Small Business Guide on Sourcing Products from China
Are you a small business trying to figure out how sourcing products from China can work? If so, you’re probably wondering where to start and how to find a reliable sourcing partner.
A common misconception about manufacturing in China is that it’s only for large companies and major businesses; this could not be further from the truth. Plenty of small-to-medium sized businesses source from China on a regular basis. In fact, China Sourcing International works with many of them.
If you have never ventured into sourcing products from China before, it is likely that you need some guidance. Here’s what small businesses need to know about how to source products from China.
- Find the Right Sourcing Company
The first and likely most important step when sourcing products from China is to partner with the right sourcing company like CSI. China is full of sourcing agents and sourcing companies so it may be difficult to decipher the good from the bad.
Avoid doing a broad search for “sourcing agents in China”, as this will be too general and will likely not get you the results you are looking for. Instead, partner with a reputable sourcing company that has plenty of experience working with companies just like yours.
- Make Sure the Factory Specializes in Your Product
Whenever we are sourcing products from China for a new project, China Sourcing International goes to great lengths to make sure we fully understand the client’s needs. It is only once we grasp the ins and outs of what a client is looking for that we can get to work sourcing the raw materials, suppliers, and factories in China.
Our sourcing agents know all about the different manufacturing regions in China, including which ones are best for certain types of products.
Another way to vet whether or not the China factory you are interested in will be a good fit is to see what they actually produce! Suppliers that offer hundreds of unrelated products may not be great for your purposes, as this could be an indication that they are a reseller or a trading company. A reputable Chinese manufacturer on the other hand, will make a limited number of products all related to one another.
- Consider the Location for Where to Manufacture Products in China
Location matters more than you might think, especially when it comes to sourcing products from China. For example, Guangdong province is best suited for consumer electronics manufacturers. However, Zhejiang province is ideal for die-casting and plastic molding manufacturers. Using a factory that specializes in your type of product will help prevent errors, reduce downtime, and result in a more satisfied outcome all around.
- Don’t Rely on Social Media
Social media can be helpful in many areas of running a business, but when you source products from China may not be one of them. Most businesses need a strong social media presence these days, primarily for credibility. The China sourcing industry, however, operates a little differently.
While some China manufacturers and suppliers may be on social media with rave reviews about their products and services, it is important to be wary. Some reviews could be unverified, anecdotal, or simply untrue. Using social media as a touchpoint for reference is fine, but avoid relying on it as the only mode of verification.
- Verify Validity with Documentation
Instead of relying on social media, we would ask your supplier in China for documentation and certifications such as ISO 9001. This information will be more meaningful than online reviews, as it will indicate the business’ registration certificates and confirm dates to make sure everything is legitimate. From there, it will be necessary to cross-reference the information provided by the supplier and make sure it matches that on the business certification.
- Avoid Ordering Directly from China Factories
Purchasing directly from suppliers or factories in China may seem like a cost-effective way to get around the system, but it unfortunately often puts clients at risk for miscommunication, which could prove costly.
Language barriers, distance, not being able to inspect products and processes in person, and similar challenges could result in final goods that don’t meet your expectations. You can avoid these risks when sourcing products in China by working with a reputable firm like China Sourcing International. Doing so will pay for itself twice over while maintaining the integrity of your brand and the quality of your end products.
- Negotiate Beyond Price
Everyone wants to find the best product or service at the lowest price, your supplier included. Just like you, your supplier will probably have a number in mind that they refuse to dip below. If possible, instead of using numbers as the only factor, consider other details.
Is there the opportunity to increase order size? Could the supplier provide a discount for orders paid upfront or multiple orders? Think creatively and try not to get too hung up on the number, as it may result in negative consequences down the road i.e. low quality goods.
On the other side of the coin, make sure to know your numbers. Finding out the market price of your product by speaking with different factories will help you gain leverage with negotiations.
- Protect Yourself Against Scams
Don’t let yourself become susceptible to scams when sourcing products from China. This is potentially the most important tip of all that small business owners need to keep in mind when dealing with China factories and manufacturers.
- Google the potential supplier ahead of time to make sure that they have a web presence.
- Beware of “too good to be true” low prices.
- Ask detailed questions and make sure you are satisfied with the answers.
- Request photos of the factory and products, and even a sample ahead of time.
- Last but not least, stay vigilant about payment fraud by verifying bank details before making any payments.
We know all of this can seem quite daunting. That’s why we recommend you work with a global sourcing company like ours. We have the expertise, the experience, and our agents are multilingual.
CSI can help you source cost-effective manufacturers in China who have been vetted, with a solid reputation for expedient services and for producing top-quality products. From toys and seasonal decorations to electronic component sourcing, whatever you need we can find it for you.
Contact China Sourcing International
Are you a small business owner looking at sourcing products from China?
Let us help you get started on this exciting journey. Get in touch with us at China Sourcing International by giving us a call at +1 (888) 915-1060 or sending us an email at [email protected].
We look forward to helping you turn your visions into reality.
