A Guide For FBA Sellers For Sourcing From China For Amazon
Feb 2021 was the time when Chinese exports witnessed the highest growth since 1995. The growth was an astounding 154% as compared with the last year’s. There are multiple factors which the experts say are the reason for such growth. One of the popularly accepted reasons is the rekindled foreign demand for Chinese products.
Another set of factors which influenced this massive growth is the decision of the exporting companies to remain functional during the Chinese new year and the sudden rise in third-party sellers on Amazon. Since the number of businesses is increasing in USA and EU, this has led to an increase in the demand for the manufactured products being shipped out of China.
If you operate a business, then the decision of sourcing your products will be very critical. You have the option to either produce locally. Next, If you choose to source the finished items from global markets, then you have to decide the nation from which you will source. Your primary options are India, China and Vietnam.
This is a very important decision and it will steer the direction of your business. You must analyze all the options and give time to each detail to reach an informed solution. This is also important if you are planning for FBA sourcing from China.
Let’s understand what FBA sourcing from China is.
FBA sourcing from China means Fulfilled by amazon. The FBA services offered by amazon allow the seller to sell on amazon without getting stuck in the hassle of logistics. After the product procurement by the FBA agent, the marketplace stores third-party seller products in their fulfilment centres. After a sale, packs, Amazon picks, and delivers packages directly to customers.
In order to get all the perks of the FBA programme and to increase their profit margins, third-party sellers on amazon source their products from trustworthy manufacturers in China. The word in focus should be trustworthy because when it comes to the quality of the products produces, China has a feeble reputation for production.
Thus, it becomes extremely important that you find the right FBA sourcing from China for doing business. Your decision of choosing the FBA agent will decide your success or failure on Amazon.
Explaining the product sourcing agent
The role played by a product sourcing agent is critical to the whole process. The sourcing agents act as the chain of command and the node of communication between the seller and the manufacturer. They are very important for e-commerce business operators who aspire to source their products from foreign, especially from China.
By hiring a sourcing agent, the supplier can manage and control the huge number of supplier contacts. Another additional benefit is that these professionals are locals who are based in China. They are well-versed in mandarin and in English. Thus, they will easily communicate your message with the manufacturer and deliver the manufacturer’s message to you.
Popular sourcing markets in china
There are many sourcing markets in China and you can choose from any of them. Here are a few prominent markets:
1- 1688.com – although this market is not that popular when compared with its likes entrepreneurs on Amazon must be aware of this online marketplace in China. It has a lot of opportunities to offer. The website hosts a huge number of manufacturers who do business mainly with Chinese clients.
The negative thing about this market is that there is simply no support that you will find in English. It has no English-speaking suppliers or natives. This, however, is the cheapest option that is available for sourcing your products. Thus, if you are tight on budget, then you should go for this option.
This is ideal for those for whom the quality of the products is not the priority and who want the products completed at a cheap rate. Another downside of trading in this market is that there are some complexities involved which make it difficult for new sellers to access the market. Also, the conversion rates are another impediment which needs to be overcome.
2- Alibaba.com – this is the most preferred and recommended choice for FBA sourcing from China because of multiple reasons. Alibaba is the global sourcing hub for amazon sellers. There are more than millions of products which are displayed on the website and buyers from more than 190 countries access the website.
It is an avowed fact that most of the sellers on Amazon actually source their products from Alibaba. Here are a few reasons why Alibaba is the best place for FBA sourcing from China
1- It has the lowest cost of manufacturing in the world.
2- A majority of the suppliers on the website are reputed sellers
3- The website has a payment protection programme
4- It allows you to order massive quantities of products
5- The mechanism of the website is such that the sellers respond in record time
Shipping goods from China to the amazon marketplace
After you have agreed upon the terms and conditions with the manufacturer, the next important decision to be made is to decide on the delivery of the products from China to the Amazon marketplace. There are primarily 4 ways of doing this:
1- Express freight
2- Air freight
3- Sea freight
4- Land freight
Express freight is the fastest mode of delivering the product from china to an amazon warehouse located anywhere in the world. It is ideal for the light weighted products which weigh around 900 pounds. Global shipping can take 4 to 7 days depending on the distance which needs to be covered.
The second fastest and the second most costly after express freight is air freight. It is ideal for products which weigh more than 500-kilo grams. Sea freight is one of the most preferred methods of delivering goods delivered to the amazon warehouse. However, it takes about 25-40 days for the products to reach their destination.
Land freight is the least used mode of transportation.
Amazon is a great place for FBA sellers and if you get the right supplier, then you will surely flourish in business.