- December 25, 2015
- Posted by: Kevin168
- Category: Source from China
Veterans in the business would say sourcing was really difficult when they first started out, some might even say it is still pretty difficult now. However, there are some codes let’s call them tips to help guide people Veterans and newbies alike in sourcing from China to Amazon FBA. Let this fact he established, Getting your products down to Amazon FBA boils down to two options, you can either ship your products directly to Amazon FBA warehouses or you can first ship the products to yourself or a third party logistics before shipping to Amazon FBA. Each strategy has its pros and cons but our focus is on how to successfully move products from China to Amazon FBA.
These ten ‘cheats’ are not the only tips for sourcing but they have been carefully selected to guide readers and entrepreneurs when shipping.
TIP 1: GET THE RIGHT ERTIFICATION FOR YOUR PRODUCT
Once you decide on what strategy to adopt an important element has come to the fray – compliance with country codes. You have to make sure whatever product you bring in satisfies the rules and regulations of your country.Certification for your product is very imperative when sourcing from China to Amazon FBA.
Let’s have a quick back story to emphasize the importance of fulfilling legal requirements in your country. In the summer of 2017, there was a lot of demand on Amazon for solar eclipse filters which include glasses, binoculars or any gadget suitable for customer use when looking at the sun. As a result of the massive push for filters Amazon requested for certification to properly observe the sellers. In an email sent to one of the sellers of solar eclipse filters, Amazon stated that the reserve of $500.94 would be released if the seller could provide information that their filters met with Amazon’s safety requirements in or before August 28, 2017. This mail came nine days after the reserve was placed on the sellers account, a lot of listings too would be closed if they failed to provide the necessary certifications. In retrospect, getting the right certification for your product ensures its relevance in the market.
TIP 2: CONSIDER THE PERIOD OF THE OFFERED PRICE.
As the Amazon dealer, you should be able to negotiate and maintain that the price of the product be fixed. This will alleviate any inflation of the price of raw materials in future, ultimately saving a lot of money and undue stress.
TIP 3: DO NOT TRUST ALL SUPPLIERS.
You know the popular saying that fathers give their boys when they are off to start a life ” Be careful who you trust”. That same advice is applicable in sourcing. The fact that a supplier markets through Alibaba doesn’t mean you can automatically trust him. You have to be vigilant, make adequate research on your supplier and other supply channels. You might as well get a better supplier than the one you have already. Stay sharp.
TIP 4: SOMETIMES THE MANUFACTURER MIGHT NOT BE THE BEST SUPPLIER
Many Amazon dealers have found this out the hard way and some still insist on going through manufacturers – why? Dealers believe it is easy to cut costs of middlemen and improve margins through manufacturers, however it is better to work work with intermediaries. There would be accountability, ease and the job would be done in a short time. Make enquiries about anybody and everybody you are going to be involved with, see how things are done and make the right connections.
TIP 5: USING 3rd PARTY INSPECTION IN CHINA
Quality is of the essence when sourcing form China to Amazon FBA, one way to ensure quality in this volatile business is using 3rd party inspection on China. Firstly, it is much better to use this method as the nature of manufacturing can incur some defects so you can control your products quality through 3rd party inspection. The price for a quality inspection widow cost you around $250 – $300.
Secondly, The inspector will send you a detailed report supported with images of the major amd minor defects, you then can decide if you want the defective units replaced, reworked or simply excluded from shipment.
Finally, if the quantity is under 200 pcs, I would suggest ship the goods to your house first, so you can see the products yourself ; make sure everything is like you expected, inspect each unit.
TIP 6: MAKE A READY PROTOTYPE
Suppliers most times ask for a prototype of what you have requested, it will be efficient to hire a local supplier that can build a prototype of the product. Also, take the designs and patterns to friends and relatives to get their honest opinions about the product. Getting feedback from your loved ones or other people will help you envisage how the product will function. It is important you take whatever criticism constructively to further improve on your product. The success of your product starts from that point.
TIP 7: DO NOT TAKE COMPLIANCE WITH YOUR COUNTRY’S STANDARD FOR GRANTED
What is the essence of having a topnotch product and after some months be taken off the market for violating some regulations. Double check trademarks and brands that already registered with Amazon. Confirm transport costs and be careful with copies of branded deal. I will advise you make enquiries about everything that has to do with your product as well as codes and regulations pertaining to such product. Also, check Amazon guidelines for that product do you can be exempted from any immediate and future hassles.
TIP 8: HAVE ALTERNATIVES FOR SUPPLIERS
It is not healthy to have one source for suppliers in this business. Choice is of the essence here so you can check for other options, viable, easy and reliable sources for suppliers to help the products get across quickly.
TIP 9: DO NOT LEAVE THE SHIPMENT TO THE SUPPLIER
You are the owner of the product therefore you dictate how you want things to go, get adequate information about the shipment and other relevant data. However there are exceptions to this shipment saga, the only time you can do this is when there is no other choice but do not use the suppliers shipping line. To exercise some control over the consignment a separate should be chosen.
TIP 10 : CIF EXW or FOB
When preparing your shipment from China there are a few guidelines you need to check, one of which is the type of trade term that will be appropriate. Trade terms are also called intercoms which are very essential in shipping. A product price is always quoted according to a specific trade term. There are four common terms of trade which are based on how much you offer the supplier, these terms are, EXW/FOB/CIF/DAP.
EXW implies the goods will be transported to no other place but the factory, FOB indicates that the goods will be transported to a nearby port in China, CIF explains the goods will be moved to a nearby port in your country while DAP presents the idea that the products will be moved to your facility excluding tariff and taxes. They could also be classified into two which are EXW or FOB which allows you – the buyer to pay and deal directly with the freight agent while the other category allows the seller use their freight agent and you still pay for that.
Quite a few buyers ask questions concerning EXW/FOB when it comes the max control of their goods but sometimes it depends on the seller. If the seller handles the internal trucking to the port, prepares customs documents and pay local fees, pick up would be very easy except for some goods which may be harder to clear. EXW/FOB is the best practice if the shipment is to Amazon FBA warehouse.
When shipping from overseas it is important you note that Amazon cannot be used as the consignee or an importer of record. One factor is worthy of recognition, you must comply with Amazon’s principles of properly labeling the product and also the seller has to fulfill his obligation to deliver when the goods have been available at the named place in the country of importation.
These ‘cheats’ will surely guarantee ease and convenience when shipping your products from China to Amazon FBA. One important feature when navigating this treacherous waters of business is research. You can never go wrong with when you have enough information about an idea or a situation. If things are not clear and looking dicey do not wish to make a decision. It would be wise to find out the necessary details about that matter and act accordingly.
In addition to this, these tips can also suit people who want to do Amazon business by sourcing products from China.
I hope these tips for only guarantee convenience but ensure your business flourish.
Is there any other tips you don’t understand? Or you have better tips? You can go ahead to leave a comment below.