The eCommerce Marketing Podcast walks you through everything that goes into ecommerce marketing — from inbound marketing to paid advertising to conversions. Learn the strategies top marketing experts use to grow their businesses.
Sebastian Herz has been an accomplished Amazon seller since 2014. He has not only built two successful brands but also managed to bring his own products to thousands of offline retail stores, including the largest national retail chains in Germany. Currently, Sebastian is the co-founder of Zignify Global Product Sourcing, a company that has sourced over 2,000 products, saved their clients a staggering $300 million in sourcing costs, and catered to a diverse clientele ranging from Amazon newcomers to Fortune 500 companies. Zignify specializes in product sourcing not only from China, but also from various locations around the globe.
In this episode, you will learn
Effective strategies for reducing purchasing costs while maintaining product quality
Common pitfalls that businesses encounter when trying to save money on purchasing, and how can they avoid them
How important is it to establish strong relationships with suppliers, and what advice do you have for building and maintaining these connections
The role of negotiation in the purchasing process and share some tips for successful negotiation with suppliers
An inspiring success story that demonstrates the effective use of cost-saving approaches and sales-boosting techniques
For show transcript and past guests, please visit https://www.ecommercemarketingpodcast.com
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Past guests on the ecommerce marketing podcast include Neil Patel, Nemo Chu, Luke Lintz, Luke Carthy, Amber Armstrong, Kris Ruby and many more.
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Title: Product Sourcing Strategies to Save Money and Increase Sales featuring Sebastian Herz
Guest: Sebastian Herz, Co-founder of Zignify Global Product Sourcing
Host: Arlen Robinson
In this episode of the eCommerce Marketing Podcast, host Arlen Robinson interviews Sebastian Herz, an Amazon expert and co-founder of Zignify Global Product Sourcing. Sebastian shares his extensive experience in product sourcing and offers valuable strategies for e-commerce businesses to reduce costs and maintain product quality.
Key Takeaways:
- [2:00] Introduction to Sebastian Herz:
- Sebastian’s background in electrical engineering and industrial automation.
- Transition to e-commerce and Amazon FBA.
- Founding Zignify Global Product Sourcing.
- [7:30] Importance of Product Sourcing:
- Product sourcing as a crucial aspect of e-commerce.
- Strategies to reduce purchasing costs while maintaining quality.
- [12:00] Getting Multiple Proposals:
- Importance of obtaining numerous supplier proposals (30-60) to understand market prices.
- Leveraging multiple proposals for better negotiation.
- [18:00] Quality Control:
- Ensuring quality through thorough inspections.
- Importance of checking random samples rather than pre-selected ones.
- [22:00] Avoiding Pitfalls:
- Avoiding the mistake of not having a dedicated point person for sourcing.
- Importance of building and maintaining strong relationships with suppliers.
- [27:00] Negotiation Tactics:
- Viewing sourcing as selling the idea of future business to suppliers.
- Utilizing cultural negotiation practices, such as haggling and walking away to gauge supplier flexibility.
- [32:00] Success Stories:
- Example of a client saving $1.3 million annually by shifting sourcing from China to Vietnam.
- Importance of rethinking existing sourcing strategies for cost savings.
- [38:00] Relationship Building:
- Long-term benefits of strong supplier relationships, such as better payment terms and support for new products.
- Creating a positive and realistic outlook for suppliers to foster cooperation.
- [44:00] Continuous Learning and Adaptation:
- Emphasizing the importance of continuous learning through reading and networking.
- Adapting sourcing strategies based on market conditions and new opportunities.
Guest Info:
- Sebastian Herz
- Co-founder of Zignify Global Product Sourcing
- LinkedIn: Sebastian Herz
- Website: Zignify Global Product Sourcing
