There are many advantages when it comes to sourcing from China. However, all those advantages are determined by the sourcing company one is associated with. A good quality sourcing company can help to make sourcing from China advantageous whereas a company that isn’t invested in your needs and only in it for the money can make China a very disadvantageous place to ship from.
If you are working with a sourcing company you trust and can rely upon, then there are many benefits of sourcing from China.
1, One such benefit is that China tends to offer cheaper price compared to other countries. Even though China has been getting more and more expensive, prices here are still cheaper than what many Western countries would offer for the same products. At the same time, China is able to create products for a cheaper price and better quality compared to it’s other cheap Asian counterparts. (Sourcing from China)Even though other Asian countries might offer prices lower than Chinese prices, the quality you are able to get from China tends to be higher.
2, Another benefit is that it is relatively faster to make goods in China due to larger factory sizes and the industrial market demand. For the same price and quality, China can make a good faster than anywhere is Asia just because there are so many factories looking for business and prepared for a challenge.
3, Chinese suppliers are also relatively pliable in terms of adjusting with demands. (Sourcing from China) There is a lot of flexibility and creativity when it comes to factories here and order can easily be pushed up on late notice. Furthermore, shipping from China is relatively cheap due to the heavy loads that are constantly shipped worldwide.
1. Sourcing completely through phone, email, and web search.
This is probably the riskiest way to source, but I am familiar with many people who source this way. Typically these are people with limited resources, but still want to get a product business started. (Sourcing from China) The best way for these people to source is the following:
Find Suppliers: Look through the big platforms such as Alibaba, Manufacturers, Suppliers & Products in China, and Global Sources and start to connect with the suppliers that supply the product that they are looking for. Contact many suppliers and see if they can meet the product and price requirements. Narrow down the suppliers to 2-3 potential suppliers. (Sourcing from China)
Buy Samples: Order samples from the 2-3 suppliers that have been chosen. Have the supplier ship the samples to your house or office for evaluation. Try to make sure that the supplier will send the desired packaging with the products so that you can evaluate both at the same time.
Provide instructions for modification: If you would like to modify or improve the product then provide the details to the supplier on what you would like changed. (Sourcing from China) Work with your chosen supplier to finalize design.
Order final production samples: Have the supplier make a final product sample of what they will manufacture for you during batch production.
Approve the final sample and issue a purchase order (PO): Approve the final sample and issue a PO to the supplier. Most common payment terms are 30% paid up front to the supplier and 70% when the Bill of Lading is released.
(Sourcing from China) Ship your goods: Choose a Freight Forwarder to help you ship your goods from China to your home country.
This is the simplest and most cost effective way to manufacture goods without going to China, but this method will sometimes but now always create the following problems for importers:
Communication problems: When discussing a more complicated product sometimes it is difficult to convey your message to the factory. Sometimes the factories English ability is less than perfect and things get lost in translation.
(Sourcing from China) Trust problems: Is the person you are talking to over the internet really the factory? This is hard to tell when you are just having phone and email conversations.
Quality problems: Although the samples that you received looked good, it still doesn’t mean that the final batch production order is of the same high quality.
Nowadays, many people are going to China for sourcing products and other business purposes. (Sourcing from China) If you have known the great advantages on visiting China, you will surely get started, not just for checking the products you are purchasing, but also, you can join lots of different trade shows and exhibition fairs.
You will get better prices. By going straight to manufacturers, you will save money by cutting out the middle men
You can build better relationships with suppliers by meeting up with suppliers and talking with them directly. Don’t be shy about getting to know them – in China business dinners are where many great deals are made and it almost expected if you want your supplier to give you a special price on stock. (Sourcing from China) And yes, be ready to foot the entire food bill.
It’s a great way to find new products and find out what’s hot and up and coming for the season ahead.
Travel to China is expensive. While most international travelers find China cheap for food and accommodation, a flight from New York to Beijing will set you back around US$1200 pp. (Keep in mind that if all goes to plan and you get a great deal on your items, your travel costs might be redeemed.)
It’s time-consuming. (Sourcing from China) You will need at least one week to travel to China, visit the trade shows or factories, negotiate a deal with a supplier and arrange shipping (most suppliers will help you with this or do it on your behalf when you order is made up).
