Resources - Playbooks
Sourcing Products From China to Sell on Amazon
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In 2018, U.S. imports from China totaled $539.5 billion, a nearly 60% increase from 2008. Many of these products are sourced by brands and retailers operating on Amazon who leverage the impressive Chinese supplier and manufacturer market for the price value they can attain through a mutually beneficial partnership.
When establishing an overseas sourcing strategy, however, there are many logistical, cultural, and financial complexities to take into consideration. In order to strike up a productive relationship with a Chinese supplier or manufacturer, you need to understand “guanxi,” which is a key cultural business concept in China. You also need to approach the entire process with a fully fleshed out idea of what product(s) you would like to source from China.
Does the product fill a gap in your existing catalog? What does the competition look like on similar products? Is there demand or a consumer need for it? Evaluating these questions, among others, before finding a supplier will help maximize the time you have for supplier negotiations and building a strong rapport.
In the first installment of a three-part series on the dynamics of China and Amazon, you will uncover exactly how to find the right supplier in China — whether through Alibaba, a sourcing agent, or directly at a trade show or online portal — to kickstart your overseas sourcing process.
We also discuss how you can establish terms of trade with your supplier and request various discounts such as growth incentives, volume rebates, and other allowances. From there, receive a comprehensive breakdown of how to quality test your products, get them back to your home country, and — if that is the U.S. — apply for exclusion from tariffs on Chinese imports.
What Will You Discover in the E-Book?
- Must-ask questions to identify the right supplier(s) for your unique products and specs
- Factors to gain the most optimal pricing from your suppliers, including discounts
- Actionable steps for receiving product samples, quality testing, and brand conceptualization
- A detailed workflow on how to apply Chinese goods for tariff exclusion, including application deadlines
With the practical strategies outlined in this e-book, you will be able to understand what exactly goes into sourcing products from China, from pre-launch preparation and research to post-launch performance and optimization.
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