China is currently amongst the world largest manufacturing hub, they are also one of the leading ecommerce businesses worldwide. The country’s technological advancement has further aided them in the international market and they would likely dominate the international market for the next few decades. As a result, a lot of ecommerce owners have turned to China sourcing (sourcing products from China).
Sourcing wholesale products from China offer business owners and online sellers the opportunity to purchase products at cheaper prices from Chinese manufacturers. This way, they can sell and make reasonable profit. Unfortunately, there are lots of scams in today’s China markets. Likewise, getting high quality products is essential when sourcing products from China. Below we’ll be looking at eight essential tips to succeed with product sourcing from China in 2021.
Most people skip this part, which is a very big mistake. A thorough study of the market is the very first step to any successful business, China sourcing isn’t any different. Learning about the market is very essential to minimize risks of failing. Look at what products are trending, what consumers are purchasing, feedbacks from social media or elsewhere, also make sure it’s profitable (reason we do business anyways). Knowing all these helps considerably when negotiating with suppliers or manufacturers.
Contact Your Chinese Suppliers or Manufacturers
As stated earlier do your homework diligently here to avoid scammers. Online Chinese business directories come in handy here. These platforms connect buyers to suppliers in China. Know exactly what you want because these ensures this process goes smoothly. China sourcing platforms help in filtering different niches and also the trustworthiness of potential suppliers.
Gap in language and culture must not be overlooked instead utmost attention must be paid here. Big suppliers tend to have English customer service, however many problems arise from miscommunication. Detailed information on requirements to the finest details of the transaction must be done in such a way that the supplier is very clear on our demands to ensure the supplier is not left to make assumptions. Questions must be asked and responded in a manner both sides have a clear understanding.
Bargaining goes a long way when sourcing from China unlike some other countries. Using this helps you succeed when sourcing from China. Quantity price quantity and even delivery time should be well negotiated. Reasonable, rational and respectable bargaining is however advised, have in mind that the quality is as important as the price so find a balance when bargaining. Haggling mindset should be adopted and unlike western countries they expect you to haggle the terms with them.
Hiring a reputable Chinese sourcing agency is advised for small sized businesses. The extent of the agent’s involvement however depends on you. They can be your supplier, sourcing consultant where they help link you with your supplier and or act as intermediary. They handle most of the negotiations on your behalf, and can arrange samples for inspection by you.
This is a great way to test the quality of products, a very important successful sourcing strategy. This first transaction makes clear not just the quality but also the credibility of the supplier before making your final decision. Sampling process should never be skipped and it’s rather inexpensive when dealing with manufactures directly as it would be deducted when you place your bulk order. Make sure the sample is up to standard and get feedbacks from consumers before proceeding to placing a bulk order.
The response time and clarity in the communications of the supplier should be noted. In addition the arrival of the shipments, whether or not the proper products quantity arrived at your store intact, are questions you must get answers to.
Keeping other supplier options is recommended as this helps the buyer have products readily available for the consumers. Having a multi supplier base helps get better prices, higher quality control as one can readily compare the products to get the better one, this also ensures that the buyer almost always has their products available for the consumers. This also enables picking the best option (supplier).
Building Relationships and Connections
The Chinese put emphasis on “guanxi” or your place of hierarchy of relationships. Guanxi is loosely translated to mean “connections” or “relationships” but the word means much more and is very important if you are going to be successful sourcing from China. Outsiders have got to earn this by putting efforts in business relationships that they cross into your social relationships. Trust dignity and respect are essential tools in building guanxi.
Close monitoring at every stage is required and doing necessary follow ups is very critical for success, you must know when your shipment is due to arrive and follow up appropriately. Make sure you are actively involved even when using trusted sourcing agents to avoid scams and frauds. Sourcing doesn’t stop after the product is sourced. Buyers must continue to main the quality and integrity of the products not forgetting strengthening relationships with the supplier.
There you have it! Above are some essential tips to succeed with sourcing your products from China in 2021. Sourcing products from China should never be a hassle when you have the right agency on your side. We sincerely hope that this short article will help you every step of the road as you successfully source products from China in 2021.
Do you need professional help and guidance in sourcing products from China? Contact us today at Fulfillman. We are a reputable service provider of China Sourcing services. We also provide Drop Shipping, Third Party Logistics, Warehouse Fulfillment, Product Photography, Private Label Dropshipping, and many more. Our dedicated team will be available to speak with you and discuss the options available to you. We guarantee you outstanding and exceptional services.