Are you thinking of selling your products on Amazon? If so, you will need to source these products and send them directly to Amazon fulfillment centers. This process is commonly referred to as product sourcing. If you’re new to product sourcing, it can seem like a challenging task. However, with the proper preparation and research, this process doesn’t have to be as challenging as many think it is. However, there are some challenges that most new suppliers will face when first setting up their supplier accounts with Amazon. But don’t worry; we’ve got you covered!
What is Product Sourcing?
Product sourcing is finding and purchasing products that You can sell on Amazon. Amazon sellers typically source their products from Third-party Manufacturers (TPMs). There are two sourcing methods: drop shipping and Fulfillment by Amazon (FBA). Drop shipping is when a seller sends a purchase order to a manufacturer, who then sends the product directly to the customer. With FBA, the seller sends products directly to the warehouse for the Amazon FBA program, and Amazon handles the rest.
Why Is Product Sourcing Important for Amazon FBA?
The product sourcing process is critical for high-quality products that can generate sales on Amazon. It’s important to source products that are high in demand and have a low level of competition. This will make it easier to rank in organic searches and increase your chances of conversion. If you’re using Amazon FBA, sourcing products directly from manufacturers will make it easier to scale your business. Many Amazon sellers source products locally to avoid the challenges associated with outsourcing. However, sourcing locally can be difficult and time-consuming.
Step 1: Find and Research Potential Manufacturers
The first step in product sourcing is to find and research potential manufacturers. When locally sourcing manufacturers, you may have to attend trade shows or visit a local convention center. Alternatively, you can use a sourcing company to help you. When sourcing overseas, use sourcing companies like Brand New MD. This will make it easier to find potential manufacturers and save time. When sourcing products from China, there are three critical factors to remember: – Manufacturing costs – Shipping costs – Time frame Manufacturing costs will depend on the type of product you’re sourcing. For example, if you’re manufacturing clothing, the labor cost will be lower than manufacturing a product like a toy car.
Step 2: Send Product Samples for Approval
After finding and selecting a manufacturer, you should send a sample product to confirm that it meets the quality expectations. This will help you avoid wasting time and money on an order that doesn’t meet your standards. It’s important to note that you don’t have to use the manufacturer you used to source your initial sample. Instead, you can choose to use another manufacturer. You can also outsource the sample production to a new manufacturer. When sending samples, communicate with your manufacturer about the quality expectations. Doing so will increase the likelihood of receiving a sample that meets your standards. You should also consider requiring a deposit for the samples, especially if you’re working with a new manufacturer. This will help you avoid the challenges associated with the late or non-delivery of sample products.
Step 3: Review and Accept the Ordering Agreement
Before purchasing your products, you should review and accept the ordering agreement. This will help you avoid issues related to miscommunication with your supplier. You can use a sample ordering agreement to make the ordering process more accessible. This will help you avoid the challenges commonly associated with miscommunication with your suppliers. You can use sample NDAs to protect yourself from potential legal issues if you’re sourcing products locally. However, if you’re sourcing products from overseas, you won’t be able to use a standard NDA. Instead, you should use a sample or a sample form.
Step 4: Amazon FBA Warehousing and Shipping Process
After you’ve accepted the order, the next step is to have your products shipped to an Amazon Fulfillment Center (FFC). To do so, you will need to create an Amazon Seller Central account. Once you’ve completed your account, select “Manage Inventory” and “Sending Inventory to Amazon.” The next step is to create a Purchase Order. To do so, like “Create PO,” and then enter the order’s details. After selecting the desired Fulfillment Center, you can choose “Create a Shipment.” After doing so, you will need to add the shipment details. You will then need to attach the shipping documents to the shipment. After doing so, you will need to ship your products to the Fulfillment Center. Once you’ve delivered your products to the Fulfillment Center, the rest is up to Amazon.
The product sourcing process can be challenging and time-consuming. However, it’s important to remember that you can accomplish this process with the right amount of preparation. To learn more about product sourcing, contact Brand New MD here. We’d love to hear about your product sales goals!