The practice of sourcing products for sale on Amazon directly from manufacturers and suppliers located in China has become a prevalent business model. This approach circumvents traditional import/export channels, enabling sellers to potentially secure lower prices and greater control over their product sourcing. For example, a seller might establish a relationship with a factory in Shenzhen to produce custom-designed electronics, subsequently listing them for sale on Amazon’s marketplace.
This method offers the potential for increased profit margins due to reduced procurement costs. It also grants sellers the opportunity to establish their own branded products, differentiating themselves from competitors offering similar goods. Historically, such direct sourcing was the domain of large corporations with established supply chains; however, the advent of e-commerce platforms and online communication tools has democratized access, making it feasible for smaller businesses and individual entrepreneurs. This shift has significantly impacted global trade dynamics and reshaped consumer purchasing patterns.