Originally published on February 20, 2018, updated December 7, 2022
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For some, selling on the Amazon marketplace is a passive income source. But with the right products, this passive income can overtake your active income. You just need to find the correct products.
So how and from where do you source these items? This depends on your preference regarding which kind of products you want to sell and what kind of business you want to do. In this blog post, I'll share my insight on the subject of sourcing (in particular, from India).
Sourcing products from Asia is often a popular path. Items are comparatively cheaper than American products for similar quality. To keep the price low and margins high, many successful Amazon sellers source products from Asian markets.
Thanks to the internet, you don’t need to physically visit the Asian markets to source products. With Alibaba and AliExpress reigning in the Chinese wholesale market, it is very easy to source Chinese products. But most of the products on these sites are already available on Amazon.com, and with news about the U.S. government planning to add a tariff on Chinese imports, the future doesn't look bright.
For better prices, look for items that haven't already saturated the eCommerce market and come from countries that comply with U.S. policies and standards. One of the best options is the Indian market. Still unscathed and comparatively cheaper (if you know where to shop) than the Chinese markets, India is one of the best places for sourcing products.
In recent years, India has developed as a manufacturing hub. Many global organizations outsource their work to India and import Indian goods. With labor charges less than 10 times the cost when compared with the U.S. and Europe, Indian products are significantly cheaper with few, if any, compromises in quality.
Here are a few categories to consider sourcing from India:
Leather products: Indian leather is world-famous, as are Indian leather products. Many multinational companies in this niche get their goods manufactured from India. (I have personally seen this.) The manufacturing cost of one high-quality leather belt is around $1 and its wholesale rate is around $2. I've seen belts like these sell for around $20-$30 on Amazon.com. Leather jackets are manufactured at the cost of $12-$25. So sourcing leather products like belts, shoes, jackets etc. is a great way to get started.
Textiles: The textile industry is also very well known. Products like stitched and un-stitched clothes, bed sheets, curtains, etc. can be purchased cheaply, thereby preserving a higher profit margin.
Jewelry: About 20% of the world's gold production is consumed by India. Much of that amount goes into manufacturing jewelry. India’s jewelry sector is backed by the government and banks. If you want to try to manufacture jewelry, then India is a prime sourcing location. Imitation jewelry also plays a huge role in the Indian jewelry sector. The manufacturing cost of imitation jewelry starts with as low as Indian Rupee (INR) 10-15 - or well under $0.25 - for items that can be easily sold on Amazon.com for more than $5.
Other product categories to consider sourcing from India include kitchenware, handmade items, toys, bags, and stationery.
Establishing good working relationships with suppliers is key. Even though importing products from India is extremely reasonable, there are certain points you must keep in mind. Always enlist the assistance of a trusted local. Before importing products, make sure your supplier is genuine. Try to have an associate or a local verify your shipments and make sure your shipments are insured.
Originally published on February 20, 2018, updated December 7, 2022
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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