Did you know that more than half of consumers begin their product searches on Amazon? It’s the go-to platform for many shoppers, receiving over 2 billion site visits each month. In fact, just last April, it recorded a staggering 2.2 billion visits.

Considering this massive traffic, if you’re considering selling on Amazon, it’s definitely worth diving in and giving it a try. While it’s not a walk in the park, numerous agencies specialize in Amazon expertise, ready to assist you in your selling journey making the process smoother and more manageable.

If you are either a seasoned Amazon seller or just dipping your toes into the waters of e-commerce, one critical aspect that demands your attention from start to finish is product sourcing. With a fiercely competitive landscape boasting over 2.5 million third-party Amazon sellers, maintaining a top-tier performance is non-negotiable. To ensure success, focus on these 3 key areas:

  1. Offer high-quality products – Customers on Amazon expect top-notch products. Ensure that what you offer meets high standards to stand out in a crowded marketplace.
  2. Manage Inventory Efficiently: Keep enough stock to meet demand without overstocking, optimizing your cash flow and customer satisfaction.
  3. Provide Excellent Customer Service: Engage with customers promptly, address their concerns, and strive for positive feedback to build trust and loyalty.

It all comes down to what you sell, how much you sell, and how effectively you sell it. As an eCommerce business, your core focus is selling products. However, it’s crucial to understand that the digitalization of supply chains brings inevitable change, especially in eCommerce. Quick adjustments can either boost or harm your business. So, when sourcing products, aim for positive changes that align with market shifts.

Read on to discover what product sourcing is all about.

What is product sourcing?

Product sourcing involves finding affordable, high-quality products from trustworthy suppliers. It includes searching for potential suppliers, evaluating their products, negotiating terms, and selecting products that align with your target market and business objectives.

Since it impacts inventory availability, cost, and quality, product sourcing is crucial for running a successful Amazon business. Effective sourcing strategies are necessary to meet consumer demands, stay competitive, and identify profitable products.

While you can source products independently, it can be complex and time-consuming, potentially taking focus away from other business tasks. Partnering with a reliable company like Zignify Global Product Sourcing can help streamline this process, connecting you with reputable suppliers worldwide and simplifying the complexities of product sourcing.

Why is Product Sourcing Important to Amazon Sellers?

Firstly, imagine trying to sell on Amazon without a product to offer. It simply doesn’t work. That’s where Amazon product sourcing becomes vital. It’s the backbone that determines what you can offer on the platform. With Amazon’s vast audience and diverse preferences, effective product sourcing lets sellers meet these demands with a compelling product lineup. This availability of products not only attracts more customers but also fosters loyalty and repeat purchases.

Secondly, product sourcing influences the cost structure and profitability of Amazon sellers. Sourcing products at reasonable prices allows sellers to maintain competitive pricing, enhancing their chances of winning the Buy Box and staying ahead of competitors. Efficient product sourcing practices can also lead to higher profit margins, as sellers can negotiate favorable terms with suppliers and optimize their procurement processes.

Moreover, product sourcing directly impacts the quality of inventory that Amazon sellers can offer. By partnering with reputable suppliers and ensuring strict quality control measures, sellers can deliver high-quality products to their customers. This not only enhances customer satisfaction but also reduces the risk of negative reviews, returns, and disputes, which can adversely affect a seller’s reputation and performance metrics on Amazon.

Lastly, effective product sourcing is essential for Amazon sellers to discover new and profitable product opportunities. By staying informed about market trends, consumer preferences, and emerging product categories, sellers can identify lucrative niches and capitalize on them. This proactive approach to product sourcing drives sales growth and enables sellers to stay relevant and competitive in a dynamic marketplace like Amazon.

Types of Global Sourcing Strategies

As the need for affordable, high-quality products rises, sellers are embracing global sourcing to enhance supply chain efficiency and boost profitability. Whether you’re a small business owner or an experienced procurement professional, keep reading to discover all you need to know about global sourcing.

Domestic vs. Global

Domestic sourcing means buying your products from a supplier within your country. It allows for shorter shipping time—usually arriving in two weeks or less. However, it would still be on a case-to-case basis, depending on the:

  • product,
  • supplier’s location, and
  • stock level in the warehouse.

Selecting a local supplier who can manufacture your products and deliver them within a specific timeline can work to your advantage if you want a quick turnaround. And being logistically more convenient, sourcing locally allows you to verify the exact products you’re purchasing.

