Elksourcing：Procedure of Selling Chinese Products on Amazon

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Elksourcing：Procedure of Selling Chinese Products on Amazon

Apr 19, 2021 , by 露露

There are hundreds of product categories, what would you choose for your business of selling on Amazon? You have to identify them through market research and surveys. Subsequently, when you identify those categories, it becomes easier for importing the products and sell on Amazon, if you follow bellow procedures.

1. Design Your Own Products

It’s time you turn the products unique with a logo – a unique one, necessarily. This way, you would avoid chances of getting mixed up with others. The suppliers on the other side will help you in achieving that. First of all, design a logo for the private label products. It wouldn’t cost too much and you can have what you want. If a supplier offers some incredible choices, you should consider and examine if it goes well for you. After selecting the logo, you have it printed on the cartons and packages of the products.

2. Get Help from Forwarders 

Have you known a freight forwarder? You have to know one. The freight forwarders are the go-getters for you. Bringing products from one country to another is a mammoth task. Since these freight forwarders are aware of the international shipping laws, they are the best people for the logistical arrangements. Not to forget the capabilities of Chinese suppliers. Yes, they are the ones who can help you find reliable freight forwarders. It isn’t a problem if you aren’t allowed to export or import from other countries because a third-party consignee agent can get that done for you.

3. Find Chinese Suppliers

You should find reliable manufacturing companies in China. Yes, there are large differences between them, if you investigate precisely. Your target is simple – find reliable products at low prices and sell them. It’s the only thing that lets you earn big money. Otherwise, you know what happens. Alibaba, Global sources, made-in-China will be the best B2B platform to look for suppliers yourself. To save time and save money, getting help from a sourcing agent will be great choice.

4. Percentage standards set for FBA

Order defective rate should be less than 1%.

Pre-fulfillment cancel rate should be less than 2.5%.

The late shipment rate should be less than 4%.

Failing to achieve these targets of Seller’ Performance would strip you from the seller privileges.

5. Check Product Samples 

How can you be sure about the products?

Eventually, the above question would pop in your head. You should never take chances. After negotiating with 2 to 3 suppliers, you can request for samples. Evaluating them on the basis of quality, appearance, and performance would give an accurate report. Generally, people would opt for products with lower prices, but that isn’t a good idea. If you want to leave a deep impression about your products, you have ascertained the facts about the products you are going to sell in the markets. If a sample does not match the specifics you have asked for, request for a better one that does so.

6. Manufacturing and Quality Control

After verifying the product quality by yourself and settling on prices, you can proceed to making the down-payment for manufacturing. At the next stage, prominent quality control actions are needed to be taken. Obviously, you can’t check personally if the import volume is too low as it would amount expensive costs. Rather, you would have a third-party inspection company for the product inspection job. Remember, all of these must happen before the consignment reaches the designated warehouse of Amazon.

7. Shipment to FBA warehouse

As freight forwarders bring the shipment via different modes (airplane or ship), it is vital that the packaging meets Amazon FBA requirements before it is loaded. Significantly, the freight forwarders may offer that service too. It includes inspection of product packages with respect to Amazon rules and regulations.

8. Begin your Amazon-based business

The above procedures seem long and tedious, but believe us when we say they will prove fruitful for you and your business, in terms of making money. Having a great reputation, your label will earn customer loyalty. That’s all because of ensuring top quality products for the customers and maintaining a warm relationship with the suppliers.

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Elksourcing：Is It Possible to Buy High Quality Products at Low Price?

Apr 19, 2021 , by 露露

Many businessmen believe “you get what you pay for”, thus, they cannot buy high quality products at low price. In most cases, it is true. However, if you work hard and use some tactics, it is possible to pay relatively less and get more, as at end of the day, we live in the market economy. 

1) Compare between multiple suppliers

Compare several suppliers and their products. Within the supposition of getting equal quality, prioritize those merchants with low prices. But judge the quality of the product. Compare the quality and price of several suppliers and buy from the one offering fewer priced with quality goods.

