Read To Know All That You Wanted to Know Regarding FBA Sourcing from China

Today Amazon has become the largest marketplace when looking at the online platform, and it continues to develop and grow its features for the customers. Amazon has turned into a most reliable and trusted e-commerce site, now it is estimated that there are about 244 million users of Amazon worldwide, which is nearly double of what eBay has.

However, what has become new to eCommerce and particularly to Amazon is the increasing number of Chinese products and sellers that have totally flooded the website.

What is FBA?

The addition of fulfillment within Amazon refers to the complete process of managing orders, and it will be a service that Amazon provides to its merchants. This contains terms for storing, packaging, shipping, and exchange or refund.

To put it another way, if you want to start an online store to work with Amazon and need assistance with packaging, storage, and shipping, the FBA service of Amazon can help. As a result, it relieves you of the responsibility of managing your online business, allowing you to concentrate on other issues e.g. marketing and product procurement.

Not only just that, but it also assists you in keeping track of customer orders, shipping things on time, and gathering information on products for advertising.

How can you find the right agent in China for FBA product sourcing

Almost like finding any reliable suppliers, it is important to hire a certain reputable sourcing agent while doing FBA sourcing China. Unfortunately, all sourcing specialists may not be of the same type and quality. The suitable sourcing agents must have the right credentials and experience for performing the job effectively.

Conduct independent product research

While hiring any right product sourcing agent, firstly you must conduct independent product research. With the help of Chinese marketplaces e.g. Alibaba, and retailers can offer you the following:

A rough estimate on product pricing
A detail about manufacturing hubs that cater to specific products
Minimum order requirements

All the information collected from your research can be crucial for communicating your particular requirements to your potential sourcing agents for the product.

Consider agents who are located near a manufacturing hub

Usually, most retailers will prefer to have quality inventory so that they can save as much while procuring the products. One way to make sure that the costs will remain low will be by selecting agents who are located very near manufacturing hubs.

Also, selecting any local representatives can always save a significant amount to the retailer on transportation expenses.

Check for language proficiency

While dealing with China, one of the biggest issues that retailers may face while transacting with Chinese suppliers is the language problem. Often, this can lead to total miscommunication, waste of raw materials, and also missed deadlines.

By making sure that your FBA sourcing agent is well conversant in both the local Chinese language as well as English, which is very important to minimize any procurement delays and errors.

Conduct interviews

Often it is very challenging to know the capabilities of any candidate just by going through their resume alone. By carrying out an interview in person or through skype can help you to assess the experience and sourcing knowledge of an agent and offer a glimpse into the work ethic of the candidate.

Ask for references

Besides the interview, it will also be a good idea to talk to any past clients of the agent. This can be another good step to assess their product sourcing skills. You can get a third-party view about the track record of the agent which will be a totally unbiased opinion.

Secure documentation for each and every step of your transaction

Finally, the last and perhaps the most important step in hiring any sourcing agent will involve while signing a contract. Again, here your documentation will be the key to shielding the interests of both you as well as the other parties.

Your contract must include the total scope of your transactions and also the accountabilities of both the retailer as well as the China sourcing agent.

How to ship your products from China and finally to Amazon FBA?

The following are the steps to be followed while shipping your products from China and delivering them to Amazon FBA.

Create your Amazon shipping plan

You must create a shipping plan before shipping items. This is required to obtain the necessary information for informing Amazon regarding your stock to ensure no delays when the shipment arrives at Amazon’s FBA warehouses.

Selecting your final delivery method

You have the choice of using UPS or Small Parcel Delivery. After that, you will fill in the units/box, box numbers, and box weight in the shipment packaging area. You will get the estimated shipping cost.

Decide on the shipping type to be used

The following are three types of shipping methods available:

LCL (Less Than Container Load)
FCL (Full Container Load)
Air shipment

Air shipment is the fastest way to ship your goods and also will be the costliest one.

Get your shipment inspected

You must ensure your product quality because client ratings and orders are based on them. As a result, you should always have your order shipment properly monitored by a certain third party.

Keep proper track of your shipment

In case you are using UPS on the Amazon Seller Central platform, shipment tracking is possible. You can track your shipping order on the website of the carrier if you use LTL.

Work out your incoterms

You must agree on incoterms with your manufacturer, which should be factored into your production costs. FOB and EXW are the most common. FOB assigns liability to the manufacturer, while EXW assigns it to your freight forwarder.

Buy freight insurance

Your value of the order is protected by freight insurance. This is because your consignment is passing through storage and handling procedures that are more prone to damage.

With so many variables to consider, FBA sourcing from China may appear to be a daunting task. There is, however, a reason why most Chinese suppliers are ready to go to such lengths to boost their profits.