A Guide To Product Sourcing From China For Amazon FBA Sellers
Updated: May 30
When you are trying to sell products, it can be very tough. You have the challenge of finding suppliers who will supply what's needed at a fair price; maintaining high-quality control over all stages in production (from finding quality materials through packaging).
The key to success is having a good strategy for sourcing products. Different business models require different approaches, but all draw from the same set of methods and tools - it's just about choosing which ones will work best with your brand.
Check our guide on Customized tool manufacturing for Amazon Sellers
What Is Product Sourcing?
In the world of business, one word that stands out is "sourcing." This process deals with finding reliable suppliers to buy quality products at an affordable price. It's important for any company to look into their inventory regimen and make sure they are competitively priced.
The procurement of products for your store is an important part that can't be overlooked.
The goal should always remain to find the best goods, for your brand and quality standards, at the best prices that will be both affordable and profitable in terms of margin etc. This process entails researching information on price and cost calculations as well as negotiating terms from suppliers.
Related Article: Manufacturing and Product Sourcing Centers in China
Popular Product Sourcing Strategies For Amazon FBA Sellers
1. Work With Wholesalers
Many businesses fail because they don't take the time to develop good relationships with wholesalers. Selling at wholesale can open up new opportunities for your company, such as negotiating better payment terms or perhaps obtaining exclusivity on certain products before launch - giving you an edge over other companies who will need these same products too.
2. Go Direct To The Manufacturers
Get straight to the factory gate and purchase directly from the manufacturers. Many manufacturers have huge minimum order quantity requirements that you’ll need to meet before they'll produce your items, which means ordering tons of inventory all at once together with organising your own transportation and logistics.
At Diversitech Global, we offer low minimum order requirements or quantities and a 2000+ hand & power tool item catalogue with hundreds of new and exciting items added every year.
3. Trade Show and Expos
When you're looking for a source or a competitive edge, there's no better way than getting the inside scoop on what your competition is up to. Whether it be at trade shows or conferences - these events provide an excellent opportunity not just from learning about new products but also to meet wholesalers, manufacturers, and independent retailers
4. B2B Platform Marketplaces
Thanks to B2B product sourcing marketplaces, you can find just what your business needs without having to tire out the search from different suppliers and products with detailed information are available on these sites. The business to business sites offers thousands of suppliers from around China and beyond; providing tools for searching by category plus easy access management features.
5. Sourcing And Trading Agents
They act as the “middlemen” between businesses such as manufacturers or distributors by helping them find potential suppliers from around the world who have what they need at an affordable price. They often play an important part in a supply chain. They offer support and help with quality control, which means that you can be sure your product will meet high standards when it comes time for manufacturing.
Ready to start sourcing your tool set kits from China? Get in touch
Tips For Choosing The Right Product Sourcing Strategy
Sourcing for your business can be a tricky process. There are certain things that managers should keep in mind if they want their company's products to do well and provide them with reliable suppliers.
1. Choose Specialised Manufacturers
Specialised manufacturers will always have experience and the know-how in designing and manufacturing your branded items so that there are no surprises. What are their past work and track records? The more times they've been able complete projects successfully, the more certainty in reliability and quality.
Diversitech Global is a top hand and power tool manufacturer and supplier. With 20 years of designing and manufacturing tools and supplying to Fortune 500 companies, they have grown to become an internationally leading supplier to online and high street retailers.
2. Sourcing Is An Ongoing Process
For the customer, product availability should be seamless without any overt interruptions. To make sure of this, inventory control has to be maintained, so when product stock begins to run low, the processes for procurement, replenishment, and re-orders are made in good time.
3. Research, Research and Research
Always consider the customer's demand for your product, as well as where they're from and what kind of audience you want to target. If it is something that lasts a long time or if customers are likely to purchase regularly then take into account functionality, durability and quality standards. Your product or service needs to be within a specific budget, so keep in mind desired prices as well as your margins so that there are no final surprises.
4. Use Proven Sourcing Models
For your product type or market segment, use established sourcing models. Look into the methods used by companies who produce similar goods. Consider adopting these techniques if they have already been tested and shown to be successful in achieving your desired outcome.
