What Is Amazon Product Sourcing and How Does it Work?

This method is suitable for beginners because it’s simple and you don’t have to deal with any suppliers or manufacturers.	You can simply do some research online and check your local stores to find suitable products.
This method can be effective for people who have a small budget because it does not require a lot of investment.	If you are buying products from an overseas supplier then you have to deal with MOQ (Minimum Order Quantity) and shipping costs.
However, if you are buying products from the local market for online arbitrage then you don’t have to worry about MOQ or shipping costs.	–

It is difficult to customize the product if you are online arbitrage method. You have to use the product as the store has made it and can’t customize it.	It is difficult to scale this business. It is also very time-consuming. You will find it difficult in the long run to go from store to store to look for the products. Investing too much time in the product search might not leave a lot of time for you to focus on your business and its growth.
The price margin in case of online arbitrage and retail is not as good as buying the products from suppliers or manufacturers wholesale.	–

2. Get Private label products from China manufacturers

Private label products are products that are manufactured by a third-party manufacturer and are sold under the name of the seller or retailer.

With the help of private label products, you can create your brand and sell custom-made products on Amazon under your brand name.

 You can also customize product packaging and you can use your logo on the products as well.

• How to get private label products

If you want to sell private label products then you have to contact a manufacturer to manufacture the product.

You can easily find product manufacturers on online marketplaces like Alibaba. Alibaba is an online e-commerce marketplace that connects suppliers and buyers.

First, you need to select the product that you want to sell. After that, you need to find a suitable manufacturer for that product depending on your budget and product specification.

Once you have found the manufacturer that meets all your criteria then you can place the order. It is important to communicate all the product specifications with the manufacturer.

You can also request a product sample from the manufacturer to make sure that the product is according to your requirements.  Also, ask your manufacturer regarding MOQ (Minimum order requirement).

• Advantages of getting private label products for Amazon product sourcing

1. If you are buying the product directly from the manufacturer then you will get a lower price from the manufacturer. When you are buying in bulk the price per item is lower and some china manufacturers also offer good discounts.
2. If you are buying private label products then it is easier for you to customize the products. You can improve the product design after getting customer feedback. You can also customize product packaging.
3. Once you are done with the product design it is easier to automate the process. Whenever you are low on inventory you can place the order and get the products to sell.

• Disadvantages of getting private label products for Amazon product sourcing

1. If you are ordering from an overseas manufacturer then you might have to pay the shipping price for the order.
2. It is better if you source lightweight and small products as you will have to pay less shipping for them.
3. You can also negotiate shipping charges with your manufacturer. In the case of private label products, you are highly dependent on the manufacturer.
4. If you can’t work with that manufacturer for some reason then it can highly impact your business as you have to find a new manufacturer and communicate all the product requirements with the new manufacturer.
5. It is a good approach to keep more than one manufacturer so if one manufacturer is not available for some reason you can manufacture your product from the other manufacturer without any delay.
6. Manufacturers usually have a MOQ (Minimum order quantity) limit. If you are just starting and don’t have a high initial investment then it might be difficult for you to fulfill the MOQ requirements.

3. Dropshipping method

Dropshipping is a type of retail business where the seller doesn’t keep the stock and delivers the product directly from the manufacturer to the customer.

 This can be a great option if you don’t want to keep the inventory and want to automate the process.

• How does the drop shipping method works?

Amazon offers the option of dropshipping and supports dropshipping business model. In this model, the seller signs an agreement with the drop shipper.

When a customer places the order the seller will confirm the customer’s order and contact the drop shipper.

Dropshipper will send the product to the customer directly and the customer will get their order.

• Advantages of dropshipping in Amazon product sourcing

1. The major advantage of dropshipping is that your seller doesn’t have to keep the inventory.
2. The seller doesn’t buy any inventory and contacts the drop shipper once the customer has placed the order. That’s the reason that this method doesn’t need a lot of initial investment.
3. It is easier to automate this process and it can be a source of passive income.

• Disadvantages of dropshipping in Amazon product sourcing

1. In this method, a seller is highly dependent on the seller. If there’s any problem with the product or if the customer has any issues with the product then it can result in a major issue as the seller has less control over the product.
2. The dropshipping method might not be very profitable for the seller as the supplier takes a lot share of the profit.

4. Manufacturing Products

If you don’t want to these methods then you can also manufacture your products and sell those products on Amazon.

