There has never been a better time to be in business than now courtesy of the Alibaba and Amazon FBA. Unlike before, you don’t need to have a manufacturing unit to produce custom products. But how exactly do you source products from China on Alibaba? Here are the seven steps to get your products for Amazon FBA.
The first step is to know exactly what product you want to get. As you select the product, do remember that competition exists. If you choose a product that has a seller who dominates the market, you may end up having very few sales. It is good to ask yourself the following questions before settling for a product:
Is there a demand for the product or do buyers need the product?
Do you stand to make a profit if you invest in the production of the item?
What is your competition and will you survive the competition?
When the product passes the criteria then you can proceed to your search for a supplier. Do some research on the product and have an idea of how you will get people to buy it.
The next step is to find the best supplier for your product. It is at this point that you head over to Alibaba, the biggest marketplace of suppliers. Simply key in your product in the search box and you will come across a list of suppliers involved in the production of the item. To come up with the best suppliers, you can use the following criteria: (Related Article: How to find Reliable suppliers to grow your business?)
To establish reliability, find out how many products they have successfully supplied.
Can they customize the product to your specifications?
Is their price range favorable in relation to how much the product costs on Amazon on average? There is also a request form on the website where you can place a request with the specifications of what you want your product to be like and you will receive multiple quotes from suppliers.
Has sent quality samples that are promising?
Has a favorable minimum order quantity?
Settled on the most reasonable price after negotiations.
Will produce within a favorable timeframe?
You can review your original list and compare it to the final best suppliers just to be sure you have made the right choice. Go ahead and let them know that you will be sourcing your product from them and work on getting everything in place. That includes the additional specifications you may need and the processing of payments. It also includes the discussions on the shipment that is whether by plane or by ship for heavier products.
Once you have found the best suppliers, it is time to request for samples. This can be done on the request form where you fill out the details including any illustrations or pictures you may have and then request for samples.
Samples allow you to establish how your product will look and feel. You can know right away if customers on Amazon will be willing to buy such a product. Samples will make the best supplier automatically stand out. You will also know the changes you may need to be done on the product.
The number of products you will need for a start hugely depends on your business size and budget. It is therefore good to establish the minimum order quantity of the supplier. It is often a deal breaker as you may find a good supplier who, however, only does large quantities which to you as a small business will not be feasible. You can narrow down the list at this point to remain with those whose minimum order quantity is within your reach.
You will need to remember that walking away is as important as making a deal. Avoid compromising on your budget and business plan at all costs.
The next step is the negotiation on the pricing. The production cost determines the price your supplier will present. However, take note that they are also in business and want to make some profit which results in a price that is a bit raised. That is where negotiations come in.
From step one when you were doing your research on the product, you must have established the average price on Amazon. With this in mind, negotiate a price that will be favorable for you to remain competitive on Amazon as well as make a profit. You will need to remain flexible and understanding at this point. You can then compare the prices by the different suppliers.
By now, you will have a list of the best suppliers who meet all your requirements. The question of how much time it will take for the production to be complete now comes into focus. For instance, if you are running a time-bound promotion or the launch coincides with a certain special event, you may need a supplier who will get it ready within your time frame. The production time needs to be as short as possible but not too short to compromise on the quality.
The size of the manufacturer hugely determines how much time production will take. It will also depend on the number of clients like you sourcing from them.
Fulfillment by Amazon (FBA) simply refers to sending products you have for sale to Amazon so they can help to fulfill your client’s orders. This makes it worth working with Amazon. (Related Article: A Step-By-Step Guide to Shipping to Amazon (FBA))
Running a business that relies on sourcing for products from China on Alibaba is an extremely rewarding investment if the supplier selection is done well. A good supplier will allow you to get your customers the best quality product at a competitive price while still making a good profit for yourself. The 7 steps above will help you get the best out of the Amazon FBA program that has redefined possibilities in business. Now you too can supply products with your own brand name and customization without having a costly manufacturing unit. All the best as you step into the world of outsourcing.
If you have any more questions about sourcing products from China on Alibaba, please do get in touch so we can assist you in getting the right information.
Leeline sourcing company is involved in different sourcing business that will help your company’s growth, and make your international business better.
No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.
• Product Sourcing: With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.
• Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.
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