2) Compare price on B2B platforms

There are several famous B2B websites in China, like Alibaba, Made-in-China, Global Sources and etc. These platforms are packed with a large number of product suppliers, whose products are labeled with the approximate price range. You can understand roughly the cost of your niched products.

3) Know your products

You should understand your products very well. A certain product comes in a variety of different types and quality, you need to know each of its kind and quality. It is possible to alter your product specifications to achieve a much lower cost at meantime still keep the main function. For example, you can use a thinner stainless steel to make a container but to fold the rim so when customers touch it, they feel the product is strong and good.

4) Choose a right factory

In China, there are hundreds of factories which make the similar products, they are at different locations, with different sizes, thus, they focus on different markets. If you go to a big factory, unless your order is very large, you will not get a good price, as there are lots of overheads for a big factory; however, if you go to a very small factory or a home workshop, you may get good price, but the product quality is not assured. 

In my 20-year work in global sourcing industry, I learned two useful tactics. #1, Always try to find out the most suitable manufacturing town for your products and choose a factory in that tome. For example, go to Yangjiang for cutlery; #2, Always try to use medium sized factory which keep good balance in quality and price.

China Sourcing Agent

Elksourcing：Factors about Choosing a Sourcing Agent

Apr 19, 2021 , by 露露

Global sourcing companies give necessary advice to organizations regarding the successful implementation of their sourcing strategies, among that, selecting a sourcing agent that fits your needs and preferences is very important to your success. Consider the following factors before selecting a sourcing agent for your business.

1. Knowledge of Sourcing Agent

This is the first and foremost aspect you should focus upon. The sourcing agent you choose should possess solid knowledge of the items they deal with. Problems may arise in technical or electrical products as the sourcing company needs to be aware of the specifications. If your hired sourcing agent does not know the technical specifications relating to your product, it can prove to be futile for your organization. It is advisable to hire a sourcing agent that has enough professional experience in handling the same type of products. Furthermore, your selected sourcing company should also be familiar with the production processes. It should also have proper knowledge about the components and materials that can have a huge impact on product quality. Global sourcing companies help organizations get acquainted with the economic and political scenario of the sourcing destination.

2. Experience of Sourcing Agent

This is another factor you need to take into consideration. Generally, a sourcing agent that has been in the business for more than 5 years is considered reliable. Henceforth, it is always recommended to hire a sourcing agent that is operating for more than 5 years. If your hired sourcing agent possesses an adequate professional experience, you can be assured of high-quality services from their part. However, the experience of the sourcing agent should be in the relevant field. You would not prefer to hire a sourcing agent that has no experience in your domain. With the help of professional sourcing companies, your organization can get access to the right suppliers when it comes to conducting sourcing activities. These agencies also know how to deal with suppliers properly.

3. Background of Sourcing Agent

More often, marketers give a blind eye to this fact. This should be avoided under all circumstances. You should check the background of sourcing agencies before coming to a final decision. This will give you a fair idea about their services. Apart from this, you can also know your sourcing agent precisely. This is indeed an added advantage for organizations of all sizes. In this internet-driven age, it has become easy for marketers to get access to the reviews of sourcing agencies. Also, probe into the founded time, services, company goal, number of employees, etc. relating to a particular sourcing agent. In this way, you can also assess the capability of sourcing agencies and thereby, choosing one that fits your goals. Professional product sourcing companies have excellent backgrounds that make organizations go with them.

4. Location of Sourcing Agent

Organizations prefer to work with a sourcing agent located near to them. If the suppliers are dispersive in several areas, the tasks of organizations become tougher. If the sourcing agent is located close to your organization and the sourcing destination, you can communicate with the officials of these agencies properly. It will also be a problem for your organization’s officials to visit the suppliers and do daily activities. This also raises the transportation and accommodation costs.

5. Target Markets of Sourcing Agent

Before hiring a sourcing agent for your company, you should ask the officials of your hired agent which markets they focus and where are their customers from. Every country has a different set of cultures, regulations, standards, and certification requirements. You also need to focus on this aspect.

