How to Move Ecommerce Suppliers From China to the US, India, or Vietnam
- Peter U
- May 2
- 7 min read
As of January 2025, one survey shows a record number of US businesses in China are planning to relocate. The primary culprits? Trade tensions and rising tariffs.
After years of relying on China as the global factory floor, American companies are now pulling back. Under the Trump administration, products once affordable to source from China are now about to be burdened with additional tariffs.
In one high-profile case, Apple reportedly flew five planeloads of iPhones out of China and India in just three days to avoid the latest round of tariffs.
Moving your ecommerce suppliers to the US, India, or Vietnam offers clear advantages. Fewer trade risks, shorter supply chains, and (in the case of the US) improved control over quality and intellectual property. However, as Forbes pointed out in August 2024, bringing manufacturing back to the US is easier said than done.
Costs are higher
Skilled labor is harder to scale
Current infrastructure must be rebuilt or adapted
Some things we just don’t currently manufacture in the US
India and Vietnam are strong options as well but:
They have fewer options for suppliers, specifically for highly-specialized products and quality may be inconsistent
Still, for firms with the capital and commitment, moving production stateside or to other parts of Asia could be a long-term strategic win, provided your brand meets the right criteria.
In this article, we’re going to tell you how to switch suppliers to another country like the US and relate a few high-profile movements from large US businesses as well as what you can learn from their moves.
👉 Read our blog on how to adapt to the end of section 321
👉 Read our blog on changes to de minimis and fulfilling outside of China
How to Relocate Your Supplier to the US
Here are five critical areas to cover in your relocation plan:
IP and tooling control – Ensure full ownership and legal clarity before initiating supplier exit.
TCO analysis – Evaluate cost structures beyond labor: logistics, tariffs, and operational risk.
Supplier search – Use domestic platforms like Thomasnet or partner with reshoring consultancies.
Phased transition – You’ll want to gradually shift your suppliers. This allows you to pressure-test your fulfillment processes with different suppliers. A phased rollout helps avoid bottlenecks, spot weaknesses early, and fine-tune your US logistics setup before scaling up fully.
We’re going to walk through each of these more in-depth below.
Step One: Secure Ownership
First, before moving anything, you’ll need to confirm you actually own the molds, tooling, and intellectual property associated with your product.
Many US companies manufacturing in China discover too late that their factory owns the molds or refuses to release them. Before initiating any move, make sure your contracts clearly grant you control of the production assets. If not, try to start consolidating your IP quietly before your supplier finds out you’re thinking of leaving.
Step Two: Assess the Viability of New Suppliers
Next, assess whether your product is viable for manufacturing outside of China. Labor-intensive items with slim margins may not be suitable in places like the US unless they can be automated. To make a smart decision, use a Total Cost of Ownership (TCO) model, which is a method that helps you calculate the real cost of manufacturing in different locations.
TCO goes beyond hourly wages. It includes:
shipping
customs duties
tariffs
inventory holding costs
quality defects
delays
cost of managing suppliers across time zones
For example, a factory in China may seem cheaper at first glance. But if you're paying more for freight, dealing with production delays, or losing money on returns, your total cost could end up higher than with a US supplier.
Investopedia has an article on how this is calculated.
Once viability is confirmed, you can start to identify domestic manufacturing options. This could involve contracting with existing suppliers, acquiring a facility, or building one from scratch. Sites should be chosen based on access to skilled labor, infrastructure, and possible state or federal incentives, such as those offered under the CHIPS Act or the Inflation Reduction Act.
Step Three: Find Suppliers
To look for suppliers, you should look in a few key areas to start.
Online Sourcing Platforms:
Thomasnet: Has over 500,000 U.S.-based suppliers and allows you to filter by product category, certifications, and location. Use the “Origin Declaration” filters to ensure “Made in the USA” compliance if needed.
MFG.com: Connects manufacturers with buyers, offering detailed supplier profiles.
Alibaba: While dominated by Chinese suppliers, it lists some other manufacturers from other countries. Filter by location to narrow results.
Trade Associations and Networks:
In the US, you can contact organizations like the National Association of Manufacturers (NAM) or regional chambers of commerce for supplier recommendations.
There are also industry-specific groups (e.g. the Society of Manufacturing Engineers for engineering products) that can connect you with specialized suppliers.
Government Resources:
The US Department of Commerce and SelectUSA provide resources for finding domestic suppliers and navigating regulations.
Check for suppliers compliant with the Buy American Act if sourcing for government contracts.
For foreign suppliers in places like India and Vietnam, you can also check with consultants.
For example, Dezan Shira and Associates often publish articles on suppliers in Vietnam and India through its Vietnam Briefing and India Briefing arms respectively.
Step Four: Start Moving, Slowly
You’ll want to be cautious about switching suppliers at first. Most sources will recommend you start with a 1,000-unit order from each, monitor quality, and scale up with the best performer.
You likely won't want to split with your main supplier all at once either as they will still be your most reliable source of product while searching. This becomes a touchy subject as your supplier will likely not relish the thought of you switching and could react poorly to the news. You’ll want to play everything by ear and perhaps consult with your 3PL for advice.