So, there will always advantages and disadvantages by visiting China, but there you will always need shipment service like order fulfillment and more valued-added service, to satisfy your different requirements.(Sourcing from China)
The single most important factor in determining the success or failure of your sourcing program will be finding the right supplier. (Sourcing from China)It sounds obvious, but making apples-to-apples comparisons of vendors at a national level can be daunting. The following is a behind the scenes look at a how one professional sourcing agency conducts this process. Supplier identification research should have a clear methodology for defining and measuring the desired attributes of the ideal supplier.
Step One “Defining”: The “right supplier” is unique to each buyer, as the relative weight placed on price, quality, lead time and other attributes differs from project to project. (Sourcing from China)Below is an excerpt from the attribute survey template which is used to put down on paper the attributes of an ideal supplier.
Step Two “Measuring”: A typical supplier identification research project takes 30-45 working days assuming multiple components and production methods need to be explored at a national level. The process is as follows:
Initial research generates a list of 50-100 potential suppliers using web directories like www.GlobalSources.com and industry/trade show directories.
(Sourcing from China)Assume the vendor is a middleman until proven otherwise, not the other way around.
Avoid factories that refuse to list the name or location of the production facility. If they only show a HK, Taiwan or other non-PRC address, then they probably don’t own the PRC factory and are a middleman of some sort.
Focus on those factories that can clearly show production experience with your particular product or production method.
Be aware that polished English skills do not reflect production skills. Often the most polished websites are set up by trading companies.(Sourcing from China)
Look for clear information about operation size, equipment and staffing..
Review the 50-100 candidates’ websites and brochures against client’s desired attribute list (but hold of on price until later) and narrow the field down to 15 to 20 candidates. At this point, “first contact” is initiated in the follow ways:
Send an e-mail to ask for initial product-specific information (price, minimum order size, lead time).
Are samples available? If they don’t have samples readily available, they probably don’t deal in your product on a regular basis.(Sourcing from China)
Granted the sales team will be the most polished in terms of English skills, but how is their understanding of your basic requests? If you ask for information on a red umbrella and get sent a sample of a blue shoe, you are going to have problems with communication down the road!
Confirm the actual production location and ask for ownership papers of the factory. (Sourcing from China)Be explicit that the production location may be audited and that this location cannot be changed w/out approval of buyer. (You would be surprised at the number of middlemen who will take the buyer on a visit of a factory only to change the location to a less expensive and poorer quality option after the buyer leaves)
The above research should narrow the field down to about 5 highly qualified candidates. At this stage, Quality Auditors are engaged for a few hundred USD to verify the factory has a sufficient quality control system in place to make the desired product. It is also wise to conduct due diligence to confirm the factory has a good reputation, no legal problems and is sound financially. In other words, verify they are not going to disappear with your deposit and will be around long enough to complete your order! (Sourcing from China)These are essential yet often overlooked steps by those looking to cut corners during research. Unfortunately, due to the massive number of trading companies and aggressive China sales staff who will say almost anything to get your business, visiting the production line in form of an audit is the only way to confirm the real situation.
Based on the results of the factory visits, the next phase is sampling, trial order or even Purchase Order placement with the top vendor or two.
Sourcing from china is a great way for online sellers to get unique products at cheap prices, but it can be complicated and for first-timers, it’s down right daunting! so read on as we review the two most popular forms of sourcing products from china.
You can search from sites such as Alibaba, Chinavasion, and Made in China. The cons is, it is difficult to check the item’s quality without seeing it first and you might find when you receive your shipment that they aren’t quite as they look in the photos. Then you may need to think about buying directly from China. You can build better relationships with suppliers by meeting up with suppliers and talking with them directly. But travel to China is expensive. So, what can you do now?
ChinaDivision is your best choice here. It makes sourcing process more simplified. Store, Pack and Ship directly from China.
Worldwide Order Fulfillment Service From China is a leading service provider of China drop shipping, warehouse fulfillment, supply chain management and global shipping from China. With FREE warehousing for 90 days, state of the art warehouse management system, FREE API & plugins, we are confident to expand your business to new territories. We also provide customized value-added services including assembly, customized package and business inserts. If your manufacturer is in China, why not partner with us, ship directly from China and cut your cost?
