If you are sourcing from China, you may know it’s becoming harder and more expensive.
In recent months, China remains vigilant against COVID-19 outbreaks. With cases on the rise, the country is still pursuing a “zero-COVID” strategy, which leads to a strict lockdown in many cities, slowing down cargo clearance and pushing back delivery times by weeks or even months.
Things may change fast and you need to be ready for them. If you want to stay ahead of the game, read on to learn more about what you should need to know and how to avoid any loss before sourcing from China.
1. An Industrial Tour Is Impossible
It was a very good idea to take an industrial tour in China and get access to critical information about the potential suppliers and production abilities. Also, you can expand your network with experienced professionals who will give you their advice and support.
But not now.
Visiting manufacturing factories and assembly plants in person for international buyers is impossible.
That’s because getting a flight ticket to China is way too expensive now. And there is a chance that your flight will be cancelled due to the country’s “circuit breaker” flight restrictions which came into effect on June 4, 2020.
Furthermore, there are strict quarantines. Anyone who comes to China has to undergo two weeks of quarantine in a Chinese hotel and another two weeks of extended quarantine in the community. It would be a hard time for many foreign businessmen to be stuck in China.
2. Prices Are Increasing
COVID-19 impacts virtually every industry in every scenario. Your supplier may come across a lockdown, your goods may not be manufactured without raw materials, or your products may be stuck at the ports—and any one of these situations can result in product damage or shipment delay.
No matter where you’re getting your supply from, one of the main risks you cannot ignore is the costs.
As you know, Prices of base metals are soaring significantly. Total cost per batch is going up, which is impacting your bottom line.
Moreover, the shipping costs are increasing.
Truck drivers and ship crew members were unable to cross borders due to public health restrictions. And the ports are closed sometimes because of a few pandemic cases. Prices skyrocketed when there is high demand for both sea trade and air freight.
3. Shipping May Be Frustrating
Shipping is another headache. Due to the escalated quarantine regulations, anything can be changed in the blink of an eye.
Shipments may experience delays; a flight may be cancelled unexpectedly and ground transportation between cities will be slowed down.
This is a troubling time for importers with already slim margins, as it can be extremely hard to maintain a large buffer of inventory in separate countries while your order is waiting for release from quarantine.
Meanwhile, you might have some trouble along the way too. The items can get damaged or even lost on their way to your country. And sometimes there are extra charges or hidden fees that you don’t know when you work with a forwarder.
What To Do Before Sourcing From China
1. Be Proactive In Letting Customers Know About Delays
As you know sourcing delays are inevitable, and it’s the best time to communicate with your customers.
Put a banner on your website or make a post on your social media channel. Let them know you are sorry about the delays and keep them updated so they won’t be disappointed in your company.
2. Explore A New Sourcing Method
Relying on one supplier can be risky for business. So it’s better to find someone that you can trust and get help from.
However, searching for a qualified supplier is not an easy task, especially when you have never worked with one of them. You need to check their capacities and qualifications, and this can turn into a costly and lengthy process.
In this case, hiring a professional sourcing company is easier. They can help you save time and take off workload from your hand as they make a customized plan to meet your need. In addition, an experienced sourcing agent has a vast network of familiar and vetted suppliers ready to work for you.
3. Don’t Forget About Quality Control
Even though sourcing products is becoming harder and more expensive, you still need to keep an eye out for product quality.
Don’t shy away from asking difficult questions—this is where you can ensure that your goods are produced as they should be.
If you think the factory is unqualified, or it doesn’t seem equipped for rigorous inspection, consider looking elsewhere.
4. Prepare For Shipping In Advance
International shipping is a step you can’t skip when you are sourcing from China.
There are many potentially complicated problems and unique challenges you’ll need to consider to safely ship your products.
Try to gather information about shipping costs from different forwarders in advance. Though shipping costs vary daily, it never hurts to be prepared. Also, read the specific packaging guidelines, as improper product packaging can lead to product damage and missed shipments.
Partnering With C2W
A good sourcing company in China can make things effective for you. Since it is not always possible to be physically present in China to oversee production and quality, a sourcing agent handles lots of work on behalf of you.
Collaborating with C2W Group can make it easier.
Leveraging a vast network of 500+ trusted suppliers in China, we help you source and manufacture products with the required specifications. Our team is made up of experts who have spent years sourcing factories for companies like yours. With our knowledge and expertise, we will take you to the right place so you can focus on optimizing your business. Contact us to discuss your project today.
