Sourcing and Supplier Selection Program

A Proposal for Sikander

Private Label Portable Air Conditioner, United Kingdom Market

4 Stages
USD 20,000 total
For Client Review
Section 01

Background

Sikander Hayat Khan is establishing a UK company to launch a private label portable air conditioner into the United Kingdom market. A UK limited company will be incorporated ahead of the first production order.

The intention is to private label an existing, proven off-the-shelf platform rather than develop a new product. Either a 7,000 BTU or a 9,000 BTU DC-inverter unit, running R290 refrigerant only. Sales will run through Amazon FBA in the United Kingdom. The initial order of 200 to 500 units is a market validation run rather than a long-term volume commitment.

Private labelling an existing platform removes tooling cost, removes development risk and shortens the route to market from years to months. It does not remove supplier risk, specification risk or compliance risk. Those three are where a launch of this type usually fails.

Removing them before any money is committed to production is the purpose of this program.

This is a sourcing and supplier selection program. It is not a product development program. No design work, tooling or engineering development is included, and none is required for the route selected.

One point on objective. The aim is not to find the cheapest unit. At this order quantity, a wrong product choice or a compliance failure costs considerably more than the difference between the cheapest quote and the right one. This program is built to identify the right platform and the right supplier, and to know why before an order is placed.

Section 02

Product and Volume Targets

ItemDetail
ProductPortable air conditioner, private label
Capacity options7,000 BTU or 9,000 BTU
CompressorDC inverter, genuine variable speed operation
RefrigerantR290 only. R32 excluded.
Initial order quantity200 to 500 units
Year 2 volume600 to 1,400 units
Sales channelAmazon FBA, United Kingdom
CustomisationPrivate label: own branding, carton, manual and importer marking
Stock required in FBAApril 2027
Target order placementEarly December 2026
Target shipmentLate January 2027, ahead of Chinese New Year on 6 February 2027
Program start requiredMid-August 2026
Section 03

Key Technical and Compliance Considerations

Six points came out of our review of this brief. They shape how the program is structured, and they are set out here so the reasoning behind each stage is visible before the fees.

3.1 Verifying genuine DC-inverter operation

Inverter is the most loosely used term in this product category. Units are routinely marketed as inverter models when the compressor is fixed speed with a soft start, or when the inverter drive controls the fan only. The difference matters commercially. A genuine variable speed compressor is what delivers the efficiency rating, the quieter part-load running and the temperature stability that justify a premium price against the competition on Amazon.

Confirming it is not a paperwork exercise. It requires identifying the compressor model and its drive, reviewing the inverter driver board, and checking declared power draw across the load range against claimed capacity. This is engineering verification rather than sourcing, and it is carried out in Stages 2 and 3.

3.2 R290 charge, safety standard edition and freight classification

R290 is propane, classified A3 for higher flammability. Three consequences follow.

First, the permitted refrigerant charge in a self-contained appliance is governed by the safety standard EN/IEC 60335-2-40, and the permitted limits differ between editions of that standard. Edition 7 raised the permitted charge substantially, but adoption of a new edition as a harmonised standard runs some years behind its approval. A factory test report may therefore sit against an earlier edition, or against a Chinese national standard, and may not support the claim being made for the GB market. Confirming which edition and which notified body sits behind each certificate is a specific deliverable in this program.

Second, the actual charge quantity in the unit needs confirming against the certificate rather than the marketing sheet.

Third, freight classification. Air transport of refrigerating machines containing flammable refrigerant is heavily restricted, so ocean freight is the practical route for production. The classification and any dangerous goods declaration requirement for the confirmed charge quantity is established with the forwarder during the program rather than assumed at booking.

There is a practical consequence for samples. Samples of R290 units cannot reliably be air freighted, and sea freight takes 5 to 8 weeks. Sample evaluation under this program is therefore carried out by our own team in China, which removes that delay from your critical path entirely. If you want a unit in your own hands, one can be shipped by sea in parallel at cost, without holding up the program.

3.3 GB market access: CE and UKCA

This was raised on the call and left to be confirmed. It is now confirmed.

Recognition of CE marking in Great Britain was extended indefinitely by the Product Safety and Metrology etc. (Amendment) Regulations 2024, covering the regulations relevant to this product, including electrical equipment safety, electromagnetic compatibility, ecodesign and the restriction of hazardous substances. A CE marked unit is therefore a valid route to market in Great Britain, and UKCA marking is voluntary for this product category. There is no announced end date to that recognition.

That removes a cost line and it widens the pool of usable units, because a supplier already exporting into the European Union may hold a compliance file that works for Great Britain as it stands. It does not remove the separate obligations that sit with the importer, which are covered in 3.4 and in Section 9.

