Finding the Right Product Suppliers for Your Amazon Business
Taking the Leap with Product Sourcing
Finding a manufacturer or supplier for your products can feel overwhelming, particularly when you're just getting started. The reality hits hard when you realize that placing an order for hundreds of units means there's no turning back. Once you've contacted a supplier and they begin production, you can't simply change your mind or walk away. You can't tell them you no longer want the products after manufacturing has started, and you certainly can't decide not to sell after investing hundreds or thousands of dollars and receiving your inventory. What would you do with 100 baby outfits or 500 notepads sitting in your garage?
Reaching out to manufacturers marks the real beginning of your business journey. You're now working with other companies and people, which means you need to approach everything professionally.
While finding a supplier might seem daunting, it's actually more manageable than you'd think, especially with today's online resources. However, you still need to stay alert since there are plenty of scammers out there, particularly when ordering from overseas. Here are some essential tips to help you locate and select the right manufacturer or supplier for your business.
Where to Find Reliable Suppliers
Most products today come from China, which makes sense given the enormous number of manufacturers and suppliers operating there. While visiting China to meet manufacturers face-to-face would be ideal, you can easily connect with them online instead. Here are the top Chinese websites worth exploring.
Alibaba.com
This platform is probably the go-to choice for most Amazon sellers. As one of the largest companies serving ecommerce sellers, Alibaba operates from China and runs additional sites like Tmall and Taobao. Millions of people use it, including merchants, businesses, and individual sellers. The majority of Amazon sellers source their products through Alibaba.
Think of Alibaba as the manufacturer and supplier directory. You'll discover hundreds of companies that produce items in bulk quantities, typically by the hundreds. Their per-unit pricing is incredibly low, giving you room to sell at higher markups.
AliExpress.com
Although Alibaba owns AliExpress, they serve different purposes. Alibaba created AliExpress to compete directly with ecommerce giants like Amazon and eBay. You can purchase individual items from AliExpress, while Alibaba requires bulk orders. Still, you can source inventory from AliExpress since they offer factory pricing for smaller quantities.
Made-In-China.com
Launched in 1998, Made-In-China ranks among China's top B2B ecommerce platforms. It functions similarly to Alibaba by connecting Chinese suppliers with international sellers, making it simpler for people worldwide to reach Chinese manufacturers.
Beyond Chinese suppliers, you can also locate manufacturers and suppliers in the US and Europe, though pricing tends to be higher.
Zentrada.eu
This platform stands as one of Europe's largest sourcing websites for ecommerce sellers. It provides individual sellers with fresh ideas for everyday products to help them succeed. Currently, they feature around 400,000 different products from various manufacturers, importers, and wholesalers across the globe.
Kole Imports
If you're based in Los Angeles, California, consider reaching out to Kole Imports, a family-run US business. They're among the country's biggest general merchandise companies and direct importers of consumer goods. Since 1985, Kole Imports has sourced products directly from overseas manufacturers and sold them in bulk to retailers and wholesalers. You can check their website or find them at trade shows.
Closeoutfortune
This US-based company offers wholesale products at competitive prices. They carry a diverse product selection and serve various customers including non-profits, retailers, online sellers, and schools. They're an excellent source for small businesses and non-profit organizations looking for inventory.
How to Check if Suppliers Are Reliable
Most people's first instinct when searching for suppliers is choosing whoever offers the lowest prices. This approach is wrong because finding a supplier who delivers on their promises matters most. When you locate a dependable supplier, you won't need to keep hunting for new ones every time you need to restock.
1. Primary Product Focus
When selecting a manufacturer for your product, verify that what you want made is their main product, not a side offering. For example, if you plan to sell bed sheets, work directly with a manufacturer that specializes in bed sheets rather than one that primarily makes mattresses but produces bed sheets occasionally.
2. Export Market Focus
Manufacturers who primarily target businesses in developed countries tend to be more reliable than those focusing on developing country markets. This makes sense because developed countries enforce stricter product quality and safety standards. They carefully monitor defects and compliance with various government regulations.
3. Product Safety Compliance
Choose manufacturers that follow product safety standards. As a seller, you're responsible for ensuring your products are safe for public use. Key product safety regulations include electrical safety, packaging requirements, toys and children's products standards, and textile regulations. You need to understand which regulations apply to your intended products and find manufacturers whose products will easily pass these requirements.
Following these standards is crucial when importing from overseas, especially China, since violations can result in product recalls, fines, seized shipments, and lawsuits. This could cost you millions, particularly if your product causes serious or fatal damage.
4. Quality Management Systems
Every manufacturing company should closely monitor product quality during and after production to minimize defective units. Higher defect rates lead to lower sales and damage the manufacturer's reputation, which is why they work hard to keep defects minimal. Look for suppliers that follow Quality Management Systems (QMS). Unfortunately, only about 5% to 10% of manufacturers implement QMS. To identify them, they should have ISO certification, typically ISO 9001.
