Amazon New Seller Account: Lower Production Costs

Manufacturing costs can be quite a challenge for first-time sellers on Amazon especially if you are not hiring an Amazon FBA launch service. Because you are just starting, reducing production or manufacturing expenses may be hard. Because your business is still in the initial process of growth, you cannot just walk up to a manufacturer and say that you will only order from him, provided he sells the products you request exclusively to your company.

Given that you do not have this kind of leverage, yet, there are practical ways that you can do to reduce your expenses. In this video, Nic Co III, co-founder of Seller Interactive, shares essential pieces of advice focused on how you can leverage costs better when you have a good working relationship with your manufacturer.

With this, you must choose your manufacturers wisely regardless of whether they are from the stateside or overseas. The trust you build during your correspondence with them serves as one of the vital foundations of your business. Here are some essential pointers you should take note of:

• When it comes to product selection, amazon new seller account, consult your existing manufacturer first. Take note to approach them first every time you launch a new product. Do these before you look for other manufacturers.
• You are doing this because you want to scale. Although it is risky to put all your eggs in just one basket, you still gain an advantage from prioritizing only one manufacturer or managing one Amazon new seller account at a time.

So if you have multiple products that you get from only one manufacturer, your invoice will increase.

• Your leverage grows the more you order from your manufacturer. Because you have already succeeded in building a good rapport with them, and you have earned their trust, you can ask for incentives like discounts, the privilege to avail special rates, better credit terms, and more.
• Continue nurturing your good business relationship with your partner over the years. Show them that you value them. If you treat them respectfully and with importance, they are bound to treat you in the same way.

Do you want to know more about finding reliable manufacturers and establishing a good business relationship with them? Drop us a line and ask about our FREE CONSULTATION. Email Jayce at [email protected] today.