These days, many companies are eying for earning a good profit by selling their products in a competitive market like Amazon. We are now living in the age of the internet and hence the E-commerce industry has been steadily growing and particularly during the last few years, it has grown at a faster pace.
As per the data available, E-commerce revenues are going to reach high by the year 2023, almost $6.54 trillion, which is 22.3 percent of overall retail sales.
As a result, it has offered a great opportunity for interested people to engage themselves in Amazon product sourcing mytoptweets. All that is needed is to identify a reliable source of products and then sell those products on Amazon.
Sources can be any of the following:
- Drop shipping companies
- Trusted manufacturers
What is Amazon product sourcing?
By sourcing products for Amazon, the user can get the products and then sell them online on Amazon. It will offer you a great business opportunity by selling your products and making a profit.
Plenty of opportunities have emerged due to the increasing popularity of e-commerce, and also it has given plenty of opportunities to sellers. a plenty of openings have emerged for all sellers.
Sellers can use several sources to get their products and can earn a profit by selling them on Amazon.
Importance of Amazon product sourcing
Today, most customers prefer to do online shopping as e-commerce platforms are offering an opportunity so that customers can order products easily online from their home without travelling.
As a result, many opportunities have opened up for seller to sell all their products online and can reach millions of customers.
However, one should select products carefully while selling after performing in-depth research regarding both customers and the market. Random selection of products without any research may often lead to unfavourable results.
Why Amazon product sourcing is so popular?
Many sellers now get the opportunity to sell on Amazon including those who have no manufacturing facility. They can obtain their products from a certain manufacturer or any retailer and then sell them on Amazon.
It has also offered a better customer base for all the products as now customers from different countries may see and purchase products from Amazon.
Product sourcing from China
Over the last few years, China has emerged as one of the potential countries for sourcing products for Amazon selling. It is really a very smart move, if one can manage the sourcing activity from this country, that can offer a good level of profit.
However, Sourcing from China now is becoming a bit tougher in 2022. So let us see how you can manage sourcing from this country and make your business smooth.
China has today acquired the number 1 position as a manufacturer in the world. Also, China happens to be the best sourcing destination for almost all Amazon FBA sellers. Although one can procure from a few other countries too, however, China still has the lion’s share of the manufacturing of the world.
As per the report of QIMA, for 47% of EU and US buyers, still China is occupying the top position as a sourcing destination. Although China’s share in the sourcing market has dropped from 61%, despite that we can still call China as no 1 destination for sourcing in the world.
If you want to source products for the Amazon market from China then the following three strategies can be useful.
1. Focus more on cultivating relationships rather than just finding deals
In contrast to the West, business transactions are conducted differently in the East. Any dealings in this place, whether commercial or personal, are dependent on certain hierarchies. It is also crucial to remember that each relationship has its own restrictions and cannot be extended to other situations.
Individuality, for instance, can open the door to more formal conversations when it comes to a business transaction. It is crucial to establish trust, respect, with your supplier by starting on a personal level and using a variety of communication tools.
Prior to contract negotiations, place an emphasis on getting to know your supplier personally. In the long run, it will pay off more if your foundation is strong.
2. Research who will be your supplier carefully
Due to its immense size, Alibaba is an excellent location. You will need to conduct some research to discover reputable providers, which you may do by requesting proposals.
Check out Global Sources if you wish to spread your net even more. Although it is not as large as Alibaba, what it lacks in size it more than makes up for in quality.
This is due to the fact that each supplier must go through a pre-qualification procedure where they are more thoroughly scrutinized than on Alibaba. Additionally, you can get China Sourcing Reports, which provides an in-depth look into particular industries, on their website.
Finally, you may prefer to visit a trade show, where you can meet face-to-face with your suppliers.
3. Never go with your first offer tendered
Negotiating over products and not simply over price is a significant aspect of sourcing products for Amazon from China. You should haggle about the price, the terms, and the nature of your partnership. Almost everything else is negotiable, with the exception of federal laws.
However, suppose you wish to barter the price. Work out more details in other areas while bearing in mind that both your supplier and you will have a certain price below which you cannot go at all. If you raise your order size, your supplier could be able to provide you lower total pricing.
Final thoughts
Consider your supplier’s perspective while choosing the approach that will work best for you. You will always lose if you are not aware of yourself or the other person. Do you need to hire employees overseas a Employer of Record China could help you.
You will succeed 50% of the time if you simply understand yourself or the other person, but not both. However, if you are aware of both yourself and the other person, then you will always have an advantage. While sourcing products for Amazon also, you must adopt this style.
