China is recognised as the biggest exporting country. Chinese goods are widely available and it’s impossible to not have one or two items in your home that bear the “Made in China” logo. Therefore, selling Chinese goods is a profitable venture. One strategy to increase profit is to import commercial goods from China.
Importing items is not as simple as it may seem, there are many side effects with every sourcing. You must understand how to source from China, by locating the best suppliers, how to speak and bargain with manufacturers, and how to handle the supply chain. If you don’t have the appropriate plan to stay away from common mistakes, you risk losing out on some of your best chances. To put yourself in the greatest position to earn more money in less time, follow the actions listed below.
How to Source From China?
Market Research
Research is the first step in how to source from China. Since so many firms and entrepreneurs are now selling products that compete with one another, you cannot skip this stage if you want to be lucrative. If you enter a common niche, you’ll simply find it difficult to maintain the boundaries required to stand out from the competition.
To achieve your goals, you must put forth greater effort. Therefore, you must conduct thorough, compelling research as your first step before applying for any business.
Contact Manufacturers and Negotiate
Contact Chinese manufacturers through online search platforms like Alibaba, Global Source, Made-In-China.com, trade fairs, local markets, events, or exhibitions. Find a supplier who deals with your niche. Remember to contact 2-3 in the list instead of focusing on just one. This helps in comparing and negotiating well.
You can send them an email, text message on WeChat, or video call for samples. Consult on different criteria like payment options, delivery date, MOQ, quality, etc. Then choose the manufacturer you believe will best meet all your needs, begin working with them, and source products from China.
Negotiate Price Not Quality
The factories will be able to make more money if you place orders for numerous items because they often have low costs. Therefore, they will make more money on bigger projects. You must therefore convey the idea that you are starting with a large strategy. Once you have located your suppliers, you can contact them to negotiate a better price by sending them messages.
Going below the minimal market price or the product’s cost price should be a warning sign because the supplier may be making up for a lack that you are still unaware of. You should stay away from doing business with suppliers who offer you a price that is simply too low if you want to protect yourself from having to cope with such repercussions.
Sourcing Options
Purchase Directly
82% of importers want to be in charge of the situation and keep commissions from going to any mediator or agent. If you can reach the seller’s minimum order quantity (MOQ) and have the organisational skills necessary to handle suppliers, you can try dealing with them directly.
China Sourcing Agent
If you’re still wondering how to source from China, contacting a sourcing agent is the right way. In China, thousands of individuals are attempting to support themselves by providing this service. However, if they are from the right industry, you can use their network and save a tonne of time. They can even serve as your representative in China.
Trading Company
This is an excellent option if you are unable to fulfill the MOQ, maybe because you are a start-up or an early entrepreneur. Trading companies can sell their items in little workshops that take small orders.
Due to the language barrier and cultural differences, clear communication is one of the biggest problems firms encounter when thinking of how to source from China.
Therefore, miscommunication and misunderstandings are the main causes of problems when dealing with suppliers. Thus, it is wise to hire a translator, or hiring a sourcing agent is a much better choice.