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LucasArthur
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Hi {insert name here – OP}

Welcome, nice post… on the surface of things, and without truly knowing everything, it appears this whole scenario may be tricky.

First thought:
If the product is popular and selling well via direct channels locally, there is a chance that Adams suggestion of going directly to Alibaba and trying to negotiate smaller MOQ may not work out. Reason is that most people that are flexible on MOQ’s tend to be businesses that are in heavy competition with other Alibaba suppliers and yet this specific item you are concentrating on appears to be potentially via just one supplier? This casing a sort of Monopoly and if they already have high demand within our market, they tend not to flex too much on MOQ’s and also may have a restriction in place with these local suppliers preventing these smaller transactions within their geographic region.

Second thought:
If seeking local distributors, i would be asking the manufacturer who the distributor of there product is locally as well. Because, if they are selling directly to retailers there may actually not be a distributor and this is something you will need to ascertain… And the manufacturer would be in the best position to advise this.

Thirdly:
Are you able to be competitive if buying locally at those inflated prices? and if they cost $25 per item i would be interested in knowing if you have incorporated the actual cost of said items? eg: if item cost is $25USD ($29.06AUD) + shipping (calculated on .02cbm and based on 40ft HC) of $1.15 + duty of say 5% @ $1.47 plus GST of say $3.20 would make the raw item cost $34.88 and this doesnt factor in incidentals such as insurance that may be layered above this.

If the costs do roll out as per above, you may find it difficult to find a supplier that would sell 25 units to you in $1000 lots just to make $128 (a little over 10% margin) especially if they are selling like hot cakes in retailers…

Finally:
Comments above are not to be negative, just making sure you have thought it all through and that you have considered whether the entire process is financially viable if you are only able to buy in lots of $1000 (or 25 units)…. What would your turnover need to be per month by unit (or $) to cover your costs?

Let us know more if you need more assistance.. again, i am just instigating thoughts as such.

Cheers
Jason

Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888