How to start an Amazon FBA business Part 2: Sourcing a Product

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Last updated on November 6th, 2017 at 12:22 pm

starting an amazon fba business

Last week, we talked about what Amazon FBA is and how you can make money through Amazon. If you missed that post, I recommend following this link and starting from there. If you did read it, get ready because today we’ll fill you in on how to source a product from China for Amazon and how to find the right product to sell. Starting an Amazon FBA business is not as daunting as it seems. Get ready for loads of value right here.

How Do I Find a Million Dollar Product to Sell on Amazon

The most important question you probably need to ask yourself before getting into this business: what is the product that I will eventually sell on Amazon? To find the correct answer to this, you will have to do some heavy research. These are our tips to find the most profitable product out there:

  • Don’t get excited when you find a product that YOU like. Be objective and do your research on popular trends, consumer trends, and relevant topics.
  • Don’t try to sell a new product or invent a new product. If you want to sell on Amazon, you can only be successful if you are able to identify what customers need and are looking for. It is difficult to sell a product that no one knows about on Amazon.
  • Look for a product that has an existing solid demand and with relatively low competition.
  • Find a product that isn’t seasonal: you want to sell your product all year round.
  • Find a product that you can sell on Amazon for more than $15 per unit – keep in mind that you’ll be paying taxes, shipping, and Amazon service fees on top of your product cost. Selling a product that is slightly more expensive will help you cover costs involved and increase your profit margin.
  • Look for products that are small and lightweight. Selling a sofa might seem like a good idea since you can sell one for $300 per unit, but be aware that storage and shipping can get pricey. It is easier to start out with a lightweight or small product.

After you’ve found your million dollar product on Amazon, it is time to source your product from China.

How To Successfully Source a Product from China

Sourcing a product basically means finding a manufacturer and getting your product produced from, possibly, China. The process of finding a great manufacturer can be tough, but I’ll share with you my best tips.

Finding a Supplier

There are multiple ways of finding a supplier, but the most straightforward method is by going to Alibaba and contacting suppliers. It may be hard to find a good quality supplier from Alibaba, but this is to be expected since it’s one of the biggest manufacturing websites out there. Some suppliers are certified which gives you some security before committing to anything. I personally am a big fan of finding suppliers on Alibaba.

If you’re not convinced about finding a supplier off of Alibaba, you can always try and find one on Global Sources. Here, you may have a higher chance of finding a good quality supplier since each supplier must pre-qualify to be listed online.

Something many first-time sellers forget to do is a Quality Control check though it is one of the most important things to do before sourcing a product. A quality control check can easily be performed by putting together an agreement in writing together with your supplier. In this agreement, you’ll need to specify materials, measurements, product quality, and packaging, as well as other important characteristics of your product. This written agreement protects you should any problems occur. Another way to perform a quality control check is by requesting a sample product. I personally would never source a product without having seen and touched it.

Starting an Amazon FBA Business

Getting started on Amazon doesn’t have to be costly. With an investment of as little as $500, you’ll have started, essentially, your own business and will be selling products in no time. Also, take a moment to think about where you want to sell your products – Amazon has multiple websites for different countries and parts of the world. I would suggest you start selling on Amazon Europe since the market is not mature yet. Amazon Europe has loads of opportunities for everyone.

Are you setting yourself up to start selling on European Amazon or any of the other Amazon sites yet?


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