China is fast emerging as one of the biggest economies of this century. Even though product prices in the Chinese market are rising, the prices are still much better than the domestic market. Sourcing from China proves to be an incredibly smart move for many Amazon merchants.
Thousands of Chinese products can now be found on Amazon. Thanks to online marketplaces like Alibaba and Tmall, many companies, both big and small, find it easier to source their products from China.
If you are an Amazon seller and getting started with China product sourcing, here are a few things that you must ensure:
Only source products compliant with your country’s standards
If you are new to China product sourcing, it is always a good idea to ask for a product sample from your Chinese suppliers. Test the products to ensure that it meets the safety guidelines of your country and any other standards that the product must be compliant to.
It is a common misconception that if you buy your products from a big Chinese supplier, they will automatically meet your country’s compliance guidelines. The quality and compliance standards of China are different than those of Western countries. To be on the safer side, ask for product samples before placing an order.
You may also ask the suppliers for necessary certifications to ensure that the products meet the legal and safety regulations of your country.
Factor in logistics costs
Most Chinese suppliers offer the quoted price for a certain number of weeks or months. Be mindful of the offer date as you would be able to take advantage of the low price during this time. The price of raw materials fluctuates often. Even if the raw materials get costlier during this time, you can still get your order at the original price. Buying at a fixed offer price means that you don’t end up paying a higher price due to fluctuating raw material prices.
Getting good quality products at affordable rates is the biggest advantage of sourcing from China. When you look at the Chinese product prices, never forget to factor in the logistics costs. Sometimes, logistics costs may be as high as 50% of the product price.
Most Amazon sellers new to China sourcing often make their most expensive oversight when they don’t factor in the costs for shipping, packaging, taxes, and customs clearance. Make sure you consider all these costs along with the product price to understand if it is a feasible deal for you.
Don’t blindly trust suppliers
Another mistake that many Amazon sellers make is that they believe that just because a supplier is selling on big marketplaces like Alibaba and Tmall, they are reliable. None of the online marketplaces guarantee that all the suppliers listed on their website are trustworthy. Thus, it is important to verify a supplier before you place an order.
How can you verify a Chinese supplier? The ideal way to do so would be to hop on a flight to China and meet the supplier personally. However, this is not a viable option for many. The next best thing is to hire an Amazon product sourcing agent.
A good sourcing agent is not only fluent in Mandarin and other Chinese dialects but also English. They can easily bridge the language barrier between you and the Chinese supplier. The right sourcing agent won’t just help you find the right suppliers, but they can also help negotiate the prices so that you get a better deal. They can also take care of transportation and quality control oversight, which should ensure that the suppliers meet the exact product specifications including quality and safety guidelines.
Buy directly from the manufacturer, wherever possible
You can cut down costs by buying goods directly from the manufacturer and eliminating the middle links. However, it is easier said than done, especially in the case of larger manufacturers. Small-time Amazon sellers often fail to grab the attention of larger manufacturers. As such, it is best to work with medium-sized Chinese manufacturers.
This is where a China sourcing agent can prove immensely helpful. Not only can they connect you with the right manufacturers but they will also take care of other shipping and export concerns.
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