The coronavirus, which affects the whole world, has indirectly played a role in drawing new road maps in e-commerce. In this ongoing epidemic process, Amazon vendors face problems with their suppliers on issues such as product supply and product delivery times. In this troubled process, most experienced Amazon vendors decided to make some changes to the way they do business. Some vendors, who decided to expand or change their supply regions, so differentiated from other Amazon vendors.
In this article, we are from a country that can be a new source for finding products; We will talk about what alternatives India can create for Amazon.
Currently, the majority of Amazon vendors supply products from China. As a reason for this preference, we can mention the variety of product range in China, low production costs, and the existence of factories with high production volumes. However, during the process that started with the outbreak, production stopped in factories in China and product sourcing problems forced Amazon vendors to find new supply sources.
Let’s talk about how product supply and supplier relations processes are progressing in India, which is preferred by a considerable number of Amazon vendors.
Process of Finding a Supplier
The process of finding suppliers in India is generally the same as in China. But India has some features that differ in this process compared to China. Although it is much easier to find suppliers in China thanks to Alibaba and similar sources, these things are a little different in India. Most Indian suppliers don’t keep updated catalogs of their products, and many don’t have updated websites. They show that their designs are copied and stolen by other suppliers and buyers. Therefore, they prefer to send their new designs to the buyers directly by e-mail or to exhibit them at fairs. You can use third-party source websites such as Alibaba and Global Sources to find Indian Suppliers and attend Global Sources in Hong Kong or Delhi Fair in India.
It is very important to establish strong relations with suppliers in India. If a mutual trust is established with the supplier, they can offer you advantageous options in terms of delivery times and payment terms.
In the meantime, it will be easy to communicate with Indian suppliers, because English is the second official language in India. You will not need a translator when visiting a fair or talking with suppliers online. So you will not have a hard time communicating with your suppliers. This will be a great advantage when it comes to communicating with your supplier, especially when working on a private label product.
Production and Diversity
While all kinds of products can be produced in China, India specializes in certain product categories. For example, electronic products are not yet produced for large-scale exports, but this is expected to change as more factories are established in the coming years.
The key product categories available to Amazon vendors from India are mostly metal, wood, cotton, glass, etc. are products made from natural materials. Considering how large the Z generation generates a demand network for environmentally friendly and sustainable products, India can be an excellent source in this respect.
Among the export-oriented products produced in India are indigenous handcrafted products native to India. The individual skills required to make these products have been transferred from one generation to the next, and the products have been tailored to the export market. The quality of workmanship of these products is quite high.
Product Delivery Times
Delivery times for handmade products in India vary between 30-45 days. Due to the periodic density, it can sag up to 60 days. This is a little longer than the delivery time of handmade products made in China. But delivery times for other machine-made products and products in clothing and similar categories are similar to China.
For handmade products, prices may be higher than similar machine-made products in China. However, the prices may be lower for products manufactured through the same processes due to lower labor costs in India.
Overview of the FBA Process
If your company is outside the U.S. and you don’t have a company there, you are likely to encounter problems in providing logistics requirements. In order to fix this problem, it is an important matter that you should pay attention to whether they are experienced in FBA shipments when choosing the shipping company.
If we examine the process by suppliers, we can mention that most of them have some deficiencies in fulfilling FBA requirements. In particular, you may need to manage this process with them on topics such as licenses, permits, and labeling of your ‘private label’ products. In the meantime, it is worth noting that as more Amazon vendors started to supply products from India, the process was better managed.