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Big Risk In Shipping Direct From China To FBA

by Importexport
34 replies
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I suggest that Amazon vendors who ship direct from their China supplier are risking losing their business.

The reason is that those who do this are educating potential competitors how to compete with them direct.

I have been exporting to China since 1978, and importing from China since 1987, so I have a good idea how things work. In that time I have seen many cases of Chinese companies opening branches in Western countries and competing with those people who were previously buying from them and importing their products.

It will be so much easier and less costly for Chinese companies to ship their goods to FBA. Now they don't have the huge expense of setting up an office overseas. Instead they have Amazon.

There are plenty of prepping companies that will receive the goods for you and do whatever is necessary before shipping them on to FBA. The small cost would be a lot less than losing your entire business to your supplier.
#amazon #big #china #direct #fba #fulfillment by amazon #risk #shipping
  • Profile picture of the author erickz
    I have all my products shipped to a shipping agent in China, who will prepare all the necessary work for me, before shipping to FBA.
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    • Profile picture of the author Importexport
      Originally Posted by erickz View Post

      I have all my products shipped to a shipping agent in China, who will prepare all the necessary work for me, before shipping to FBA.
      Yes, there are services like that in China as well as in the US, EU, Australia, etc.
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author erickz
    Anyway, nowadays almost everyone in China (especially those in ecommerce and wholesale businesses) knows about Amazon and eBay. So they can sell on Amazon and eBay anytime. If they want to sell on these platforms one day, you can't really do anything to stop them because they are the manufacturer. You can just try to talk into a partnership, because trying to send to FBA and listing on Amazon to sell is one thing, but trying to be among the top sellers is another thing. Marketing expertise and strategies on Amazon are not what new sellers know about.
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    • Profile picture of the author Importexport
      Originally Posted by erickz View Post

      Anyway, nowadays almost everyone in China (especially those in ecommerce and wholesale businesses) knows about Amazon and eBay. So they can sell on Amazon and eBay anytime. If they want to sell on these platforms one day, you can't really do anything to stop them because they are the manufacturer. You can just try to talk into a partnership, because trying to send to FBA and listing on Amazon to sell is one thing, but trying to be among the top sellers is another thing. Marketing expertise and strategies on Amazon are not what new sellers know about.
      They may know about it, but you could be doing their test marketing for them.

      The best way to "stop them" is to not let them know that you are selling successfully on Amazon.

      The way you are likely to find out that they have decided to sell on Amazon is when your order is delayed and delayed and delayed for various "reasons". You then check your listing and find an almost identical one. Any talk of a partnership would be futile.
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author andrejka007
        Importexport is correct. During my research I've seen many chinese sellers on Amazon. Which tells me that it will be harder and harder to compete with them directly if this trend continues. Hope I'm wrong..
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        • Profile picture of the author erickz
          Originally Posted by andrejka007 View Post

          Importexport is correct. During my research I've seen many chinese sellers on Amazon. Which tells me that it will be harder and harder to compete with them directly if this trend continues. Hope I'm wrong..
          There are tons of Chinese sellers nowadays. You can't really find something or any niche that do not have a Chinese seller. Anyway, like I said. It's the marketing that make the difference, not the product. So I do not care if there are Chinese or US or any other country sellers.
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  • Profile picture of the author Auctiondebteliminator
    Competing against the 'top-China sellers' is easy.

    You just need to do something more than them, especially on eBay.

    Know your competitors, but sell at a market worth - not a price that will lose you money. People are still buying it at the max market price.

    Also, exploit the views to actions ratio and you're ranked WAY higher than them.

    It's not the price that increases turnover, it's your rank and copywriting to compel conversions.

    -ADE-
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    • Profile picture of the author erickz
      Originally Posted by Auctiondebteliminator View Post

      Competing against the 'top-China sellers' is easy.

      You just need to do something more than them, especially on eBay.

      Know your competitors, but sell at a market worth - not a price that will lose you money. People are still buying it at the max market price.

      Also, exploit the views to actions ratio and you're ranked WAY higher than them.

      It's not the price that increases turnover, it's your rank and copywriting to compel conversions.

      -ADE-
      I am not experienced on eBay, never a big seller on the platform. Do you have advise on how to get ranked in eBay? I don't know how they ranked. And you need to be on the first page of any search keywords in order to have exposure.
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  • Profile picture of the author Lipipaliwal
    Banned
    Both the person Importexport and andrejka007 is right. To compete the Chinese seller is really so hard. You can also go with hiring an agent who will serve you drop shipping service in China.
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    • Profile picture of the author Importexport
      Originally Posted by Lipipaliwal View Post

      Both the person Importexport and andrejka007 is right. To compete the Chinese seller is really so hard. You can also go with hiring an agent who will serve you drop shipping service in China.
      You use an agent in China at your own risk. How do you know they will be fully considering your interests and not their own?

