Developing a cost-efficient business module is vital to your success as an Amazon Seller. Cost efficiency and scaling cannot be overly stressed. At Rosenbaum Famularo, P.C., the law firm behind AmazonSellersLawyer.com, we consistently preach the benefits of being financially responsible to both profitable and established Amazon sellers. Advanced sellers and Amazon sellers that are new to the Amazon marketplace need to carefully expand their entrepreneurial horizons.
Rosenbaum Famularo, P.C., are focused on Intellectual Property Law and Amazon Account Suspensions. The law firm that created Amazon Sellers’ Lawyers is dedicated to providing its clients with the most useful and newsworthy information. The law firm hopes that the content we provide helps Amazon sellers build better Amazon businesses.
Amazon sellers’ Intellectual Property is often an Amazon seller’s face of their business. Amazon sellers need to preserve and protect their intellectual property rights. Protecting intellectual property rights is one of the most important facets of running a successful Amazon account based business.
For that reason, Rosenbaum Famularo, P.C.’s website, AmazonSellersLawyer.com has taken the liberty of assembling this ongoing series of literature that lists some of the world’s up-and-coming production epicenters. We hope that our series of articles will provide Amazon sellers with information that will help Amazon sellers make more money.
In the first installment of our series, Rosenbaum Famularo, P.C., examined alternative manufacturing hubs to China.
The first country discussed is Malaysia. For Amazon sellers, Malaysia is an unconventional – but up-and-coming – country that could be the answer to your financial successes.
Indonesia – Sourcing In A G-20 Country That’s Not Named China
If you haven’t considered turning to Indonesia for manufacturing help in the past, the next couple of paragraphs may convince you to research the opportunities available to Amazon sellers.
Let’s start with the basics that any Amazon Seller should know:
- Out of the entire region of Southeast Asia, the archipelago nation of Indonesia has the largest economy;
- Malaysia represents one of the more populated areas of the world. Malaysia has the world’s fifth largest population behind only the culmination of the European Union;
- There is a sense of political stability and political transparency in Indonesia, unlike China, which has political stability, but very little transparency;
- Similar to China, the country of Indonesia boasts an economy that ranks in the top ten in terms of gross domestic product (GDP) by purchasing power parity and is part of the economic super-league known as the Group of 20.
- As part of the G-20, Indonesia seems devoted to strengthening their country’s economic resilience and domestic financial stability from any possible negative global impacts.
The most enticing factors to Amazon sellers of all are two advantages of Indonesia:
- The economy’s projected growth and;
- The cost of wages per worker.
Projected Growth: In Indonesia, there is an expected rise of nearly 90 million Indonesians joining the consumer class by around 2030. With more consumers comes more consumer spending power. Consumer companies and prospective manufacturing accounts can be extremely optimistic with this outlook considering the fact that it means an additional $1 trillion dollars in annual spending money will flood the marketplace. These facts make this country a great place to build products and, hopefully one day, a market to sell in;
As for wages, this should be a primary selling point alone because the average cost of operation is nearly $246.00 (per United States Dollar). This is significantly less than China’s cost of labor according to minimum wage standards. Think about that! When your operating cost differential is nearly 63% of China’s standard minimum wage, you must consider how to look out for your Amazon selling account in the most effective means possible.
Amazon sellers – you can have our products manufactured in Indonesia … and the foods will cost less than the same goods being made in China.
Michael Joyce is a contributing writer at Amazon Sellers’s Lawyer, a burgeoning legal service exclusively protecting Amazon sellers from complaints, seller account suspensions and marketplace violations.