Amazon FBA 101 Part 3: How to Source Products to Sell on Amazon

Establishing a good relationship with an Amazon supplier is critical to producing high-quality items. 

How exactly? 

Because good supplier connections increase your chances of obtaining new items in development, a greater level of customized service, preferred pricing, and even unique terms, these factors add up to greater overall product quality.

When you consider that 53% of customers believe quality is essential when purchasing a product, high-quality items result in more sales and a stronger business. And increasing the quality of your suppliers is one of the first steps toward improving the quality of your products.

Here’s what our experts advise for building strong supplier relationships:

• Stick with a few key suppliers. By focusing on a few important suppliers with whom you can develop deeper relationships, you can better use those ties when they are needed. This may seem especially tough if your supply chain is extensive.

It is advised that you diversify your overseas supplier base slightly more to avoid risks associated with political instability or natural disasters. According to Supply Chain Review, around 55% of international suppliers would be unable to sustain their workflow in the event of a disaster. Thus it’s critical to plan for the worst-case scenario.

• Understand how your suppliers work. As emphasized by the Harvard Business Review, developing insights and knowledge of your supplier’s operation provides several benefits. This demonstrates both respect for their business and a desire for co-prosperity. It implies that you’re committed to creating a partnership that benefits both of your businesses.
• Talk through misunderstandings. When an unavoidable misunderstanding or issue arises with a supplier, conversation is critical to resolving the issue successfully. For example, perhaps they supplied you with a batch of substandard ingredients, or you’re experiencing cash flow or payment collection difficulties. 

Whatever the situation, being open and honest helps stop it from escalating and creating irreversible harm to the relationship. Therefore, pursuing a resolution that satisfies both sides is a critical component of the supplier relationship management process.

• Provide proper and honest feedback. When feedback is provided frequently and covers both triumphs and faults of a supplier, it is viewed as a natural extension of the supplier relationship. Additionally, it indicates a dedication to collaboration. This enables vendors to address concerns more quickly.
• Meet your suppliers face-to-face. Despite living in a digital age dominated by email and text, try meeting your suppliers in person.

It does not have to be an extended visit. A simple factory tour and lunch may go a long way. While you’re there, attempt to learn more about them personally and then utilize that information to strengthen the friendship.

• Be honest and integral in your actions. Suppliers who trust you, like with any relationship, will treat you more fairly. Refrain from using even a small white lie to get a provider to behave. 

Always act reasonably and with integrity toward others, and you’ll discover that they’re more inclined to reciprocate. Additionally, do not be scared to shed light on difficult circumstances. Simply remember to keep your attention on solutions rather than issues.

• Keep cultural differences in mind. Whether you work with domestic or foreign suppliers, understanding your supplier’s cultural nuances will help you develop a strong connection. 

By asking questions and listening closely, you can ascertain how people see respect and set boundaries. This can aid in the development of a positive rapport and the long-term stability of your partnership.

• Build a long-lasting partnership. Bear in mind that your connection with suppliers is bidirectional. As long as you treat them as partners rather than subordinates, you should be on your way to establishing a customer-supplier relationship that both sides value for their continued success.