Case Study: LED Strip Lights Products Sourcing

Contents

Background

  • Customer: Levi M

 

  • Country: United States

 

  • Industry: E-Commerce Sellers

 

  • Products: LED Strip Lights

 

  • Date: May 2023

Project

Products Sourcing Consultant for two kinds of LED Strip Lights

Introduction

The client is a fast-growing dropshipping company and looking for a product sourcing agency. The product sourcing agency will be responsible for sourcing high-quality products from reliable suppliers and negotiating pricing and terms.

 

The product sourcing agency should be a self-motivated individual with a passion for product sourcing and a strong track record of supplier management.

 

The products the client is looking for are LED Strip Lights. The total is two specifications. The products will be directly delivered to end customers.

Challenge

These products are very hot at this stage. There are not many sellers on the market. It is hard to keep these two products in stock at the same time for one supplier. Some trading companies have stock, but the price is very high.

 

It is a very urgent order. The client can not wait.

 

If the supplier is from the 1688.com platform, the order only can be paid in local currency. Almost all suppliers can not offer dropshipping services.

 

If the supplier is from the Alibaba platform, they are trading companies. The price will be very high.

Solution

In the beginning, the client provided very little information. Products specification needs more detail because they are electronic products.

 

There is a lot of communication between three parties (supplier, client, and I). Finally, the specification is clear, it is important for everyone to keep the same page.

 

I focused on Alibaba sourcing and 1688.com marketplace to look for suppliers.

 

But the sellers are trade companies on the Alibaba platform. In fact, they do not know these products well. It wasted a lot of time.

 

Finally, the real factory was found on the 1688.com platform. But, the factory can not support payment by united states dollar and dropshipping service. Their target audience is local trading companies and sellers on Amazon FBA.

 

Step 1: They are new products. The information the client know is not enough. It took a lot of time to communicate product sourcing specifications. It is necessary to know what the client needs to secure the source right products. Everyone should be kept on the same page.

 

Step2:Products sourcing channel was mainly from Alibaba and 1688. com. After searching for a while, there were not many sellers on the platform.The sellers from Alibaba were trading companies, some sellers did not know well the products. I focused on searching for suppliers on 1688.com, and finally, the factory was founded.

 

Step 3: Price and MOQ were negotiated with the supplier. A new challenge was met. Suppliers can not offer dropshipping services and united states dollar payments. The target audience is Chinese trading companies and Amazon sellers. I offered the solution for how to figure it out. I offer the service to purchase products from 1688.com by charging a small service fee. Additional packaging such as private labels and repacking will be provided if the client needs it.

 

Step 4: I suggested Yanwen Logistics to handle drop shipping service. Yanwen is one of China’s leading 3PL serving Cross-Border E-commerce sellers.

 

Step 5: All the costs were calculated including product purchase cost, shipping cost, service fee, and all other costs for the customer’s decision.

 

Note:

 

  • If it is a new project, it is necessary to calculate all costs before making the decision. The above cost excluded any marketing fee, when you calculate ROI, marketing fees such as Amazon FBA fee, advertising, etc need to be included.

 

  • Small quantity to test market first. It will help reduce risk as well.

Deliverable

  • Two factories contact way 
  • Two factories’ background
  • Logistics contact way
  • Additional services such as private label, repacking, etc
  • All cost list sheets for margin calculation.
1688 web

Note: LED Lights Cluster

Shenzhen City, Guangdong Province are the main led lights cluster in China. There are many famous enterprises there.

Boost Your Business

Whether you are an established company or just a startup company starting out……. Whether you work at a small place or a 1000 sq ft corner office with a 10000 sq ft warehouse. You will need a reliable partner in China.

 

Finding reliable suppliers and ensuring the products sourcing process to manage smoothly.

 

DO NOT charge any commission from suppliers! Everything is transparent!

 

Drop me a message to start now!

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