Amazon now makes it incredibly easy to set up an online business selling physical products. You don’t need a warehouse, you don’t need expensive deals with the logistics company. You just need the knack for spotting great products and a marketing head on your shoulder. Unfortunately, you can’t choose the product you like because there is no guarantee that the product will be available for reselling or these products would be successful on Amazon Marketplace.
This can somewhat dampen the business model you have been concocting. But it is not easy to start selling on Amazon. There is a whole lot of process in setting up Amazon FBA Business. The most important part is the selection and sourcing products for Amazon.
If you’ve decided on a product, the only thing left is to find a way to source those goods at a price that will help you make money. Business is only the game of profit and you have to be very keen on this to set up an empire.
So the question in your mind will be, where to find amazon FBA products?
Global Trade is increasing as the number of people trying to look for cheaper ways to source products for Amazon FBA outside of the US. This is providing more opportunities to the buyer to have the product with more margins and similarly, it also has a benefit for people who have to send them the product.
The recent boom in ecommerce after Covid-19 helped the world become a global marketplace. It is making people look for an even better price from outside of the US.
Here we will look into the details of sourcing products for Amazon FBA from all over the world.
US Global Import Categories
US ports receive millions of imported goods shipments each year. Based on the intended use, the products are grouped into 15 categories. These categories have different demands in the regions of the US. The categories are as follows:
- Animal & Animal Products
- Vegetable Products
- Mineral Products
- Chemicals & Allied Industries
- Plastics / Rubbers
- Raw Hides, Skins, Leather, & Furs
- Wood & Wood Products
- Footwear / Headgear
- Stone / Glass
- Machinery / Electrical
Where to source products?
Sourcing is the major attribute to start a business on Amazon Marketplace. Amazon is becoming more competitive as it grows in popularity as the top online buying site. Amazon is not only providing the facilities to the buyer but also to the seller.
The Fulfillment by Amazon (FBA) model is the most attractive model for the seller. They have to choose the product after conducting extensive research on the product on Amazon. After selecting the best product, they have to look for the sourcing for Amazon. This step is important in the sense that the profitability of the product is dependent on that.
Here we compile the list of Amazon sourcing countries. It will help you make the sourcing strategies for your business. It will give you insights into the sourcing for amazon.
The sourcing of the product for the US Amazon Marketplace is mainly done from these countries. These countries specialize in a variety of products, which they export to the United States.
- South Korea
China is the biggest supplier to the world for all types of products. China exports $506.37 billion of goods to the United States in 2021. The Chinese market is the primary maker of products ranging in price from the cheapest to the highest quality. In the list of sourcing countries, China is at the top of all. The marketplace is the hub of the products for sourcing. Most people ship products from China and send them to the Amazon Fulfillment center for fulfillment by Amazon(FBA).
China is providing almost all the commodities in the imported goods category of the United States. China is the sole provider of everything, from the smallest plastic bottle to the largest machinery.
Vietnam is emerging as the top manufacturing hub and taking over all the opportunities to export goods to the US in competition with China. In 2021, trade between Vietnam and the United States increased by 25.91 percent, surpassing $100 billion for the first time, placing Vietnam as the country’s top trading partner. The economical and convenient sourcing compared to China is making Vietnam the best sourcing choice. With the strategic location and ease in shipping with the low-cost production, Vietnam is becoming the best in sourcing products for Amazon FBA.
Vietnam’s major share is in the miscellaneous category including toys and games, furniture, musical instruments, art, and ammunition. Then the second category they have is textile. The third category is machinery and electrical which includes digital devices and home appliances. These three are the main export to the US and help Vietnam take over the US imports. They are also becoming the top choice for the Amazon FBA sellers to source products for Amazon and make profits.
Germany is also among the top suppliers of goods to the US Amazon Marketplace and the best place to source products for Amazon FBA. Germany is among the few European Countries which export goods to the US Amazon Marketplace. Germany exports $135.2 billion of goods with an 18% increase compared to 2020 in 2021.