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Elksourcing：How to Negotiate MOQ Requirement with Chinese Suppliers?

Apr 19, 2021 , by 露露

While you are sourcing from China, you may always hear about Minimum Order Quantity (MOQ), it makes your business difficult when you only own limited funds, or simply want to play it safe by starting small to test the market before making larger purchases. 

Before you begin negotiation, the first step is to understand why the supplier has imposed a MOQ. Is it because there is a lot of work upfront? Or maybe it’s because they prefer to work with larger buyers. Understanding the reasons behind the MOQ will help you better understand their position and allow you to negotiate and propose to best counter offer.

Once you have a better understanding of your suppliers’ position and follow our sourcing advice, you possibly can get a lower minimum order quantity.

1: Limit product customization

Products can be customized to a varying degree. A custom logo on a pre-existing factory design is less complex to achieve, as compared to a device built entirely with custom designed components. Simple forms of product customization enable the supplier to still use standard (i.e. high turnover) components, while highly customized components require the supplier to step out of its ‘normal purchasing routines’ and subcontract an entirely new design.

Such OEM components may not be compatible with the manufacturers’ primary product line, therefore forcing the buyer to meet the entire MOQ alone. This is rarely a problem when basing a product on ‘standardized components’, as these can be divided on a larger number of buyers. Let’s take a wristwatch as an example to demonstrate what this might look like in the world:

• Cover MOQ – Factory standard: 600 pcs / OEM: 900 pcs

• Handle – Factory standard: 600 pcs / OEM: 5,000 pcs

• Base – Factory standard: 600 pcs / OEM: 4,000 pcs

As showed above, to customize components may result in a vast increase of the MOQ requirement. The lesson here is that you should limit the ‘degree’ of product customization, and base on the product on ‘factory standard’ components – to the extent possible.

2: Streamline the usage of materials 

As said, the suppliers MOQ requirement is often a direct reflection of the MOQ of its subcontractors. Chinese supplier purchase materials from various subcontractors, and not just one or two. As a result, a product made of many different materials may force the supplier, and in the extension you, to satisfy the MOQ requirement of many subcontractors. This can in turn results in an escalation of the MOQ requirement, especially if you have highly specific requirements.

What if you use the same material on a larger number of different products, instead of just one? Should this not allow the supplier to satisfy the subcontractors MOQ requirement, while you can still enjoy a wider product assortment? Assuming the manufacturer is somewhat flexible, this is often a solution for small buyers to lower the MOQ requirement.

3: Offer to pay a little higher price

The MOQ requirement is often, but not always, a direct reflection of the subcontractors MOQ requirements. Many Chinese manufacturers maintain a stock of ‘high turnover’ materials and components. Therefore, they can, at least if they are willing, manufacture a smaller quantity of products. But considering their low profit margins, it’s often not worthwhile the time, effort and risk involved. Offering to pay a higher price, for example 10 to 20%, may give the supplier an incentive to accept a small volume order.

Conclusion

The MOQ requirement cannot simply be negotiated away or vanish. While some suppliers may accept a slightly lowered MOQ, requesting it to be removed completely is the same as asking your supplier to lose money for the sake of your business. Many importers try to play the “my orders will be larger in the future” card, but most suppliers hear this on an almost daily basis and only a fraction of their buyers can back up the claim in the end.

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Elksourcing：What Can a Reliable Sourcing Agent Offer You?

Apr 19, 2021 , by 露露

For many online sellers especially for new starters, direct sourcing from China is a daunting job, as there are lots of scammers online, they disguise themselves as good manufacturers, offer very attractive prices, but may disappear after getting your deposit. Also, there are many traps and hassles in the importing process.

So, it is recommended to using a reliable sourcing agent in China. What can they offer you? Below are some key areas.