China is an ideal place to have products manufactured if an e-commerce business owner wants to get a high profit margin by sourcing products globally. Compare with US based manufacturers, the Chinese ones are difficult to beat in terms of price and quality. In addition, relaying on the developed manufacture industry, the fulfillment centers in China are more full-functional and affordable. The one-stop fulfillment service they provide can help the e-commerce business owners who source from Alibaba, Aliexpress, taobao or other China based suppliers to push their business to the next level with less hassles. Despite these facts, there are these things to consider if you decide to source from China, otherwise you may find yourself suffering from unexpected financial losses.
Language barrier & cultural difference
Don’t underestimate these two problems, they may become the deal-breaker. A lot of Chinese suppliers aren’t willing to (or can’t afford to) hire sales staff who are good at English, since they have tons of domestic buyers at hand. In this case, it will be harder for the supplier to understand exactly what you need. More than that, to be honest, Chinese people value personal relationships more than the spirit of contract. As a result, there are two options lying in front of e-commerce business owners who Sourcing from China, try to use simple words/phrases and confirm every small thing repeatedly, or cooperate with a local agent.
As an one-stop order fulfillment service provider, ChinaDivision helps customers to communicate with the suppliers and ensures that neither the language barrier nor the cultural difference can influence the business. With the help of the sales manager who can speak English and Chinese very well, ChinaDivision customers can enjoy the order fulfillment service as seamless as an in-house fulfillment team.
Idea / Design protection
It is sad to say that China is famous for counterfeits and knock-offs as well as its developed manufacture industry, so it’s essential to protect your idea/design from being copied when dealing with Chinese suppliers. Don’t show your whole idea to random Chinese manufacturer you found online, don’t let one supplier manufacture, pack and ship all of your products either. It’s dangerous to let your supplier know how to make and how to sell your products, they can make their own and sell on AliExpress without hesitation. Manufacture parts and assemble in fulfillment center is a good idea. Have the packages and products manufactured in different places and let ChinaDivision do the kitting and packing for you.
ChinaDivision not only provides kitting and assembly service, but also owns the developed warehouse management system(WMS) which is very suitable for integrating multiple suppliers. E-commerce business owners can easily manage the inventory from multiple suppliers with the organized user panel, enjoy affordable near-source fulfillment service and prevent the ideas and designs from being copied.
Fraud and scam prevention
Screening suppliers is a headache, being an e-commerce business owner who lives on the other side of the earth, you always have to beware of frauds and scams.
Send samples. Once you get some winners after the lengthy screening, ask them to send you samples. By comparing several samples, you can choose the most suitable one. Sending samples not only helps to screen suppliers, but also an important way to test the package. Testing whether the product fits perfectly in the package and weighing them helps the business owner to estimate the actual product appearance and shipping costs.
Have every batch of products inspected. Getting a satisfactory sample doesn’t mean all of the products will be equally good. A lot of e-commerce business owners get scammed because the samples are good, after ordering a lot of products from the supplier and waiting a long time, they end up getting a great pile of poorly made products at the door step. So it’s important to have every batch of products inspected. ChinaDivision helps customers to inspect the products and take photos, the e-commerce business owners can see what the products look like before the money/time consuming global shipping. This really minimizes the risk of getting scammed.
With Alibaba being the biggest B2B marketplace in the world, and having millions of listings for suppliers to choose from; finding the product you are looking for is easy. The hard part is finding the right supplier amongst the many listed. Alibaba is based in China, the world’s leading manufacturer. Sourcing from China thus needs a trusted and efficient sourcing agent that simplifies order fulfillments and deliveries. Importing from China is an intricate process that involves a lot of paperwork and there being too many scammers, counterfeit products and middle men who want to take your money, you need to know how the safe ways of sourcing from Alibaba to avoid losing money.
Why Import from China?