As Germany is known for its innovative engineers, so Germany is mainly exporting machinery and electrical products to the US. They are exporting simple and complex machinery and household machinery like electrical clippers, coffee machines, and digital devices. They also export plastic and rubber category products like the tire rubber and the most famous Brand Adidas soles along with metals products like knives. These are the major exports to the US due to the high quality of these types of products.
India is rising among the Top 3 imports in the American Amazon Marketplace. India exports around $73 billion worth of goods to the United States. It is growing consistently and keeping the top position for the best sourcing place for the US market. India is in this position due to the largest share in the export due to the textile category. The textile industry is in the high demand category and it is double the category of machinery and electrical.
The textile category includes the clothing, bed linen, and carpets as well as fabric, yarns, and threads. The US top brands have their manufacturing units in India due to the availability of resources and low-cost production. The second major category is metals. India mostly exports cutlery, hand tools, and garden tools. The third main category is machinery and electrical which includes smartphones, home appliances, and different audio equipment.
Taiwan also follows the same path its neighbor countries are following and it is among the top 5 major countries to export to the US. The goods imported from Taiwan to the United States were valued at around $77 billion in 2021.
Taiwan has the emerging machinery and electrical category-related industries and provides the best alternative to source products to the Amazon marketplace. Due to the low cost and quality production of the machinery and electrical category, US sellers prefer sourcing products from Taiwan.
$56 billion worth of commodities were imported from Malaysia to the US in 2021. Malaysia is also taking up the position in the most exports to the US. The increase in export made the credibility of Malaysia for the Amazon seller to source their products for the Amazon FBA. Malaysia is the major contributor to the machinery and electrical, oils, and plastic/rubber category. Malaysia also exports the raw hides, skins, leather, and fur category.
South Korea also holds the position in the sourcing country list and the major part of its exports are to the US. Amazon is a competitive marketplace and everyone tries to make profits so they look for the sourcing for Amazon FBA with great margins. South Korea is taking the place due to its own manufacturing and competitive price among the others.
South Korea exports machinery and electrical, plastic/rubber, and mineral products. Last year, South Korea exported $95 billion of goods to the United States.
Italy is also on the sourcing country list for Amazon. The US seller is sourcing products for Amazon from Italy directly to the Amazon fulfillment center. Italy closes the export value at $60.99 billion in 2021. Italy is exporting the foodstuff, miscellaneous products category, mineral products, and stone and glass category to the US. You can ship your products for Amazon FBA from Italy as it has all the cost-effective and most demanding categories.
Sourcing Amazon FBA products like textiles as a high competition niche on Amazon Marketplace can be easy as more and more options for sourcing become available for Amazon US Sellers. Bangladesh is taking over the place of many countries in that niche. The export value of Bangladesh to the United States was $8.3 billion in 2021.
Bangladesh is the main manufacturer of clothing brands available on Amazon. The quality of clothes and the advanced manufacturing technologies in Bangladesh is attracting more and more sellers from the US.
Pakistan takes up the place in the list of sourcing countries for Amazon FBA. The sourcing of the product from Pakistan is also the best option for US sellers. They can make a lot of profit by sourcing products from developing countries. First time in history Pakistan closes the export value of $5.2 billion for the United States in 2021.
Pakistan is exporting high-quality and low-cost textile, Sports, and surgical products to the US Amazon Marketplace. US sellers sourcing products from Pakistan to make a profit with good margins.
2022 Sourcing Strategies
You know business is getting harder with the most amount of sellers wishing to become successful by selling products on Amazon. Where to source the amazon fba products? This is the most important question that comes into your mind when you have to start a business on Amazon. For this, the sourcing strategies are very important.
Why sourcing strategies are important? Is the next question that ticks into your mind.