3.4 Energy labelling and ecodesign

Energy labelling is a separate regime from CE and it is where low cost units most often fail.

Portable single duct units are classified as local air conditioners. They sit on the older A+++ to D label scale rather than the A to G scale used for most appliances, and they are rated on EER rather than the seasonal figures used for fixed split systems. A valid label and a product fiche with genuine test data behind them must be supplied, and there are minimum performance thresholds that a cheap unit can fail outright.

Many units built for the Chinese domestic market have never been tested against this regime. This is one of the strongest screening filters available, and it is applied in Stage 2, before samples are ordered rather than after.

3.5 R290 and the direction of the European market

The preference for R290 over R32 is the right call, and it is worth stating why given the stated intention to enter the European Union in year 3.

From 1 January 2027 the recast European F-gas Regulation requires new self-contained air conditioning equipment up to 12 kW to use a refrigerant with a global warming potential below 150. In practice that means R290 for monobloc portable units. The European supplier base is already moving in that direction, which has two effects. An R290 platform selected now does not need replacing for an EU launch, and availability of genuine R290 platforms is improving rather than narrowing.

3.6 Order quantity and supplier engagement

At 200 to 500 units the order sits below the level at which the large branded air conditioner manufacturers will engage. That is expected and it is not a problem, but it does shape the supplier pool.

The realistic field is mid-sized manufacturers and established white label producers. Unit pricing at these makers is competitive and the platforms can be strong, but quality consistency and compliance documentation vary considerably between them. That variance is precisely why the verification work in Stages 2 and 3 carries the weight it does.

Order quantity also affects what private labelling is available. At this volume, own branding on the unit, a custom carton, a custom manual and importer marking are all achievable. Changes to tooled parts, housing colour or moulded features generally are not, and would carry tooling cost and a higher minimum quantity. The precise limits differ by supplier, are reported per shortlisted option in Stage 1, and are locked in Stage 3.

Section 04

Program Structure

The program runs across four stages. Each stage is separately approved and invoiced before the next begins, and each produces a defined written deliverable. If at any point the findings do not support continuing, the program stops there, and the work completed to that point belongs to you.

The fee is USD 5,000 per stage.

Stage 1: Specification Lock and Supplier Identification

Duration approximately 4 weeks from confirmation.

Technical specification sheet built and locked, covering capacity, refrigerant, compressor type, airflow, noise target, duct configuration, power supply, control interface and physical envelope.
GB compliance requirement map, setting out what must be held for the product to be placed on the market lawfully, which party holds each obligation, and what each shortlisted supplier will be required to produce.
Manufacturer long list built and screened against the specification, drawing on our existing supplier base and fresh market research.
Verification of each candidate as a genuine manufacturer rather than a trading company, using business licence checks, capability review and production scope confirmation.
RFQ issued and managed across the long list, with all follow-up and clarification handled by our team in Chinese.
Shortlist of 3 to 5 product and supplier options, each with full technical specification, indicative FOB pricing at 200, 350 and 500 units, MOQ, lead time, sample availability and stated private label limits.
Comparative matrix presenting all shortlisted options on a like for like basis.
Written recommendation identifying the strongest options to carry into Stage 2, with the reasoning behind each.

Deliverable: Supplier Shortlist and Recommendation Report.

Fee: USD 5,000.

Stage 2: Compliance and Technical Verification

Duration approximately 4 weeks from Stage 2 approval.

Document review establishes whether certification exists, is internally consistent, names the correct model, comes from a recognised test house and sits against the right edition of the relevant standard. Whether the unit as built matches its certification is a physical check, carried out on samples in Stage 3. The two stages are sequenced deliberately, so that paperwork failures are found before sample costs are incurred.

Review and verification of the compliance documentation available for each shortlisted unit: CE documentation, the edition of EN/IEC 60335-2-40 the certificate sits against, the notified body or test house behind it, EMC test report, energy label and product fiche, RoHS declaration and declaration of conformity.
Documentation review of inverter architecture: compressor model and drive identification, inverter driver board confirmation, and declared power draw across the load range checked against claimed capacity.
Refrigerant charge confirmed against certification, including whether the charge and construction are consistent with the standard the unit is certified to.
Freight classification review for the confirmed charge quantity, including any dangerous goods requirement for ocean shipment.
Gap analysis naming precisely what is missing on each option, the test or certification route to close each gap, the indicative cost and the time required.
Options that fail verification are screened out with the reason recorded, so the decision is documented rather than assumed.
Samples ordered from the surviving options at the close of the stage.

