Hello!
I am new seller. I am trying to source the product from china. I want to ship 50 items to Amazon fba warehouse. The products will cost me around 33 (Australian dollar) However the shipping cost is $60 AUD. My supplier will not reduce shipping cost even if I order 100units. I want to start on small scale and move forward if I gain some profit.
Please suggest if I go forward with this shipping cost. Or any other alternative to reduce cost.
Thank you
Starting with a small order of 50 units is a good approach to test the market, but with a product cost of $33 AUD and a shipping cost of $60 AUD, your per-unit cost becomes quite high. Before proceeding, calculate your total landed cost per unit, including Amazon fees, and compare it to your expected selling price to ensure a profitable margin. To reduce shipping costs, consider checking with alternative freight forwarders, using a third-party logistics (3PL) service, consolidating shipments, or negotiating better rates for bulk orders. If the supplier won’t lower the shipping cost even for 100 units, you might want to explore other suppliers or sourcing platforms like Alibaba or 1688 to find better shipping options. If your profit margins still look reasonable after factoring in all costs, it could still be worth proceeding as a test run.
Suppliers focus solely on goods, while freight forwarders specialize in transportation. It’s best to leave professional matters to professionals. When you face transportation issues, your supplier may not respond promptly. Suppliers often have their own freight forwarders, making freight costs less transparent. They may even charge you additional fees. I hope this helps.
For Private Label, 50 units are too low—test with at least 150 to 200. For shipping, get quotes from multiple freight agents, compare prices, and use an external service.