Sourcing products that yield high profits from China can be an overwhelming process when you are starting out as an Amazon seller. Inexperienced importers who may not have a clear sourcing strategy can run into multiple issues such as communication problems, penalties, shipment delays, and poor product quality, all of which not only disrupt their chances of making a profit but can even cause a shutdown of the business. Here are five tips that can help you find high profit margin products from China.
#1: Do Your Research
Before you embark on the process of finding high profit margin products to source from China, undertaking extensive market research is a crucial first step. You can't neglect research if your aim is to maximize your profits. The research should include: a detailed analysis of the market, a breakdown of various products that are in high demand, the import-export process, the Chinese business market, and finally a list of suppliers in China who can meet your quality and timeline specifications and the projected product price points.
Try to determine your niche as this will help you prepare a detailed sourcing strategy and establish the price points for your products.
Research the standards and legal aspects that you have to follow to import products from China. Study the shipping process which includes different transportation modes and their costs as well as the time it takes for your Chinese supplier to manufacture your products. Staying ahead of these aspects will help avoid potential delays in shipment which can affect your product pricing.
The more you know about the supplier market in China, the better your sourcing process. The specific areas that you need to research include:
● Your rights and responsibilities with respect to importing from China – This includes understanding whether you can legally source the particular product in your country and ensuring the product is not on the list of restricted or prohibited items on Amazon. You need to also understand the quality standards related to your product. Failing to meet these standards can attract a fine from customs or can also lead to destruction of your products at customs.
● Economic map – Knowing China's geography will help you identify the best places within the country to import your products depending on shipping options and manufacturer locations.
● Import licensing – Delays in importing can be prevented by having the necessary licenses.
● China business culture: Understanding the business culture in China will aid in fostering the right relationships with your suppliers. The benefits of cultivating the best deals will enable you to derive maximum profits.
● Language barrier: Working with a sourcing agent who has an office in China is one of the best ways to overcome the language barriers that can lead to misinterpretation of product quality standards, measurements, timelines and so on.
