Module 2: Products and Suppliers

Find and vet suppliers

When samples arrive, inspect ruthlessly: quality, packaging, shipping time, and how the product photographs. A supplier whose samples arrive in three weeks with sloppy packaging will treat your customers the same way. Ask about minimum order quantities, lead times, defect policies, and whether they can scale if you grow — the answers reveal whether this is a partner or just a vendor.

Negotiate everything, politely. Ask for better pricing at volume tiers, faster lead times, and custom packaging options. Suppliers expect negotiation — the listed price is the starting point, not the final one. And always have a backup supplier qualified before you need one; single-supplier dependency is the most common cause of store-killing stockouts.

Build the relationship like a partnership, not a transaction: pay on time, communicate clearly, give feedback on quality issues constructively. Suppliers prioritize their best customers when capacity is tight — and during peak seasons, that priority is worth more than a 5% price cut. The cheapest supplier who doesn't answer emails will cost you more in stockouts than a reliable one ever charges.

Price for actual profit

Map every cost before you price: product cost, inbound shipping, packaging, platform fees (typically 2-4% plus payment processing ~3%), outbound shipping, returns reserve (budget 5-10% of revenue), and marketing cost per sale. New sellers consistently underestimate fees and shipping — spreadsheet the full unit economics for each product, and kill any product that can't clear 20% net margin at realistic ad costs.

Price with psychology, not just math: $29 beats $30, bundles beat single units for perceived value, and a premium option makes your main product look reasonable. But never race to the bottom on price — there's always someone willing to lose money longer than you. Compete on product, presentation, and service; let the discounters fight over scraps.

Revisit pricing quarterly as costs and competition shift. Rising supplier costs, new fees, or a competitor's price drop all change the math — a price that was profitable six months ago may not be today. Set a calendar reminder to review unit economics for every product. Pricing isn't a one-time decision; it's an ongoing discipline that protects your margins.

Validate before you stock up

Run the numbers at each stage honestly. If ten sales cost you $200 in ads, your customer acquisition math doesn't work at scale — fix the offer, the price, or the product before ordering more. Validation isn't about proving you're right; it's about discovering you're wrong cheaply. Every failed $200 test saves you from a failed $5,000 inventory bet.

• Shortlist 5 suppliers per product; order samples from all
• Inspect samples: quality, packaging, ship time, photos
• Spreadsheet full unit economics; confirm 3x markup minimum
• Qualify a backup supplier before you need one
• Validate with a small test (10+ sales) before bulk ordering