Who Are Product Sourcing Agents?
The product sourcing agent is a person (or the company) to go when you need someone who's already got deep experience in this industry and knows all of its ins and outs. They can help by providing access for your business, giving recommendations on suppliers or just introducing new possibilities that might not have occurred before.
Product sourcing agents are the eyes and ears of their clients, helping to identify a reliable supplier while negotiating prices on behalf of their clients. They will also oversee production processes to make sure that products are being made according to the highest standards with no issues whatsoever before signing off any required documentation. They take care of quality control procedures, including conducting inspections at various points during the manufacturing process, as well as making certain shipping within agreed-upon timelines.
Here are some pointers to check for:
1. Legitimacy and Business Licenced
If you’re looking to hire a sourcing agent, make sure they have the appropriate licenses and permissions. This will protect your business from legal issues as well give it an extra layer of assurance that this individual/company is registered and insured as a professional business.
2. Expertise and Experience
With the right specialist, you can expect to have a better understanding of what's going on in your industry and make more informed decisions. They will provide you with full, detailed and professional advice and have the necessary business contacts and relationships for your specific needs, rather than generalized answers which may not be suitable or time-wasting.
3. A Global Professional Service
Global trade has never been more important or intricate. When you work with a sourcing agent or company that has an international outlook, they should be able to smoothly handle any cross-cultural barriers eg. language and be responsive to answer queries as well as keep you informed on the steps throughout any processes. When you work with a product, with complex chain supplies, shipping time and pricing can quickly become major problems. A great agent should be available to step in and help answer any questions or concerns as they come up throughout production.
Some Product Sourcing Websites And Tools
As a global supplier to Fortune 500 companies and retailers, and with managers, designers, technicians and support staff from all four corners of the world, they are committed to offering quality and affordable hand and power tools.
With a network of manufacturing design, sourcing and packaging facilities, Diversitech Global Manufacturing has set up a complete supply-chain management and service system, including R&D, in-house lab product analysis and testing, packaging manufacture, ISO9001:2008 quality control inspections, warehousing & logistics with 24-hour Global Customer Support.
Handshake is a curated marketplace for one-of-a-kind brands, brought to you by Shopify. It is a "handpicked wholesale marketplace that brings together some really cool companies and small businesses with product releases so that customers can find something new. Handshake is the meeting point for business owners, and where brands and retailers could connect online, to buy and sell wholesale.
Alibaba is a global marketplace for sourcing products that offer more than 200 industries and 180 countries. It's easy to find what you need with its vast selection of options, including those from China-based suppliers who account for about one-third of all available items on the site. Extreme due diligence is required and a service called Trade Assurance is available to help find high-quality, reliable product sources.
See our article on the true cost of manufacturing in china
IndiaMART is India’s largest online B2B marketplace, connecting buyers with suppliers. With a 60% market share of the online B2B Classified space in India, the channel focuses on providing a platform to Small & Medium Enterprises (SMEs), Large Enterprises as well as individuals. Founded in 1999, the company’s mission is ‘to make doing business easy’.
Wholesale Central provides premium sourcing tools that help wholesale buyers ﬁnd wholesale suppliers and products. This site is strictly B2B and wholesale only. They offer powerful sourcing tools to help resellers find thousands of pre-screened wholesalers, importers, distributors, drop shippers, and manufacturers.
Note: Before sourcing for a manufacturer, you should have done your research on the product you want to sell. Take a look at our article on the best private label products to sell on Amazon
The key to success in any industry, from retail clothing salesperson to CEO of an online business is finding out what customers ie. the market want and need. The products you choose should therefore come from reliable product sources of high integrity with high-quality products at the best price.
It can be tough to find the best product sources, but it’s worth it when you do. By taking the time to research and compare different companies, you can ensure that you’re getting the best products at the best prices. And with a little bit of luck and relationship building, you may even stumble on a supplier who is not only reputable and reliable but also willing to go above and beyond to meet your needs.
See this Article: What is Shrinkflation?
Ready to start sourcing your tool set kits from China? Get in touch