… and growing!

Catch Up - Follow Along

Catch up with MDCS Part 1 where we launch a product in the US –www.junglescout.com/mdcs-us

Follow along with MDCS Europe here –www.junglescout.com/mdcs-europe

What We Are Covering Today

◍ Taking a look over Kym’s Advanced Product research findings

◍ Carrying out Supplier Outreach to get a better idea of cost

◍ Profit calculations (including factoring in VAT)

◍ Deciding which product we will launch on Amazon.co.uk

Our Advanced Research Findings...

Let’s check out Kym’s HW

Quick Overview (More Next Week)

◍ English? Chinese?◍ Chinese business culture

◌ Long term business relationships◍ Payments?

◌ Alibaba Escrow◌ T/T (wire transfer)◌ PayPal (small orders or samples)

◍ Trade Show? Visit China?◍ Contracts/Agreements

◌ We’ll give a template at a later date

Top Tips For Using Alibaba

◍ Try using a few different keywords to search alibaba

◍ Look for more established factories that have trade assurance or the gold supplier badge

◍ Use your favorites to keep a list suppliers◍ Create an email template & a dedicated email

address◍ Use the Alibaba messaging function

👍Hi There,

My name is Kym from Jungle Creations. We are looking to

purchase sleeping bags for the UK market. See attached

photos. Our primary sales channels will be online. We estimate

up to 10,000 to 15,000 pcs annual purchase volume after a trial

order of 1000-1500 sets and samples evaluation.

Specifications:

● Size – 190 x 75 x 30 cm and 210 x 80 x 55cm

● Material – Water resistant Polyester outer shell,

windproof lining for insulation, 300GSM hollow

fibre filling for use in 3 seasons. (+10°C to -10°)

● Colour – Blue, Grey and Black. Orange inner lining

showing contrast in the hood section.

● Style – Mummy style, with a compact, waterproof

carry case

● Additional Features – Internal pouch to store

valuables, internal drawstring collar pulls, double

...Do you manufacture these types of high quality

sleeping bags? If so please provide the following:

1) Photo, Specifications and FOB Quotation

2) Are you a manufacturer or trading company?

3) What is your lead time for samples and trial

order?

4) Can we add our logo to this item? If so, where

can the logo be added?

5) What is the sample cost with shipping by express

to UK?

Appreciate your reply. Thank you.

Kym Ellis

Purchasing

Create A Solid Email Template

https://www.junglescout.com/session3-HW

Outreach Guidelines

◍Aim to contact 25 suppliers ◍Attach images of a similar product to

give a visual◍Keep an eye on your inbox AND the

Alibaba message center◍Sort responses into folders◍Be ruthless!

Watch over our shoulderHow to carry out supplier outreach using Alibaba....

Calculate Your Profits

Remember to account for◍ FBA fees - junglescout.com/fba-calculator/◍ Landed cost

◌ FOB Price◌ Duties - https://www.gov.uk/trade-tariff◌ Shipping (ROUGH estimate - £6/kg Courier, £4/kg Air Cargo,

£0.5/kg Sea)

◍ VAT (20% in the UK)◍ 5% for PPC and marketing costs

Profit = Retail Price - PPC&Marketing - FBA Fees - Landed Cost -VAT

Profit = Retail Price - PPC&Marketing - FBA Fees - Landed Cost - VAT

Example: Retail Price = £26.99Marketing/PPC = 5% of £26.99 = £1.35FBA fees = £6.14Cost per unit (FOB) = £5.44Shipping = £0.5 (for 1 kg)Duties = 12% of £5.94 = £0.71Landed cost = (£5.44 + £0.5 + £0.71) = £6.65VAT = (20% of £26.99) = £4.50

Profit = £26.99 - £1.35 - £6.14 - £6.65 - £4.50Profit = £8.35125% ROI on Landed Cost (aka my investment)

Note: Landed cost = cost per unit + shipping + duties

Which product do we think we’ll go for?

Sleeping BagsJoin us to see us launch our new FBA product on Amazon.co.uk

Follow Along: Your Homework

1. Using the the supplier outreach tactics we shared, start contacting suppliers for your top products

2. Carry out deeper profit calculations with your supplier outreach results

3. Decide which product you are going to launch4. Join us next week ready assess supplier responses!

Download the new template at: https://www.junglescout.com/session3-HW

Join Us Next WeekJoin us next Wednesday where you will learn how to assess supplier outreach responses and which suppliers to order

samples from!

Register for FREE at junglescout.com/million