1. Offer Competitive Prices

A reliable China Sourcing Agent is able to offer the most competitive prices to his client alongside good quality products. The sourcing agent has the capability to negotiate with suppliers for the lowest possible prices. They are able to offer competitive prices because they have a huge pool of suppliers, so is capable to source almost all products in their professional industry you may need at reasonable prices.

2. Offer Good Communication

Once you have selected your supplier and placed your order, you need to frequently communicate with the supplier about all details of the transaction, this is what a reliable China sourcing agent can do for you. They will keep checking the lead time and production progress and any manufacturing issues there might be.

An effective sourcing agent must be able to speak the language of suppliers to be able to do sound business. There is no room for miscommunication in this business. A slight miscommunication can mean loss of money.

3. Offer Knowledge of Chinese Business Culture.

A reliable China sourcing agent is able to effectively deal with Chinese suppliers if he understands how they conduct business. we should be aware of behaviors and beliefs and how suppliers conduct business transactions. Chinese business culture is very much different from the one is western world, many western people feel Chinese people often say “Yes” to their questions, but they are confused as the result may be opposite to their expectations. It is daunting for western people to directly communicate with Chinese businessman for complicated business projects.

4. Offer Daily Monitoring Chinese Suppliers

A reliable China sourcing agent has good negotiating skills and has enough time to monitor Chinese suppliers at a daily basis. Because of time zone difference and vast distance, this is very difficult for the western businessman to do so.

5. Offer Quality Control

You have various options for checking product quality of your first order. You can take the suppliers word for it that the product is as per the sample, plan another trip to China to see for yourself, or hire a reliable China sourcing agent to do this for you. The sourcing agent is professional in the industry, and experienced in quality inspections, so they can do online quality checks for the semi-finished products and finished products, along with checks to packaging, labeling, function and appearance, make sure the products you will receive are in conformance with product specifications and customers’ expectations.

China Sourcing Agent

Elksourcing：Benefits of Using a China Sourcing Agent

Apr 19, 2021 , by 露露

Finding a reliable supplier is one of the most important matters in starting an import business. However, it is uneasy considering you stay at the other part of the globe. So, it is advisable for you to use a sourcing agent to help you find the high-quality suppliers you need. 

The following are the main benefits:

1.    They can personally visit the factories and check the quality of the products.

2.    They can help you choose the right products and the best supplier based on your specifications.

3.    They negotiate prices with the supplier.

4.    They do quality control.

5.    They provide logistics and shipping support.

6.    They speak the same language the suppliers do and they know the culture by heart thus there are almost no communication barriers.

7.    They are familiar with the business landscape in their country so they know the suppliers to consider and those whom you need to stay away from.

8.    They are experts in what they do.

With a sourcing agent you do not need to have a buying office in China to take care of all the dealings of your business. They will take care of the buying process so you can concentrate on the other aspects of your business.

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Elksourcing：Type of Quality Inspections in Supply Chain

Apr 19, 2021 , , by 露露

Quality inspection is an important part of the manufacturing process and have a place in a number of areas of the supply chain. The inspection of products is also appropriate in other areas of the supply chain such as inspections during the manufacturing process, inspection of the final finished product, and inspections while the items are stored in the warehouse.

1) Inspection of Samples

The quality inspection occurs so that a company can verify that the samples are within certainly prescribed tolerances in order for the mass products to be useful. For example, a company may purchase an aluminum part to be used in their manufacturing process, but before it can be used, it has to be inspected to see that the part is within the tolerances to be used in the process.

When a purchasing agreement is made with a vendor, it will define the characteristics of the product that are to be inspected and the tolerances that would be allowed. If the samples are received and found to have characteristics outside those agreed upon in the purchasing contract, then the company can warm the vendor to take corrective action, before mass production starts.

2) Inspections at the Vendor’s Facility

The quality inspection can also take place at the vendor’s facility. Some companies prefer to perform the inspection before the items are transported to their manufacturing plant. The inspections can incorporate more than inspections of the product, but also inspections of the production facility, equipment, documentation, manufacturing processes, and storage facilities.