      Will they charge you a fee and also collect a commission from the supplier? Will they only buy for you from the supplier that pays them the most? Can you be sure that they are not traders themselves who will sell you products on which they add a big margin?
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author OnlineStoreHelp
        You missed one important risk as well. The minute that truck backs up into the dock, you have given Amazon your manifest, you have given them the factory or buyer you got your product from. Do good sales and all they have to do is look back through their records for the manifest and the manufacturer. You just did Amazons research for them.

        Yes, if they really want to compete they will find a way, but no sense making it that simple for them.
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        • Profile picture of the author Importexport
          Originally Posted by OnlineStoreHelp View Post

          You missed one important risk as well. The minute that truck backs up into the dock, you have given Amazon your manifest, you have given them the factory or buyer you got your product from. Do good sales and all they have to do is look back through their records for the manifest and the manufacturer. You just did Amazons research for them.

          Yes, if they really want to compete they will find a way, but no sense making it that simple for them.
          I don't know whether Amazon have staff knowledgeable enough about importing to be able to find out without being helped by vendors serving up that information to them, but why risk it?

          I subscribe to a service that makes it possible for me to know who has shipped what products, what quantity, where to, and when. I can learn exactly what customers a supplier in China or any other country has, and I can even find the value of each shipment.

          If Amazon get to know that sort of information, no successful vendor will be safe.
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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          • Profile picture of the author erickz
            Originally Posted by Importexport View Post

            I don't know whether Amazon have staff knowledgeable enough about importing to be able to find out without being helped by vendors serving up that information to them, but why risk it?

            I subscribe to a service that makes it possible for me to know who has shipped what products, what quantity, where to, and when. I can learn exactly what customers a supplier in China or any other country has, and I can even find the value of each shipment.

            If Amazon get to know that sort of information, no successful vendor will be safe.
            Yes, I know there are services that can track all the imported goods to USA or any major market. I will explore that option when I am making enough money first. LOL.. Now I am just focusing one step at a time.
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            • Profile picture of the author Importexport
              Originally Posted by erickz View Post

              Yes, I know there are services that can track all the imported goods to USA or any major market. I will explore that option when I am making enough money first. LOL.. Now I am just focusing one step at a time.
              It's a vicious circle. You need to make lots of money to be able to afford the services that can help you make lots of money.

              The subscription service that I have used for years is very expensive. Even though I no longer do importing myself, I maintain my subscription because it makes it possible for me to provide help for my book readers that they could not get otherwise.
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              Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author SaanviRao
        Banned
        It's true that we can't say any word to Chinese manufactures, because they are doing the business. But, it is also true that the competition in the market has increased.
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        • Profile picture of the author Rock Solid Links
          My brand has products made in the USA ranking in the top 1000 in the Home and Kitchen category. I looked into sourcing from China in order to improve production time and reliability. Sent specs and samples as part of negotiations with a new manufacturer. Two months later a new Chinese seller is selling copies of our entire catalog under a new brand name with new product pages.

          That's real. And nothing I can do about it.

          At fist I was upset, but a cool head prevailed. I've developed a brand and built it around a lifestyle that sings in Instagram, Pinterest, and Facebook. I've invested in premium packaging. Premium customer service. Premium product photos. I've hired the best artists and most creative copywriters I could find. I've tried to make the experience so good and the lifestyle so desirable that people are compelled to buy my brand.

          Our Chinese competitor is not going to do that. Will they get some sales? Yes. But their customers are not my customers. I've created a brand that people have to have because it is the best one, not the cheapest one.
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          • Profile picture of the author Importexport
            Originally Posted by Rock Solid Links View Post

            My brand has products made in the USA ranking in the top 1000 in the Home and Kitchen category. I looked into sourcing from China in order to improve production time and reliability. Sent specs and samples as part of negotiations with a new manufacturer. Two months later a new Chinese seller is selling copies of our entire catalog under a new brand name with new product pages.

            That's real. And nothing I can do about it.

            At fist I was upset, but a cool head prevailed. I've developed a brand and built it around a lifestyle that sings in Instagram, Pinterest, and Facebook. I've invested in premium packaging. Premium customer service. Premium product photos. I've hired the best artists and most creative copywriters I could find. I've tried to make the experience so good and the lifestyle so desirable that people are compelled to buy my brand.

            Our Chinese competitor is not going to do that. Will they get some sales? Yes. But their customers are not my customers. I've created a brand that people have to have because it is the best one, not the cheapest one.
            Hearty congratulations! I enjoyed reading your post.

