Table of Contents
Introduction
Sourcing ‘White Label Products’ and selling them under your own brand is the only way you can become a Successful Seller on Amazon. You will have to compete in pricing if you decide to become a seller by selling branded product that other are already selling. You must source from China to beat the competition and launch the best product available. This means that you are compromising your profit and you may end up in destress as there are a whole lot of other charges like Amazon Commission, FBA fees etc which are involved.
China is a country which has the capacity to offer you white label products which can give you an insane percentage of profit. The suppliers in China also brand and pack white label product according to your requirements and you will be surprised by the amount of profit you can make even after having the products customised. This is, mainly because there is no competition. Yes, hundreds of sellers are selling products like yours but no one, except you is selling your product. The success undoubtedly also depends on your research of the market and the work that you would have put in to customise the product to be better than the ones already available. And then comes the content and branding and images etc.
I am sure that you are reading this with a question in mind, ‘how can I source white label products from China, right?’ This, right here is your handbook, your own textbook with all the important elements that you need to know and consider and work upon to source that one amazing product from China which can generate a million dollar in sales on Amazon.
Let’s get started without wasting further time.
Know the Product that you wish to Source from China
You must already know the product that you want to sell before you got here but have you thought about it in detail? I am talking about the features that you want to add to make your product stand out from the others already available. It would be a task creating the desired sale if your product isn’t special. I mean, why would someone buy your product over the competition? If you think that you will offer it for a lower price, you may not make enough profit and give up soon.
But, if you work till the minutest detail and offer an insanely amazing product which is better than the ones already available, you get in a position to command a higher price and your buyers will pay the price.
You need to get down to create a detailed document with all the features of your product listed. This document should include pictures, raw material details, features, measurements, labels, safety instructions and everything that you can think of. Spend a lot of time on creating this document because you are going to send this document to the manufacturers in China. Your document should be rechecked so that you leave no loopholes or there is no space of error for the manufacturer in China.
You must treat this document as the foundation of your entire Seller on Amazon business.
Creating a brand is never easy and your products need to be outstandingly awesome to create that crazy successful brand. Your entire business will revolve around your product and your product will be completely according to the document. Now, do you understand how important this product details document is? This simple piece of paper has the power to decide if your business will make millions in sales or will your product fail.
Do not skip the following before you begin to Source from China;
- You cannot afford to miss to order samples. Yes, suppliers might give you free samples, but you will have to bear the shipping charges and you just cannot afford to skip this step.
- Next, you must spend a lot of time to study and understand each sample and make notes of the customisations that you want the supplier to make in the products.
- You must also pay keen attention to the raw materials used as the feel of the product initially decides if the buyer likes it or not.
You need to jot down every single detail related to design, quality and functionality of the product. For example, if you are creating a detailed sheet for a pen, jot down all details from the colour of the pen, colour of the ink in the pen, material of the body of the pen, the logo on the pen, the holder of the pen, weight of the pen and more. Keep listing all the specifications you expect till the last detail.
Design your Brand
Always hire a professional to do all the designing work. No matter how good you are with Photoshop, a professional look can do wonders for a brand. Editing images and creating fun posts is fun and all but creating a brand is not a child’s play. Professional designers are trained for creating a brand image and it is strongly recommended to hire them.
Branding doesn’t end with designing a logo, but it includes the content like name of the brand or tagline etc. Branding also includes designing the packing of the product and everything revolves around certain guidelines like the fonts and colours and much more.
So, before you need to decide on things like colours, fonts, dimensions for packing, print and labels, 3D and CAD files, designs, drawings etc etc etc…
As you know, creating your own brand won’t be easy but it will be worth it!
Read this article on the 6 Stages of Every Amazon Investor to learn how to create a million-dollar Amazon E-Commerce Brand.
Understand the licenses required for the product in your region
For example, there are way more restrictions if you want to sell car paint in the UK then the US.
You will have to understand and meet all the norms set by your government for the product you want to sell. Some norms may be product regulations, substance restrictions, labelling requirements, documentation, prior approvals, certifications etc.
You will have to cover the entire regulations which cover everything from safety to restrictions to warnings to be printed so that you don’t face any delays once the product is ready to go live on Amazon.
Communicate with supplier and Make Sure that Norms are being conveyed loud and clear
Language is a barrier when you Source from China. Even though most of them speak English it is very important that you make sure that the supplier has understood your requirements clearly and has no confusion. You might land in trouble with the government agencies if you fail this step so consider this as very important.
The easy way to do it is to ask the supplier if they are suppling goods to any other brand in your region. There will be other brands selling product like yours and the supplier might be the same. This is the reason you need to customise your product so that it stands out from the competition. If the supplier has a transaction history with other buyers in your region, the chances that they understand the norms become better.