This gives you more control over the product because you can manufacture the product as you want and you are not dependent on any third-party manufacturer.

• How to manufacture own products

This can be a challenging and hard to execute method. However, it gives you the flexibility to add your creativity, uniqueness, and customization to the products. You can make home decor items or customized art and craft-related products for customers.

• Advantages

1. Making your products can give you the liberty to customize the product and you won’t be dependent on any third party manufacturer
2. You can add your signature customized creativity to the product.

• Disadvantages

1. Making your product requires a huge initial cost.
2. You can’t sell a wide range of products if you create your own, and you can only manufacture a single category of product.

Chapter 3: Tips to source products from China for Amazon sourcing

If you want to start your Amazon product sourcing business then here are some tips for you to source reliable products from China manufacturers.   You can follow these tips to build a strategy for your business.

1. Evaluate the profitability of the product

First of all, you need to evaluate the profitability of the product that you want to source. You need to make sure that the product is reliable and will generate good profit.

The price of the product and shipping price should be considerably lower compared to the price of the product on Amazon.

 Here are some things that you can keep in the consideration to evaluate the profitability of the product:

• Select products with a retail price range of $25 to $50.

It is recommended to select a product that is between the price range of $25 to $50. Products in this price range will have more conversion range and there are more chances for the customer to buy the products.

• Prefer reliable products that are not seasonal

Don’t choose products that are seasonal and are only in demand during a particular season.

 There are more chances of profit if you choose a product that can be sold throughout the year and is not dependent on the season. Also, keep the product review the consideration while choosing the product.

2. Verify if the product can be shipped easily

Product shipping has a very important role in product sourcing and it is an important aspect to consider when you are selecting the product for sourcing.

Choose a product that can be shipped easily and in less time. If the product is lightweight shipping will cost less. Prefer products that are suitable and have less shipping.

Lightweight products can also be sent by air freight, making delivery quick. You can negotiate the shipping price with your manufacturer as well.

3. Evaluate where improvements are needed

After delivering the products to the customers your customer might request some changes and provide feedback on the product.

 If the product you have sourced is very expensive and complex then it will be difficult for you to change the product according to the customer feedback. It is better to choose a product that is flexible and can be changed easily depending on customer feedback.

4. Choose a product that is easy to produce

If you are sourcing a complex product then you might have to face a lot of challenges.

 For example, if you are choosing a product that requires technical expertise then it can be difficult to find a technically equipped manufacturer that can manufacture the product without compromising on product quality.

 If you are a beginner then it is better to choose a product that is simpler and more reliable.

5. Evaluate the demand for the product

A critical element to consider in assessing the product’s demand among customers. You won’t be able to make a profit if you source a product that isn’t in demand, regardless of how amazing the product is.

So, you should perform proper research to determine the demand for the product before selecting the product. Moreover, you can use different tools to determine whether the product is in demand Among customers on Amazon.

You can look for the product categories that are more in demand and then you can select a product that falls under those categories.

6. Make sure that the product complies with country standards

Before sourcing, the product seller should do detailed research regarding the standards that your product needs to be complying with.

Make sure that your product fulfills all the legal requirements before selling the product.

If you are sourcing a complex product then you have to meet all the technical requirements and safety standards.

7. Look for a trustworthy china manufacturer for the product

After carefully selecting your product you can move to the next step which is manufacturing the product.

If you want to manufacture your product then you can choose a trustworthy and reliable China manufacturer.

Chinese manufacturers provide a good quality product at a reasonable price.

 You can simply place the order and communicate your requirements to the manufacturer and they will manufacture the product for you.

8. Sources to find the reliable china manufacturer

You can use multiple sources to find a reliable manufacturer in China. Many online platforms can help you in finding a reliable manufacturer in China.

Here we have provided some sources that you can use to easily find the manufacturer for your product.

• Trade fairs

Trade fairs can be a source to find a manufacturer in China. China’s trade fairs are becoming more and more popular and a lot of businesses attend these trade fairs. At trade fairs, companies showcase their products and services.

 People from all over the world attend these trade fairs. Trade fairs provide you the opportunity to directly interact with the supplier.

 Suppliers usually showcase their product samples at the trade shows as well.

• Online marketplaces

Online marketplaces are a great way to find reliable suppliers for the product that you want to source for Amazon.

There are a lot of online marketplaces available that connect manufacturers and buyers.