The main reason is to benefit from the low manufacturing costs, this leads to lower prices on goods compared to most parts of the world. Suppliers in China are also open to work with small business and can offer competitive prices for small orders, this is because they are many suppliers and competition is high. Many products are also exclusively produced in China and one stop sourcing and shipping services like Alibaba have made it easy to navigate through finding suppliers.
However there are downsides too in sourcing from China, these include: customers perceiving that the products are of low quality thanks to some scam middlemen, importation and custom clearance problems, a longer shipping duration and little intellectual protection because some suppliers don’t respect patents.
You can bypass all these problems by outsourcing with reputable sourcing agents like ChinaDivison where all the trouble is taken off your shoulders because they take care of all importation aspects and save the customer time and money.
Guide to Sourcing from Alibaba
Being the largest e-commerce platform in the world, searching for a product leads to millions of results, this makes it hard for one to choose what is the best option; thus sourcing from China via Alibaba needs careful analysis. To get the best from Alibaba consider:
1. Contacting the supplier first
Talk to customer support about the product they offer and see if you can negotiate for a better price, in Chinese business culture everything is negotiable, use that to try get a better price. Once you have talked to different suppliers decide which suits your needs better. Ask for samples of the product to check for quality, get as many samples as possible before choosing because at times there might be newer models that haven’t yet been put up by the supplier or products that have been discontinued. When making contact; be a specific as possible, this way your supplier knows what you want and will not try to convince you to buy cheaper low quality products.
2. Find reviews about the supplier
Alibaba has a verification process for suppliers, and there will be verificati
on badges on different products that should assure you that the product you are sourcing is of high quality. Visiting the factory yourself to verify is the best option if you are planning to place large orders. Alternatively you can pay for third party services that visit the factories on your behalf to verify the quality and the supplier. This helps in avoiding middle men who mostly will source for substandard quality products so that they can make big profit margins. Read reviews and research about the supplier; the best usually have a gold member status. Reviewing also tells the buyers if they are dealing directly with the manufacturer or a trading companies acting as middlemen. Trading companies usually have lower Minimum Trading Quantities (MOQ); if the buyer wants a large order, trading directly with the supplier will be cheaper.
3. Follow up and find the supplier’s product selection
If the product you are sourcing makes the bulk of the supplier’s catalog on Alibaba then chances are that you have a specialized supplier that will deliver quality. Keep constant communication and follow up to know more about the supplier and familiarize with their process.
4. What are the payment options?
There should be options like PayPal or Escrow with money back guarantees incase quality isn’t met and the product has to be returned. These two options are safer than wiring money or using Western Union which is a one way payment. The buyer should feel safe working with a supplier and many payment options are indications of a supplier that can be trusted. If the supplier insists that policy states that they only accept wiring money you are most likely being scammed.
Importing from Alibaba with China Sourcing Agents
As discussed earlier importing from China can be a lot of work. Finding the right agent to cater for all the sourcing from China needs is the key for having a smooth import process and timely deliveries that will save you on cost. Outsourcing importation to agents simplifies the task because they handle the process including legal services on the customer’s behalf.
Experienced importing agents like ChinaDivision simplify importation to a mere click, you create an account, create an online inventory with the help from the executives, then source for a product with the option of delegating to the agent and afterwards set up your inventory. Warehousing is offered free of charge for 30 days with affordable charges afterwards. When the product arrives it is checked against your order to confirm that the specifications are met and any discrepancies get reported so you can sort the issue with the supplier.
With agents the products need not be packed and shipped to you, you can receive orders from other customers and the agents will pick, pack and ship the products to your customers directly according to the specifications you give. These specifications include adding logos or notes on the products and this saves a lot on costs. What follows is the seller validating addresses and monitoring inventory.
Outsourcing importation from China to agents also sees them managing returns and minimizing inventory loss by ensuring proper handling and delivery while shipping.
Advantages of Importing though Sourcing Agents
* The customer is guaranteed saving on money and prompt delivery.
* workforce expenses are greatly reduced because products are sent directly to your customers.
* Returns are managed on the seller’s behalf.
* The seller can do business without physically handling any product, Warehousing costs are also greatly reduced.
