China Sourcing for Amazon FBA Sellers: Complete Guide to Finding & Managing Suppliers
Master the art of sourcing profitable products from China for your Amazon FBA business. Learn expert strategies for supplier selection, negotiation, quality control, and logistics management.
Sourcing products from China is the lifeblood of most successful Amazon FBA businesses. With the right suppliers and strategies, you can achieve 40-70% profit margins while maintaining consistent quality and inventory flow. However, poor sourcing decisions can destroy your business before it even starts.
This comprehensive guide reveals the exact strategies I’ve used to help over 1,000 Amazon FBA sellers source over $50 million worth of products from China. You’ll learn how to find reliable suppliers, negotiate better prices, ensure quality, and manage logistics efficiently.
📑 Table of Contents
Why Source from China for Amazon FBA?
China remains the dominant manufacturing hub for Amazon FBA sellers, and for good reason. Understanding why China sourcing works gives you strategic advantage in your FBA business.
The Compelling Economics
💰 Real FBA Profit Example
Silicone Kitchen Utensil Set (Best Seller in Home & Kitchen):
- Amazon selling price: $24.99
- China manufacturing cost: $3.50
- Shipping to FBA (air freight): $2.20
- Amazon FBA fees: $6.85
- Total cost: $12.55
- Net profit per unit: $12.44 (50% margin)
Sourcing the same product domestically would cost $12-15 per unit, eliminating profitability entirely.
Key Advantages of China Sourcing
✅ Why Amazon FBA Sellers Choose China:
- Manufacturing cost 60-80% lower than US/EU production
- Massive supplier base – millions of factories for any product category
- Low MOQs available – start with 100-500 units instead of 5,000+
- Customization flexibility – easy modifications for private label products
- Quick prototyping – samples in 5-10 days, production in 15-30 days
- Mature export infrastructure – experienced freight forwarders and shipping routes
- Product innovation – Chinese factories constantly develop new products
- Scalability – suppliers can grow with your Amazon business
China vs Other Manufacturing Sources
| Factor | China | USA | India | Vietnam/Thailand |
|---|---|---|---|---|
| Manufacturing Cost | Very Low | Very High | Low-Medium | Low-Medium |
| MOQ Flexibility | Excellent (100-500) | Poor (5,000+) | Good (500-1,000) | Medium (1,000+) |
| Product Range | Unlimited | Limited | Medium | Limited |
| Customization | Excellent | Good | Good | Medium |
| Lead Time | 15-30 days | 30-60 days | 30-45 days | 25-40 days |
| Shipping to USA | 20-35 days (sea) | Domestic | 30-40 days | 25-35 days |
| English Communication | Good | Native | Excellent | Good |
| FBA Seller Ecosystem | Mature & Extensive | Limited | Developing | Emerging |
Finding Reliable Chinese Suppliers for Amazon FBA
Finding the right supplier is the foundation of your FBA business. The wrong supplier can lead to quality issues, delivery delays, and lost profits. Here’s how to find reliable manufacturers.
Best Platforms for Finding Suppliers
Alibaba.com (Primary Platform)
Best for: Most FBA product categories, especially starting out
- Largest B2B marketplace with 200,000+ suppliers
- Trade Assurance protection up to $500,000
- Verified supplier badges and ratings
- MOQs typically 100-1,000 units
- Search filters: “Ready to Ship”, “Trade Assurance”, “Verified Supplier”
Pro tip: Focus on Gold Suppliers with 5+ years, high response rates, and Trade Assurance enabled.
Global Sources
Best for: Electronics, consumer goods, higher-end products
- More vetted, higher-quality suppliers than Alibaba
- Better for complex products and customization
- Higher MOQs (usually 500-2,000 units)
- Verified supplier inspections included
Canton Fair (Virtual & In-Person)
Best for: Serious sellers ready to build long-term relationships
- Held twice yearly (Spring & Fall) in Guangzhou
- 60,000+ exhibitors across all product categories
- Face-to-face meetings build trust and relationships
- Virtual attendance available at cantonfair.org.cn
Investment: $3,000-5,000 for week-long trip, but can establish 5-10 solid suppliers.