On the other hand, global sourcing means buying your products from the global supply chain across internationally recognized borders. It may prove to be more cost-effective when you source from wholesale manufacturers.

International suppliers are often found offering their products at highly competitive prices, particularly in areas where such product is typically made at a low cost. Low production costs will enable eCommerce to purchase products in larger quantities at a discounted price, which is perfect for start-ups and low-budget businesses.

Why Go Global?

To cut the chase, if you aspire to scale your Amazon business, you should opt for global product sourcing. After all, Amazon is a global eCommerce platform present in around 100 countries.

Here are the most relevant advantages of sourcing your products globally:

  1. Buying in bulk at a lower cost,
  2. having access to a wider variety of products than what you might discover in your locality,
  3. Getting higher quality items from suppliers whose country specializes in your kind of products,
  4. Mitigating the risk of disruptions in your supply chain by sourcing products from different countries, and
  5. expanding your overall inventory by sourcing from multiple suppliers.

Challenges for eCommerce Sellers

Global product sourcing may sound tempting because of its many great advantages for eCommerce sellers. But this endeavor has its challenges, which need thoughtful analysis and carefully planned strategies.

As Amazon continues to expand globally, sellers must ride with the tide—but of course, with utmost caution. Here are some common challenges to take note of to scale your Amazon business through global product sourcing:

  1. Quality Control: Ensuring consistent quality across suppliers and production locations is crucial for maintaining customer satisfaction and avoiding negative reviews.
  2. Supply Chain Complexity: Managing a global supply chain involves coordination with multiple suppliers, freight forwarders, and customs regulations, which can be complex and time-consuming.
  3. Cultural and Language Barriers: Dealing with suppliers from different countries can lead to misunderstandings due to language barriers and cultural differences, impacting communication and negotiation.
  4. Logistics and Shipping Costs: Shipping costs and logistics can vary significantly depending on the product, destination, and shipping method, affecting profit margins and overall costs. Consider using Amazon’s Fulfilment by Amazon (FBA) service, which can handle storage, shipping, and customer service for your products.
  5. Regulatory Compliance: Adhering to regulations and compliance standards in different countries adds complexity and requires thorough research and documentation to avoid legal issues.
  6. Tariffs and Trade Policies: Changes in tariffs, trade agreements, or geopolitical tensions can impact sourcing costs and supply chain stability, requiring flexibility and strategic planning.
  7. Supplier Reliability: Ensuring the reliability and stability of suppliers, especially in volatile regions or industries, is crucial to avoid disruptions in product availability.

This is not the complete list, but don’t be overwhelmed. There are companies established with the sole vision of helping Amazon sellers like you streamline your global product sourcing so you can focus on the actual selling.

Simplify your Product Sourcing Journey with Zignify Global Product Sourcing

Zignify Global Product Sourcing specializes in global product sourcing, connecting sellers with manufacturers worldwide. With a track record of over 5000 sourced products, they offer comprehensive product sourcing services and solutions from locating reliable manufacturers to quality control and shipping logistics. Partnering with Zignify Global Product Sourcing can optimize your supply chain, allowing you to focus on other critical aspects of your business while they handle sourcing intricacies seamlessly.

Streamline your day-to-day Amazon business operations with VAA Philippines

Virtual Assistant Academy Philippines (VAA Philippines) streamlines your Amazon business operations by matching you with competent and experienced Amazon Virtual Assistants (VAs). Our VAs undergo rigorous screening and comprehensive Amazon training, ensuring they possess the knowledge and skills tailored to your needs as an Amazon seller.

Hiring an Amazon VA from VAA Philippines enables you to delegate repetitive, technical, administrative, and operational tasks, freeing up your time to focus on business growth. For instance, an Amazon Expert VA ensures your stock levels are maintained and your product listings accurately reflect inventory information.

Explore our range of Amazon VA Services at VAA Philippines, designed to support your Amazon business effectively and don’t hesitate to reach out to us today to get started.

Our Takeaway

Global product sourcing isn’t just a strategy—it’s a catalyst for building an unstoppable Amazon business. As you embrace global sourcing, remember to tailor your strategy to your unique needs and goals. Reach out to us now to unlock the potential of expert global product sourcing solutions for your Amazon success.