These quality inspections are important when purchasing agreements are being negotiated. Some vendors may have ISO 9001:2000 certification which offers customers a greater sense of expected quality and may lessen the requirement of regular inspections.

3) Inspections on Production Line

When a manufacturing company creates finished goods, it cannot afford to wait until the items are coming from the end of the production line before they are inspected. Production issues need to be addressed early in the process in order to correct problems. This can reduce the loss of raw material and reduce the overall time that the production process is shut down. 

For example, in the manufacturer of consumer products, many inspections are performed so that components are tested as the final product is being assembled to ensure that the finished product will be fault free.

4) Inspection to Finished Products

When the finished products come off the production line, they should be inspected to ensure that they conform to the quality standards. The final inspection could include not only the finished products themselves, but the packaging used to ship them to the customer. If the packaging is damaged or not correctly labeled, then this could require the item to be reworked or scrapped.

5) Inspections in the Warehouse

Finished goods can be stored in the warehouse before they are sold. For some items, storage for a period of time can alter the characteristics of the product. For example, some products are susceptible to degradation by heat or cold.

Finished goods that are produced to be within certain chemical tolerances can be affected by environmental conditions so that some characteristics are no longer within the stipulated tolerances. Inspections in the warehouse can ensure that the finished goods are still able to be shipped to customers.

China Sourcing Agent

Elksourcing：Benefits of Hiring a Purchasing Agent in China

Apr 19, 2021 , by 露露

Nowadays, more and more importers realize that it is important to hire a purchasing agent in China to help them, as indeed there are lots of benefits of doing so. The following are some of the key work the purchasing agent can do on behalf of you.

1) Supplier Evaluation

China purchasing agent will evaluate suppliers, review products, and negotiate contacts. A purchasing agent will assess any supplier on the basis or quality, price, and speed of delivery when it comes to products and services. He or she will interview any kind of vendor and pay a visit to the distribution centers and plants of any supplier to learn about and examine products, prices, and services. A purchasing agent will also attend trade shows, meetings, and conferences just to learn even more about industry trends. He or she will work hard to make contacts with any sort of supplier.

2) Price Proposals

Your purchasing agent in China will analyze any kind of price proposal and financial reports. He or she can analyze any other information just to determine any reasonable prices. A purchasing agent will negotiate contacts just on behalf of your organization, and she or he can also work out any agreements with your suppliers. He or she will determine the right action to take when an unacceptable or defective service or products is found. Your purchasing agent will also monitor and evaluate any kind of contract just to be sure that suppliers and vendors comply with the conditions and terms of a contract. 

3) Quality Control

Quality is crucial to the success of your business, however, as you are tens of thousand miles away, it is very difficult for you to control the quality. Then, your purchasing agent in China will can play an important role. The team on the ground will visit your China suppliers’ facility, to check products on production line, perform visual/function/packaging check and do online testing when necessary. So, before the products leave China, you will get a thorough inspection report and judge if or not to release them. All these happen before you pay the final payments, so, you stand at a strong position to negotiate with China suppliers.

4) Logistics Handling

A purchasing agent can arrange logistics for you in China. China purchasing agent will deliver your goods to the Sea port or airport When the product is packed. The next is for you to deal with customs and other related customs services. So it’s important to have a purchasing agent in China.

5) Maintaining Record

Your purchasing agent will review and maintain records of costs, items bought, deliveries, inventories, and product performance. He or she can buy nondurable and durable goods, farm products, and services for your organization or institution. A purchasing agent will work hard to get the best deal for your company out of the negotiating process. Getting the highest quality services and products at the lowest cost is the goal of any purchasing agent out there. Your purchasing agent will gather a lot of information about the trend of your industry in China so he or she can give you what you need.

Now that you know more about what a purchasing agent can do for you, you just have to take what we call a bold action. This will allow you to get what you need in a decent amount of time if you do the right things at the right time. Remember that your purchasing agent can evaluate your suppliers in China so you can get the best products and services at just the lowest possible prices.