            It is certainly possible to outperform those who don't have the cultural understanding or the language skills. Unfortunately there are many vendors selling on Amazon who lack the determination and business skills that you have.

            Consequently they could lose a lot of business, and it was primarily for them that I started this thread.
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            Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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          • Profile picture of the author erickz
            Originally Posted by Rock Solid Links View Post

            My brand has products made in the USA ranking in the top 1000 in the Home and Kitchen category. I looked into sourcing from China in order to improve production time and reliability. Sent specs and samples as part of negotiations with a new manufacturer. Two months later a new Chinese seller is selling copies of our entire catalog under a new brand name with new product pages.

            That's real. And nothing I can do about it.

            At fist I was upset, but a cool head prevailed. I've developed a brand and built it around a lifestyle that sings in Instagram, Pinterest, and Facebook. I've invested in premium packaging. Premium customer service. Premium product photos. I've hired the best artists and most creative copywriters I could find. I've tried to make the experience so good and the lifestyle so desirable that people are compelled to buy my brand.

            Our Chinese competitor is not going to do that. Will they get some sales? Yes. But their customers are not my customers. I've created a brand that people have to have because it is the best one, not the cheapest one.
            Very true, which I agreed. You will definitely have people competing on the same products, and there is no way to prevent people from selling the same products (unless of course you got them patented). The only thing that differentiate you, is the brand. If you go to a retail store, there are tons of similar products in almost any department, the only difference is the brand name and packaging.
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  • Profile picture of the author heroboy
    Yes; importing from China direct to FBA can be a double edged sword. However, creating good content for your product description and product details on Amazon is something where US based sellers can stand-out. China based Sellers are not particularly good at this. Also, communication with buyers can be a lot easy for US sellers. Whatever you do, don't deny returns (if it's within the 30 day window) or cancel orders. Negative feedback and bad seller rating can hit sales real bad.
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  • Profile picture of the author tr3al
    Does amazon have any issues receiving items from a site like Alibaba? I'm not sure if I should have them shipped to myself first and then send to amazon FBA or just sent directly from source to amazon FBA
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    • Profile picture of the author Importexport
      Originally Posted by tr3al View Post

      Does amazon have any issues receiving items from a site like Alibaba? I'm not sure if I should have them shipped to myself first and then send to amazon FBA or just sent directly from source to amazon FBA
      Amazon does not care where you send your goods from.

      But .... as an experienced importer, starting in 1987, I would care where you buy from, and I would strongly advise against sourcing through Alibaba or a number of other big B2B sites

      I have taught hundreds of people in 35 countries how to safely source products in China and other countries, but I would never recommend Alibaba.
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author fumla
        You have a lot of experience in this field it seems, I may have use for your service anytime soon if you don't mind?

        Originally Posted by Importexport View Post

        Amazon does not care where you send your goods from.

        But .... as an experienced importer, starting in 1987, I would care where you buy from, and I would strongly advise against sourcing through Alibaba or a number of other big B2B sites

        I have taught hundreds of people in 35 countries how to safely source products in China and other countries, but I would never recommend Alibaba.
        Signature

        Ruth is cool 22216

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        • Profile picture of the author Importexport
          Originally Posted by fumla View Post

          You have a lot of experience in this field it seems, I may have use for your service anytime soon if you don't mind?
          Always glad to help, but for the full story you need to have a look at my site:
          http://provenchinasourcing.com
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author erickz
        Originally Posted by Importexport View Post

        Amazon does not care where you send your goods from.

        But .... as an experienced importer, starting in 1987, I would care where you buy from, and I would strongly advise against sourcing through Alibaba or a number of other big B2B sites

        I have taught hundreds of people in 35 countries how to safely source products in China and other countries, but I would never recommend Alibaba.
        I mainly sourced my products from the chinese version alibaba, 1688. How would you rate 1688? There are manufacturers there but there are also resellers too.

        Anyway, I still got to learn more about the China market, will probably take a look at your guide soon..
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        • Profile picture of the author skatir
          Originally Posted by erickz View Post

          I mainly sourced my products from the chinese version alibaba, 1688. How would you rate 1688? There are manufacturers there but there are also resellers too.

          Anyway, I still got to learn more about the China market, will probably take a look at your guide soon..
          Does the logistics forwarder taking care for all the taxes, custom, duties on both sides before shipping to FBA ?
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          • Profile picture of the author Importexport
            Originally Posted by skatir View Post

            Does the logistics forwarder taking care for all the taxes, custom, duties on both sides before shipping to FBA ?
            They can do so, but you must ask them to quote you specifically on each shipment.
            Signature
            Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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        • Profile picture of the author Importexport
          Originally Posted by erickz View Post

          I mainly sourced my products from the chinese version alibaba, 1688. How would you rate 1688? There are manufacturers there but there are also resellers too.

