1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

in negotiations with a supplier in China? What kind of terms to offer?

Discussion in 'Ebay' started by BlackHatMon3yMaker, Aug 8, 2016.

  1. BlackHatMon3yMaker

    BlackHatMon3yMaker Registered Member

    Joined:
    Feb 22, 2016
    Messages:
    75
    Likes Received:
    13
    In negotiations with a drop shipper for a specific niche product in China. Not sure what kind of terms to agree on?

    Should i pay them a percentage of every sale?

    Should I play a flat rate for the product every sale?

    The product sells for about 300$usd

    To be profitable, I need to be able to get it for 150$Usd or less

    Not sure how to go about this...
     
  2. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,127
    Likes Received:
    715
    Unless they're ripping you off no one is going to sell you anything that is % of anything. Generally the terms are going to be prepayment for the full order before shipment for new customers. If you have connections generally you are going to get better than "stupid foreigner" prices.
     
    • Thanks Thanks x 1
  3. BlackHatMon3yMaker

    BlackHatMon3yMaker Registered Member

    Joined:
    Feb 22, 2016
    Messages:
    75
    Likes Received:
    13
    So I should prepay a bulk order? And than have them ship it out as orders come in?


    They (the Chinese supplier) already sell their product through a consumer site, but don't sell many. They sell it for 350$

    I plan to approach them first, giving off the impression I know how to market the product and can sell a lot more per month than they currently are

    In order to make a profit, I would have to purchase each individual unit for 150$ (Total cost)

    I would prefer to have them drop ship the orders

    It seems I have 2 options:


    1) Would it make sense to try and have them sell me each individual unit for $150 as the orders come in? Maybe they would cut me a discounted rate if they believe I can sell a lot more quantity per month?

    2) Or is it best to offer to purchase a large amount of units at a discounted price, and than they could drop ship as orders come in?

    Option 2 scares me a bit as they could take the money and not ship a single unit

    But I want them to know I'm serious as well

    Thanks for the reply any advice is appreciated!
     
  4. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,127
    Likes Received:
    715
    Most Chinese wholesalers will want pre paid invoices before they ship anything to you. As in, if you want 100 units at $150, you're going to have to wire $15,000 to their account before they ship you anything.

    Could be because they're doing it under the table from the rightsholders or those who gave them the sample to copy.

    They're really not going to care as long as they get paid. Also they might not want to sell you because they're happy not selling that many units at $350 instead of selling it to you for $150. Let's say their cost of production is $125. They can sell on unit at $350 and keep $225 or sell to you and make $25 per unit. You literally would have to outsell them 10 to 1 to make it worth their while to sell to you.

    Well, that depends on what the item is, I guess.


    Do NOT drop ship a $350 item from China. You know what will happen a year down the line if you start moving units? They have a nice new mailing list where they can market the same items for $299 and take money from your pockets. As the middle man, nothing good will happen in the long run if you get your buyers and your supplier together.



    They're not going to go for #1 unless you put down an up front deposit or something.


    them's the risks dealing with someone 5000 miles away