Sourcing Agents
Best for: Sellers doing $10K+/month who want hands-off sourcing
- Agent finds suppliers, negotiates, manages quality control
- Commission: 5-10% of order value
- Saves 20-30 hours per product launch
- Access to factories not on Alibaba
Competitor Product Analysis
Best for: Finding proven suppliers for validated products
- Search competitor’s product on Alibaba using image search
- Contact 5-8 suppliers manufacturing similar products
- Leverage their existing molds/designs to reduce costs
- Use Jungle Scout or Helium 10 to identify top competitors
Search Strategy for Finding Suppliers
🔍 Effective Alibaba Search Techniques:
- Use specific keywords: “silicone kitchen utensils private label” not just “kitchen utensils”
- Filter by Trade Assurance: Ensures payment protection
- Sort by “Supplier Ranking”: Not just price – quality matters more
- Check “Verified Manufacturer”: Avoid trading companies initially
- Look for “Customization Available”: Essential for private label
- Review “Transactions”: Prefer suppliers with 50+ completed orders
- Image search competitors: Upload competitor product photos to find similar suppliers
Vetting & Verifying Chinese Suppliers
Finding suppliers is easy – finding RELIABLE suppliers is hard. 80% of FBA problems trace back to choosing the wrong supplier. Here’s my proven vetting process.
The 7-Step Supplier Verification Process
Request business license (营业执照) and verify on China’s National Enterprise Credit Information System. Confirm company name, registration date, and registered capital.
Prefer suppliers operating 5+ years. Newer companies (<2 years) are high risk for FBA due to potential closure or quality inconsistency.
Ask for factory photos, production videos, and Google Maps location. Trading companies add 15-30% markup and complicate quality control.
Request relevant certifications: ISO 9001, product-specific certs (FDA, CE, RoHS, etc.). Verify certification numbers with issuing bodies.
Response time, English proficiency, and understanding of your needs indicate professionalism. Poor communication = production problems.
Ask about USA/Amazon FBA experience. Suppliers familiar with FBA have better packaging, labeling, and documentation processes.
Ask for 2-3 current client references, preferably Amazon FBA sellers. Reach out via LinkedIn or email to verify experiences.
Red Flags to Watch For
🚩 Warning Signs of Unreliable Suppliers:
- Prices significantly below market: If 40%+ cheaper than competitors, quality suffers or it’s a scam
- No factory photos/videos: Likely a trading company or middleman
- Pressure to pay quickly: Legitimate suppliers don’t rush payments
- Won’t provide business license: Major red flag indicating unregistered operation
- Generic product photos: Stock images indicate they don’t manufacture the product
- No customization capability: Real factories can modify products; trading companies cannot
- Poor English communication: Makes quality control and specifications difficult
- Reluctant to send samples: Professional suppliers readily provide samples
- No Trade Assurance: Unwillingness to use payment protection is suspicious
- Email address inconsistencies: Personal Gmail/Hotmail instead of company domain
Questions to Ask Suppliers
📋 Essential Supplier Questions for FBA Sellers:
- What is your MOQ for first orders? (Target: 100-500 units for testing)
- What is the production lead time? (Typical: 15-30 days after sample approval)
- Can you customize packaging and products? (Essential for private label)
- Do you have experience with Amazon FBA requirements? (Labeling, packaging, poly bags, etc.)
- What is your defect rate? (Good suppliers: <2%)
- What payment terms do you offer? (Standard: 30% deposit, 70% before shipment)
- Can you ship directly to Amazon FBA warehouses?
- What certifications do your products have?
- Do you offer quality inspection before shipping?
- What is your policy on defective products?
Price Negotiation Strategies for FBA Profit Margins
Effective negotiation can improve your margins by 10-25%, directly impacting FBA profitability. Here’s how to negotiate like a pro without damaging supplier relationships.
Understanding Chinese Supplier Pricing
💡 How Suppliers Price Products:
- Initial quote: 30-50% above their target price (room for negotiation)
- Target price: Their desired selling price with reasonable profit margin
- Bottom price: 10-15% below target – minimum they’ll accept for large orders
Your goal: Negotiate to target price or slightly below while maintaining quality.
