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How To Source Products From China-5 Steps Guide

Source Products From China
“World Factory”

Everybody talk about China as a leading sourcing market in the world, also a world factory. Why do people all over the world source products from China?

Because China has a huge production base: a lot of raw materials, components, semi-finished and finished products and equipment are also coming from China today. It has a large supplier base, low labor costs and excellent growth potential. You can find high quality products with competitive prices in the Chinese market. Most Chinese manufacturers allow direct buying of their products.

All these advantages are important factors in attracting more and more international buyers to prefer to source products with reliable Chinese manufacturers.

Many overseas buyers want to source products from China, but don’t know how to start their first import business.Actually, you have many ways to purchase goods. You can follow the traditional way or use search enginer.

Here we will talk about some great tips for novice buyers and help you source from China!

5 Tips to Source Products from China

If you want to source products from China, you will need time to identify all suppliers, audit the candidate’s factory, assess the quality of their products, and internal product development production capacity (if needed) before negotiating an agreement.

Here are the complete 5 steps to sourcing products from China:

1. Do market research

Before you start a business, you need to do some researchtofind a good selling products that you want to buy. As we all know, the competition in the market is fierce, if you enter the crowded market, it will be a challenge to make your business reach the top.

You must do more preparation to reach your goal. Therefore, it is vital that your first step is complete and convincing research before applying for any business.

2. Spend time looking for the right supplier

For buyers, especially just starting out, sourcing products from China is a complicated process. It will take some thought, effort and time to find the right reliable supplier that can meet your price&quality specifications.

The easiest and most cost-effective place to start a search for suppliers in China is on the Internet or B2B sourcing platforms like Alibaba, Global Sources, and Made-in-China.com. Make sure that you deal directly with a supplier. Online sourcing platforms rate their suppliers, which can be useful in the shortlisting process.

First of all, you need to find several suppliers that are suitable for you,You can have a brief conversation with them about the different standards and take advantage of their experiences. After that, choose the manufacturer that you think best meets all your needs and start working with them to source products from China.

source products from China

3. Verify suppliers

It is essential to perform adequate diligence on potential suppliers. The information provided by a potential supplier on its website and other media channels is a good start, but you need to verify whether a supplier in fact exists and is what it claims to be. 

Keep in mind of two questions:

  • Are they really factories and not middlemen?
  • Do they have the technical expertise and production capacity to deliver what they say?

There are many ways to settle this. You can verify this information by examining the suppliers’ VAT invoices, audited accounts, or by simply asking their registration number and business license number.

4.Communication and expectation

When negotiating the price with your factory, you should keep in mind that all of them have a general minimum cost to manufacture the product. That is why you need to research the costs of the product and the market price to get a good idea of what a reasonable price is. Anything way below this price will reduce the quality of raw materials, products in general or hurt the workers’ wages or conditions of work. While discussing your product details do not leave space for the supplier to make any assumptions, and encourage them to ask you questions if they are not clear about your product’s specifications.

5. Quality control

While having a production agreement is a good way to start a relationship with a supplier, but regular quality control inspections are necessary so that you can ensure the quality of your products is up to your standards. This can prevent costly mistakes in the future.

Source Products From China

Work with a China sourcing agent

If you are a new buyer purchasing from China, we recommend you work with theChinasourcingagent. If this conceptis new to you, let us help you. The simplest definition of a sourcing agent is a third party that helps you find the right supplier in a particular country. Generally speaking, purchasing agents are familiar with the business practices and customs of the country and may also speak the local language. They can help you getting quotes, evaluating factories, managing the complexities of communicating your manufacturing requirements, quality control inspections, shipping and transportation, administration and most of all ensure the goods arrive at your desired location.Finding the right China sourcing agent for you is key.

Conclusion

Sourcing from China involves so much work.These five tips are a good starting point for those inexperienced in the business of sourcing products from China. You may need to learn carefully at every point.

Also a useful suggestion is workingwiththe right China sourcing agent. The right sourcing agent will cover all your needs on the supply side so you can focus on your customers.The cooperation between the two parties led to the success of the business.

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