Is Your Chinese Supplier Now Your Competitor on Amazon?

[et_pb_section admin_label=”section”][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]

Here’s the latest buzz in the product importing business: The Chinese manufacturers that many online retailers buy from are now selling directly on Amazon and eBay. Naturally, these retailers are asking, “How do we compete?”

In fact, Amazon reported that direct-merchant sales by Chinese companies doubled. Plus, with sales on the Amazon US site increasing ten-fold from 2012-2015, an increasingly larger portion of those sales are being made directly by Chinese manufacturing and importing companies.

While some who sell products on Amazon and eBay are discounting, or downright ignoring, this trend – be advised – this is not a mere rumor! We know for a fact that Amazon is soliciting manufactures in China to import products directly to the US, because they have solicited personally us in China, as well as many of our factories and friends who do business there. Amazon has a team that goes to the factories and suppliers in China and solicits them to sell to consumers on Amazon US.

Competing Against Direct Chinese Importers

For many, increased competition is frightening. On the other hand, competition can be healthy, and helpful. After all, many of the companies that import products directly to the US consumer must overcome obstacles that you do not, including: language barriers, marketing techniques, cultural differences, extended shipping times, and poor customer service.

As a US-based product importer and online retailer, these obstacles for a foreign importer become opportunities for you; the chance for you to prove to potential customers the advantages of buying locally – that the value of doing business with is far more important than the price of a product.

If there is anything we’ve learned in our 35 years of importing products to the US marketplace, it is this… A quality product combined with quality service will, more often than not, overcome the focus on price alone.

 

[/et_pb_text][et_pb_cta admin_label=”Call To Action” button_url=”https://privatelabeluniversity.com/fast-track-bootcamp-to-private-labeling-the-perfect-product/” url_new_window=”off” button_text=”Give Me Access!” use_background_color=”on” background_color=”#4f2363″ background_layout=”dark” text_orientation=”center” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_button=”off” button_letter_spacing=”0″ button_use_icon=”default” button_icon_placement=”right” button_on_hover=”on” button_letter_spacing_hover=”0″ saved_tabs=”all”]

If you like what you are reading, you would love our
FREE 5 day bootcamp to private labeling!

[/et_pb_cta][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]

Beyond these points, Chinese companies trying to sell on Amazon must also deal with more difficult hurdles:

• They can only ship smaller, light-weight items which cost less to ship.
• Takes much longer to ship direct to customer and, the typical Amazon customer is used to quick delivery times and do not want to wait – not even for a “better” (lower) price.
• Harder to fulfill orders as, once a product runs out on FBA (Fulfillment by Amazon), it takes longer time to get to fulfillment center to replenish and will lose sales.
• Harder for foreign importers to set up Amazon account than if they live and do in the selling country.
• Tax issues if selling FBA will be a nightmare and too much work, and expense, for many foreign importers.

As the globalization of the marketplace continues you would do well to keep in mind that, while virtually anyone can sell in the virtual marketplace, that marketplace is massive – with billions of potential customers looking for products for any number of reasons and to satisfy any number of needs. Yes, some will focus exclusively on price, but many more will be seeking value.

While it may be true that your Chinese supplier is now your competitor on Amazon, keep in mind that, as a US-based online product seller, you have a number of distinct advantages when competing with them. Use those advantages to your own benefit, as well as to the benefit of your customers.

If you’re looking for the help you need to compete in today’s global marketplace, with the perfect product to sell online against global competition, contact us today!

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]