Proven Negotiation Tactics
Get Multiple Quotes (5-8 Suppliers)
Never negotiate with just one supplier. Contact 5-8 manufacturers for the same product with identical specifications. Use the lowest quote as leverage.
Script: “I’ve received quotes ranging from $3.20 to $4.80 for this product. Your quote is $4.50. Can you match the $3.80 quote I received from another manufacturer?”
Negotiate MOQ First, Then Price
Lower MOQ = test market with less risk. Once you prove demand, scale up for better pricing.
Approach: “Your MOQ is 1,000 units, but I’m a new Amazon seller testing this product. Can we start with 300 units? If successful, I’ll order 2,000+ units quarterly.”
Volume Commitment Strategy
Suppliers offer better prices for committed long-term buyers. Frame your negotiation around future volume.
Example: “I’m launching this on Amazon and projecting 500 units monthly. If quality is good, I need a reliable supplier for 6,000 units yearly. What price can you offer with this volume commitment?”
Bundle Negotiation
Negotiate better rates by bundling: product + packaging + shipping + certifications.
Ask: “What is your best price including custom packaging, poly bags, FBA labels, and freight to Los Angeles?”
Timing Your Negotiation
Leverage slow seasons (January-February, July-August) when factories need orders. Avoid peak season (September-November before Chinese New Year).
Payment Terms Leverage
Offer full payment upfront or LC (Letter of Credit) for 5-10% discount. Most suppliers prefer this to extended terms.
What NOT to Negotiate
⚠️ Don’t Sacrifice These for Lower Prices:
- Quality standards: Cheap products = Amazon returns + negative reviews = death of your listing
- Quality control inspections: $200 inspection saves $5,000 in defective inventory
- Proper packaging: Amazon rejection due to poor packaging costs more than better packaging
- Certifications: Required certs (FDA, CE, etc.) are non-negotiable for compliance
- Product safety: One injury lawsuit destroys your business
Remember: The cheapest supplier is rarely the best supplier. Optimize for value, not just price.
Ordering & Evaluating Samples
Samples are the most critical step before committing to production. A $50-100 sample investment can save you from a $5,000-10,000 disaster. Never skip samples.
Sample Ordering Best Practices
✅ Sample Strategy for FBA Sellers:
- Order from 3-5 suppliers: Compare quality, packaging, and attention to detail
- Request samples with your customization: Logo, packaging, colors – exactly as production
- Pay for samples: Free samples often use lower-quality materials
- Use fast shipping (DHL/FedEx): 5-7 days vs 30+ days sea freight
- Order competitor products: Buy from Amazon to compare quality directly
- Test samples thoroughly: Use them as intended for 1-2 weeks
- Get multiple units: 2-3 samples to test durability and consistency
Sample Evaluation Checklist
Check material grade, thickness, durability. Compare to competitor products. Does it feel cheap or premium?
Inspect seams, joints, finishes. Any rough edges, misalignments, or poor assembly indicates mass production will be worse.
Use the product extensively for its intended purpose. Does it work as advertised? Any issues after repeated use?
Evaluate protection, presentation, Amazon FBA requirements compliance. Will it survive shipping intact?
Check English quality, accuracy, completeness. Poor instructions = negative reviews.
Verify safety warnings, age restrictions, choking hazards, material safety. Critical for avoiding Amazon account suspension.
Line up your sample next to best-selling competitors. Is yours equal or better? If not, don’t proceed.
“I ordered samples from 5 suppliers for my yoga mat product. Four looked identical in photos. When samples arrived, two had chemical smells, one had inconsistent thickness, and two were good quality. The price difference? Only $0.30 per unit. That $150 sample investment saved me from $8,000 in unusable inventory.”
Quality Control Systems for FBA Inventory
Quality control is what separates successful FBA sellers from those who fail. One bad batch can destroy your account health, seller reputation, and profitability.
