Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 25

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 25
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 develop additional authorized physical stores to establish our presence in major cities in China and
worldwide, to expand our market, build greater trust with our customers and to further broaden our brand awareness.

Our Suppliers and Third-Party Merchants

Since our inception, we have attracted a broad
group of suppliers for health and nutritional supplements, household products and cosmetic products and third-party merchants for beauty,
apparel and other lifestyle products. Our suppliers and third-party merchants include brand owners, brand distributors, resellers and
exclusive product suppliers. As of December 31, 2024, we had approximately 799 suppliers and 274 third-party merchants. As of December
31, 2023, we had approximately 427 suppliers and 421 third-party merchants. We charge a service fee to third-party merchants that open
stores on our platform based upon their sales volume generated from their online stores ranging from 5% - 10% of their revenues. The higher
the sale volume is, the lower service fee percentage will apply. We do not provide delivery service for third-party merchants and they
purchase their own products and use their own delivery services. We believe our reputation as a brand incubator and our ability to assist
suppliers and third-party merchants in effectively selling their inventory and fulfilling their demand for marketing will help us attract
new suppliers and third-party merchants and build stronger ties with our existing ones.

Supplier and Third-party Merchant Selection.

We have implemented a strict and systematic selection
process for suppliers and third-party merchants. Our merchandizing team is responsible for identifying potential suppliers and third-party
merchants globally based on our selection guidelines. Our key supplier and third-party merchant selection criteria include company size,
reputation, sales records in offline and online channels and product offerings. We generally choose to work with reputable suppliers and
third-party merchants with reliable track records and high-quality product offerings. Once a potential supplier or third-party merchant
is identified, we conduct due diligence reviews based on our selection criteria including qualifications, background, product quality,
pricing, payment terms and services. For our exclusive products, we typically identify suppliers from trade shows and on-site visits based
on our selection criteria, including the relevant qualifications and governmental permits. We also conduct detailed factory auditing on
the supplier’s manufacturing capability and production process to control product quality.

Supply Arrangements.

We generally enter into framework supply agreements
with suppliers and third-party merchants annually based on our standard form. We constantly communicate with our suppliers and third-party
merchants to keep them informed