How Apple Relocated Suppliers
In response to new tariffs imposed by Trump, Apple launched a multi-pronged strategy to reduce its exposure to China and protect its margins. While the company didn’t fully relocate its suppliers to the US, it took decisive steps to adapt its global supply chain.
For one of the first moves, Apple flew five cargo planes full of iPhones and other products from China and India to the US in just three days. This allowed the company to build inventory before the 10 percent reciprocal tariffs came into effect on April 5, 2025.
At the same time, Apple accelerated its shift toward India. The company planned to manufacture up to 25 million iPhones there in 2025, potentially covering half of US demand. This move was driven by tariff differences because exports from India faced a 26% duty, while Chinese goods were hit with a 54% rate.
Apple also began collaborating with key suppliers like Luxshare to explore future reshoring. It confirmed it was evaluating new production sites in the US and Mexico. However, the company noted that any move would take 12 to 18 months and would depend on long-term commercial guarantees.
Beyond manufacturing shifts, Apple committed to investing over $500 billion in its US operations. This includes opening a new server assembly facility in Houston and creating around 20,000 domestic jobs.
When trying to spot market trends, watch what the big guys are doing. They spend a lot of money peddling influence in Washington. You can rest assured Apple wouldn’t be building in the US if they didn’t think they’d receive financial incentives.
How Hasbro & Mattel Reengineered Supply Chains
Hasbro and Mattel, two of the largest US toy companies all responded to tariffs by accelerating their supply chain diversification.
We’ll talk about each in brief below.
Hasbro’s Strategy
In 2018, 67% of Hasbro’s toys sold in the US were made in China. By 2025, according to Marketwatch, that share had dropped to 50%, and the company aims to reduce it further to 40% by 2026.
While Hasbro hasn’t moved to the US, it’s expanded manufacturing into countries such as India, Vietnam, and potentially Indonesia. Despite higher costs, this strategy has helped shield Hasbro from the full force of current China tariffs.
The company acknowledged it takes around one year to set up new facilities and 2–3 years to reach full operational capacity, which explains why reshoring to the US was not prioritized.
Additionally, Hasbro incurred extra warehousing costs and built up inventory in 2019 in anticipation of tariffs. The firm planned targeted price increases to absorb costs without breaching key consumer price points, particularly for SKUs under $20, which accounted for about 50% of the toy market in 2024.
Mattel’s Approach
Mattel faced similar pressure as Hasbro but had a slightly different starting point. In 2019, less than two-thirds of Mattel’s US-sold products came from China. By 2025, that dropped to 40%, with Mattel aiming for no single country to represent more than 25% of production by 2027.
Unlike Hasbro, about 50% of Mattel’s manufacturing is in company-owned plants, giving it more control but less flexibility. Mattel sources from seven different countries, and continues to refine its procurement, product mix, and cost structures to remain competitive.
Why Move Production from China
Recent trends and policy initiatives have introduced multiple compelling reasons to consider reshoring:
China's rapid economic growth has led to significant wage increases. Manufacturing wages in China have risen substantially, diminishing the country's status as a low-cost manufacturing hub. (That said, it is still substantially cheaper than places like the US)
Reshoring manufacturing enhances supply chain stability through geographic proximity, reduced transportation dependencies, and simplified logistics. The COVID-19 pandemic and subsequent global disruptions underscored many of the vulnerabilities in extended international supply chains.
The US government has introduced policies to bolster domestic manufacturing. The CHIPS and Science Act, for instance, provides substantial subsidies to encourage semiconductor manufacturing within the US, aiming to make reshoring financially viable for companies previously reliant on offshore production. While so far these initiatives have only applied to big industries, there may be breaks for others down the line.
Advances in automation and manufacturing technologies have mitigated some labor cost differentials between nations like the US and China. Highly automated processes can reduce the reliance on manual labor, making US-based production more competitive.
Manufacturing domestically offers stronger intellectual property safeguards, reducing risks associated with counterfeiting and unauthorized use of proprietary technologies.
When You Make the Move to the US, Use a 3PL to Get the Execution Right
Reshoring manufacturing to the US is about building a supply chain that’s more resilient, transparent, and aligned with your long-term business goals.
But strategy alone isn’t enough. Execution matters, especially in logistics.
Companies that bring production closer to home often underestimate the complexity of warehousing, fulfillment, and last-mile delivery. And most manufacturers don’t also provide fulfillment (normally they’re not built for it either). Delays, errors, or unexpected costs can erase the very savings and control that motivated the move in the first place.
That’s where a logistics partner like OTW Shipping adds value. Whether you’re shifting part of your supply chain or relocating fully from overseas, we help growing businesses like yours streamline fulfillment across the US with:
Fast, accurate order processing
Multiple warehouse locations for lower costs and faster delivery
Real-time communication and visibility
Scalable solutions tailored to your business model
If you're serious about reshoring, make sure your logistics infrastructure is ready. OTW Shipping can help you get there.
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