Deliverable: Compliance and Technical Verification Report.

Fee: USD 5,000.

Stage 3: Sample Evaluation and Private Label Definition

Duration approximately 4 weeks from Stage 3 approval.

Samples are evaluated by our own engineers in China rather than shipped to the United Kingdom for assessment. For a product containing a flammable refrigerant this is the difference between a 4 week stage and a 3 month one, and it is not something available to a buyer working direct or through a remote agent.

Samples received and evaluated by our own team in China, from up to 3 suppliers.
Physical confirmation of genuine variable speed compressor operation and R290 charge.
Cooling performance and noise benchmarked against the claimed specification, reported against the figures the supplier published.
Build quality assessment: fit and finish, component quality, serviceability, condensate management, hose and window kit quality, control interface and user experience.
Packaging and transit review of the supplier standard carton, with findings on whether it is fit for FBA handling.
Private label specification locked: unit branding, carton design, manual, UK plug and cable set, importer marking and energy label placement, with artwork requirements, deadlines and any cost impact at the confirmed order quantity.
Where a sample fails against its claimed specification, this is reported with evidence and the option is removed.

Deliverable: Sample Evaluation Report and Private Label Specification.

Fee: USD 5,000.

Stage 4: Production Readiness and Supplier Selection

Duration approximately 3 to 4 weeks from Stage 4 approval.

Final supplier selection confirmed and signed off with you.
Production quotation issued, covering the unit at the confirmed specification, packaging and quantity.
Landed cost model: unit cost, packaging, ocean freight, insurance, duty and delivery into Amazon FBA, built at your confirmed order quantity and set out line by line so it drops straight into your own pricing model.
Written recommendation and a clear go or no-go position, with the reasoning stated, so the decision to commit to inventory is made against evidence rather than optimism.
Quality plan built: inspection points, sample sizes per batch, functional test protocol, AQL levels for major and minor defects, and the reporting format you receive.
Golden sample process defined and the approval sample agreed with the supplier.
Production and shipping schedule built backwards from the April 2027 FBA date, identifying the order placement date, production window, shipment date and freight route.
Payment and commercial terms with the supplier confirmed.
Purchase order prepared and ready to place.

Deliverable: Production Plan, Quality Plan, Landed Cost Model and Production Quotation.

Fee: USD 5,000.

Program Fee Summary
StageDeliverableFee (USD)
Stage 1Supplier Shortlist and Recommendation Report5,000
Stage 2Compliance and Technical Verification Report5,000
Stage 3Sample Evaluation Report and Private Label Specification5,000
Stage 4Production Plan, Quality Plan, Landed Cost Model and Production Quotation5,000
TotalFull sourcing and supplier selection program20,000
Section 05

Program Timeline

Based on a mid-August 2026 start.

PeriodActivityMilestone
Weeks 1 to 4Stage 1Supplier shortlist and recommendation delivered
Weeks 5 to 8Stage 2Verification report delivered, samples ordered
Weeks 9 to 12Stage 3Sample evaluation and private label specification delivered
Weeks 13 to 16Stage 4Production plan and quotation delivered, purchase order ready
Early December 2026Order placedDeposit paid, production scheduled
December to JanuaryProduction at supplierIn-production and pre-shipment inspection
Late January 2027ShipmentContainer sails ahead of Chinese New Year
March to April 2027Arrival and deliveryUnits received into Amazon FBA

The schedule is achievable and it has limited slack. Chinese New Year falls on Saturday 6 February 2027, and most factories close for 1 to 2 weeks around it, with some extending considerably longer. An order that does not ship before the shutdown will not ship until late February at the earliest, which pushes arrival into May and misses the season.

A mid-August start holds this schedule. A start in September either compresses the verification work or moves shipment past Chinese New Year. Decision turnaround at each stage gate is the other variable, and we will tell you if it starts to bite.

Section 06

Exclusions

The stage fees cover all research, supplier engagement, verification, evaluation, reporting and coordination described in Section 4. The following sit outside the program fee and are approved case by case as they arise.

