- Patrick Muir
- On April 25, 2016
- 0 Comments
Besides dealing with taxes, perhaps my least favorite part of running an Amazon business is sourcing and logistics. It is complex, it takes money, and if things go wrong it could get your account suspended from Amazon. Luckily I had a chance to talk with some of the best minds in the industry in china and it helped relieve my selling woes and I’d love to share with you what I came away with from the experience.
Yesterday I spoke on a panel with Mike from China Sourcing Service Center and Ashish from IMEX Liaisons Group. These guys were the experts, giving actionable advice to the people in attendance at the Smart China Sourcing Summit from Global Source. My role on the panel was to share any insight as a new seller.
Helpful Tips I learned from Mike and Ashish:
- Get quotes and pay for things in RMB (the official currency of the People’s Republic of China). Because the RMB fluctuates against the dollar, the factory or agent typically quotes on the higher end of the fluctuations. If you get a quote in RMB, it takes the risk away from the factory, and it’s likely you will save 5% to 7%.
- Ask agents for trading companies how they get paid to understand how they are incentivized. This information helps you understand if they have your best interest in mind.
- If possible, have any Amazon FBA labeling and prep work done in China. In almost every scenario it will save you money compared to doing it yourself, or by hiring it out in the USA or Europe.
- When speaking to a potential new supplier or factory, ask very specific questions on what they can and cannot do. Sales people will likely say “yes” to everything, so you need to ask specific questions to understand the true capabilities.
- In most scenarios the most important inspection is the pre-shipment inspection. Although it’s recommended to do multiple types of inspections, the pre-shipment inspection is the highest priority.