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Product sourcing is where most Amazon FBA profits are made or lost. A great listing cannot fix a supplier who misses deadlines, ships inconsistent quality, or creates compliance issues that strand your inventory.
This guide breaks down a practical, repeatable sourcing workflow you can use to find suppliers, compare sourcing countries, control quality, choose safer payment terms (including T/T), and plan shipping, duties, and tariff calculations before you commit to a large order.
Written by SellerSprite Sourcing Team
Our team includes former Amazon sellers and supply chain analysts who review sourcing workflows daily. We focus on supplier vetting, quality control, and cost planning to help new sellers reduce avoidable losses during their first sourcing cycles.
Key Takeaways
Table of Contents
If you want sourcing to feel predictable, treat it like a workflow rather than a one-time search. The goal is not to find "a supplier". The goal is to confirm repeatable quality, stable costs, and reliable delivery to Amazon FBA.
Expert note: The most expensive sourcing mistakes happen before you place the first PO. If steps 4 (samples) and 6 (inspection plan) are vague, your "cheap" supplier can turn out to be your most expensive decision.
Start with clear specs, not only a product idea. Your supplier can only deliver what you can describe and measure.
Most sellers rely only on one directory. That narrows options and increases pricing risk. Use at least two channels so you can compare.
A sample from an unvetted supplier can waste weeks. Vet first, so your sample round is meaningful.
Samples are not only "does it work". Samples should validate durability, packaging quality, and whether the product matches listing promises.
A lower unit price is meaningless if defect rates rise or lead times slip. Negotiate for stability and clarity, not only for "cheaper".
You should decide on inspection checkpoints before your supplier is "done". Otherwise, you lose leverage.
Shipping choices change both cash flow and risk. The same product can become unprofitable if you misjudge freight or tariff calculation.
Your first shipment is a test run. Document what broke, what was late, and what costs surprised you, then fix the system before the second order.
There is no universal "best country". The best choice depends on product complexity, speed needs, MOQ tolerance, and tariff exposure. Use this table to compare options with the same criteria.
Sourcing country comparison (quick answer)
FBA sourcing cost is not the unit quote. Your landed cost is what matters because that is what your margin is built on.
Margin warning: If your margin only works when freight is "cheap", you do not have a stable product. Build a buffer for shipping and defects.
Payment risk is a sourcing risk. New sellers most often lose money from wiring to the wrong beneficiary, accepting last-minute bank changes, or paying final balances before inspection.
Most sourcing guides focus on "finding factories". Beginners need the risk layer: what can destroy your listing, cash flow, or brand.
High-risk zones to watch: IP theft and copycats, quality drift after sample approval, forged certificates, and supplier-driven payment fraud. Build controls before you scale.
If your category is regulated, "my supplier said it is certified" is not enough. Ask for the exact document types your marketplace requires and verify key details.
Shipping is not the last step. It is part of product viability. If your product is bulky, heavy, or fragile, your freight profile can erase profit.
The examples below are transparent, practical scenarios based on common patterns we see among new FBA sellers. Use them as decision models for cost, risk, and process discipline.
Case Study 1: "Cheap quote" becomes an expensive launch
A new seller sourced a kitchen accessory with a unit quote that was 18% cheaper than competitors. They skipped pre-shipment inspection to save money and paid the final balance before production photos were verified. The first shipment arrived with a 9% defect rate, mostly cosmetic cracks and packaging damage. Returns and replacements consumed roughly 22% of the first month's revenue. The seller then had to reorder packaging inserts and reinforce cartons, increasing landed cost by $0.38 per unit. After the fixes, the defect rate fell below 2%, but the initial launch lost momentum, and reviews were mixed.
Case Study 2: Payment fraud avoided with a simple rule
A seller placed a first PO with a supplier and planned to pay a 30% deposit by T/T. The supplier later sent a message claiming their bank had changed and requesting a new beneficiary name. The seller refused to update payment details without a verified call and official documentation. A second channel confirmation revealed the message came from a compromised email account. The seller switched to a protected payment method for the first order, completed samples, and then used T/T only after verified contracts and inspection gates were in place.
Q: What is the best way to start sourcing for Amazon FBA?
A: Start with a written spec, a target landed cost, and a shortlist of at least 3 suppliers. Vet suppliers before sampling, then lock your final sample and inspection plan before you pay the final balance.
Q: What does "landed cost" mean for FBA sourcing cost?
A: Landed cost is the total cost to get a sellable unit ready for FBA. It includes product cost, freight, duties, inspections, packaging, and prep. Use landed cost to set pricing and margin expectations.
Q: Is the payment method T/T safe for first orders?
A: T/T can be safe after verification, but first orders are riskier. Use strict beneficiary verification, reject last-minute bank changes, and keep an inspection gate before final payment whenever possible.
Q: How many suppliers should I sample?
A: For most products, sample 2 to 3 suppliers. The goal is to compare quality, communication, and process maturity, not just unit price.
Q: When should I use a sourcing agent?
A: Use an agent when the product is complex, the factory is hard to verify, or you need on-site audits and inspection coordination. Agents help most when you have a clear spec and decision criteria.
Q: What is the biggest quality mistake new sellers make?
A: They approve a sample without writing measurable specs and then assume production will match. Without spec lock and inspection gates, quality drift is common.
Q: How do I estimate tariff calculation for my product?
A: Start with likely HS code ranges, confirm origin and destination, then ask a customs broker to validate duty assumptions. Add a buffer because classification and rules can change.
Q: What Incoterm should a beginner use?
A: Many beginners start with FOB because responsibilities are clearer than EXW. DDP can look convenient, but it can hide costs. Confirm who controls customs, duties, and delivery details in writing.
Q: How do I reduce IP theft risk when sourcing?
A: Share branding assets only after agreements, keep differentiation in packaging and spec, and avoid sending complete launch plans to unverified parties. Consider design protection if your differentiation is structural.
Q: What should I include in a PO to protect myself?
A: Reference the approved sample, attach spec sheets, define defect thresholds, specify packaging rules, and include remedies for failed inspection or late delivery. Put it in the PO, not only in chat.
Q: How do I know if my product is viable before sourcing?
A: Validate demand, competition, and margin with your landed cost. You can do research with SellerSprite or manual methods. The workflow is the same: verify demand, map competition, then price with cost buffers.
Q: What is a reasonable inspection strategy for the first order?
A: For the first order, prioritize a pre-shipment inspection and do not release final payment until results are acceptable. Add during-production inspections for complex products or new factories.
Join the SellerSprite community on the Facebook Group to share your sourcing journey, ask questions, and get support from fellow Amazon sellers.
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