The 3-Stage QC System
Pre-Production Inspection (PPI)
When: Before production begins
What to check: Raw materials, colors, molds, packaging materials match specifications
Cost: $200-300
Why: Catches material issues before manufacturing 500+ units incorrectly
During Production Inspection (DPI)
When: At 30-50% production completion
What to check: Product quality, consistency, assembly processes, packaging
Cost: $250-350
Why: Corrects issues mid-production before completing all units
Pre-Shipment Inspection (PSI) – MOST CRITICAL
When: When 100% finished, before shipping
What to check: Random sampling (usually 10-20%), functionality, packaging, labeling, carton checks
Cost: $250-400
Why: Final verification before Amazon receives inventory. Essential for every order.
Service providers: SGS, TUV, Intertek, V-Trust, AsiaInspection
DIY vs Professional Inspection
Professional 3rd Party Inspection
- Unbiased assessment: No incentive to hide defects
- Expertise: Know what to look for
- Detailed reports: Photos, measurements, test results
- Leverage: Suppliers take them seriously
- Cost: $250-400 per inspection
✅ Recommended for orders $3,000+
Supplier Self-Inspection
- Conflict of interest: They want to ship regardless of quality
- Less thorough: May overlook defects
- No leverage: You can’t hold them accountable
- Risk: High defect rates reach Amazon
- Cost: Free (but potentially very expensive)
⚠️ Only acceptable for orders under $1,000
Creating Your Quality Control Checklist
📋 Essential QC Points for Amazon FBA:
- Product dimensions: Match specifications exactly
- Color accuracy: Matches approved sample (use Pantone codes)
- Logo placement: Correct position, size, clarity
- Functionality: Product works as intended, all features operational
- Material quality: Correct materials used, no substitutions
- Assembly quality: Tight joints, proper alignment, no defects
- Packaging: Protects product, meets Amazon FBA requirements
- Labeling: UPC/FNSKU labels, warning labels, correct placement
- Instructions: Accurate, clear English, complete
- Carton marking: Correct shipping marks, “Made in China”, dimensions
Shipping & Logistics to Amazon FBA Warehouses
Logistics can make or break your FBA margins. Shipping costs typically represent 15-25% of your landed cost. Optimizing this is critical for profitability.
Shipping Methods Comparison
| Method | Cost | Transit Time | Best For |
|---|---|---|---|
| Air Freight | $5-8/kg | 5-10 days | New product launches, restocking fast sellers, small/light items |
| Sea Freight (FCL) | $2,000-4,000 per 20ft container | 30-40 days | Large orders (10+ CBM), established products, best unit economics |
| Sea Freight (LCL) | $100-150/CBM | 35-45 days | Orders too big for air, too small for FCL (1-10 CBM) |
| Express (DHL/FedEx) | $8-12/kg | 3-7 days | Urgent restocks, samples, very small shipments |
| Rail Freight | $3-5/kg | 18-25 days | Europe-bound FBA, mid-size shipments |
Choosing the Right Shipping Method
💡 Quick Decision Framework:
- Order value under $1,500: Air freight or express
- Order value $1,500-$8,000: LCL sea freight
- Order value $8,000+: FCL sea freight (best unit economics)
- Product weight < 2kg per unit: Air freight competitive with sea
- Product weight > 5kg per unit: Sea freight significantly cheaper
- Restocking within 2 weeks: Air freight necessary
- New product testing: Air freight for speed-to-market
Understanding FBA Shipping Terms
🚢 Key Shipping Terms Explained:
- FOB (Free on Board): You pay from China port to final destination. Most common for FBA.
- EXW (Ex Works): You arrange pickup from factory. More control but more work.
- DDP (Delivered Duty Paid): Supplier handles everything to FBA warehouse. Easiest but most expensive.
- CBM (Cubic Meter): Volume measurement for sea freight pricing (L x W x H in meters)
- Volumetric Weight: Air freight uses weight OR volume (L x W x H / 5000), whichever is greater
Working with Freight Forwarders
Freight forwarders manage the complex logistics of international shipping. They’re essential for FBA sellers.
