7 Expert Tips to Negotiate When Sourcing Products from China

September 21, 2021 eCommerce TipsEntrepreneurs

China is the leading region for the sourcing of goods. This demand for the sourcing of goods is primarily due to their large labor force and industrialization. But people have heard negative tales of sourcing goods from China which makes them skeptical. While it is okay to have second thoughts, your business success depends on a lot of factors. Some of these factors include negotiating skills, knowledge about sellers, product niche, etc.

Excellent negotiation skills are one of the primary factors that influence good business when sourcing products from China. Below are seven expert tips for good negotiation when China sourcing:

Conduct Background Checks on Suppliers

Background checks on the suppliers are one of the first steps to ensure that trust is established. It is essential to do a business check on a chosen supplier before negotiating a price. A business registration check will assure that you are dealing with legitimate business owners. You will be able to view their business range and know if they have legal issues. You will also be able to clarify that they have the required business capital.

It is also wise to conduct an initial factory evaluation (IFE). Initial Factory Evaluation is simply checking a company’s manufacturing capability. This evaluation helps you to know a worthy client. It will also let you know if your investment is safe.

Understand the Price of Products

Understanding the price of products is key to negotiating for the best prices. It is best to get ideas from at least five different suppliers. Then you evaluate the average price and utilize it in negotiations. The knowledge or overview of the market price will help you understand negotiating with the Chinese market better. And how a Chinese supplier can be pushed to beat a price.

Purchase in Bulk Quantities

Naturally, the higher the number of goods purchased, the better the discount. With this understanding of the price, you can quickly negotiate a good discount if you buy in high demand. You can still negotiate for a better price if you are purchasing a few goods. And if your annual estimate is high enough, you can make your supplier cooperate with you.

Earn the Trust of the Supplier

Good communication and sharing good information with suppliers will make them trust you and take you seriously. Information about the fluidity of your market will put you in an influential position. If suppliers understand your market, they will put you into consideration during any business transaction.

Winning for both parties, you and the supplier is a mutual expectation between you and your supplier. This expectation is why you need to show them solid growth and decent financials. This transparency, in turn, allows them to understand that you are ambitious and will make them prioritize their relationship with you.

Make Adjustment to Payment Terms to Negotiate for Better Discount

One of the easiest ways to get a discount is to make payment terms favorable to a supplier. Averagely, payment terms are often 30% when placing the order and 70% for shipment. However, you can decide to table a more favorable offer for the supplier. Such as 40% when placing the order and 60% before shipment. You can even choose to bank on higher stakes to offer 50/50 terms.

Be a Valued Customer

Making endless requests for samples without making purchases is bad for your business. You need to make sure that you make requests for samples to buy the products. It is essential to build transparent relationships, have good communication, and meet deadlines to be valued. Being valued will ease negotiations between you and your suppliers. And the value can create a long-lasting relationship between you and your Chinese supplier.

Don’t push too hard while bargaining to slash a price. Lenient negotiation will make your suppliers prioritize and value you. Your suppliers will not want to lose you, which will make you have a solid ground in negotiations. This tip will help you gain a future and long-lasting ground in negotiating with your Chinese supplier.

Timing is Important

Negotiating at the right time will give you the edge. It would be best if you bought goods when the market is not too busy. With the right timing, you can use a technique called “flinch.” The flinch method works by temporarily withdrawing from buying if the price is too high. And do not place an order if you have not agreed on the price.


To conclude, you should note that shipment methods affect the cost of sourcing products from China. Proper timing, earning your supplier’s trust, and creating an avenue for transparency helps to improve price negotiation. These tips will also help you to buy quality products at a lower price. Build a healthy relationship between you and the Chinese supplier.

Do you need professional help and guidance in your China sourcing? Contact us today at Fulfillman. We are a reputable service provider of China Sourcing services. We also provide Drop Shipping, Warehouse Fulfillment, Third Party Logistics, and many more. Our dedicated team will be available to speak with you and discuss the options available to you. We guarantee you excellent services.