Amazon FBA’s business model is simple.

Source in-demand products from wholesale suppliers overseas, and sell them for higher prices on Amazon.

But where do you source inexpensive products?

The easiest and most convenient way is through Chinese wholesale retailers like Alibaba.com (see below)

But there’s a growing list of alternative approaches to finding and sourcing products.

Here’s what you can do.

Alibaba.com (The Go-To)

Alibaba.com and AliExpress.com are where the vast majority of Amazon sellers find low-cost products, as well as the manufacturers to create custom designs.

They’re hardly perfect websites, but are still considered the go-tos for sourcing cheap products from China.

I’ve personally sourced the majority of my successful products directly from these sites.

That said, here’s a few tips from years of experience on Alibaba.

Take the listed price for bulk items with a grain of salt. It’s hardly ever what you’ll actually pay.
If you purchase from suppliers, make sure they are seller verified and have a proven track record of good business. Alibaba gives you this data, check the suppliers’ badges.
Never pay off the website
Order samples before purchasing a bulk order.
Manufacturers located on or near China’s east coast will be the most cost effective if shipping to North America

Want more information on Alibaba? I go in more depth in my YouTube Tutorial here.

Sourcing On Your Own

A colleague of mine recently shared a story I found both interesting and inspiring.

In the spring of 2019, his family vacation to southeast Asia went terribly wrong when his wife’s purse was stolen by a motorbike thief with her passport inside.

The incident trapped them in the tourist town Siem Reap, Cambodia for two weeks while they awaited an emergency passport to be issued, giving him ample time to explore the various markets and tourist-traps.

After becoming a bit of a “regular,” in a local marketplace, he eventually talked down a vendor to $10 for 10 handmade hammocks, or $1 a hammock, which he intended to give as birthday gifts upon returning home.

He ultimately felt too cheap gifting a $1.00 hammock, and instead posted them online for $50 each, “just to see what would happen.” To his astonishment, they were gone in less than 48 hours, and he raked in a handsome profit.

I’ve referred to this in the past as “getting boots on the ground,” or rather, sourcing your products the old-fashioned way; creating in-person connections, and negotiating the best deal possible.

And even though my co-worker didn’t know it at the time, there’s some valuable takeaways.

There’s ways to source profitable products without using the internet.
Consistency is the key to negotiating the best price
Asia is the world’s manufacturing hotspot…which brings us to…

Asia (But Not China)

Here’s a quick lesson in geopolitics.

For decades, China’s been the world’s top manufacturer of goods, aka, ‘the world’s factory’. Why? Because it’s cheap.

International companies have historically taken advantage of China’s inexpensive labor to outsource production and save on costs.

But for various reasons, (which I’ll spare you). This is slowly changing. And it’s safe to say that there’s a clear, ‘ditch business with China if you can’ trend forming across the world.

Both the British and American governments are strategizing to lessen their economic dependence with China due to what the Economic Times referred to as a “growing unease regarding security controls, Beijing’s protection of Chinese rivals, declining business environment, national self-reliance policy, and a lack of progress on promised reforms.”

So where’s the new manufacturing hotspot?

I spoke in a previous blog about manufacturers moving to neighboring Vietnam. And articles as recent as September 2023 indicate that a strong strategic trade partnership between the U.S. and Vietnam is brewin. The move appears to be a big middle finger to Beijing, in my opinion.

Fair warning… I’m no expert, and these are slow, complicated changes. But my team and I work hard to keep an eye out for alternatives to sourcing from China.

Here’s my predictions:

China will remain the leader for sourcing products, but as more manufacturers opt out I expect to see opportunities in neighboring countries.
I’m looking at Vietnam, Cambodia, Indonesia, the Philippines, India, and Malaysia as possible sourcing hot spots, and keeping an eye out in Facebook groups, Discords, Reddit threads, and elsewhere to try to find leads on suppliers.

Trust me, everyone in the e-commerce world is looking for an answer to the, “who will become the next China?” conundrum.

Keep checking here for updates!

Real Stores (For Inspiration)

In my opinion, there’s much to learn from the U.S. retailer Five Below.

For those unfamiliar, Five Below is a colorfully-marketed “everything is less than $5” store that describes itself as:

“A leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond. “

“Trend-right” meaning products that aren’t too trendy, but not too out of style. (Whatever that means?)

However, step one foot inside the place and you’re hit with an overwhelming sensation of, “this place just sells colorful junk.”

Pink blankets, orange wall decor, animal pillows, trinkets, pet toys, soap bubbles, gifts items, arts and crafts, and hilariously cheap sporting goods, just to get started.

Now I don’t condone selling cheap Chinese-made products, but the fact remains that Five Below proves there’s a market for these types of items.

And guess what?

These are the exact types of products I talk about finding in Amazon’s “goldilocks zone”, AKA, products that give us the best chances of a return on investment, (with the right margins.)

Small
Lightweight
Easily “giftable”
Non-electronic
Low manufacturing costs

Visiting such stores is what we call market research, and I recommend doing the same as you start your Amazon journey.

It’s effectively product research, just without the internet.

Expos and Trade Shows

Googling any major city + “expo center,” “convention center” and “trade shows” is a great starting point for finding business and investment opportunities.

And remember, the entire point of a trade-show is to buy and invest in new products. Many vendors are actively looking for buyers to purchase and brand their products.

A quick search returned a few interesting events right here in Tennessee.

Chattanooga Tennessee Doll House and Miniature Show (Toys do very well on Amazon). “Experience the joy of being a kid again at a Dollhouse and Miniature show featuring classes, dealers, and plenty of fun.”

Nashville Intergalactic Bead Show “The Intergalactic Bead Show hosts 40 shows annually on the East Coast, uniting artisans and buyers worldwide. Their varied selection includes gemstones, vintage beads, and supplies. Exhibitors are chosen through a rigorous process to ensure quality and professionalism. “

Of course, these can be hit or miss, but there’s no rule that you have to source products from overseas.

The fact remains that Amazon is becoming more competitive everyday, and thinking outside the box will help you fare better in the long-run.

GlobalSources.com

I’ve heard whispers of this website for a couple of years now.

I’ll be honest, it looks, feels, and functions very similar to Alibaba.

And although I’ve never used it, I’ve heard of sellers successfully purchasing Amazon products from it.

It’s worth a shot, but proceed with caution.

Are You Ready to Start Selling on Amazon?

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