✅ What Good Freight Forwarders Provide:
- Door-to-door service: Pickup from factory to Amazon FBA warehouse
- Customs clearance: Handle import duties, tariffs, documentation
- Multiple shipping options: Air, sea, express with competitive rates
- Amazon FBA expertise: Know labeling, palletization, delivery appointment requirements
- Insurance options: Cargo insurance for peace of mind
- Consolidation services: Combine shipments from multiple suppliers
- Warehousing: Short-term storage in China or USA
- Tracking & communication: Real-time shipment updates
Freight Forwarder Cost Breakdown
💰 What You’ll Pay (Example: 500 units, 2 CBM, China to Los Angeles):
- Sea freight (LCL): $300 (2 CBM × $150/CBM)
- China domestic trucking: $80
- China port handling: $50
- Customs clearance USA: $150
- Import duties (avg): $200 (varies by product HS code)
- USA port to FBA warehouse: $250
- Delivery appointment booking: $50
- Total shipping cost: $1,080 = $2.16 per unit
Air freight alternative: $800-1,200 but arrives 25 days faster
Amazon FBA Warehouse Requirements
⚠️ Critical FBA Shipping Requirements:
- Delivery appointment: Must schedule 24-48 hours before delivery
- Pallet requirements: 40″×48″ pallets, max 72″ height, max 1,500 lbs
- Case pack quantities: Same quantity in every case (e.g., 24 units per carton)
- FNSKU labels: Every unit must have Amazon’s FNSKU barcode
- Poly bag requirements: Bags >5″ need suffocation warning and 1.5″ hole
- Expiration dates: Products with expiry must show YYYY-MM-DD format
- Carton labels: FBA box labels on two sides minimum
- Prep requirements: Bubble wrap, bagging, or other prep as specified
Violation consequences: Refused shipments, delays, or hefty re-work fees ($0.50-$2.00 per unit)
Common Mistakes Amazon FBA Sellers Make with China Sourcing
Learning from others’ mistakes is cheaper than making them yourself. Here are the most common (and costly) errors FBA sellers make when sourcing from China.
Top 10 Costly Mistakes
🚫 Mistake #1: Skipping Sample Orders
The error: Ordering 500 units based on product photos alone.
The consequence: Receiving inferior quality, wrong specs, or unusable products.
The cost: $5,000-15,000 in wasted inventory.
The fix: Always order samples from 3-5 suppliers. Test thoroughly before production.
🚫 Mistake #2: Choosing Cheapest Supplier
The error: Selecting supplier with lowest price without quality verification.
The consequence: High defect rates (10-30%), negative reviews, returns, account health issues.
The cost: Lost Buy Box, suppressed listings, destroyed FBA profits.
The fix: Choose based on value (quality + price + reliability), not just price.
🚫 Mistake #3: No Quality Control Inspections
The error: Trusting supplier’s word that quality is good.
The consequence: 15-30% defect rate reaching Amazon, customer complaints, returns.
The cost: $300 inspection saves $5,000+ in defective inventory and lost sales.
The fix: Always use 3rd-party PSI (Pre-Shipment Inspection) for orders over $3,000.
🚫 Mistake #4: Underestimating Total Landed Cost
The error: Only calculating product cost, ignoring shipping, duties, FBA fees.
The consequence: Realizing too late the product isn’t profitable on Amazon.
The cost: Entire product launch failure, thousands in sunk costs.
The fix: Calculate full landed cost: Product + Shipping + Duties + FBA fees + Amazon fees.
🚫 Mistake #5: Ignoring Amazon FBA Requirements
The error: Not specifying FBA labeling, packaging, and prep requirements to supplier.
The consequence: Amazon rejects shipment or charges $0.50-$2.00 per unit for prep.
The cost: $500-2,000 in unexpected fees on 1,000 unit shipment.
The fix: Provide supplier with detailed FBA requirement checklist before production.
🚫 Mistake #6: Ordering Too Much Inventory Initially
The error: Ordering 2,000+ units for an unproven product to get better pricing.
The consequence: Product doesn’t sell, stuck with $10,000+ in dead inventory.
The cost: Capital tied up, storage fees, liquidation losses.
The fix: Start with 300-500 units to test demand, then scale up.
🚫 Mistake #7: Poor Communication & Unclear Specifications
The error: Vague instructions like “make it good quality” without detailed specs.
The consequence: Supplier makes assumptions, delivers wrong product.
The cost: Entire order unusable, relationship damaged.
The fix: Provide detailed specifications, drawings, measurements, approved samples as reference.
