Top 8 tips for Sourcing Amazon Products from China Home Storage Manufacturer
One of the most popular and successful business ideas for e-commerce retailers is to source directly from China Home Storage Manufacturer and sell on Amazon. For international importers, this option is obvious, as Chinese manufacturers are more cost-effective than those in the US or EU.
However, Amazon has strict requirements on what it can offer on its marketplace, and buyers have high expectations. Importers need to take special action to ensure they receive high-quality products from their suppliers in order to succeed in such a cutthroat industry.
After completing Amazon product research, finding suppliers and product sourcing for Amazon will take time and work. Sourcing a Chinese supplier is a little too difficult, especially when there is a clear cultural, linguistic and ethical divide between you and the Chinese supplier.
In Chinese culture, the foundation of successful business relationships is the development of direct, one-to-one relationships. Today, we’re going to provide some practical tips for Amazon to successfully source products from China Home Storage Manufacturer.
1. Assess profitability–Home Storage Manufacturer
Determine if the cost of getting the product and sending it to Amazon is significantly lower than the amount you plan to sell on Amazon for each product you’re interested in selling.
You can divide your sales revenue into the following 3 parts:
1/3 Fees on Sales
1/3 of the landed cost
1/3 is the profit you earn.
Landed cost refers to the total cost of producing and delivering the product to the warehouse, including: inventory cost, duties and taxes, shipping, inspection fees.
These fees also include a referral fee, or “commission,” that Amazon levies on each product sold through its online store. When you sell on Amazon, you usually pay a fee of 15% of the sale price.
2. Evaluate whether your product is easy to ship–Home Storage Manufacturer
When you buy from China Home Storage Manufacturer, lightweight and small products are easier to ship, less likely to be damaged in transit, and more affordable.
These shipments can also be transported more easily by air freight, which speeds up the arrival of goods at your warehouse and allows you to start selling right away.
Shipping is usually required when you are sending in bulk or when the item is heavy or bulky.
In addition to increasing the likelihood of product damage due to weather or humidity changes, this can also lead to delays in the delivery of goods.
Suppose your customers give you unfavorable feedback or reviews after you source a complex or extremely expensive product from China Home Storage Manufacturer. In this case, you may not be able to ask the Chinese manufacturer to modify these items.
Based on customer feedback, select projects that can be flexibly improved. To learn what things are easy to change or improve, read reviews of products your competitors are selling in your niche.
3. Easy to produce–Home Storage Manufacturer
Electronics, glass and other highly complex products can be difficult to manufacture, require a high level of technical competence, and can have production and quality control issues. When you’re just starting out as an Amazon seller, it’s best to stay away from unreliable products.
4. in line with national standards–Home Storage Manufacturer
Before you start looking for a trustworthy product to buy from China Home Storage Manufacturer, check to see if your product has to meet any specific requirements in the US and/or EU.
Safety regulations, patent or intellectual property disputes, quality benchmarks, and any other legal prerequisites in the country where you sell your product are examples of these.
If you want to sell complex products like electronics, manufacturers may have to follow certain safety and technical standards. Conducting these tests in China can be challenging and may require specialized knowledge and experience.
5. Find the right supplier–Home Storage Manufacturer
When you start searching for product sourcing for Amazon, Alibaba is often the first place to check for suppliers, as it is one of the largest marketplaces in the world. There are many suppliers that can offer just about anything.
Recognizing quality suppliers is a key transaction. Everyone needs to first qualify to join the platform and other possibilities like Global Sources to discover the best suppliers.
To personally identify and meet Chinese suppliers, you can also visit trade shows relevant to your industry. This is your time to get to know them better.
6. Distinguish between manufacturers and traders–Home Storage Manufacturer
In order to negotiate the best deal for you, you must decide whether you are working with a manufacturing company or a trading company.
You might want to ask them directly if they are the manufacturer or take a guess based on their catalog. If the products belong to the same market segment, the supplier may be a manufacturer, for example an outdoor supplier may sell any product related to the outdoors.
On the other hand, if a supplier sells multiple items in multiple marketplaces, the supplier is likely to be a trading company.
7. Negotiate with your suppliers–Home Storage Manufacturer
Remember, when negotiating with suppliers, there are many other issues to discuss besides the price of the product, including product quality, payment terms, delivery time, etc.
Strong negotiating skills may allow you to lower your price below the supplier’s price, but this may result in loss of quality, poor packaging, delayed delivery, or other issues. Negotiating the best price for both parties is the key to building a long-term partnership.
For Chinese suppliers, negotiation is an ongoing practice, even part of their culture. You may pay a higher price initially, but you can get a discount by significantly increasing the quantity purchased on your second order.
Finding a reasonable cost for your initial order can be a wise starting point when negotiating. Dealing in person may be ideal if you want to get the best prices and build lasting friendships.
At trade shows or Chinese factories, you can have the opportunity to meet management or owners. By doing this, you will be able to quickly resolve any issues and make professional connections.
A sample of your merchandise should always be requested before closing a transaction with a supplier. This enables you to test the project and assess whether it meets the requirements set forth by your target market.
It also enables you to evaluate the product’s design and the supplier’s ability to produce high-quality merchandise before placing an order.
You may request three different samples from your supplier. These examples include:
Factory Sample: This product is made and not produced to your specifications. It is suitable for determining the production capacity of the manufacturer.
Custom Product Samples: Pre-production samples are test items used to determine whether a manufacturer can manufacture a product to your specifications.
Production samples: These samples are taken from mass-produced products. They are used for functional testing, quality assurance and laboratory experiments. To ensure that production samples come from a batch of desired goods, it is recommended to obtain them from a third party.
8. Establish quality control–Home Storage Manufacturer
Sellers who want to use the Amazon FBA program must follow strict guidelines. If so, suppliers may consider using third-party inspection services in China to guarantee the quality of their goods.
With third-party inspection services, your products will meet Amazon FBA requirements. If you do not consider an inspection, your product may not meet certain standards and quality levels.
So if there are too many complaints about the quality of your item, Amazon may decide to remove it from the sale.
In addition to ensuring that your products meet Amazon’s quality and safety standards, implementing quality control can benefit you in the following ways:
Once you promise your customers the highest quality products, you can attract positive customer feedback and a high rate of return.
Prevent dishonest manufacturers from supplying low-quality goods that put profits over producing high-quality goods.
It can avoid serious confusion caused by item labeling or packaging errors. For example, using an incorrect barcode could cause your shipment to be shipped to an incorrect location. When you try to fix bugs, it can end up being too expensive in the long run.
Do not assume that your Chinese supplier has properly understood any aspect of the agreement. All discussions should be documented in the agreement, which should be signed by Amazon’s product sourcing and suppliers. Stay proactive throughout the manufacturing process to protect your investments and corporate relationships.