Home & Kitchen
A False 304 Claim, a 51% Cost Cut, and Net 30 Terms
- Client
- Amazon FBA seller, USA
- Channel
- Amazon FBA
- Product
- Stainless Steel Canning Rack (2-pack)
- Volume
- 10,000 pcs/yr
-70%
MOQ reduction
-51%
unit price
-50%
lead time
Net 30
payment terms
The problem
The previous supplier quoted the rack as 304 stainless steel. In use, the rack rusted. Independent material analysis confirmed the parts were 201 stainless - a cheaper grade - while the price had been calculated as if they were 304.
What we did
We verified the alloy, then re-quoted the same specification against factories that price 201 honestly rather than mislabelling it. Packaging was redesigned to cut volume, which lowered sea freight and FBA fees. The client moved from 30/70 deposit terms to Net 30.
The result
| Metric | Before | After |
|---|---|---|
| MOQ | 1,000 pcs | 300 pcs (-70%) |
| Unit price | ¥11 | ¥5.40 (-51%) |
| Lead time | 40 days | 20 days (-50%) |
| Payment terms | 30/70 deposit | Net 30 |
| Packaging | Original carton | Redesigned, lower volume |
Client identity and ASINs are anonymized. No client or supplier names are disclosed. Where a figure did not change, it is shown unchanged.
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