🚫 Mistake #8: Paying Full Payment Upfront
The error: Paying 100% before production for “better pricing.”
The consequence: No leverage if quality issues arise or supplier disappears.
The cost: Losing entire payment ($5,000-20,000).
The fix: Standard terms: 30% deposit, 70% after inspection approval before shipping.
🚫 Mistake #9: Not Understanding Import Duties & Tariffs
The error: Ignoring import duties in cost calculations.
The consequence: Surprise $500-2,000 customs bill destroys margin calculations.
The cost: Product becomes unprofitable; entire business model fails.
The fix: Research HS code and duty rates before sourcing. Factor into pricing.
🚫 Mistake #10: No Backup Supplier Strategy
The error: Relying on single supplier without alternatives.
The consequence: Supplier issues = out of stock = lost rankings = business crisis.
The cost: Weeks out of stock, lost rankings, competitor gains market share.
The fix: Maintain relationships with 2-3 qualified backup suppliers.
Success Timeline: What to Expect
⏰ Typical China Sourcing Timeline for FBA:
- Week 1-2: Supplier research, request quotes, initial contact (5-8 suppliers)
- Week 3: Sample ordering from top 3-5 suppliers
- Week 4: Sample arrival, evaluation, competitor comparison
- Week 5: Select supplier, negotiate final terms, finalize specifications
- Week 6: Production sample approval, pay deposit (30%)
- Week 7-8: Production (15-30 days depending on product)
- Week 9: Pre-shipment inspection, pay balance (70%)
- Week 10-14: Shipping (sea freight 30-40 days, air 5-10 days)
- Week 15: Delivery to Amazon FBA, create listing, launch product
Total timeline: 12-16 weeks from starting sourcing to product available on Amazon
Pro tip: Use air freight for first order to test market faster (reduce to 8-10 weeks total)
Payment Methods & Protection
Protecting your payment is critical when sourcing from China. Use the right payment methods to balance supplier trust and your financial security.
Payment Method Comparison
| Method | Buyer Protection | Cost | Best For |
|---|---|---|---|
| Alibaba Trade Assurance | Excellent (up to $500K) | Free | First orders, unverified suppliers, orders under $50K |
| PayPal | Good (180-day protection) | 4-5% fee | Small orders under $3,000, established suppliers |
| Letter of Credit (LC) | Excellent | $300-800 + 0.5-2% | Large orders $20K+, new supplier relationships |
| Wire Transfer (T/T) | None | $25-50 per transfer | Trusted suppliers only, established relationships |
| Western Union / MoneyGram | None | 5-10% | Avoid – high scam risk |
Recommended Payment Terms
✅ Safe Payment Structure:
- First order: 30% deposit (Trade Assurance), 70% after PSI approval before shipping
- After 3 successful orders: Negotiate 20% deposit, 80% after PSI
- Large orders ($20K+): Use Letter of Credit for maximum protection
- Never pay: 100% upfront, payment via Western Union, payment to personal accounts
- Use escrow: Alibaba Trade Assurance or PayPal for first 2-3 orders
Frequently Asked Questions
Minimum realistic budget: $3,000-5,000 for your first product including:
- Samples: $100-200
- Product cost (300-500 units): $1,500-2,500
- Shipping: $400-800
- Quality inspection: $250-350
- Amazon FBA prep/labels: $100-200
- Buffer for duties/unexpected: $500
Starting with less is possible but limits your product options significantly.
For first orders, target 300-500 units. This is enough to:
- Test market demand without massive risk
- Generate initial reviews (aim for 20-50)
- Run small PPC campaigns
- Maintain stock for 30-60 days if product sells
Many suppliers quote 1,000+ units, but with negotiation, most will accept 300-500 for first order with commitment to reorder if successful.
Product research comes before sourcing. Use these strategies:
- Jungle Scout / Helium 10: Identify products with 300+ monthly sales, low competition
- Amazon Best Sellers: Browse categories for simple products with 4-star average
- Problem-solving approach: Find products with common complaints you can improve
- Trend analysis: Google Trends + Amazon search volume for emerging niches
- Reverse image search: Once you find a good product, search it on Alibaba to verify sourcing
Criteria: Lightweight (<2 lbs), small size, simple design, 40%+ margin potential, year-round demand.