5. Transparency
Manufacturers who refuse factory audits or quality inspections likely have something to hide. You can eliminate unreliable manufacturers by informing them early that you'll conduct quality inspections and sample testing. If they decline, avoid doing business with them since reliable suppliers welcome these inspections.
Supplier Evaluation Criteria
Your business has specific needs, so choose a supplier that meets those requirements. Create a criteria list to help you select one that can provide the products and service you're looking for.
1. Cultural Alignment
The manufacturer should share the same values your business represents. For instance, if you want to sell bamboo products to promote sustainability while earning money, find a manufacturer who follows the same principles.
2. Pricing
All costs—from production to shipping—should fit your budget. Find a manufacturer offering the lowest per-unit cost while maintaining your desired product quality.
3. Order Quantities
This depends on how many units you want to order. Most manufacturers have minimum order requirements. If you're starting out, choose a supplier that accepts smaller orders, like 300 units.
4. Safety Standards and Quality Control
The company should follow all required safety and quality regulations for your country. Ask for certifications, ISO numbers, and other permits to confirm you're dealing with a legitimate supplier.
5. Production Time
How quickly can the manufacturer complete your order? Faster production means you can launch your business sooner. However, ensure short turnaround times don't compromise product quality.
6. Flexibility
They should accommodate order and product changes, naturally with appropriate pricing adjustments.
These considerations should guide your supplier search to ensure you choose the right partner for your business needs.
Spotting Questionable Suppliers
Hopefully, you'll never encounter a shady supplier or scammer who just wants your money. You can avoid these questionable suppliers by recognizing warning signs. Here's what to watch for.
1. Unrealistic Promises
You've heard the saying "if it sounds too good to be true, it probably is." This applies when choosing manufacturers. If they promise to move mountains to complete your order in an impossibly short time while working with minimal capital and extremely low quotes, it's probably not legitimate. Low prices don't always mean great deals. You might be dealing with a scammer using unbelievable offers to attract victims.
2. All Talk, No Proof
When you contact suppliers attracted by their rates and notice they talk extensively about everything they can do for you but show no positive customer reviews, they're likely just building themselves up to close the deal. Legitimate suppliers ask questions about your project and provide proof of previous client successes.
3. Generic Quotes
When requesting quotes, they should provide detailed breakdowns explaining how they reached that price so you understand what you're paying for. Questionable suppliers probably give you cookie-cutter quotes they found online.
4. Hidden Costs
If their pricing is vague, giving them opportunities to change prices later, be cautious since you're probably dealing with a shady supplier. If they say something like "you'll pay around $600, but we're not sure about materials until we start production after you pay," walk away. This isn't proper business practice. Legitimate sellers provide exact amounts since they should know their costs after years in business.
5. Communication Delays
Delayed responses to calls or messages could mean the supplier lacks a dedicated customer service department or is simply too busy or disorganized. Either way, you don't want to work with such suppliers since it shows unreliability. This might create problems when you need urgent communication and no one responds.
Ordering Product Samples
One way to ensure you receive products meeting your standards is requesting samples from manufacturers.
Why Order Samples?
To Test Quality
Pictures can be misleading and aren't always enough. Having the actual sample lets you see, smell, and feel the real product you'll buy and eventually sell to customers.
To Test the Supplier
This is an excellent way to evaluate suppliers. You'll see if they're willing to send samples and observe how they communicate and work with clients. You'll also see their packaging and shipping speed.
To Show You're Serious
This subtly demonstrates you're serious about ordering. Suppliers also filter out hundreds of "buyers" who never actually purchase anything. This shows you're willing to proceed if satisfied with the sample.
How Many Samples to Order?
Ideally, order one sample per product you plan to purchase. However, consider your budget and shipping costs since multiple different products could get expensive. If you're ordering everything from one manufacturer, maybe order a few samples to verify their actual products match their photos. Some manufacturers won't buy materials and spend time making single items. Consider various factors and ask your supplier about their sample ordering process.
Why Hire Professional Inspectors?
Although hiring professional inspectors costs extra, you'll get expert product inspection before shipment. This is cost-effective long-term since you won't need to visit the supplier's factory personally to check orders. This also means lower return rates because products meet quality standards.
Professional inspectors know what to look for since it's their job and they're trained to spot defects and subpar quality that ordinary people might miss. These inspectors are usually located in the same country as manufacturers, making communication easier between suppliers, inspectors, and you since inspectors can serve as intermediaries.
Finding the right supplier isn't difficult when you know where to look and what to look for and avoid. The next chapter will cover shipping your products once manufacturers complete your orders.
