How to Source High-quality Products from China
Online or retail businesses outside China benefit greatly from sourcing products in China. Many manufacturing units in China produce high-quality products that are competitive in any market. When starting your business, you can buy products locally or from abroad. Product sourcing from China is the one with the potential for the greatest profit. But dealing with Chinese business needs some preparatory steps and strategies.
Before we delve into how to source high-quality products from China, let’s have a look at why.
Why source products from China?
You will find many opinions on why China is the hotbed of product sourcing. These opinions are often laced with personal biases. From the economic point of view, China offers many benefits that no other economy can at this moment.
Cost
Cost is the main reason so many businesses rely on China for their products. China has a huge, low-cost labor pool. The cost-effectiveness of this labor force is excellent. China’s business ecosystem makes it more efficient and cost-effective. It includes China’s network suppliers, component manufacturers, and distributors.
Elimination of middlemen
A safe way to boost income is to deliver products to customers at a low price and keep quality. One of the ways to achieve this is to cut out the middlemen as much as possible. Chinese manufacturers recognize this and deal with the business they are sourcing to. Chinese sourcing agents end the role of middlemen and deal with your business. Apart from the huge cost-down, you also develop how to get the best products from them.
Chinese supplier base
It is a known fact that the Chinese supplier base is one of the best in the world, if not the best. China imports materials from other countries and does all the assembly in China. No matter which industry you are dealing in, You will find many suppliers in China. The factories in China are also well connected to a robust infrastructure. That facilitates the production and transportation of finished products and raw materials. China’s booming economy is the reason such a vibrant supplier base exists there.
Reduced risk of fraud
Sourcing products from China done through a well-managed process. It reduces the risk of fraud happening over business transactions. Since you will be in touch with the supplier, you will know what’s going on at every step of the process. You are much more aware of what’s going on behind the scenes when you source your products from China.
Scaling capabilities
Chinese manufacturers have an in-depth understanding of the global supply chain. They have an efficient infrastructure that can quickly expand production scale. You can scale up production from hundreds to thousands in just about a week’s time. On top of that, Chinese manufacturers allow a low Minimum Order Quantity (MOQ). If you have a startup or small business, you can place small orders at a time. And then scale it up as and when your business grows. The time to scale up production depends on the availability of raw materials. It would be better in China than anywhere else in the world.
China is often the first choice for businesses when it comes to product sourcing. The benefits listed above can boost your business to a different level. If you are looking for growth and boosted revenue, sourcing from China is a reliable option. But, you should always be vigilant about the quality of the product you are getting. If the quality does not live up to expectations, you will lose customers. No matter at what price you sell your products.
How to source high-quality products from China?
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. 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 a few pointers in mind, you can reduce the chance of making wrong business.
Types of manufacturers in China
Trade companies
Trade companies are large factories that offer a huge range of products. They would put an extra cost over the manufacturing cost for profit. If you need a low minimum order quantity, it would be better to deal with manufacturers. For huge orders in a diverse range of products, they can be your top choice.
Wholesalers
Wholesalers deal in standardized products. 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.
Manufacturers
Dealing with manufacturers 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 staff.
Now, 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 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 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 unique products. And how you can get those unique products from Chinese manufacturers.
Product sourcing – Internet sign
Search for suppliers online. It is a great starting point.
Search for suppliers on the internet
Alibaba, Global Sources, and Made-in-China are the most popular product sourcing platforms in China. In these platforms, some suppliers are labeled “gold member”, “verified supplier”, “onsite supplier”, “accredited supplier”, etc. These tags do not guarantee the quality of the products they produce. It means that these companies’ existence has been verified. Platforms like Global Sources will give extra protection to buyers. Global Sources also publishes a report called China Sourcing Reports (CSRs). These reports are a good source of gathering information about product suppliers.
Negotiate
Chinese suppliers get a lot of orders from all parts of the world. To get the best price, you must project an image that you are ambitious about your business. And intend to order in bulk if you like the product samples. If your order quantity is not enough, the price quoted to you will be higher than usual.
Visit
If the option of visiting China is open to you, you can gain a great deal by talking to manufacturers. Use an experienced China sourcing agent can be wise. They can guide you through the process and also manage the daily tasks on the supply side.
China has emerged as a giant in the world economy. Sourcing products from China is a great way to make the greatest 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.
Sourcing Product Easy company established in 2008, based in Shenzhen city. As a professional China sourcing agent, we buy good products for customers. Over the past 10 years, we have visited more than 1000 factories throughout China. We have huge factories resources and logistic networks. We are good at consumer electronics, shapewear, hardware, etc. . We can provide customized products or print on demand also. We own a fulfillment center in China, provide a one-stop Shopify dropshipping solution.