 Here we have provided a brief description of two famous online marketplaces.

• Global sources

Global sources is a B2B online marketplace. It is a China-based e-commerce company that was founded in 1971.

Headquarters of Global sources are located in Hong Kong. It facilitates trade and provides a trading platform for sellers and buyers around the world.

It has thousands of manufacturers and it has a wide range of products. To search the product you can select the supplier from the top menu that is available with the search bar.

After that, you can add the product keywords in the search bar and search the product.

• Alibaba

Alibaba is a very famous e-commerce marketplace that provides a platform to connect buyers and manufacturers or suppliers.

Buyers can easily find and contact the seller via Alibaba. Alibaba has thousands of suppliers.

The process of finding the manufacturer on Alibaba is very simple. You just need to go to Alibaba’s website, select the supplier, add keywords for your product and click search. You will see a lot of available and the most relevant suppliers will appear on the top of the search results.

 However, it is important to use the relevant keywords for your product and to select the right product category to get more efficient search results.

• Google searches

You can use simply google search to find reliable product manufacturers as well. Search with the relevant keywords to find reliable and precise suppliers in the search results.

 Once you have shortlisted your suppliers you can contact them to get more information.

Chapter 4: Steps to find products on Amazon that are profitable

Selecting and finding the right product to sell on Amazon is very important in order to get a profit.

 In this chapter, we will provide some key points about how you can find profitable products to sell on Amazon.

1. Use keywords to search top products

You can use keywords to search for top products on Amazon. These keywords can provide you an insight into the product and you can analyze which product you should select to sell on Amazon.

The process is quite simple; first, you need to go to the Amazon website. Write your keywords in the top search bar and analyze the search results.

If the monthly search volume of the product is more than 1, 00,000 then the product can be considered for selling. You can also analyze the number of search results.

2. Keep shipping cost and dimensions of the products in mind

If you are sourcing your products from an oversize manufacturer then you need to keep the shipping cost in mind.

Shipping cost depends on the size of your products as well. It is recommended to choose a product that is lightweight and small because shipping costs will be less for such a product.

However, it is also important to keep the product demand into consideration as well.

• Opt for durable products

If you are a beginner, you should choose products that are more durable and less likely to be damaged easily.

 If you choose reliable products then theirs is fewer chances of product damage during shipping. Also, if you are using dropshipping method then you can’t completely control shipping.

In the case of dropshipping, Opting for a more durable product can lessen the risk of product damage during shipping.

• Consult experts

You can take inspiration from other sellers that are successfully selling products on Amazon and generating profit in their Amazon product sourcing business.

 You can learn from their business strategies to get success in your product sourcing business.

There are also a lot of books that are written by these expert sellers regarding their strategies.

You can read their books to get insight into their successful product sourcing journey on Amazon.

Chapter 5: FAQs About Amazon Product Sourcing

1. What is Amazon product sourcing?

Amazon product sourcing is a process in which a seller selects and buys a product from a third party and then sells it on Amazon to make a profit.

2. Which sources can be used for product sourcing?

There are multiple sources available for product sourcing. Some famous sources that can be used for product sourcing are dropshipping, retail or online arbitrage, wholesalers, product manufacturers or suppliers, etc. The seller can also manufacture their product to sell on Amazon.

3. What are some beneficial tools to find best-selling products?

Many tools help the seller to find the best-selling product. Some of the famous tools include Trendosaur, AMZ Insight, JungleScout, and Asinhunt.

4. Where can I find good China manufacturers?

China manufacturers can be a good source for product sourcing. There are a lot of platforms where you can find reliable china manufacturers including Trade fairs and online marketplaces.

China has many famous online e-commerce platforms that connect sellers and buyers like Alibaba, Global sources, etc.

5. What is dropshipping?

Dropshipping is a type of retail business which enables the seller to take orders from the customers and send the order to the customer from the manufacturer without keeping the inventory.

Conclusion

In this blog, we have provided a brief guide regarding Amazon product sourcing. Amazon product sourcing is the process of buying products from a trustworthy source and selling those products on Amazon with profit margins.

It provides a great opportunity for the sellers to sell on Amazon and generate profit. Several techniques can be used to select a reliable and profitable product.

Selecting a product that is high in demand is crucial in order to get a profit; you can find tips and techniques to select the right product in this blog. We hope that this information will be helpful for you.