Buy from China and Sell on Amazon: Comprehensive Guide

Estimated reading time: 11 minutes

Do you know how many benefits buying from China and selling on Amazon can bring to your business?

Nowadays, more and more people are choosing to sell their products on Amazon. Are you considering this too?

This guide will lead you through how to import products from China and sell them on Amazon.

Why Consider Buying from China and Selling on Amazon?

What are the Benefits of Importing Products from China?

Importing products from China offers numerous advantages for businesses of all sizes. Chinese manufacturing capabilities are unparalleled, allowing for high-quality products at competitive prices. Here are some key benefits:

1. Cost Efficiency: Chinese manufacturers often offer lower production costs compared to other countries due to economies of scale and lower labor costs.
2. Wide Product Range: China is a hub for various industries, providing an extensive range of products across different categories.
3. Quality Control: Despite misconceptions about quality issues, many reputable Chinese suppliers adhere to international standards and have implemented rigorous quality control measures.
4. Customization Options: Chinese manufacturers often provide flexible customization options to meet specific product requirements or branding needs.
5. Flexibility and Responsiveness: Chinese manufacturers can quickly adapt to market changes and consumer demands. The ability to scale production up or down rapidly allows for more responsive supply chain management.

Why Choose to Sell on Amazon?

Amazon has revolutionized the way people shop worldwide and offers an exceptional platform for sellers to reach a vast customer base. Here are some reasons why selling on Amazon is a smart choice:

1. Unmatched Reach: With millions of customers actively browsing Amazon daily, your products have the potential to reach a massive audience.
2. Fulfillment Services: Through Fulfillment by Amazon (FBA), sellers can take advantage of hassle-free storage, packaging, shipping, and customer service support.
3. Brand Credibility: Selling on Amazon lends credibility to your brand, as customers trust the platform and are more likely to purchase from established sellers.
4. Global Expansion: Amazon operates in multiple countries, allowing you to expand your business internationally with ease.

Tip:

Owlsourcing provides professional sourcing and Amazon FBA services, helping you complete the entire process from sourcing in China to shipping to Amazon warehouses, ensuring the quality of your products and smooth transportation.

What are the Key Benefits of this Business Model for Entrepreneurs?

Buying from China and selling on Amazon business model presents several enticing benefits for entrepreneurs:

1. Low Initial Investment: Compared to starting a traditional brick-and-mortar store, launching an online business using this model requires minimal upfront investment.
2. Flexible Operations: With the ability to work remotely and manage your business at any time, you have the freedom to set your schedule and work from anywhere.
3. Scalability: As your business grows, you can easily scale up by expanding product offerings or targeting additional market segments without significant overhead costs.
4. Diverse Product Range: Sourcing products from China allows you to explore a wide range of product categories and cater to various customer demands.
5. Learning and Growth: Navigating international trade and working with foreign suppliers can provide valuable learning experiences, contributing to personal and business growth.
6. Networking and Relationships: Building relationships with suppliers in China can lead to long-term partnerships and open up further business opportunities.

How to Buy from China and Sell on Amazon?

Step 1: Research and Analyze the Amazon Product Market

Before starting your business, analyze the products you need first. Of course, the current best method is to find top-selling products through Amazon. Utilizing these selling products can bring you high profits.

We have provided some suggestions for your reference:

• Use tools like Google Trends, Amazon’s Best Sellers, and other market analytics tools to identify trends and popular products.
• Look at similar products on Amazon, noting their pricing, customer reviews, and rankings. This helps in understanding what works and what doesn’t.
• Choose products that have a good balance of demand and competition. Avoid oversaturated markets.

Step 2: Finding Reliable Suppliers in China

There are many ways to find a manufacturer in China. Below are the methods we have listed to find them through different approaches.

• Online Marketplaces: Websites like Alibaba, Made-in-China, and Global Sources are popular platforms where you can find a wide range of suppliers.
• Trade Shows: Attending trade shows can be an excellent way to meet suppliers face-to-face. The Canton Fair, for example, is one of the largest trade shows in China for international buyers.
• China sourcing agent: In China, if you want to find a manufacturer but are concerned about not finding the right one, collaborating with a China sourcing agent is a great option. They will help you connect with Chinese manufacturers and provide comprehensive services.

After finding a Chinese manufacturer you can cooperate with, don’t forget to contact Chinese manufacturers. Establishing a good communication relationship with them is helpful for your next purchase.