          Anyway, I still got to learn more about the China market, will probably take a look at your guide soon..
          1688.com is a Chinese clone of Alibaba and suffers from the same faults: Almost non-existent verification, and listing by huge numbers of traders saying they are manufacturers.

          Traders take too big a bite out of the profit.

          Sure, you can get low prices on Alibaba, Aliexpress, and 1688.com, but nowhere near as good as what you can get when you buy direct from the genuine manufacturers.
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author Algebranj
        Originally Posted by Importexport View Post

        Amazon does not care where you send your goods from.

        But .... as an experienced importer, starting in 1987, I would care where you buy from, and I would strongly advise against sourcing through Alibaba or a number of other big B2B sites

        I have taught hundreds of people in 35 countries how to safely source products in China and other countries, but I would never recommend Alibaba.
        Okay so bottom line - I should have my product shipped to me directly and then I should inspect/ package my product and ship to amazon fba myself? I just ordered my first sample product. I didn't even want them to know my business name so they couldn't google me and find out im reselling their $3 product for $22. So I just give them my personal name only. But that means they would bill me rather than my business when I order my first shipment. Wouldn't it be better to have invoices in the business name for tax purposes and protecting the veil? So then I thought I should create 2 LLCs. One will be the holding company of the other...am I over thinking it?
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        • Profile picture of the author Importexport
          Originally Posted by Algebranj View Post

          Okay so bottom line - I should have my product shipped to me directly and then I should inspect/ package my product and ship to amazon fba myself? I just ordered my first sample product. I didn't even want them to know my business name so they couldn't google me and find out im reselling their $3 product for $22. So I just give them my personal name only. But that means they would bill me rather than my business when I order my first shipment. Wouldn't it be better to have invoices in the business name for tax purposes and protecting the veil? So then I thought I should create 2 LLCs. One will be the holding company of the other...am I over thinking it?
          You can have them sent to a prepping service. If you need help with that I will PM a link for you. If you don't want that small added cost you can do the inspection and packaging yourself.

          I think you are being wise, and not over - thinking it. I have seen many cases in which Chinese companies have set up their own sales program in countries such as the US, Canada, Australia, and the UK, where they have learned about the market potential through their importing customers.

          Sometimes they have done it after granting a distributorship and when that succeeds they set up their own office and the distributor finds he has no customers.

          So, what can you do? I would recommend importing in one company name, and selling in another as you have worked out. It would be a wise move for any importers to do likewise.
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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    • Profile picture of the author erickz
      Originally Posted by tr3al View Post

      Does amazon have any issues receiving items from a site like Alibaba? I'm not sure if I should have them shipped to myself first and then send to amazon FBA or just sent directly from source to amazon FBA
      It would be advisable to ship to yourself first so that you can check and inspect the quality (especially so if you are getting from the supplier for the first time). Unless you have absolute trust in your supplier, I won't encourage shipping directly.

      I shipped to a logistics forwarder to handle the shipping, and sometimes provide some simple inspection work for me, before shipping to FBA.
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  • Profile picture of the author AadhyaMehra
    Banned
    I am thinking about to start my droppshiping business in China and want to start it from China to India, so, is it possible for me? Please help me!!!
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  • Profile picture of the author Dante Galahad
    Guys correct me if i am wrong so the main point that need to be learn from these tread is that you need to have your own product or Private label it so that not even the Chinese manufacture can take down your business aware anytime am i right?.

    If these is the case than i think i just made the right decision not to focus to much on DS business to Amazon FBA or Ebay, but instead owning your own ecommerce and sell your own product line with your brand that can last long.
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    • Profile picture of the author Importexport
      Originally Posted by Dante Galahad View Post

      Guys correct me if i am wrong so the main point that need to be learn from these tread is that you need to have your own product or Private label it so that not even the Chinese manufacture can take down your business aware anytime am i right?.

      If these is the case than i think i just made the right decision not to focus to much on DS business to Amazon FBA or Ebay, but instead owning your own ecommerce and sell your own product line with your brand that can last long.
      Even with your private label there is no guarantee that your Chinese supplier won't move into the same market area, but it is much less likely.

      Having your own eCommerce site probably gives far more protection from predators whether from China, or from your own neighborhood, or from Amazon.

      I think Algebranj's idea to import under one name and sell under another adds another powerful level of protection.
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author kim+co
    Following :-)
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