Welcome to the world of commerce! To make it big, you have to know your way around things, the necessary tactics to employ especially if your business hinges on sourcing products from manufacturers in China and selling it on sites such as Amazon, E-bay, and others. It does not really matter whether you are an amateur or expert entrepreneur; or midway between both extremes.
All you need to do to glean the necessary information that will give you a head-start is embedded in this article; you just need to take your time to run your eyes through.
Now let’s get started.
China is known to be one of the most rapidly developing economies in the entire world; that is why most products are sourced for in this country because it possesses so many manufacturers.
To really make things work out, care has to be taken to make sure the products sourced for are not of so much inferior quality! Such common mistakes have a long term effect on profit-making overtime.
The first step to be acquainted with is:
How to Research the Market
As we have stated earlier, the Chinese market is such a big place, this is why the necessary tactics on how to research the market are required. Researching the market entails looking out for what is really on high demand in the market. This particular point proves difficult in action for many start-up entrepreneurs. I need to also point out that it is easy to get lost and get it all wrong in this process.
You do not want to get caught struggling in the market place as regards products that are in high competition between popular competitors; your aspirations in business won’t thrive this way.
Here is a pit that many people might fall into;
“Trying to source for products that are cheaper than its price online” this method has proven not to be effective even in the least sense. What you really need to source for are the products on high demand in the market place-this will reveal to you places you could sell into to make your profit without so much stress!
You might also wonder on “the right place to source for the products from”
Well, it’s so easy.
There are a lot of websites to look into to have a glimpse of the market demand on various products and the kind of products you can sell.
- You can look into Amazon.
Amazon is known as a trusted website which gives in accuracy, the market demand for products on high demand in the market place. To can check out Amazon by clicking on the link below;
- Amazon sales estimator is also another important site to look into. It gives proper estimates about products on market demand, this way you get detailed information about products and you could also get your doubts cleared as to what kind of products you want to sell online. You can check out Amazon sales estimator through this link;
Amazon Sales Estimator
- Ebay also makes you explore the products on market demand. It gives you a Holistic view in clear terms. To get familiar with Ebay, you can connect via this link;
After sourcing for products and getting a list of products you could sell in these sites, it will be wise to market products you know so much about. Therefore, you could either read up more information about the products you barely know about and will like to market, you can stick strictly to a product you know so much about already i.e. a product in your field.
The next step after knowing about the priceless techniques of researching the market is
Contact Your Chinese Manufacturers.
Thankfully, this step is not so stressful since technology has made things so easy. There are quite a number of ways but we will be considering only two means and they are; through Alibaba and global source.
- Global source is a website known to be a large Chinese market place. it enables you to connect with suppliers of products. most times the suppliers would have gone through some levels of screening meaning that you can be rest assured that suppliers on this site would possess a general level of qualities that are considered to be positive and essential for business.
- Alibaba is also a website that people to Chinese suppliers. It is quite larger than global source; however, you are likely to find the suppliers of your dreams quite easily on this site, without so much stress.
Finding the supplier or manufacturer is not the only big deal in this step, there are other things to watch out for and they are searching for different meaningful criteria which in most cases go a long way to determine and affect a lot of things. The criteria include;
- The number of years the supplier has been in business
- The payment options used by them
- The quality of the products they supply
- The price quotation
- The time of delivery.
Negotiation is the next big step.
You should have it in mind that the tone used in communication between you and the supplier will affect a lot of things. Before negotiation, it would be safe to have some idea about quality control. You do not want to provide your potential customers with inferior quality products thereby risking losing customers in the long run.
Negotiation involves you reaching a middle ground with the supplier. Most suppliers want to sell bulk products at prices that make them climax on profit; you also have the aim of purchasing products at cheap prices.
You could construct a friendly message stating the idea of the number of units you would like to order and the type of products (you can state 50units and above in your first order). This will make them know you are serious and different from people who want them to go bankrupt on sending free samples all the time. Ask for the competitive quote for your order and frame the message as initial order! This strategy will work lots of wonders for you.
As soon as you receive the quotes from the manufactures, you can compare prices and select the price quote that best suits you, then settle down to order your first round of products.
Order form the manufacturer you have chosen and wait for your products to arrive, while simultaneously working on your website, strategy for marketing and your website content and other essentials.
When your order arrives, inspect for quality, and other forms of damages. If you find a product you are not contented with, make complaints and request for changes. You should also note the shipment time; if it takes so long for your ordered products to get to you, you might as well consider it as a warning sign to prevent future delays.
You can try out other manufacturers with similar price ranges to get the one who meets all your demands and requirements.
List the products on Amazon
This step has its own sub-steps. You have to set up an Amazon business first before proceeding to list your products on it. To do this, you have to choose a selling plan and then register after which you list your products on Amazon and sell. For sales made, you will get notifications via your mail.
Some folks prefer retail arbitrage because you do not really need a personal website for this model, and it enables you to leverage on Amazon for quick sales. The disadvantage of this model is that your business will be totally dependent on Amazon and you will need to go shopping for new products to list on this platform.
Some other folks prefer to have to sell private label and this has been found to be the most sustainable way of making money in Amazon. All it entails is placing your own label on a personally manufactured product, after which you ship them off to Amazon FBA (which enables Amazon store, select, pack and ship your products for you to your customers). Though there is a much larger upfront cost, you can make your money so quickly.
Now is the time to sit back and take an inventory to see if you are making enough sales and if the business is really worth continuing. You can calculate the amount spent on cost (shipping, marketing, hiring, and others) and proceed to calculate the cost per product by dividing the cost by the total number of items sold. The amount of money you have left will do the maths for you and give you an idea of your profit or losses.
Re-order or pivot
These are two awesome choices. If you notice you are making headway and making profit, you might want to re-order more products and keep the sales booming. However, if you notice you’re far from making profit, do not despair; there is a way out. You can decide to take a risk and re-order but if you happen to be someone who does not enjoy taking risks, you can pivot-by selling off the products you have left and staking the money on a new product from the Chinese market. It is that simple.
Online businesses are a cool thing to bank on when you know your way around it. However, if you do not maximize the steps explained, it might not pay off for you.