If You Don’t Ask, The Answer Is Always NO:

When I started writing this I began to realize that there are just so many damn ways to save money in this business. And the majority of them start with asking a question. It's actually so easy even I could figure it out. Here's one you can take to your supplier today (sorry suppliers). "Can you offer me a discount if I increase my order size by 1.5x or 2x?" (In essence we're asking for price breaks at specific quantities.) I think you'll be surprised by how many jump at it. Here's an example:

Assumed current costs:

• 1,000 units at $10 each equals $10,000 every six months. 

Potential Cost with Price Break:

• 1,500 units at a 5% discount ($9.50 each) equals $14,250 every six months. 
• This translates to a savings of $750 every six months, or $1,500 annually. 
• Alternatively, 2,000 units at a 7% discount ($9.30 each) equals $18,600 every six months. 
• This translates to a savings of $1,400 every six months, or $2,800 annually. 

A few gotchas:

• Ensure that the increase in inventory aligns with your sales projections. 
• Avoid tying up too much capital in inventory that may not sell quickly. 
• Negotiate payment terms with your supplier to ease cash flow pressures, such as extended payment terms or payment in installments. 

Remember, our profits don't just come from selling more, they also come from spending less. Seize the opportunity and save some money.  

Smart Questions That Save You Thousands on Amazon

Negotiation in the Amazon FBA world is not about being aggressive. It is about being prepared and asking the right questions at the right time. Most suppliers expect you to negotiate. When you do not, you are literally leaving money on the table.

Here are five more questions that have saved me real money over the years:

• "What is your MOQ for a repeat order?" — First orders often have higher minimums. Once you have a track record, suppliers will lower them.
• "Can you match this quote from another supplier?" — Competition works both ways. Show them you have options.
• "What if I pay upfront instead of on terms?" — Cash flow is king for manufacturers. Offering faster payment can unlock 5-10% discounts.
• "Can you include packaging/labeling in the unit cost?" — Bundling services into the COGS often comes out cheaper than outsourcing.
• "What is your best price if I commit to quarterly orders?" — Predictability is valuable to suppliers. They will reward consistency.

The key mindset shift: every dollar you save on COGS goes straight to your bottom line. A 5% reduction on a $50,000 annual spend is $2,500 back in your pocket with no extra sales needed.

Frequently Asked Questions

When is the best time to negotiate with Amazon FBA suppliers?

The best time is after your first successful order. You have proven you are a real buyer, not a tire-kicker. Suppliers are more willing to offer discounts to retain repeat customers than to win new ones.

How much can you realistically save by negotiating supplier pricing?

Most Amazon sellers can save between 5% and 15% on COGS through negotiation. On a $100,000 annual spend, that translates to $5,000 to $15,000 in savings, which is pure profit since your revenue stays the same.

Should you negotiate with suppliers on Alibaba differently than domestic suppliers?

Yes. With Alibaba suppliers, focus on MOQ reductions and shipping terms since freight costs are significant. With domestic suppliers, focus on payment terms and volume commitments since their margins are tighter.