Sample unit costs charged by suppliers, at cost.
Sample shipping, at cost, including any sample shipped by sea to the United Kingdom.
Factory audits, at USD 800 per factory per visit. A two day on-site review by our own quality team with a written report. Undertaken only with prior agreement.
Third party laboratory testing and certification, at cost, coordinated by us. Where a preferred unit does not already hold a usable compliance file, a full test program can run to between GBP 10,000 and GBP 15,000. Stage 2 is structured specifically to avoid arriving at that position late.
Tooling or mould costs, in the event any custom part is required.
Production, in-production quality inspection, freight, customs clearance and delivery to the United Kingdom. These sit under the production model described in Section 8.
UK importer obligations: WEEE producer registration, packaging waste obligations, and VAT and EORI registration.
Product liability insurance.
Amazon FBA fees, storage, returns handling and refurbishment.
Section 07

Payment Terms

StageFee (USD)Payment Trigger
Stage 15,000On confirmation of this proposal
Stage 25,000On delivery and approval of the Stage 1 report
Stage 35,000On delivery and approval of the Stage 2 report
Stage 45,000On delivery and approval of the Stage 3 report
Total20,000

All invoices are payable on issue. Work on each stage begins on receipt of that stage payment. No stage is invoiced until the preceding deliverable has been issued and approved.

Section 08

Beyond Stage 4: Production, Quality and Logistics

Production is a separate commitment and is quoted at the end of Stage 4, once the supplier, specification and quantity are confirmed. The commercial model is set out here so it is understood before Stage 1 begins.

One unit cost. In production you pay a single all-in unit cost. Supplier management, quality control, inspection, golden sample approval and project management are absorbed into that unit cost. They are not billed as separate service fees on top.
We are the counterparty. C2W identifies, manages and holds the supplier relationship, and you buy from C2W. You will know exactly who the manufacturer is, and you are welcome to visit the factory with us. What you do not have to do is manage a Chinese factory, chase production, or handle a quality dispute in a second language.
Contracting. The supply agreement is with our Hong Kong entity under English law, giving you a Western counterparty and a familiar legal framework. Our Chinese entity contracts the factory.
No supplier commission. You raised this twice and it deserves a direct answer. C2W takes no commission, rebate, referral fee or any other payment from suppliers, and we are not a trading company. Our income on this engagement is the stage fees in Section 7, and in production the margin within the agreed unit cost. Nothing is paid to us by the factory.
Freight. Ocean freight, insurance, customs clearance and delivery into Amazon FBA are arranged with our coordination and invoiced at cost, or handled by your own forwarder if you prefer.
Reorders. Once a supplier is locked, the specification agreed and the quality plan running, reorders are materially faster and cheaper to execute than the first order. Expect roughly 6 to 8 weeks production plus 4 to 8 weeks ocean freight from order placement. A same season reorder is realistic where it is placed early enough, and Stage 4 identifies the latest date on which one can be placed and still land inside the summer.

Firm unit costs are not estimated in this document. Any figure given before suppliers have quoted against a locked specification would be a guess, and a guess at this stage is worth less than no figure at all. Indicative FOB pricing comes out of Stage 1, and the Stage 4 landed cost model firms it up through packaging, freight, duty and delivery into Amazon FBA.

That model stops at the FBA door. Amazon referral and fulfilment fees, storage, advertising and returns depend on your category, listing price, dimensions and sell-through, and they belong in your model rather than ours. The Stage 4 figures are built to be dropped into it.

Section 09

Safeguards and Clarifications

Scope changes
If the requirement changes, or additional capacities, variants or product types are added beyond those set out in Section 2, we will agree any adjustment to cost and timeline with you before proceeding.
Connectivity
This program is scoped on the basis that the unit does not include WiFi or app control. If connectivity is required, radio equipment regulations apply, the compliance scope widens, and both the verification work and the fee would need adjusting. Please confirm at kick-off.
Sourcing outcome
We will use our full supplier network and best efforts. A genuine DC-inverter platform, on R290, with a usable GB compliance file, available at 200 to 500 units, is a narrow intersection of requirements. We believe it is achievable, and Stage 1 is designed to establish that quickly. Where a compromise is required on one of those variables, we will present the options with the trade-offs, and the decision is yours.
Order quantity and unit price
Unit pricing at 200 units will not match pricing at 500. Where a supplier MOQ or price break sits above your intended first order, we will set out what the higher quantity buys and what the lower quantity costs, so the decision is made on numbers rather than assumption.
Certification gap
If no shortlisted option holds a compliance file that supports the GB market, the routes are a different platform or a test program at cost. Stage 2 exists to identify this early, while the cost of changing direction is a shortlist revision rather than a cancelled production order.
Compliance responsibility
Placing the product on the GB market makes your company the importer and the responsible economic operator. That carries obligations which cannot be transferred to a supplier or to us: holding the technical file and declaration of conformity, importer marking, WEEE producer registration, packaging waste obligations, and the accuracy of the energy label as displayed. We will tell you exactly what you need to hold and help you assemble it. The legal responsibility remains yours.
Product liability insurance
As a China based sourcing and manufacturing services group, we do not hold standalone international product liability insurance for end market products. In standard international practice that cover is held by the product owner and brand holder placing the product into the market under their own brand. For a mains powered appliance containing a flammable refrigerant sold to UK consumers, product liability cover matters and is worth arranging early. Your broker can structure it against expected volumes. Under our supply agreement, liability for manufacturing defects sits with us, capped at agreed contractual limits tied to the value of goods supplied. Liability for the product design, and for how the product is marketed and used in the market, sits with the brand owner.
Warranty and returns
Amazon returns land with you, not with the factory. A returns and spare parts approach is worth planning before launch rather than during it, and we will raise the practical options in Stage 4. Factory warranty terms are negotiated as part of the production agreement.
Landed cost
Figures produced in this program cover the product, packaging and delivery to the United Kingdom. Amazon FBA fees, storage, advertising and returns handling sit outside that and should be modelled separately.
Contracting entity
We are able to contract with you personally for the early stages of this program. Once the UK limited company is incorporated, the engagement transfers across to it. The company will need to be in place, with VAT and EORI registration, before the first production order is placed, as it will be the importer of record.
Confidentiality
A mutual NDA with NNN provisions is signed between the C2W Group and you before Stage 1 work begins. All specifications, supplier information, pricing and findings are handled under its terms.
Ownership of work
The reports, specifications, supplier assessments and compliance analysis produced in this program belong to you, whether or not the engagement continues past any stage gate.
Timelines
Stage durations assume reasonable supplier responsiveness and decision turnaround at each gate. Extensions may be required if scope is added or further supplier rounds become necessary.
Section 10

