1. Choose Your Product
- Identify a profitable product that fits your niche.
- Consider: demand, competition, size/weight (affects shipping), and U.S. regulations.
- Use tools like Jungle Scout, Helium 10, or Viral Launch to analyze Amazon sales data.
2. Find a Reliable Supplier
- Platforms: Alibaba, Global Sources, Made-in-China, or direct factory contact.
- Check: production capacity, certifications, quality standards, and trade history.
- Request samples to test quality before placing a bulk order.
3. Understand U.S. Import Regulations
- Verify product compliance with FDA, CPSIA, FCC, or CPSC if applicable.
- Correct HS code classification to calculate duties and tariffs.
- Know Section 301 tariffs on Chinese goods (varies by product category).
4. Calculate Landed Cost
Include:
| Component | Example |
|---|---|
| Product cost | $2/unit |
| Shipping (air/sea) | $0.50/unit |
| Customs duty | $0.60/unit |
| Insurance | $0.01/unit |
| Amazon FBA fees | $2/unit |
| Marketing | $1/unit |
| Returns & refunds | $0.10/unit |
| Total Landed Cost | $6.21/unit |
- Helps you price competitively while maintaining profit margins.
5. Decide on Shipping Method
- Air freight: Faster (5–10 days), more expensive.
- Sea freight: Cheaper for large orders (20–40 days).
- Courier (DHL, FedEx, UPS): Best for small parcels or samples.
- Include De Minimis rules for low-value parcels (<$800 may be duty-free for some shipments).
6. Choose Amazon Fulfillment Method
- Fulfillment by Amazon (FBA): Amazon handles storage, packing, shipping, and returns.
- Fulfillment by Merchant (FBM): You handle storage and shipping.
Tip: FBA simplifies logistics but comes with fees; FBM gives more control.
7. Handle Customs Clearance
- Provide necessary commercial invoice, packing list, and bill of lading.
- Use a customs broker to navigate U.S. import duties, tariffs, and compliance.
- Ensure accurate HS codes and product descriptions.
8. Create Your Amazon Listing
- Optimize title, bullet points, and keywords for search visibility.
- Include high-quality images and accurate product descriptions.
- Factor in shipping times and inventory levels.
9. Manage Accounting & Taxes
- Track all expenses: product cost, shipping, duties, Amazon fees, advertising, and returns.
- Software recommendations: QuickBooks Online, Xero, or Synder.
- Calculate COGS and landed cost per unit for profit analysis.
- Keep records for sales tax compliance and federal/state reporting.
10. Monitor Inventory and Sales
- Track stock levels to avoid stockouts or overstock.
- Use Amazon reports and accounting software to monitor profitability.
- Plan reorder cycles based on lead time from China.
✅ Tips for Success
- Start with small orders to test quality and demand.
- Choose products that comply with U.S. regulations to avoid customs issues.
- Automate accounting and sales tax calculations to avoid penalties.
- Build strong relationships with suppliers for reliable supply.