5 Effective Methods to Find Suppliers for Your E-commerce Business
Selling on Amazon or other e-commerce platforms offers incredible opportunities, even while juggling your existing job or business. I personally began my Amazon journey without quitting my corporate gig, proving that location isn’t a barrier – even if you’re living outside India.
However, one of the most prevalent challenges encountered by budding e-commerce entrepreneurs, whether in India or abroad, revolves around sourcing reliable suppliers. Determining how and where to procure products is a critical step in establishing and growing an e-commerce business successfully.
Here are five tried-and-tested strategies to help you find the right suppliers for your e-commerce products:
1. Indiamart: A Hub of Opportunities
Indiamart, a leading B2B platform in India, hosts a wide variety of products offered by numerous sellers. To ensure quality, begin by requesting a Minimum Order Quantity (MOQ). Utilize tools like the “Kitna Milega” Calculator to assess profitability. Confirm if the supplier offers direct shipping to Amazon FBA warehouses. Initially, ask them to send the products for inspection. Once satisfied, authorize direct shipping to Amazon FBA. Pro Tip: Opt for direct phone calls for quicker responses, as email communication might be slower.
2. Local Manufacturers: Building Close Relationships
Explore local manufacturers in your area as they offer the advantage of customizable products tailored to your customers’ needs. Collaborating with local manufacturers fosters trust and facilitates smoother communication. Starting with smaller quantities allows you to test the market. Visiting manufacturing units in person provides firsthand insights into product quality.
Credit system:
One of the key advantages of dealing with local manufacturers is their credit system. Certain local manufacturers provide favourable credit terms, which can be advantageous for cash flow management and establishing long-term partnerships. For instance, if you purchase products worth Rs. 1 lakh with a 60-day credit period, you can sell these products on Amazon or any other marketplace, receive the funds from the respective platform, retain the profit, and subsequently settle the Rs. 1 lakh payment to the manufacturer.
3. Wholesalers: Bulk Orders Made Easy
Wholesalers operate similarly to platforms like Indiamart, offering products in bulk. Engage with wholesalers either through in-person visits, online orders, or by exploring local markets like Broadway in Chennai.
4. Self-Manufacturing: Unleash Your Creativity
Opting for self-manufacturing provides unparalleled control and flexibility. You can start with minimal investments and customize products. You can make products such as homemade items, jewellery, or pickles. This method allows you to tailor products according to your preferences and market demands.
5. Importing Products:
If you’re looking to import products from overseas, securing an Import Export Code (IEC) is a crucial first step. Though we’ve been out of the importing scene for a while, in 2023, since many students requested, we responded to their requests and resumed importing products from Alibaba. However, during one instance of importing toys without the mandated BIS certificate, we faced issues during customs clearance, resulting in penalties before finally receiving our stock. It’s vital to thoroughly understand the import policies of both countries before proceeding. Platforms like Alibaba offer opportunities, yet certain product categories demand certifications and licenses. Therefore, ensure compliance with these regulations before importing. Additionally, it’s wise to request samples before diving into full-scale imports to ensure product quality and compliance.
These approaches have been personally tried, tested, and proven effective not just by me, but also by my students and clients. Within the realm of online selling, remember that the quality of your products significantly impacts your profitability. Avoid compromising on quality to steer clear of account suspensions due to high return rates. Always prioritize offering top-notch quality products to your customers.
Understanding supplier analysis is paramount. For a comprehensive grasp of supplier analysis techniques, we invite you to explore our FREE Masterclass on how to sell on Amazon. Moreover, within our premium community, we provide a curated list of suppliers tailored to the products you select.
In conclusion, navigating the landscape of e-commerce suppliers can be daunting, but employing these strategies will undoubtedly streamline your search and lead you to reliable suppliers. Emphasise quality, foster strong partnerships and watch your e-commerce venture thrive.
