There are many approaches to forming business partnerships and connections. Some are more effective than others while other techniques are used only under certain conditions.
This article focuses on a company-supplier relationship. Specifically, it condenses the methodologies and considerations as suggested by official organizations and governing bodies. These authorities include but are not limited to the Chamber of Commerce of Metropolitan Montreal’s Acclr Experts and Singapore Institute of Purchasing and Materials Management. Even if the tested techniques are not specific to Amazon FBA Business, they can be applied efficiently.
These techniques are listed in no particular order and can be performed simultaneously for faster and more efficient selection.
1. Product Focus and Reverse Sourcing Method
The best way to choose suitable suppliers is to focus on the products you want to sell. Check on which products are trending and conduct SEO research on which products show conversions for online marketing. It would also help to be informed of the latest e-commerce news and updates.
Since you’re planning to be an Amazon FBA seller, you can use aggregators to compare and list products that are selling in the Amazon store. Using these data, you get to see what shoppers are interested in. Afterward, simply find a wholesale supplier of those products. Keep in mind that niche markets would narrow down the list of suppliers considerably compared to those products with a broader target market.
2. Checklist Technique
Prepare a checklist for what you’re looking for in an Amazon FBA supplier. Take into consideration the following:
- Business’ values and vision-mission - Your values must be aligned with one another. For example, if you want to start a vegan fashion line, your suppliers should be able to provide you with faux leather and fur, and other non-animal materials.
- Prices and costing - The idea of getting wholesale suppliers is to take advantage of the discounted wholesale prices. You can use revenue calculators like the ones from Amazon to help you compute the costs and returns of investments. You can also use automated pricing tools that take into account your pricing parameters.
- Reliability - A successful business needs reliable suppliers. You have to consider the quality of their products and how fast they can get them to you or to Amazon FBA. A good supplier would have the foresight to prepare for possible contingencies and would be ready for complications such as late freights, traffic jams, and even system malfunctions. They should also keep you informed of where your order is at all times.
- Credit score and financial stability - Another thing to consider is the financial standing of your supplier. Reliable suppliers can show you their line of credit with little to no imbalances. Suppliers with little credit may have difficulty keeping up if and when you scale up your business.
- Location - Will your supplier be local or international? Both have pros and cons depending on your target product or material. Some manufacturers overseas offer lower material costs while offering similar quality while some products have import restrictions. Choose whichever is beneficial for you.
3. Survey Technique
With the considerations from the checklist method mentioned above, you can then conduct surveys to find which supplier fits with you. It can be in the form of a questionnaire or an online submission form. It can also be done like spot interviews during trade shows. Through this, you can get to know more about the supplier and their product offerings.
4. Trade Shows and Exhibitions
One of the conventional methods of looking for suppliers is attending trade fairs and exhibitions. This is a great way to see for yourself how the suppliers present their products. You can also get a glimpse of the quality of the products you’re interested in. With this, you’ll at least have a clue of what their quality of work would look like even before signing up a contract with them.
5. Referral Method
Getting referrals is probably the most trustworthy method of getting suppliers. Don’t underestimate the power of word-of-mouth recommendations. A successful business that’s endorsing a supplier would mean that they are dependable and deliver well. Suppliers that have bad commentary may give you issues someday. So even if they can quote you for a lower price or lower minimum order quantity, you still have to consider others’ feedback if it’s worth the risk.
6. Product Shortlisting Technique
Shortlisting is a pretty common practice in narrowing down options and applies to more than just business. This technique also works alongside the others mentioned in this article. In this particular method, you need to take note of the product or products you want to sell and make a shortlist of suppliers that sell them.
Depending on the variety of the products you wish to resell, it may be more cost-effective to choose one supplier that sells all of them rather than having several suppliers for each product. On the other hand, having just one supplier also has risks. Should the chosen supplier go out of business, your business will suffer too. So it’s best that you first consider what would work best for your needs.
7. Browsing Directories
Another tried and tested conventional practice is to browse through supplier directories. Some of these directories are available online for free or for a small fee. Digital directories are easier to browse through as you can use the “search” tool to find suitable suppliers.
8. Ranking Technique
This technique is complementary to the practices mentioned above. After doing research, getting feedback from other suppliers, and shortlisting the most qualified manufacturers, you can now rank suppliers based on the criteria you’ve set. It’s now a matter of contacting them to see if they agree to your terms and sign a deal that would best benefit you.
Conclusion
Choosing the ideal supplier for your growing Amazon FBA business is pivotal to success. Good suppliers will get you quality products, delivered promptly, and that fit your budget. Create your checklist and considerations to help you assess suppliers better. Finding business suppliers take intensive research and networking, but it will be worth it.
Author’s Bio
Jayce is the managing director of Seller Interactive, the top Amazon marketing agency helping brands grow their business. As an expert in content marketing, Jayce has worked with top Amazon advertising agencies and brands such as GoDaddy and Toyota. He is eager to offer his expertise in Amazon listing optimization services for brands.