Sourcing from Alibaba and importing from China therefore should never be a worry, partnering with dedicated importing agents; any online business can expand into new markets. The world is a global village now and geographical boundaries shouldn’t be barriers into accessing new markets. Sourcing from Alibaba is a good venture for affiliates who want to run their own business. No order is too small or too large because the agents have large warehouses and advanced warehouse management systems that guarantee smooth control of the importation process.
In recent years, China’s economy has been booming and this can be attributed to the huge business opportunities available. Merchants and businesses alike, have realized major profits from importing and reselling cheaply sourced goods from the great Republic. Unlike before where you had to personally travel, E-commerce and the internet generally, has made it much easier to amass wealth without having to do much. However, it is not that easy and the processes can be time consuming to busy businessmen. This is the major impediment while sourcing from China by yourself besides the obvious ones mainly language barrier issues while negotiating. Fret not though; such occurrences can be easily avoided by working smart and using the right channels for order fulfillment – one word; ChinaDivision.
It is of paramount importance to note that the cultural barriers besides the language barrier concerns mentioned can potentially stall your business operations if not careful. Simple procedures such as finding the perfect wholesaler with quality products to negotiating the right price that suits your budget can take a while – the main reason why most importers use agents while sourcing from China. Therefore, using a China sourcing agent to import goods would certainly be in your best interest as a merchant or business and below, are a number of valid reasons as to why this is so.
How to Import Products from China Timely:
Sourcing from China is a trend that has been on an upward trajectory in recent times, thus explaining the rising number of sourcing agents in the Republic. However, finding a reliable, low cost country sourcing agent such as ChinaDivision can be quite an uphill task. Essentially, you will have to find an agent that fully understands your needs and more importantly deliver on time. Lately, ChinaDivision has been creating the entire buzz in business circles as the most popular sourcing agent – a fact that can be attributed to the company’s ability to cater to the client’s specifications and attention to detail.
Over the years, the company has amassed a wealth of experience, creating an expansive portfolio in the process in the fields of warehouse management, E-commerce fulfillment, products management and order processing. In short, ChinaDivision works at ensuring your products are picked (as per the client’s quality standards), packed (with a printed logo on the packaging if requested), and shipped safely. With this said, what exactly are the benefits of sourcing from China using ChinaDivison as an agent?
Why Use ChinaDivision as a Sourcing Agent? – Disadvantages of Sourcing Yourself:
Time Efficiency – as stated above, sourcing goods yourself can be quite challenging in regards to the time spent finding quality products and negotiating for the best price. Therefore, by allowing the leading sourcing agent to handle your order fulfillment, you have more time on your hands to focus on other business related issues concerning your organization as the company quickly sources the required products for you in due time. Also, the company is located in Shen Zen which is in close proximity to Hong Kong – the international parcel processing hub meaning the transit time is immensely minimized for an enhanced user experience.
Cheaper – sourcing products yourself can be quite costly mainly because you do not enough time to find the cheapest wholesaler, neither understand the Chinese way of doing business – but not with ChinaDivision as your agent. Not only does the company have expert Chinese negotiators, but also are enlightened on the Chinese culture thus enabling them to hold extensive negotiations on your behalf. Apart from the agent’s volume discounts for both international and domestic shipping (demurrage fee), clients get free warehouse storage for a whooping 30 days and very low charges thereafter which can be negotiated. That’s not all, the simplified logistical processes enhanced by the firm’s extensive international network not only makes order fulfillment easier, but also much cheaper considering the fact that you can store your inventory anywhere within ChinaDivision’s numerous warehouses (why then do you need a warehouse team?)
Quality control – you have built your company’s reputation from scratch through hard work over the years, why then let it be ruined over fake or low-quality products? By sourcing the goods yourself, you remain prone to quality issues. China’s leading sourcing agent thrives in improving customer service by not only ensuring that your products are of the expected quality standards, but also by enhancing order fulfillment on time to improve service delivery thus maximizing on profits. Missing delivery deadlines can greatly damage your reputation as a merchant thus in your best interest to let experts handle your orders.
All said making use of the infrastructure lay down by the company while sourcing from China can greatly improve your business model, save costs and allow room for growth. For more information on how to get the best sourcing services in China, contact the warm customer service staff to get an insight.
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