You should still recheck with all the specifications to double check and avoid missing any important elements to meet the regulations imposed. Be very clear about the mandatory regulations so that there is no hitch in the transaction.
Know your supplier well before you Source from China
As the title suggests, you need to gather all the available information about the supplier beforehand. You should have a list of multiple suppliers so that you can choose only the best. It is always recommended to collect samples from more than one supplier as you can study a product better.
You can begin with asking for quotations from every supplier in the list and create a spreadsheet so that you can easily compare the data. It is better if you can create your own format so every supplier will just have to fill in the blanks and you can easily feed this data in your spreadsheet. Make sure that this request for quotation has all your expectations in detail along with contact details of the supplier, compliance, terms and conditions etc.
Once you have the data, you can go ahead and shortlist a handful of suppliers depending on the quotations and other data that you might have asked for. So, from the many suppliers in your list, your shortlisted number should be around 8 to 10 suppliers who suit your requirements well. Sort these suppliers according to your preference. For example, a supplier who meets 90% of your product requirements, has the most competitive rates and the company profile is really awesome is #1 in the list.
This becomes very easy if you are using Alibaba as the platform has its own backend process and give you a verified company profile with all the data you need to rely on. Alibaba has a team that verifies the supplier and provides you with pictures and videos of the products along with the manufacturing unit so you can be sure that you are dealing with a manufacturer and not a middleman. This gives you a great deal of protection when you source from China.
Take your time to complete the spreadsheet and study each and every supplier so you can work with the one which is nothing but the best…
Study the entire data as your life depends on it because, “the more your sweat in the training the less you bleed in war!”
All about the Product
Never cut back on getting the samples of the product from each and every supplier in your shortlist. Suppliers offer sending free samples most of the times and you only must bear the shipping, don’t hold back on it. You won’t know which supplier has the best product until and unless you see it yourself. The supplier ranking at the bottom in your list might send you a sample which proves to be the best product. This doesn’t mean that you must place an order with that supplier, but it will help you communicate the improvement expected with your chosen supplier.
The catch is that the free samples will not have the customisations that you would have asked for and the products according to your requirements may have a price. It shouldn’t be an issue for you to pay those extra bucks because you will understand if your suppliers have understood your demands. The biggest expense of renowned brands is the R&D and you will have to bear that expense yourself if you wish to be one of them. So yes, spend those extra dollars in sampling and it will also help you mentioned, ‘product as per sample’ in your purchase order. This will leave no loopholes for the supplier and you will emerge as a winner because you will have that perfect product to sell.
You should also get your supplier for sign an NDA so that the supplier cannot share your customisations with others.
Finalized your Supplier and Product Sample
Now that you have finalised your supplier and the product sample, it’s time to get your product in production. The first order that you place must be a small trial order. You are going to wire the payment to the supplier so it’s better to take a lower risk and, you will understand if the quality of the product is up to the mark.
As mentioned above, language is a barrier so you will need to work hard to make the supplier understand what you exactly need. Preparing a sales order becomes easy if the sampling is done well as you then just will mention, ‘according to the sample’ and this leaves no place for dispute. The sales agreement must be in detail and should have all terms and conditions that you and your supplier have agreed upon to avoid any misunderstandings at the later stages.
Pre-Shipment Quality Check
Now that you have finalised your supplier and the product sample, it’s time to get your product in production. The first order that you place must be a small trial order. You are going to wire the payment to the supplier so it’s better to take a lower risk and, you will understand if the quality of the product is up to the mark.
As mentioned above, language is a barrier so you will need to work hard to make the supplier understand what you exactly need. Preparing a sales order becomes easy if the sampling is done well as you then just will mention, ‘according to the sample’ and this leaves no place for dispute. The sales agreement must be in detail and should have all terms and conditions that you and your supplier have agreed upon to avoid any misunderstandings at the later stages.
Getting your Product Shipped
Again, hire professionals to take care of the shipping as well. There are many procedures that you will need to follow to import goods from China as it’s another continent all together. If you hire a freight forwarder, they will take care from picking up the goods from the factory to delivering it to your desired destination.
The shipping is mostly done in pallets and most of the suppliers provide it without hassle. You just need to communicate about this to the supplier as well. The clearer your communication is the easier things will be for you.
Let's Summarise
Let’s understand the entire process of sourcing your product from China:
- Research the product in detail
- Design your brand
- Know about all the rules, regulations and licenses required in your region to sell the product
- Communicate with the supplier and make them understand the requirements very clearly
- Study the supplier and learn as much as you can
- Collect and study samples from each and every shortlisted supplier
- Begin with a small trial order
- Arrange on pre-shipment quality check
- Hire a professional freight forwarder
