How to Source from China
for Amazon FBA

From a 7-year China sourcing veteran. This is the condensed version — the full 68-page guide covers everything in depth.

1. The #1 Mistake Beginners Make

They go straight to Alibaba and message the first 5 suppliers who pop up. You know what happens? They get quoted 3x the real price, because every experienced supplier can smell a first-time buyer from a mile away.

The fix: Before you message anyone, spend 30 minutes checking each supplier. Look at their "Trade Assurance" level, years on Alibaba, and — most importantly — ask for photos of their actual factory floor. If they hesitate or send stock photos, move on.

2. How to Spot a Real Factory (vs. a Trader)

Most "suppliers" on Alibaba are actually trading companies. Nothing wrong with traders — but they add 20-40% to your cost. Here's how to tell them apart:

Red Flags (Traders)

• Company name contains "Import & Export", "Trading", or "International"
• They sell thousands of completely unrelated products
• Their MOQ (Minimum Order Quantity) is suspiciously low for everything
• They can't or won't show you their production line on a video call

Green Flags (Real Factories)

• Company specializes in a narrow category (e.g., "We make silicone kitchen tools" — not "We make everything")
• They ask you detailed questions about your specs
• They've been in business 8+ years with consistent Alibaba presence
• They're willing to take a photo with today's newspaper next to their product (the ultimate test)

3. The Negotiation Script That Works Every Time

Here's what I've learned from hundreds of factory visits and negotiations in Guangdong, Zhejiang, and Fujian:

DO NOT start with "What's your price?"

That's an amateur move. Instead, use this 3-step approach:

1. Build rapport first. "Hi, I'm looking for a long-term partner for my Amazon business. I'm currently sourcing X product and expect to order Y quantities per month. Can you help?"
2. Ask for 3 price tiers. "Could you quote me for 500, 1,000, and 2,000 units?" This signals you're serious and thinking about scaling.
3. Pause after they quote. The silence is powerful. Wait 5 seconds before responding. The next person to speak loses leverage.

4. The Hidden Costs Most Sellers Miss

Your unit price from the factory is only 40-50% of the total landed cost. Here's the real breakdown:

• Product cost: 40-50% (what you pay the factory)
• Shipping (sea freight): 15-25% (varies wildly by season)
• Customs & duties: 5-15% (depends on HS code classification)
• FBA fees: 10-20% (size and weight dependent)
• Packaging: 3-8% (don't skip quality packaging)
• Inspection & QC: 1-3% (mandatory for any serious seller)

5. Quality Control: The Non-Negotiable

I've had factories ship me products that looked perfect in the sample photo but arrived with: wrong colors, wrong materials, wrong packaging, and once — completely different product inside the box.

The QC Process You Must Follow Every Single Time:

1. Pre-production sample: Factory sends you one unit before mass production starts
2. During-production check (optional for small orders): Video call or hire a third-party inspector (around $200-400)
3. Pre-shipment inspection: Must be done on 10-20% of your finished units, randomly selected

6. The "First Container" Checklist

Before you place that first order, make sure you have:

• ✅ Sample approved (physical sample in your hand, not just photos)
• ✅ HS code confirmed (ask a customs broker — wrong code = huge fines)
• ✅ Shipping method chosen (sea freight for bulk, air for first test)
• ✅ Packaging finalized (FBA-compliant: no branding on outside, correct barcodes)
• ✅ Payment terms negotiated (30% deposit, 70% after inspection — never 50/50)
• ✅ Insurance arranged (cargo insurance is ~0.5% of value — worth every penny)

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