Complete timeline breakdown:
- Production: 15-30 days
- Sea freight: 30-40 days
- Customs clearance: 2-5 days
- Delivery to Amazon: 3-7 days
- Amazon check-in: 1-5 days
- Total: 50-85 days (sea freight)
Air freight alternative:
- Production: 15-30 days
- Air shipping: 5-10 days
- Customs + delivery: 3-5 days
- Total: 25-45 days
Plan inventory 90 days ahead for sea freight, 45 days for air freight.
For importing: Not required for most products under $2,500 per shipment (informal entry).
For Amazon FBA: Yes, you need a business entity (LLC or sole proprietorship) registered with Amazon.
Recommended setup:
- Form an LLC in your state ($100-500)
- Get EIN from IRS (free)
- Open business bank account
- Register for Amazon Seller account
This protects personal assets and enables business tax deductions.
Follow these protection rules:
- Verify business license on China’s National Enterprise Credit System
- Use Trade Assurance on Alibaba for payment protection
- Always order samples before production orders
- Video call suppliers to verify factory existence
- Get references from current clients
- Use 30/70 payment terms, never 100% upfront
- Hire 3rd-party inspection before final payment
- Avoid red flags: Western Union payments, pressure tactics, no business license
Direct sourcing when:
- You have time to manage supplier relationships
- Starting out with 1-2 products
- Want to learn the process
- Order value under $10K per month
Sourcing agent when:
- Scaling to $10K+ monthly orders
- Managing 3+ products/suppliers
- Limited time for sourcing operations
- Need quality control oversight
- Want access to non-Alibaba factories
Cost: Agents charge 5-10% commission but often negotiate better prices, offsetting their fee while saving you 20-30 hours per product.
Depends on your product category:
- Electronics: FCC, CE, RoHS certifications required
- Children’s products: CPSIA, CPC (Children’s Product Certificate), lead/phthalate testing
- Food contact items: FDA registration, food-grade material certificates
- Cosmetics/supplements: FDA compliance, ingredients disclosure
- Textiles: Flammability testing for children’s clothing
- General products: Usually no certification required but quality testing recommended
Amazon requirements: Some categories require cert uploads before listing approval. Check Amazon’s category requirements before sourcing.
Key Takeaways
🎯 Essential Points to Remember:
- Always order samples from 3-5 suppliers before committing to production – this $150 investment can save $10,000
- Choose suppliers based on value (quality + price + reliability), not just lowest price
- Use 3rd-party quality inspections for orders over $3,000 – the $300 cost pays for itself many times over
- Calculate full landed cost including product, shipping, duties, FBA fees before committing
- Start with 300-500 units to test market demand before scaling to larger orders
- Use Alibaba Trade Assurance or PayPal for first 2-3 orders for payment protection
- Plan 90 days ahead for sea freight inventory, 45 days for air freight
- Communicate Amazon FBA requirements clearly to suppliers before production starts
- Maintain 2-3 backup suppliers to avoid stockout crises
- Document everything – specifications, conversations, approvals – in writing with photos
Final Thoughts
Sourcing from China for Amazon FBA is one of the most powerful strategies for building a profitable e-commerce business. The cost advantages are undeniable – the difference between 40-50% profit margins and barely breaking even.
However, success requires diligence, proper systems, and learning from both successes and failures. The sellers who thrive are those who invest time in supplier relationships, maintain rigorous quality standards, and treat sourcing as a core competency rather than an afterthought.
“My first China sourcing experience was a disaster – I lost $7,000 on bad inventory. But I learned the hard lessons, implemented proper processes, and now successfully import $50K monthly with 48% margins. The key was treating sourcing as a skill to master, not a one-time transaction.”
Start conservatively, test thoroughly, document everything, and scale methodically. China sourcing for Amazon FBA isn’t complicated – but it does require attention to detail and respect for the process.
Ready to Start Sourcing Your First FBA Product from China?
Download our free China Sourcing Checklist with supplier vetting templates, quality control checklists, and cost calculation spreadsheets.
Get Free Sourcing Toolkit