Join Greg Mercer & Kym Ellis in the third session of the MDCS: Europe. In this session they covered: - Kym's advanced product research findings - An introduction to working with Chinese suppliers - How to start your supplier outreach to get prices for your top product ideas - How to do your initial profitability calculations to decide which product to launch They also announced which product they were going to launch in the UK marketplace!

1. 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

2. Enter at
www.junglescout.com/giveaway
3 Winners selected every week for all
of 2017!
1 Prize for Each Winner
▹ 1 Jungle Scout Lite Extension
▹ 2 Jungle Scout T Shirts
▹ Featured on the Website!
Part 2: Session 3 Giveaway

3. Part 2 I Session 2 Winners
Brendan Mulholland (Web App Standard)
Ayelet Michaeli-Arbel (Web App Standard)
Jonathan Hsieh (T Shirt winner)

4. 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

5. … and growing!

6. 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

7. 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

8. Our Advanced Research Findings...

9. Let’s check out Kym’s
HW

10. 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

11. 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

12. 👍
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
...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

13. 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!

14. Watch over our shoulder
How to carry out supplier outreach using Alibaba....

15. 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

16. Profit = Retail Price - PPC&Marketing - FBA Fees - Landed Cost - VAT
Example:
Retail Price = £26.99
Marketing/PPC = 5% of £26.99 = £1.35
FBA fees = £6.14
Cost per unit (FOB) = £5.44
Shipping = £0.5 (for 1 kg)
Duties = 12% of £5.94 = £0.71
Landed cost = (£5.44 + £0.5 + £0.71) = £6.65
VAT = (20% of £26.99) = £5.40
Profit = £26.99 - £1.35 - £6.14 - £6.65 - £5.40
Profit = £7.45
112% ROI on Landed Cost (aka my investment)
Note: Landed cost =
cost per unit +
shipping + duties

17. Which product do we think
we’ll go for?

18. Sleeping Bags
Join us to see us launch our new FBA product on Amazon.co.uk

19. 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 launch
4. Join us next week ready assess supplier responses!
Download the new template at:
https://www.junglescout.com/session3-HW

20. Join Us Next Week
Join 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