As everyone is in the race on making a profitable business on Amazon as Amazon FBA so you have to map out the competitive strategies to make the most amount of margins on Amazon. You have to always be one step ahead of all the other sellers.
Let’s discuss the details of the sourcing strategy for Amazon FBA.
Need for Amazon FBA Sourcing Strategy
As you are working with the Top Global Supplier, you always have to make the quick decision to save your business and the money you have invested in that business. The Global suppliers have to follow all the rules and regulations applied by their Government and the regulatory bodies. The rules and regulations are based on the mutual benefits of both the countries and their relationship in different regards. Also, there are pros and cons of the global suppliers which are based on many factors.
Pros of working with Global suppliers
- More production with less cost
- Customized product options are available
- Better services and quick response time
- Lower labor cost
- Selection of the product with high quality
- Availability of the International banking transfer
Cons of Working with Global suppliers
- Less personalization due to specific process design
- International Tariffs on goods from different countries
- Control of quality is difficult
- Crisis in the country can affect the production and supply
- More risk of scams
Importance of Sourcing Strategy
Sourcing strategy is the process to determine the strategy to run the business smoothly and with more profit margins. These strategies will help you forecast the growth of your business in the long term. No one wants to start a successful business on Amazon with a bunch of prior investment in the product selection and sourcing products but end up with low stocks and lesser inventory. The planning and strategy are very important to have consistent growth on the Amazon platform.
More inventory in stock
With the sourcing strategy in hand, you are always tension-free regarding the manufacturing and availability of the product in Amazon warehouses. You always have more options for the suppliers and you always have more chances to evaluate the cost based on the evaluation of the supplier. You will never be short of the product in any case as you have done the homework on the sourcing strategy. You can source products for Amazon from the other supplier if you have any issues with one of your suppliers.
High-quality products are always the priority of the ecommerce platform buyers. Amazon is also concerned about this to provide high-quality products to its users. The sourcing strategy is helpful in this regard. You can search for all the countries providing the product which you select to sell as Amazon FBA. You will take into account all the potential suppliers in the same country or the potential client in different countries. You can evaluate the quality by asking for samples from all the suppliers and can evaluate the product based on the quality. In this way, you can source high-quality products from the supplier and run a successful business on Amazon.
Time of shipment
The timing of the product is very important in the business as Amazon FBA. Your product is in demand and you have to ship the product by sea based on your calculation of the profit margins. So, here comes the role of your sourcing strategy. You have more than 2 suppliers for the sourcing of the product and the second supplier source will be feasible for you to ship by plane with fewer profit margins but fulfill your customer needs. You can immediately source products from that source and make your customer satisfied with this requirement. This will help you to retain your customer for a long time. In this way, the sourcing strategy will help you with all this.
Sourcing for Amazon FBA with your sourcing strategy is very important in determining the profit margins behind each product. You have 2 or 3 supplier options from the different countries and you have your sourcing strategy for each of the suppliers. You have made all the calculations based on the product quality and the quantity the specific supplier can provide you with the time span from the manufacturing to the Amazon FBA warehouses. You have done all the calculations so you will be the player of that product. You can make a risky decision based on the data you have.
Chances of long term business
Long-term business with the winning product is an important aspect of the Amazon FBA. This can be done with the help of the sourcing strategy. You have 2 or more suppliers for the specific product and that is your winning product on Amazon Marketplace so you will be a successful businessman. You can source the product from a different supplier as one supplier is not responding or not providing you the desired quality or has hiked the price of the product.
Amazon FBA business is all about the strategy and the way you execute that business. The more you are involved in that business the more you can make money. There are a lot of ways to do the Amazon FBA but the most successful ones are those who are fully aware of the strategy and use them at the right time in the right way.
We have enlightened the lamp on your path to seek guidance and you can follow that path and make the Amazon business successful. We have provided the list of sourcing countries with products for Amazon sellers like you and want you to make a profit from the Amazon FBA and live a happy life.