8 Tips and Tricks to Master China Product Sourcing

March 28, 2023 eCommerce TipsEntrepreneurs

China’s product sourcing has grown immensely over the years, and dropshipping businesses, either well-grown or starters, select China as their sourcing agent. The leverage in China over other countries is that you get high-quality products at affordable rates. If you’re a business owner or purchasing manager looking to get variety, quality, and budget-friendly options all in one, then sourcing from China is a viable option for you. However, sourcing from China is cool and amazing, but trading thousands of dollars with some non-native suppliers you met online is risky. Continue reading to know 8 tips and tricks to master China product sourcing.

Conduct a Comprehensive Market Research

Doing market research is crucial before sourcing products. The overall impression of importing is enticing. However, you must be careful as the market is full of fraudsters. The way to conduct your market research is by looking out for suppliers through online business directories. Then, look out for your niche products and shortlist your concerned sellers. Check out their business website for verification and visit the seller’s social media account, like LinkedIn, to see reviews. These stepwise strategies will help you to conduct market research efficiently.

Learn About Your Supplier

Once you have shortlisted a few suppliers for sourcing your products from China, verifying their credentials is very important. You may find some basic information about them online. Apart from that, you should know if they are indeed a manufacturer and not a middleman, and if they have the technical expertise, product manufacturing abilities, processes, and resources to live up to their claims of quality and delivery. You can verify this in several ways by asking the supplier for their audited accounts, checking out their Value Added Tax invoice, etc. You can also verify the supplier’s name, location, and the local government office.

Ask for Samples

Before the organization places its order, it must first ask for a sample of products. The samples that you will check will enable you to decide if you will order or not. The samples will tell you if it suits the quality and requirement that you expect.

Stay on Top of Communication

A lot of clients tend to forget that when sourcing products from China, language may prove to be a barrier to communication. While the more established suppliers do have English-speaking customer support, a lot of the problems between clients and suppliers are rooted in misunderstandings in the communication process. This is why it’s important to have all the specifications and instructions put in writing when doing your dropshipping business.

Understand the Chinese Business Culture

For a truly successful partnership with your Chinese supplier, you’ll need to understand the way business is done in the country. Doing so will be in your best interest as your competitors may have already developed their network of connections while going beyond the terms and conditions of the contract. Their contract will merely reflect what they agreed upon over a game of chess or even a meal.

Monitor Quality Inspection

There is no doubt that China offers quality and affordable prices simultaneously. However, keep a check during the manufacturing phase. The reason is to avoid a crisis. Diligent sourcing agents don’t like to break bad news to dropshippers. Therefore monitoring quality inspection during the work-in-process can help you prevent unseen losses. To do this, you can hire quality inspectors to keep you updated, check out the packaging standards to avoid damage during shipment, stay in touch with your supplier, and provide him with the objective criteria to avoid conflicts and ensure the correct documents are in hand to avoid the problem at customs.

Prepare for Unexpected Situations

Another tip you should keep in mind is to prepare yourself for unexpected situations. This is very common in sourcing products from China to face an unseen crisis, and dropshipping businesses can only suffer a lot if it has no backup plans. Meanwhile, if you weigh the opposite view of whatever decisions you make while sourcing your products, it’ll give you an insight into what to do to tackle the situation if any problem arises.

Calculate Your Profit Margins

Even if China is the most viable option for sourcing your dropshipping products, you should consider calculating your profit margins asides from manufacturing costs. Dropshippers make mistakes by underestimating the shipping cost and other fees that eat their gross profit. That’s why calculating the profit margin is vital before making an order.

Parting Words

There you go with the insightful tips and tricks to master China product sourcing. From sourcing an efficient supplier and doing due diligence to fulfilling professional obligations to establishing positive interpersonal relationships, you will have to look into all these crucial aspects to be successful in your dropshipping business.

Turn to Fulfillman for Your China Product Sourcing

Contact us today at Fulfillman to know more about our services. We provide a wide range of services including Global Fulfillment, China Sourcing, Drop Shipping, Third Party Logistics, and lots more. Our trusted experts will be happy to speak with you and provide suitable answers to your questions and concerns. A fantastic experience awaits you.