Believe it or not China is not the only country you can source products from. In fact, depending on the products you want to sell, it may not even be the best option to source from. Lokesh Parahsar of ADK India is joining me to share the inside scoop on Indian factories and why it may make more sense to source in India! One caveat for a newbie seller is that there is no central online hub for factories and sellers to communicate within the Indian market. If you're looking to DIY your factory search and communication, just know you'll be giving the Google beast a good...
Believe it or not China is not the only country you can source products from. In fact, depending on the products you want to sell, it may not even be the best option to source from. Lokesh Parahsar of ADK India is joining me to share the inside scoop on Indian factories and why it may make more sense to source in India!
One caveat for a newbie seller is that there is no central online hub for factories and sellers to communicate within the Indian market. If you're looking to DIY your factory search and communication, just know you'll be giving the Google beast a good workout.
However, for any product that needs increased time spent or detailed work, Indian factories are better equipped to handle higher level requirements. Things like textiles and detailed workmanship have a better return because the culture in Indian factories is different and more directed to quality craftsmanship.
Listen as Lokesh shares why you should never pay a factory any money until all paperwork is completed and why it's important to enlist the help of broker relationships. He has been in business for himself since the early 90s and his knowledge of the Indian market is superb. China is not the end all be all in sourcing products. Learn why!
In This Episode:
[00:34] Welcome Lokesh to the show to chat about product sourcing.
[02:46] Learn more about Lokesh and his background.
[05:04] Do Amazon sellers only need to source from China versus any other locations?
[07:25] Are there certain products that make more sense to source in India versus China?
[08:57] What is the difference between labor costs in India versus China?
[10:32] Learn what it would look like to start conversations to source in India for a beginner.
[13:08] If you have found a factory in India, do not exchange money until you've done in-depth research and have a signed non-compete agreement.
[14:58] Should you still have a non-compete if the Indian factory already has the product available?
[17:59] Where do inspections come into the equation?
[19:54] What does the process look like to work with ADK?
[22:25] How you can connect with Lokesh.
[23:14] What's the difference between researching on your own versus hiring a company like ADK?
[25:28] Once ADK finds a factory, can the seller take over the communication?
[27:53] Does ADK help get products from the factory to the seller?
[29:42] What is the biggest mistake new Amazon sellers make when sourcing in India?
[32:53] Connect with Lokesh and hear what his favorite book is and why.
Links and Resources:
Wizards of Amazon
Wizards of Amazon Courses
Wizards of Amazon Meetup
Text "Amazon" to 69922
Wizards of Amazon on Facebook
Wizards of Amazon on Instagram
Wizards of Amazon on LinkedIn
Wizards of Amazon on Twitter
lp@adkindia.me
Lokesh on LinkedIn
An Autobiography: The Story of My Experiments with Truth by Mahatma Gandhi
TEMPLATE NO. 1
- Can you provide a reference of your work?
- Where are you based in India?
- How many employees work in your company?
- Which type of clients do you work for?
- Which cities do you cover in India?
- What type of products do you specialize in?
- How do you get paid?
- Are you familiar with the specific needs of e-commerce and Amazon sellers when sourcing and shipping
Products?
- Do you work on weekends?
- How do you handle claims?
- Do you sell on Amazon yourself?
- Do you have products that can be shipped in less then 30 days?
- Do you work with other forwarders or use only your nominated ones?
- Do you have in-depth knowledge of smart packaging for Amazon products?
- Do you know international standards of compliance for different products?
- Normally how big orders do you have from other buyers?
- Are you comfortable with small orders taken on priority?
- Do you think you have enough time to ship my small order on time?
TEMPLATE NO. 2
- What kind of suppliers do you use?
- How do you vet or verify your suppliers? What are your requirements for a good supplier?
- How do you handle contracts between your clients and your suppliers? What is your way of working?
- Are you sourcing from Alibaba?
- Are your suppliers selling on Amazon?
- Do you have a specific product categories or niches that you specialize in?
- Can I expect the best prices from you?
- Do you work directly with actual factories?
- Do you receive a commission from your suppliers?
- Do you operate out of India?
- Where are you based?
- Do you source outside of India?
- Can you check/ship various samples for us?
- What are your office hours?
- Do you provide the contact information of your suppliers?
- Do you provide option for full service sourcing?
- What is the pricing structure for your sourcing services?
TEMPLATE NO.3
More Questions and Answers
Are you capable to sell to Amazon Sellers?
What is your official address, email?
Do you show your products at the Delhi Gift Fair or any other Fair?
How many years is this business?
How many employees do you have?
May we visit your factory?
From what ports do you ship?
Can you consolidate shipments with another factory?
Can your company make items from our designs?
Do you have your own designer?
Are you an exporter or trading company, factory, or other?
What are your MOQs?
What is your MOA per order?
How many new products do you introduce each show (twice a year)?
What type of products do you mostly sell?
What season products do you produce?
What materials do you have ability to use in production? Resin, iron, wood, led, etc
What other US companies do you sell to? Retail or Wholesale?
What is your quality control process? Example: ISO9001 or please list.
Who is your contact person in the chain of command starting from the dealing manager to the boss at the company?
What is your shipping time from purchase order?
Have you been able to ship on contract date?
If not, what is the most accurate length of time?
Few Personal Questions can make it more interesting:
- What are the National Holidays in your Country?
- Q. How do you like to spend your weekends?
- Q. What are your favourite type of food, music or movies
- Q. Do you have specific work hours when you feel most productive?
- Q. What is the best day per week to meet online on skype/zoom/another video platform?
- Q. What is the preferred way for you to communicate with me on day to day?
- Q. How do you see yourself helping me grow my business?
Podcast editing and show notes by Pro Podcast Solutions.
