As an e-commerce seller, it’s part and parcel of my daily life to source for suppliers and manufacturers. However, there are some mistakes that can often be made when engaging suppliers, and I may end up on the wrong path if I am not careful. So I will be pointing out the 3 common mistakes e-commerce sellers make when engaging suppliers, and I hope you will steer clear of these pitfalls.
Make sure to cast a wide net, and then filter them down. From my experience, most suppliers you engage at first will not be right for you. I suggest you contact up to 20 suppliers (or more if you can handle it) initially, then after you consider the non-replies and non-qualified ones, there will be 3-4 suitable ones that you can consider doing business with. You can refer to my previous article of ‘How to Choose Potential Suppliers from their Replies’ for more reference.
Remember, there’s always a lot more that you can negotiate on besides price, such as payment terms, labeling, storage, packaging, etc. Don’t only focus just on one thing, because there are many variables to running a successful e-commerce business.
From my experience, most of the time the suppliers will not heed your friendly advice, and in the end, your relationship may turn sour. The point is this: as an e-commerce seller, it’s not your responsibility to force a supplier to become someone they’re not.
If the supplier is used to producing low-quality umbrellas, don’t try to get them to become a world-class umbrella manufacturer. It’s going to be an uphill battle because their entire manufacturing process and supply chain is calibrated to that low standard. Everything they do will reflect it, from the raw materials and the assembly process to the skill level of their workers and the type of equipment, packaging, quality control and more.
Hence, it’s always better to move on and find someone that meets your standards than try to fit a square peg into a round hole.
Stay tuned as I offer you more tips on doing e-commerce business! See you!
No. 1 Mistake: Falling in love too fast
Suppliers are known for singing praises for their products – remember, just like you, they are also sellers, except they are selling to YOU, another seller. So don’t jump the gun, and place an order with the first supplier you meet.
No. 2 Mistake: Focusing only on price
No matter where you look out for suppliers (In China or as elsewhere), you get what you pay for. The pricing for supplier A may be higher for supplier B, but consequently, you can expect better quality goods from them than supplier B. The catch is this: better quality goods can translate into more 5 star Amazon product reviews, which means a higher ranking and more business for you over time.
No 3 Mistake: Trying to fit a square peg into a round hole
Suppose you meet a supplier with whom the working process goes very smoothly and pleasant. You are fast becoming best buddies with this supplier, and you absolutely love working with him/her. There’s one catch though: the quality of their goods is not what you want – perhaps over time, your business had grown, and you are hoping to find a better match of quality of goods for your e-commerce business. As a concerned friend, you brought up this point during your transaction with your suppliers. You hope you can help him improve so that you can continue working happily with him. That’s a win-win situation for both of you, so why not? What do you think will happen next?