As the COVID-19 pandemic halts a myriad of production facilities in China, Amazon sellers should consider sourcing products from India. While a multitude of business owners continue to import goods from China, a growing number of retailers are exploring alternative markets, such as India, to diversify their supply chain and reduce risks. In this article, we will talk about the advantages of sourcing Amazon products from India, popular goods you can import, and tips to get started.
Advantages of Sourcing Amazon Products from India
Raw Material Control
Factories in India are stern when it comes to testing, retesting and certifying raw materials. They ensure all products adhere to quality standards.
Apart from these, many Indian factories are equipped with Japanese machinery and equipment, and the majority of their workforce is highly competent and knowledgeable of the current trends and technologies. They also depend heavily upon world-class measurement tools and machines (micrometers, tensile, spectrometer, etc.) that are manufactured in Japan.
Overall, the competence of Indian workers and their sophisticated machines makes it achievable to produce stellar materials at minimal cost.
One of the biggest benefits of importing goods from India is that the country specializes in manufacturing unique and handcrafted items not found in other markets. Each state has its own style, wood carving, fabrics and so many more. While handmade items come at a higher price, you earn higher profit potential in return.
Additionally, most suppliers in India are meticulous and protective about their designs, ensuring that their designs are not only attractive but also exclusive. Indian suppliers are also known for developing and showcasing innovative products they have built in-house through trade shows. They rarely maintain updated online catalogs in fear of getting their designs copied by other suppliers. When attending trade shows, exhibitors often prohibit customers and visitors from taking photos or videos of their products.
India has lots and lots of engineers, scientists and technicians – talented, bilingual professionals to boot! Skilled manpower, strong design, and R&D capabilities are advanced and abundant. The workforce is not just skilled, but cost-effective as well.
Plus, a large labor force of over 400 million skilled and unskilled workers certainly doesn’t hurt for manufacturers. As a matter of fact, data shows that 4.75 million people join India’s workforce every year. This is definitely something Amazon sellers can take advantage of.
Speaking of labor cost, India offers competitive advantages because it has lower wage structure and quick access to a vast labor market. For instance, the average minimum wage for contract workers in India is US$148 per month (Rs 10,000) which is cheaper compared than China (US$234/month).
With English as the second official language in India, nothing is lost in translation. According to a recent statistics, an impressive 125 million Indian residents speak English. Thus, it is easier to do business with Indian suppliers as most of them can converse well in English, some of course are more fluent than others.
This also means that hiring translators is unnecessary when communicating with suppliers. Additionally, their ability to communicate in English is extremely helpful if you are creating or modifying a product to private label, or joining a trade show in India.
Small Orders are Allowed
There are many small to medium sized factories in India, which means suppliers are willing to accept small orders, sometimes as low as 20 pieces.
This is certainly a huge advantage for individuals who are just starting out in the Amazon marketplace with a shoestring budget. This is also a great help to seasoned retailers who want to test a new product line and don’t want to shell out too much cash on trying out new products. Private label Amazon sellers can also benefit from ordering limited number of goods from India as it is cost-effective.
Best Amazon Products to Source from India
Now that you have gotten a good idea why India is quickly becoming a premier destination for product sourcing, let’s find out the most sought-after Indian products.
Home Décor and Home Products
Every state in India is known for a specific wooden art form. For instance, Rajasthan is popular for carving items from rosewood, such as:
- Chess boards
The indigenous people of Arunachal Pradesh are highly admired for their exquisite handicrafts made of sal, teak and oak woods, such as:
The ethnic group of Andhra Pradesh are well-known for making items out of sandalwood, such as:
- Traditional dolls
Other elegant wooden items that are highly in-demand in India include:
- Jewel boxes
- Lamp shades
- Walking sticks
Besides wood, a lot of artists in India craft items out of metal, ceramic, clay, paper, embroidery and glass.
Did you know that India is the second largest producer of footwear and leather garments across the globe? Here are some leather goods made in India with soaring sales in the U.S., Europe and other Amazon markets:
In terms of mass production and affordability, jute comes second to cotton. It has countless of uses and can be made into lovely products, such as:
Coir is a natural fiber extract from coconut husk, which provide lots of uses in gardening and home products. As more and more consumers seek “green products”, it is a big advantage for Amazon sellers to offer natural and eco-friendly goods. Sought-after jute items include:
- Upholstery stuffing
Other Key Categories Sellers can Source from India
Home Furnishings and Made-Ups: Bed covers and linens, bedspreads, cushion and duver covers, throws and curtains, table covers, and placemats
Fashion: Jewelry (especially made of gold) and accessories, scarves, bags and precious gemstones
Textile: Silk, jute, wool and man-made fibers
Gifts and Stationery: Christmas and holiday décor, candles, incense sticks, potpourri and aromatics, decorative and corporate gifts, stationery and paper
Eco-friendly Products: Cane, bamboo fiber, and other natural eco-friendly items
Tools: Gardening, hand, automobile and agricultural tools
Food: Rice, pork, buffalo meat, spices, lentils, tea and coffee
Artware: brass, glass, wooden and stone artware
Dairy Products: Bos Indicus milk, cheese, curd and ghee
Organic Supplements and Medicines: Honey, fruit and vegetable juices, herbs, Ayurveda products, essential oils
Sports Products: Gym equipment (e.g. fitness cycle, slimming machines, multi-press machine, treadmill, elliptical, etc); sport equipment (e.g. cricket bat, gymnastics bench, steel pole, hockey goal net, football poles, etc)
Most of these products not only get healthy demands but also generate decent returns. So if you are looking to start sourcing from India, you better start now.
Sourcing Amazon Products from India: Finding the Right Suppliers and Manufacturers
When looking for Indian suppliers to help your own business in whatever capacity, we suggest that you begin your search for a partner with these five companies and websites:
Tata Consultany Service: Given its huge size, Tata serves as the leader in all domains across India. Although its primary business line is IT, their reach extends to automotive and aerospace/defense, steel, manufacturing, and engineering.
Global Sources: This is the ultimate hub of manufacturers and suppliers in India that provides partnership recommendations to businesses looking to source goods from the country.
TradeIndia.com: One of the largest and most comprehensive directories of Indian manufacturers classified into various categories.
India Mart: Is considered as India’s largest online B2B marketplace that connects buyers with suppliers. It focuses on providing a platform to small & medium enterprises (SMEs), large enterprises as well as individuals.
Outsource2India.com: Provides an array of outsourcing services, but is a great starting point if you are seeking engineering expertise in India.
Success in eCommerce doesn’t always come easy. Amazon retailers who are resilient, hardworking, and have the ability to think outside of the box seemingly gain more than their share of success.
If you need help with streamlining your suppliers’ data, our Suppliers Analysis tool can keep all your supplier information protected and organized all in one place.
As you navigate through these uncertain times, our team at SellerMobile is here to help. Contact us today so we can discuss your Amazon business needs and find the best solution that fits your budget, goals and lifestyle.