Amazon FBA has made it easier than ever for entrepreneurs to sell globally. But FBA also comes with specific requirements that affect how you source products. Products must be profitable after Amazon's fees, light enough to keep shipping costs down, and compliant with Amazon's policies. If you are sourcing from China for FBA, here is what you need to know.
Start with product selection. Not every product is suitable for FBA. The best candidates are small, lightweight, and sell for at least $15-20. Products that are too heavy or too cheap are difficult to profit from after Amazon takes its cut. Also consider competition—if a product already has hundreds of reviews from established sellers, it may be difficult to break into. Look for products with moderate demand and manageable competition.
Next, calculate your margins carefully. Amazon charges referral fees (usually 15%), fulfillment fees (based on size and weight), and potentially storage fees. These can add up to 30-40% of the selling price. When sourcing, your landed cost should be low enough to leave a healthy margin after all fees. A common target is a landed cost that is 25-30% of the selling price.
Then, find suppliers. Alibaba is the most common starting point, but it is not the only option. Made-in-China, Global Sources, and 1688 (the domestic Chinese platform) are also useful. For 1688, you will need an agent or a forwarding service that can purchase on your behalf. When evaluating suppliers, look for those with experience supplying Amazon sellers. They will understand FBA requirements, including labeling, packaging, and shipping.
Pay attention to compliance. Amazon has strict policies on product safety, labeling, and documentation. For certain categories—like electronics, toys, and health products—you may need certifications such as FCC, CE, or CPC. Amazon may request these documents at any time. If your supplier cannot provide them, your listing could be suspended.
Consider using a prep center. Amazon requires products to arrive at their fulfillment centers with specific labels and packaging. A prep center in China or in your home country can inspect, label, and package your products before they are shipped to Amazon. This saves time and reduces the risk of errors that could cause delays or penalties.
Finally, test before you scale. Order a small batch, send it to Amazon, and see how it performs. Monitor sales, reviews, and returns. If the product sells well and has good reviews, order more. If it does not, cut your losses and try something else. Amazon FBA is a numbers game—most products will not be winners, but the winners can be very profitable.
Sourcing for Amazon FBA is not complicated, but it requires attention to detail. By choosing the right products, calculating margins carefully, and working with reliable suppliers, you can build a successful FBA business.
Amazon sellers have unique sourcing needs. Here is how to find products that sell and suppliers who deliver
Amazon FBA sellers need products that are profitable, lightweight, and compliant. This guide covers how to source from China specifically for Amazon.
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