Chinese exports qualified for the highest growth rate in February 2021. Multiple factors were responsible for it like, including a comeback in overseas demand, the need for export-oriented sectors to continue operating through the Chinese New Year, and most crucially, an increase in the number of brands and third-party sellers on Amazon.
More goods are now being manufactured and transported out of China than ever before because of growing online Amazon businesses in foreign markets. We have produced a thorough guide on product sourcing for Amazon from China to help you in your quest to provide high-quality goods at affordable prices.
Alibaba is often the first location to check for suppliers when you plan product sourcing for Amazon because it is one of the biggest marketplaces in the world. There are many providers available for practically anything. It’s a major deal to identify quality providers. Since everyone must first qualify to join the platform, there are other possibilities like visiting trade shows linked to your sector. This way, you will get to know them better.
Determine if the cost of shipping and product sourcing for Amazonis significantly less expensive than your Amazon selling price. Three components can be used out of the deal proceeds.
- One-third of transactions are spent on freight
- One-third of landed costs
- One-third on profit.
- The referral fee, which is the “commission” that Amazon levies for each item sold on the e-commerce platform, is also included in the prices.
When a product is sold on Amazon, the normal percentage that you pay is 15% of the product’s selling price. On Amazon, it makes sense to select reliable items that aren’t seasonal. By choosing products that are constantly on sale, you may maximize your profits. Top merchandisers target product niches with fewer than 100 reviews, while stylish product niches are those with fewer than 200 reviews.
Remember that lightweight and small products are more effective, easier to transport, and less likely to be damaged in transit when you’re looking to product sourcing for Amazon from China. These products are simpler to send via air freight, which means they arrive at the warehouse much more quickly and enable you to launch them on Amazon immediately.
When you transport in huge quantities or when the goods are heavy or large, ocean freight is typically necessary. This can cause a delay in delivery of the cargo in addition to increasing the possibility that the product would break due to changes in weather or humidity.
You’ll probably feel more at ease choosing a product that doesn’t require a high level of skills to supply because complex goods like glass or electronics will be challenging to manufacture and ship. If you don’t, you can run into all kinds of difficulties, including production and internal control issues. As a new seller on Amazon, it is best to steer clear of products that are unreliable and instead focus on ones that are predictable and simple to produce.
Product’s Demand on Amazon
You should look at the level of demand for a product within your demography when examining the product sourcing for Amazon. This is a crucial step in the decision-making process because choosing a product that is in great demand will help you ultimately get a better ROI. You should start by checking to see if people are searching for a product on Amazon. Sales data are a good way to see which products are most popular, which typically fall into categories like toys, sports and outdoors, home and decor, etc.
Source quality and not cheap
Cost of Poor Quality (COPQ) should never be Underrated. Rarely do high-quality products come at a reasonable price. If this is your first venture into China, you should pursue quality first before working on cost. Don’t start with a low-cost value before attempting to establish quality. All of us like to acquire extremely affordable prices. So that is the goal, but we want to encourage the best value for money to attain the total lowest cost (remember COPQ).
Scope for Improvement
Consider a scenario in which you import highly sophisticated or expensive products from China and receive negative customer feedback or reviews on Amazon. You won’t be able to persuade the Chinese manufacturer of these products to change them in this situation. Therefore, choose products that can be improved and are backed by customer feedback. You can read the product reviews posted by your competitor in your sector to get a sense of what products are easy to change or better.
Sourcing Agents for Cultural/Language Barrier
Language and cultural differences will provide unique challenges to retailers attempting product sourcing for Amazon from China. Some of the most frequent misunderstandings are brought on by linguistic, cultural, or lifestyle hurdles that are connected to a lack of clarity regarding the intended use of the product. Some products that are used often in western countries are hardly used in China.
Along with years of experience sourcing and shipping goods from China to Amazon warehouses, reputable China sourcing agents also have an office in China. The sourcing agent’s ability to build a massive network of manufacturers and suppliers throughout China is made possible by the fact that they are primarily situated there. This can help you identify the most dependable supplier for your product category more quickly, which means you’ll be able to start selling on Amazon sooner.
The sourcing services will help you rank the most trustworthy suppliers in China based on their knowledge and network of contacts. They will also suggest the only supplier who specialises in your product and has relevant industry experience.
It primarily involves developing an idea, acting on that plan, and exerting the greatest amount of power possible. When starting your search for stock in China, bear in mind that there are some costs associated with low quality that you can entirely control. Instead, you want to pursue quality rather than price.
There will always be problems while launching a product, therefore this is by no means a list of the only advice you should go by. But it is possible to source beautiful products from China that are excellent value for money with a lot of design.