China has the biggest manufacturing industry in the world, owning 28.4% of the world’s global manufacturing output. Low taxes, regulations, and wages have made it an attractive prospect for people wanting to get a product sourced and into retail. But would you know where to begin looking?
Sourcing products from China is much simpler than you may think. Read on as we give the essential guide on sourcing products from China.
Benefits of Sourcing Products in China
There are a number of reasons you may consider sourcing your products from China. Surprisingly, not all of them relate to cost alone.
- Easy to find products online
- Low-cost manufacture and shipping
- Fast communication methods
- Range of supply methods
All you need to do is decide which supplier is the best for your business. It is easier than ever to source the correct one.
Finding the Right Supplier
Most people will begin their search online. You will find a host of suppliers this way, though keep in mind that many may not have websites in English. This is why it can be helpful to find a mediator to work for you.
A lot of sites such as Alibaba sell products that have already been manufactured. If you are looking to have products made, then find some similar products and check their profiles. You should be able to see who manufactured them, check the review then create a shortlist of possibilities.
Once you have a list, you need to check their credentials. Begin by working out if it is a factory or middleman you are dealing with. Follow it up by checking they have the production capabilities to supply your product.
A few ways to verify its legitimacy is to check its name and location with the local government office. Message the factory itself and ask for references along with its audited accounts and sample products.
Ways to Sell Products
There are a number of methods you can order and sell your products with. Knowing your objectives can help you find the right factory for your needs.
Reselling
The most traditional method of selling is when you source products in bulk. You then store them and sell them to your customers.
Dropshipping
Dropshipping is when you promote a product online and on social media. When customers make a purchase, the product is shipped directly from the manufacturer. You rarely have to deal with the product at all and don’t need to worry about logistics and storage.
White Labelling
White labeling is when you source products already in production. The difference is that they come in your own packaging, so customers believe it is a unique product made by your brand. Many food manufacturers and cosmetic companies use white labeling.
Bespoke Products
This is when you find factories to make your own product design. It can take longer than other methods as the setup is greater.
Negotiating With Suppliers
Don’t be afraid to negotiate when you find product sources in China. Bargaining on price, quality, and delivery times are expected. Make sure you stay specific with your expectations.
There are two main times you can begin to negotiate. The first is when you get the first quotation. After this, you can try to barter when you get your first samples.
The biggest barrier will be language. Very often, this is the main benefit of hiring a middleman. If not, you can try to find companies that deal in English or have people in the company that will deal with communication.
Advice on Sourcing Products
Ordering from a foreign country will result in a steep learning curve for you and your company. Luckily, it will be beneficial. To help you out we have collected some advice below.
Expect to Wait for Your First Order
Many people underestimate the amount of time their first order will take to arrive. On the first run, there are a number of variables to get right that can not be rushed. This may include setting up the product, packaging, and signing off on the product.
When it comes to repeat orders this will already be done and the process will be much smoother. Expect the first batch to take around four times longer than repeat ones.
Factor in Chinese New Year
Chinese New Year is the biggest celebration, and it is not a few days off like holidays in the west. During this celebration, factories will be closed for a whole month. Dates change every year but expect it to set your ordering back substantially.
Sourcing Products From China
Now you know everything about sourcing products from China, start your search. Know what you want, how you plan to sell it, and set a budget. There will be a perfect match waiting for you.
Begin your journey at China 2 West Services. We have provided manufacturing and solutions since 2005. Contact us here to discuss your product and see how we can get it to market.
