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India Sourcing Network

Benefits of sourcing from India for Amazon FBA

Benefits of Sourcing from India - Unique Products, Sustainable Production and More​

If you are an Amazon or e-commerce seller, you need to consider sourcing your private label products from India. 

Leading global brands and retailers such as IKEA, Gap, Walmart, Woolworth, Ralph Lauren, TJ Maxx and many others have been procuring products in India for a long time. It is now time for global online sellers to discover the unique products India has to offer.

Let’s take a look at the top benefits of importing from India. 

Unique, differentiated products

One of the main reasons to source from India is the plethora of unique and handcrafted products not found in other countries.

There are a wide range of handicraft styles that are unique to India.

Block-printed fabrics, high quality beaded Christmas decorations, coir doormats, exquisite metal and  wooden home decor items, handmade paper, embroidered fabrics, and a host of eco-friendly products. 

These are just a few of the items available from India. Many of these handcrafted products are made by skilled artisans, and the skills have been passed down from one generation to another. 

In the fabrics category, there are hundreds of unique and innovative fabrics that can be found in India. In fact, each state in India specializes in specific types of fabrics that are unique in terms of the way they are woven, the embellishments used, the embroidery or the printing techniques. 

The advantage of selling such differentiated products is they can command higher prices and therefore have higher profit potential.
 

This enables you to differentiate and stay away from highly competitive low-margin products with cut-throat competition.

Eco-friendly products and sustainable production

An increasing number of manufacturers in India are focusing on making eco-friendly products, and many are also producing them sustainably.

Virtual India Sourcing Show supplier, Go Green Textiles, for example, produces organic cotton products and their entire factory runs on solar panels. 

StudioBeej produces eco-friendly fashion products made from plant-based materials such as cork, cactus and pineapple fibers. All the accessories and packaging they use are also sustainably sourced. They do not use any plastics in their products or packaging.

Fabric and apparel supplier, Five P Venture emphasizes sustainable and fair trade manufacturing. They prioritize the socio-economic well-being of their weavers. Their building runs on solar energy and they have planted 1,000 trees around their studio.

Get better prices with local raw materials

A wide range of raw materials are readily available domestically in India including cotton, silk, jute, marble, metal, wood, bamboo and others. 

Products made from these natural materials are very competitively priced from India.
 
The country is the world’s largest producer of cotton and accounts for 26 percent of global production. 
 
In the financial year 2019-2020, India produced an average of 6,423 thousand metric tonnes of cotton making it the world’s highest producer. 

Cotton has been used in India for thousands of years and early origins of its use have been traced back to the Indus Valley civilization that lived in the northwestern regions of South Asia. Thanks to its favorable climate, the majority of India’s cotton is produced in the states of Maharashtra, Gujarat and Madhya Pradesh.

Place small orders

Since a lot of the products are handmade, suppliers are usually willing to cater to small orders.

While minimum order quantities typically range from 200-500 units, suppliers do cater to orders as low as 50 pieces without major customization. 

This is definitely a huge advantage, if you’re just starting out with a small budget or if you’re an experienced seller and want to test a new product line.

Diversify sourcing to minimize business risk

Diversification helps businesses reduce risk and stay afloat during turbulent times.

Sourcing from only one country can be risky as trade disputes or other issues can impact bottom lines, especially if you are selling high-competition and low-margin products.

The US import tariffs on China-made products is a prime example of how government policy can impact import businesses in the blink of an eye.

As an e-commerce business importing private label products, you are exposed to such risks, and 
sourcing diversification is one way to mitigate these risks.

Your IP is safe(r)

One of the main areas of contention in the trade war between the US and China is IP protection. 

But when you source from India, you won’t have to worry too much about your supplier copying your designs and selling them to other buyers. 
 
In general, Indian suppliers have more respect for their buyers’ IP than typical Chinese suppliers.
 
In the unlikely situation that your supplier does infringe your IP, and if you do have a strong contract in place, it is easier to take the supplier to court as legal proceedings in India are in English and the legal system is similar to other common law countries such as the US.

You could ask the supplier to sign a Non-Disclosure, Non-Use And Non-Circumvention (NNN) Agreement if you have a patented or unique product. Download this NNN template and modify as needed. 

Communicate easily

English is the second official language in India, and most people you will deal with at your supplier will speak English, some of course more fluent than others. 

As there are 22 languages in India, each with its unique script, English is the language that unites the country! 
 
This is extremely advantageous when it comes to communicating with your supplier, especially when you are developing or modifying a product to private label. 
 
In addition, you don’t need translators when visiting a trade show in India or talking to suppliers online.

Highlight backstories to differentiate

Many products made in India are handcrafted by artisans who specialize in certain skills that have been handed down through generations.

India has a lot of social enterprises or co-operatives that employ many women from villages for products such as macrame, crochet, basket weaving etc. 

These backstories can add value to your product marketing with videos or images of the products being made in the villages. This is a  great way to differentiate your products and stand out. 

There is also the opportunity to donate a percentage of each sale back to the community or a charity.

When Amazon sellers source products from such organizations, they can command higher prices for the products because of the story behind them. 
India Sourcing Trip at Deepalaya

At India Sourcing Network, we support non-profit Deepalaya that runs low-cost schools for the underprivileged. You too can sponsor a child at Deepalaya. 

Summary

There are plenty of advantages of sourcing from India and this article lists just a few. Of course, there are pros and cons of sourcing from any country and India is no different. 

If you’d like to build a differentiated brand with unique and eco-friendly products, India offers amazing opportunities. 

And India Sourcing Network is here to support you every step of the way.