You’ve come up with an awesome product idea, and now you want to get it manufactured so you can start selling it by yourself, right?
Before you do that, consider the following five quick tips to streamline your product sourcing from China.
With these simple strategies, you can make your product sourcing as smooth as possible, bringing you one step closer to having an amazing new business venture under your belt!
1) Do Research on Customer Demand
It’s no secret that sourcing products from China can be an intimidating process.
If you’re new to product sourcing in general, you might feel lost and overwhelmed when you try to determine which products are the best to sell.
Well, the trick is to find the right balance between doing your research, knowing more about your customers, picking the right product, and verifying its quality before adding it to your store.
Customers are always looking for the best deals on quality products. When sourcing products from China, be sure to do your research on customer demand. This will help you source products that are in high demand, and avoid products that may not sell well.
2) Calculate Your Profit Margin
To ensure you’re making a profit on the products that you source from China, you’ll need to be careful about the profit margin. Otherwise, your efforts and money will go to waste.
Many first-time sellers make the mistake of underestimating the cost of shipping and other fees, which can eat into their profits.
Here’s the way to calculate profit margin:
- Determine your product’s cost. This includes the cost of goods, shipping, and any other fees associated with sourcing and manufacturing the product.
- Determine your selling price. This is the price you’ll list the product on your website or eCommerce platforms.
- Calculate your gross margin.
3) Get Samples Before Ordering In Bulk
Many overseas business owners usually feel cautious when placing an order on a Chinese B2B eCommerce marketplace like Alibaba.
It’s because the minimum order quantity is typically high, which can be a large investment.
Before the COVID-19 pandemic started, many foreign businessmen would come to China and check the production lines or product quality in person. But now it has become impossible since regulations against international travelers have been implemented.
For this reason, you should always request samples before making a big purchase, especially when you work with someone you didn’t know before.
In this way, you can guarantee products are of good quality and as expected before spending too much money.
4) Understand the Shipping Process
In 2022, it is still difficult to make big purchases from other countries.
One of the main reasons for this is the uncertainty of international shipments and package deliveries.
Therefore, if you’re sourcing products from China, it’s important to understand the shipping process before placing your order which includes product size, package size, and delivery time.
A way around this problem would be buying products that are easy to ship such as ones made for retail purposes – those items are less susceptible to transit damage or being stolen en route and are cost-effective too.
It’ll help ensure that your products arrive on time, even when shipped in smaller sizes or at higher prices than standard rates so long as you don’t mind waiting a bit longer for them all while giving up some space in your warehouse until they arrive.
5) Be Patient With Unexpected Delays
One of the biggest challenges you’ll face when sourcing products from China in 2022 is unexpected delays.
Whether it’s due to bad weather, a public holiday, or simply because your supplier is running behind, delays are inevitable.
The best way to deal with them is to be patient and communicate with your sourcing agent.
If your items are time-sensitive and can’t wait for weeks, then you should be careful about the lead time. Alternatively, work out which date is the soonest possible date they can be delivered by and use that as your best case scenario arrival date – this will prevent you from being caught off guard if something goes wrong.
Another good idea to avoid delays is to order small quantities from different suppliers. Diversifying your supply chain ensures that no matter what happens, there’s always someone who can fulfill orders on time.
Aligning With The Best Sourcing Agent For Your Business
A Chinese sourcing agent has a massive network of suppliers and manufacturers who can help with the overseas businesses for their products.
They are responsible for identifying and securing the supplier base for your needs, supervising the production process, and shipping the order to your destination.
In this case, you can save time and money by sparing the hassle of visiting every supplier in person.
However, it’s important to identify the right sourcing agent in China who has a good track record and detailed knowledge of the entire sourcing process.
Work with a sourcing agent who has experience in your niche. Avoid those who are offering products and services outside their specialization, as you’ll find they are more concerned with placing orders than providing quality customer service or building successful partnerships.
Established in 2005, China 2 West is a British-owned and managed company located in South China’s Greater Bay Area. Our team of sourcing experts has helped many western customers achieve their goals. With over 15,000 projects successfully completed, there is no surprise wonder why we’ve been able to achieve success. Contact us today.