Why C2W and Shield Works

British owned, 21 years in business, over 20,000 completed projects and more than 150 staff on the ground in Asia.
Directly employed inspectors and quality engineers based across China, including the Yangtze Delta region around Shanghai and Jiangsu as well as South China. They are our own employees, not rotating freelance contractors engaged job by job, which is how the large inspection platforms operate.
Our headquarters and our own ISO certified manufacturing facility, Shield Works, are in Zhuhai, Guangdong. Zhuhai is the home city of Gree, one of the largest air conditioner manufacturers in the world, and the surrounding component and assembly base reflects that concentration. We work inside that supply base every day.
Direct experience across air conditioning units, mini split systems and refrigeration and cooling equipment. We developed and manufactured a personal air conditioning unit for a United States startup at Shield Works, and took a countertop soft serve ice cream machine from concept to mass production including its thermal system, custom housing, battery integration and several hundred components.
We are not a trading company and take no payment from suppliers. Our position on that is set out in Section 8.
Samples evaluated by our own engineers in China, which takes the flammable refrigerant air freight problem off your critical path entirely.
A dedicated project manager coordinating suppliers, our internal teams and you throughout the program.
Named Program Team
Mark Jacobs, CEO, C2W Group and Shield Works

Program director, with commercial oversight and senior involvement at each stage gate. Mark is a mechanical engineer with over 27 years of manufacturing experience.

Sourya Ghosh, Head of R&D, Shield Works

Senior technical lead on this program, responsible for inverter architecture verification, refrigerant and safety standard review, and sample evaluation. Sourya is a mechanical engineer who has an aerospace engineering background, and his career has covered high precision assemblies, fluid and thermal systems, and supplier managed manufacturing programs across industrial, technical and consumer sectors.

C2W Quality Team

Directly employed inspectors and quality engineers, carrying out supplier verification, any factory audits, and production inspection.

Dedicated Project Manager

Confirmed on engagement. Managing suppliers, RFQ handling in Chinese, sample logistics and your day to day liaison.

Section 11

Next Steps

1
Confirmation of this proposal and the Stage 1 fee.
2
Mutual NDA with NNN provisions signed and returned.
3
C2W issues the Stage 1 invoice, USD 5,000.
4
Kick-off call with Mark Jacobs, Sourya Ghosh and Rahul Burnwal to lock the technical specification.
5
Items to confirm at kick-off: single or dual hose configuration; cooling only or with heat function; whether WiFi or app control is required; target noise level; target landed cost and intended retail price; and UK plug and cable requirement.
6
Confirmation that UK limited company incorporation is in hand.
7
Stage 1 delivered approximately 4 weeks from receipt of payment, with Stage 2 presented for approval alongside it.

This proposal is non-binding and is intended to give you clarity on cost, structure and exactly what each stage produces. If the direction is right, we can move to confirmation and begin work on receipt of the Stage 1 payment. Given the Chinese New Year shipping window, a mid-August start is what holds the April date.

Best regards,
Mark Jacobs
CEO, C2W Group / Shield Works
August 2026