China sourcing involves a lot of complex processes which can be confusing and overwhelming. China is a huge country where different products are made by different manufacturers. If you are a foreigner that is just starting out, the language barrier can also be an issue.
However, whether you are an amateur ecommerce enthusiast or an expert entrepreneur, you can learn how to source good and suppliers in China. This how-to guide will teach you the right strategy and avoid common mistakes when sourcing goods from China.
Research the Market
The first step in China sourcing is to carry out extensive research about the market. There are several businesses and entrepreneurs who sell products that compete with each other. If you choose a crowded niche, you are likely to struggle to make any profit or even maintain the necessary margins.
During your market research, identify what the market wants as well as the manufacturing prospects. You can compile a list of about seven manufactures you will like to work with. Ensure that these manufacturers are reliable, trustworthy, and verified. With this, you can avoid fraudsters and scammers.
Contact Your Chinese Manufacturer
Often times, you may be confused about whether to work with trading businesses or manufacturers. Trading companies purchase a variety of products from different niches. They make money by adding a margin to the price of these goods. They also have lower minimum order quantities. However, Chinese manufacturers offer lower prices as well as custom orders. If you can meet the minimum order requirement of the manufacturer, it is best to contact and order them directly.
Also, take notice of the manufacturer’s response rate. When sourcing products from China, rapid and clear communication is vital. You don’t want to be left in the dark about your products. A production or shipment delay can ruin your business. Hence, go for a manufacturer that provides fast response and high-quality customer service.
Negotiate to Get Best Deal on China Sourcing
After narrowing down your list of potential manufacturers or suppliers, the next thing is to determine the cost of doing business with each one of them. To ensure that you are getting the best deal, you will need to negotiate well.
Start by introducing your business as a group which will bring them lots of deals. Project the idea that you plan to go big right from the start. Let them know that you intend to build long-term relationships. Nevertheless, keep your negotiations as simple as possible. Your messages and emails should be clear, concise, and straight to the point. No complex words, no long run-on sentences.
Some possible questions to ask the manufacturer include:
- What is the minimum order quantity?
- Which part or area of China is the manufacturer located?
- Do you produce product packaging?
- What are the prices for 200, 500, 750 and 1000 products?
- Do you accept custom orders?
- Are there discounts for bulk orders?
- Do you provide faster shipping with little or no price increase?
Asking the manufacturer or supplier these simple questions will make it easier to understand and provide appropriate answers. From the response, you can begin negotiating on your original down payment.
Once you receive quotes from your preferred manufacturers, the next thing is to choose the best price and make your first order. Choose where you need the order delivered. Send the manufacturer a mail about where and how to make payment and the estimated delivery date. Wait for your products to arrive.
For your first order, ensure that you order about 50 units or more. Even though it may be the initial sample order, however, placing an order for two or three products will give them an impression that you don’t have enough financial resources to invest. Hence, such manufacture may not be willing to work with you.
When your first order arrives, inspect about five to ten products for quality and defects. The last thing you want is your units to be inferior quality or damaged. In case you are not satisfied with the units, contact the manufacturer immediately and request for changes.
Create Product Listing
Once you have the preferred Chinese manufacturer you trust, you are getting closer to starting your business. The next thing is to create a product listing. Link each product to a buy-now button. Also, take quality pictures of your products. Showcasing your products using high-quality images can be the difference between no sales and a high rate of conversion. This will also help you stand out from your competitors.
What’s more, you need to create a product description. Shopify is a great place to start. The description can be a bullet list of the features of the products. This includes color, weight, dimension, warranties, and so forth. You should also include the benefits of the products or what customers stand to get by purchasing your products.
Now that you have posted your products, the next thing is to monitor and analyze sales. Are you making profits? If you are making more than you are spending, you can continue with such products. However, if you are losing money, continuing with such investment may not be ideal. Sell the remaining units and use the proceeds to purchase different products from China. Who knows, you may be lucky this time around.
There you have it! Above is a how-to guide for sourcing goods and suppliers in China. All the processes involved in China sourcing makes it overwhelming. However, it is important that you conduct comprehensive research, contact your Chinese manufacturer, negotiate prices, and build lasting relationships. By following the tips above, you will enjoy more profits and be successful in your China sourcing.
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.