Sourcing for Amazon is not the same as sourcing for a wholesale channel. Margins are thinner, launch windows are tighter, and mistakes surface publicly — in reviews and in seller-account metrics — within days of shipping.
Context
Why Amazon sourcing is different
- Fulfillment by Amazon (FBA) has strict packaging and labelling rules; a supplier who does not meet them causes rejected inbound shipments.
- Every listing lives or dies by first-30-day reviews — quality tolerance is effectively zero.
- Product-liability exposure sits with the seller, not the factory. Compliance (CE, FCC, CPSC) is your responsibility.
- Restock lead time is a competitive metric; a 40-day sea shipment plus a 10-day FBA check-in decides whether you go out of stock.
- Category-restricted products (batteries, cosmetics, food) require additional documentation the factory may not have.
Workflow
Product research to supplier match
01
Validate demand before sourcing
Use Amazon search volume, competitor review count, and price-band analysis to confirm the product is worth building. Do not ask factories to quote a product you have not proven.
02
Write a real specification
Bullet points, drawings, tolerances, packaging spec, and Amazon-side requirements (barcode placement, poly-bag suffocation warning) — all in one PDF.
03
Shortlist and quote
Three suppliers minimum. Ask the same questions in the same order. Compare answers, not just prices.
04
Sample and stress-test
Paid samples that match the specification word for word. Drop-test, wash-test, or open-close 500 times as appropriate for the product.
05
Small trial order
First PO 100–500 units. Ship half to FBA, keep half for backup. Verify FBA inbound acceptance before committing to a full container.
06
Scale on proven ground
Only after the trial order sells through with 4.3+ star average do you place the volume PO.
Costs
A realistic cost breakdown
For a $25 retail-price product with a 30% gross margin target, plan on the following per-unit costs:
- Product cost (FOB) — $4.50–$6.00 depending on complexity.
- Sea freight and duty — $1.00–$2.50 depending on volume.
- FBA inbound and storage — $0.50–$1.00.
- Amazon referral fee (15%) — ~$3.75.
- Amazon FBA fulfillment — $3.50–$5.00.
- PPC and coupon budget — $2.00–$4.00.
- Remaining margin — $2.50–$7.00 per unit.
Questions
Common questions
Should I ship directly to FBA or to a 3PL first?
For a first order or a new supplier, ship to a 3PL. It gives you a chance to inspect, relabel, or reject defective units before Amazon receives them. Direct-to-FBA works once the supplier has proven three consecutive clean shipments.
How much should I budget for a launch?
$3,000–$8,000 covers a modest launch: 300–500 unit trial order, FBA fees, and 60 days of PPC. Anything below $3,000 leaves no room for the mistakes every new listing makes.