How to Source High quality Products from China

Oct 08 2021

Sourcing products from China is definitely beneficial for your business, but this does not mean that it is easy. You will want a steady supply chain of high-quality products. To get the best value out of sourcing products from China, you will need a robust business strategy before you engage in business deals. Since the Chinese economy, culture, and people are often alien to us, it is very easy to make mistakes and bad deals. With just a few pointers in mind, you can greatly reduce any chance of making wrong business deals with Chinese manufacturers.

China Sourcing Agent

Types of manufacturers in China

Trade companies: Trade companies are large factories that offer a huge range of products. They would put an additional cost over the manufacturing cost for profit. If you need a low minimum order quantity, it would be better to deal with manufacturers themselves instead of trade companies. It is worth noting that when trading with trade companies, you will not be directly familiar with what is going on in the factories. For huge orders in a diverse range of products, they can be your top choice.

Wholesalers: Wholesalers typically deal in standardized products, and you do not have the option of customizing according to your needs. Wholesalers often have warehouses in foreign locations, which saves shipping and storage costs. To make a profit, wholesalers add a margin on top of the manufacturing costs. For new eCommerce businesses, wholesalers can be a good option.

Sourcing Suppliers

Manufacturers: Dealing with manufacturers directly is the most cost-effective option out there. The profit margin is higher than what you would get from trade companies or wholesalers. The difficulty lies in effective communication with manufacturers because many of them do not have English-speaking front desk staff. Many manufacturers are also already acquired by big companies like Alibaba, so it will be difficult to find what you are looking for.

Now that we have distinguished between the three avenues from where you can get your products, it is important to know exactly how to prepare for product sourcing from China, and what are the things to keep in mind.

Do your research

It is imperative to research the market for products that are in high demand but low supply. In the Chinese manufacturing industry, you can grab hold of absolutely anything you want. But if the product you are thinking of selling is already sold by established companies, it will be very difficult to grow your business. To make a mark in an already competitive market, your product and marketing need to be unique. Research on the internet to find out how you can obtain those unique products from Chinese manufacturers, and whether the total cost leaves a margin for profit.

China has emerged as a giant in the world economy. Sourcing products from China is a great way to make optimum use of this booming economy. Maintaining a business relationship with Chinese suppliers is a matter of time and patience. With strong interpersonal bonds, your business contacts will also strengthen. Trading with Chinese suppliers requires overcoming a language and geographic barrier, but the results will be well worth it. Competition in the market is going up every day. Once you have decided that you want to grow your business, you should waste no time and start your research. Good research and strong connections with the right suppliers, combined with the Chinese market, will boost your business in no time.

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