The growth of online sales is expected to increase over the next few years, and by 2023, they’re expected to reach $6.54 trillion in accordance with Statista. That means that at present is the best time to find quality items made in China that you can sell through Amazon.
If you’re not sure what the best strategy to locate reliable products in China Here is seven strategies that will help you.
Seven helpful tips to source trustworthy products from China:
1. Evaluate the profitability
For each product, you’re interested in selling on Amazon consider whether the cost of sourcing and shipping the products to Amazon is considerably less than the Amazon cost of selling.
Three are among the methods you can use to determine whether your product is financially viable. The proceeds from sales are broken down into three components: one-third of sales is used for fees, one-third goes into landing costs, and the third is your profit.
For example, if you sell a product at $21, you must be expecting a profit of $7.
The landed costs are all the costs involved in manufacturing and shipping your product from the warehouse. This includes
- Cost of inventory
- Customs duty and tax
- Shipping
- Inspection fees
The price also includes the fee for referrals. This constitutes also known as the “commission” that Amazon charges for each item sold through Amazon’s e-commerce platform.
The standard cost equals 15 percent of the selling price when you sell a product through Amazon. There’s also a selling plan cost that Amazon professional sellers, which is $39.99 for those selling more than 40 units over the course of a month are required to pay $0.99 for each item sold.
A fulfillment charge is per product fee which covers expenses related to Amazon FBA the packaging process and shipment. The cost is based on the quantity or weight of the items.
In addition, there is an additional storage cost that FBA sellers have to pay. It can be a lengthy storage charge or a monthly installment.
Retail Price
Many of the most experienced Amazon sellers advise choosing a product with a retail price of $25 or less, and not exceeding $50 USD. This price range allows sellers to recuperate direct costs that comprise Amazon charges and costs for advertising.
Costs that are higher than $50 could result in an increase in the conversion rate as well as the number of buyers who purchase the item.
Low-seasonal
It’s sensible to pick high-quality products that aren’t seasonally available on Amazon. You will earn the best profits by choosing products that are available all year round.
Review of the product
For the top-selling products, the review count is less than 100. The most popular niche for a product is those with reviews that are less than 200.
2. Evaluate whether the product is easy to deliver
When trying to purchase reliable products from China One of the most important things to consider is that light and smaller products are simpler to transport, more prone to transit damages, and also cost-effective.
They are also more convenient to ship using air freight. This means that they can reach your warehouse faster and allow you to begin selling them as soon as possible.
The use of ocean freight is usually required for shipping large quantities or the item is large or heavy. This could cause a delay in shipping, apart from increasing the chance of your product being damaged by weather or humidity fluctuations.
3. Determine whether there are areas to improve
Imagine that you buy highly complex or expensive items from China and the feedback from your customers or reviews isn’t favorable. In this case, it could be difficult to get the products altered from the China manufacturer.
Pick products that are flexible for improvement based on customer reviews. Reviews for the products reviewed by your competitors within your industry to see the products that are easy to tweak or improve.
4. Easy to make
Highly complex products, electronic glass, or other materials can be difficult to make require a high degree of technical proficiency, and may also be subject to quality control and manufacturing problems with quality control and manufacturing.
If you are beginning your journey with your first Amazon seller, it’s advised to steer clear of such items which aren’t safe.
5. The demand for this product
The primary element of a quality product you are able to sell on Amazon is its demand. Assessing if there’s an interest in the merchandise that you sell on Amazon is the initial step in determining which product you can sell on Amazon and developing your China source strategy.
Check if customers are searching for the item on Amazon and find out whether it is in demand with customers. The sales data on Amazon will help you determine the types of items that are in high demand.
A few of the items that sell most on Amazon are listed below:
- Home and Kitchen
- Games and toys
- Outdoors and sports
- Personal care and cosmetic products
- Baby Care
- Healthcare and Household
- Jewelry, clothing, and shoes
- Home Improvement
- Garden equipment
- Tools
There are numerous search tools that are available to Amazon sellers to aid them in finding the most popular and reliable items on Amazon. One of these tools is SellerApp.
6. Complying with the standards of the country
Before beginning your search for quality products from China be sure to check whether there are any particular standards within the U.S. and/or the E.U. that your product must be able to meet.
They could include safety standards, patents, intellectual property disputes Quality benchmarks, and any other legal requirements within the country in which you are selling your products.
If you plan to market complex products like electronics, there might be certain technical and safety requirements that the manufacturer must adhere to. Testing these products in China isn’t easy and knowledge and experience in the field could be required.
7: Find a reputable China manufacturer
After you’ve completed your research about the top-selling, reliable and profitable products available on Amazon you can narrow down your list. Your next task is to look for a reputable manufacturer of products in China.
The places to start your search include
Alibaba:
Alibaba often referred to as the Amazon of the East is the most common location that the majority of Amazon sellers look for. As the largest market located in China, Alibaba lists thousands of traders and sellers.
To know how to source products from Alibaba to Amazon FBA, Click here.
Start your search by visiting Alibaba.com and registering for an account. Next, begin your search by typing in keywords for your item and selecting from the drop-down menu the option “Suppliers” and then clicking on “Search”.
Although Alibaba offers hundreds of results, the majority of them will not prove to relate to the class. It is equally important to distinguish between resellers, manufacturers, and traders.
Resellers and traders may appear to be manufacturers, which is the reason the initial questions to inquire about to determine if they’re manufacturers or resellers.
Also, you can look over their product catalog and request more information regarding their manufacturing facility or specifications for their products.
Although a manufacturer is able to answer all of your questions about the product’s technical specifications and layout of the factory or other processes A reseller might not answer the question or wait for the time to address it.
Global Sources
Another website where you can find trustworthy vendors can be found at Global Sources. Global Sources is a Hong Kong-based marketplace identical to Alibaba but is generally thought to be more trustworthy.
The marketplace follows an additional process for checking suppliers and offers credit-check and assessment of capability for suppliers. services.
It is possible to get information about the quality of the product manufacturing capabilities, as well as the company status, as well.
Trade Fairs
One of the most effective methods to find an authentic source for China is to go to trade fairs personally and meet with suppliers. This is essential since every business transaction in China requires establishing a “Guanxi,” or a relationship with a person.
When you attend the exhibition, you can discover if the company is trustworthy by examining the samples, going to the factory, and confirming the legitimacy of their company.
Recommended Guide: Important Information You Must Know Before Selling on Amazon.
