How Can I Get My Product Made Cheaper?

For e-commerce sellers, production cost is the single most determining factor of profitability. Sellers competing on marketplaces like Amazon, Trendyol, and eBay face pricing pressure, and lowering unit costs directly translates to higher profits. However, most e-commerce sellers do not sufficiently analyze their cost structure and do not know how much they are actually paying for each component.

Production cost is not a single number. There are dozens of cost components: fabric, labor, accessories, printing or embroidery, washing, packaging, labeling, shipping, and customs. Each of these can be optimized individually. For example, switching your fabric supplier might save fifteen percent, while a small change in packaging material could add five percent savings.

Working with a single supplier is the most common mistake e-commerce sellers make. To get competitive pricing, it is essential to collect quotes from multiple suppliers for the same product. However, reaching out to each supplier individually, communicating technical details, and comparing the received quotes is time-consuming. As a result, most sellers stick with their current supplier and miss potential savings.

Cost reduction is not just about finding cheaper suppliers. Optimizing production quantities, consolidating raw material purchases through bulk orders, eliminating unnecessary steps in the production process, and optimizing shipping routes are also effective methods. But all of these first require your cost structure to be visible on a line-item basis.

Digital sourcing platforms standardize the quote collection process, enabling line-item cost analysis. With historical price archives, you can spot cost trends, quickly compare alternative suppliers, and identify the most cost-effective solution.

If you want to lower your unit cost and boost your profitability, leave your email address. Our team will help you with cost analysis and supplier comparison.