Step 3: Negotiating with Chinese Manufacturers

Be prepared to negotiate pricing, minimum order quantities (MOQs), payment terms, and production timelines. However, before negotiating with them, please pay attention to the following elements:

• Understand the Cultural Context: Be aware of cultural nuances. For example, direct confrontation or hard bargaining may be seen as disrespectful. It’s important to be polite, and patient, and show respect throughout the negotiation process.
• Clear Communication: Be specific about your requirements, standards, and expectations. Avoid ambiguity, as it can lead to misunderstandings. If there’s a language barrier, consider hiring a professional interpreter.
• Decision-Making Process: Be aware that decision-making in Chinese companies can be hierarchical and may take longer. Patience is key.
• Contractual Agreements: Once an agreement is reached, ensure all details are clearly outlined in a contract. However, in Chinese business culture, a contract may be viewed as a starting point rather than a set-in-stone agreement, so be prepared for possible future negotiations.
• Seek Local Advice: Consider consulting with someone who has experience in the Chinese market. They can provide valuable insights into local business practices and negotiation tactics.

Step 4: Buying Product Samples from Chinese Suppliers

Before committing to a large order, it’s recommended to buy product samples from China. This allows you to assess the quality, functionality, and overall satisfaction of the products you intend to sell.

Here’s a guide on how to go about buying product samples from Chinese suppliers:

1. Identify Potential Suppliers
2. Request Detailed Information
3. Negotiate Sample Terms
4. Evaluate Samples Thoroughly
5. Provide Feedback
6. Discuss Customization and MOQs
7. Plan for Logistics
8. Build a Relationship

Note: Remember, do not overlook the relationship with these Chinese suppliers.

Step 5: Choosing the Right Shipping Method

Choosing the right shipping method is crucial for ensuring timely delivery and cost-effectiveness. Evaluate options such as air freight, sea freight, or express delivery services based on factors like shipment size, urgency, and budget.

Setting up Your Amazon Seller Account

How to Set up your Amazon Seller Account?

Setting up an Amazon seller account is relatively straightforward:

1. Visit sellercentral.amazon.com and create an account.
2. Choose between an Individual or Professional selling plan.
3. Complete the necessary registration steps including verifying your identity and providing bank account details.

How to Optimize Your Product Listings on Amazon for Improved Visibility and Sales?

Optimizing your product listings is essential for increasing visibility and driving sales on Amazon:

1. Conduct keyword research to identify relevant search terms customers use when looking for products similar to yours.
2. Craft compelling product titles, bullet points, and descriptions that incorporate these keywords while highlighting unique selling points.
3. Utilize high-quality product images that accurately represent your offerings.
4. Encourage positive customer reviews through exceptional customer service and follow-up communication.

Now that your seller account is set up let’s explore fulfillment options on Amazon.

Fulfillment Options: FBA vs. FBM

What are FBA and FBM?

Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) are two primary fulfillment methods offered by Amazon.

1. Fulfillment by Amazon (FBA): With FBA, Amazon handles storage, packaging, shipping, and customer service for your products.
2. Fulfillment by Merchant (FBM): With FBM, you handle the entire fulfillment process, including storing inventory and shipping orders directly to customers.

How to Choose Between FBA and FBM?

The choice between FBA and FBM depends on various factors such as product size, sales volume, cost considerations, and personal preferences. Consider the following when making your decision:

1. Evaluate the fee structure for both options.
2. Assess your capacity to manage inventory and fulfill orders independently.
3. Analyze the potential impact of Amazon Prime eligibility on sales.

Marketing and Promotion on Amazon

How to Enhance Visibility and Boost Sales on Amazon?

To enhance visibility and increase sales on Amazon, consider employing the following strategies:

1. Utilize sponsored product ads to target relevant keywords and increase product visibility.
2. Optimize your product listings with compelling images, informative bullet points, and persuasive descriptions.
3. Encourage customer reviews through follow-up emails or inserts in product packaging.
4. Engage with customers through excellent customer service to build positive brand associations.

Strategies for Building a Brand Presence and Achieving Success

Building a brand presence is crucial for long-term success on Amazon:

1. Develop a unique brand identity through effective branding elements such as logos, packaging design, or branded inserts.
2. Leverage social media platforms to engage with customers outside of the Amazon marketplace.
3. Implement email marketing campaigns to nurture relationships with existing customers while attracting new ones.

Read More:

• Fulfillment By Amazon (FBA): Boost Your Business Online
• Amazon FBA Prep Service
• Amazon FBA Sourcing Agent in China: Ultimate Guide

Final Thoughts

Buying from China and selling on Amazon is a great opportunity for your business, but there are still many considerations in this process. Of course, you can contact us at Owlsourcing—a professional Chinese procurement agency. We will help you solve any problems you encounter during the procurement process or when you are about to start.

If you have any questions and would like to consult, please email us at [email protected], and we will provide you with answers.