Guide For Sourcing Products From China

The world today has become a giant market with all the economies merging into one grant marketplace. Today, we are not limited by the curse of geography for modes of production or procuring the finished products that we desire. If the local market is not conducive for production at your place, then you can simply shift the manufacturing to a more conducive country.

China has emerged as the favourite country for manufacturers. Today, it accounts for more than 30% of global manufacturing. This is why it is also called the global manufacturing hub or the global factory. If you are planning on starting a new business, then there is no better country than China to start the production.

You might be wondering how to source products in China when you are from another country. In this article, we will talk about this in great detail. The basic principle that you must keep in mind while sourcing products from China is:

1- It is a game of numbers. The more quotes you get are directly proportional to the information and this will help you in making a better decision.

2- Since it is your hard-earned money, you must be prudent and practical while spending it. As a buyer, you have the leverage of walking away if the conditions cannot be reached as per your needs.

3- Collect all the data possible. It will be a deciding factor in how to source products in China. Collect, compare and analyze all the quotes that you have received and reach an informed conclusion.

Options on how to source products in China

There are many options for you while sourcing products from China. Let’s discuss a few of them:

1- Buying directly- a large proportion of the buyers try to buy the goods directly because when you are in control of the process, you save the cost of the middleman or the agent. However, it is always advisable to have a supplying agent if you are not a native of China or if you do not understand the Chinese market.

This option is feasible only if you have a sufficient and strong organizational capacity to manage the suppliers and does the groundwork. If you have institutional backing then you can go for this option.

2- Use a China sourcing agent – if you are wondering how to source products in China when you do not have the required institutional backing, then your best option would be to hire a sourcing agent. These sourcing agents are professionals who are natives of China. They are fluent in mandarin and professionally proficient in mandarin.

They act as the communication channel between you and the manufacturer. They do the factory visits for you and do all the groundwork on your behalf. They ensure that the quality of the finished materials is as per the required standards of quality and stand on the parameters.

Since these agents are aware of the in and out of the market in China, they will help you meet the right manufacturer as per your need and requirements.

3- Buy from a trading company- if you can’t touch the mark of minimum order quantity then buying from a trading company seems to be a good option. This is particularly good for small entrepreneurs who have small targets initially. The trading companies give their products to small workshops.

Although it is not suggested to work with the intermediaries, if you cannot meet the minimum order quantity, then this is your best option.

4- Service companies- many Chinese purchasing agents provide services in exchange for some charging fees. Since a lot of this process is transparent like the supplier name, the process involved, etc. it is a worthy investment for the beginning of the production of your company. This also solves your quandary of how to source products in China.

Tips for sourcing products from china

Here are a few steps which you must follow while sourcing products in china:

1- Do the required research – before you start a business and invest your money into it, you must do the proper research about the market and get educated about it. There is a lot of competition in the market and it is important that you specifically provide the customers with what they want.

If you do not do research, then you will not get to know what the underlying unsolved issues in the market are. If you are perceived as just one of the competitors in the market, then you will be less likely to get successful. Instead, you must focus on what the targeted audience wants.

2- Get in touch with the manufacturers in China- many people are a bit anxious or apprehensive about contacting the manufacturers in China. However, if you want to know how to source products in China then getting in touch with them is very important.

3- Negotiations – you can get the supplier on the negotiation table only if you are perceived seriously by them. To be taken seriously, you must avoid the use of words like “sample” in your communications even if you are not sure about the quality. First, you must find a trustworthy and reliable supplier.

Next, place a small order, say for 50 pieces. This will be your sample but do not use that word in the mail. Placing an initial small order will give the supplier the impression that you are willing to place a bigger order if the quality parameters are met. The suppliers receive hundreds of emails every day.

The number of turn-off for these suppliers is the demand for a couple of samples. It insinuates that you are short of cash and cannot invest much in the product. Because of this, the supplier will not waste time with you.

Conclusion

The markets in China are a tricky place to be in and if you are new to them, then you may feel lost. Following these tips will make sure that you will get the right product from the right supplier.