China Sourcing Guide: How to Source from China?
Online or retail businesses outside of China can greatly benefit from sourcing products in China. Contrary to the popular belief that China is the land of cheap and low quality products, many manufacturing units in China produce high quality products that are competitive in any market, depending on how much you are willing to pay.
Table of Contents
Should You Source Products in China?
When starting a business, you can choose to manufacture your own products, buy them locally or source them from abroad.
Sourcing products from China may seem more intimidating than the other two options, but also the one with the greatest potential for profitability.
But dealing with the complex system of Chinese business requires some preparatory steps and strategies. You can navigate complexities and grow your business with a sound product sourcing strategy.
Factories, ports, trucking, couriers, and even inspection agencies face uncertain and sporadic lockdown risks, which means delays can happen at any time if you are sourcing products from China. When you outsource your manufacturing overseas, your supply chain is only as strong as your weakest link.
This means even if your factory is operating, if their raw materials supplier goes under lockdown, if the couriers are restricted from entering provinces or cities, or if the truckers cannot deliver your finished order from the factory to the port, you are stuck.
This is not to say that you shouldn’t source from China.
For many private label products, China is still the ONLY PLACE in the world to source from right now — no matter how hard you try.
Other countries may not have the raw materials, experience, and technology to replace the breadth and depth of China’s manufacturing.
Before we continue, remember this 4 sourcing products from China principles…
(1) It’s a numbers game. More quotes = more information = better decisions.
(2) Don’t be afraid to walk away. As the buyer, you hold all the money.
(3) Compile your data. Checking supplier quotes side-by-side can help you reach a quick conclusion.
(4) Price is just one factor. Logistics, and quality control all need to be learned
In this post, we will talk about 7 steps to start source from China, and 6 tips you should be aware of during this process. If you follow the steps mentioned below, you will find yourself in a better position to source from China safely.
Main 4 Sourcing from China Options:
4 Options When Source from China
Let us further analyze which cooperation model is suitable for you when you source from China.
1. Buy directly from Chinese supplier
That’s what 82% of importers are trying to do. They want to control the process and avoid paying commissions to any intermediary or agent.
This may be your best choice if you have sufficient organizational capacity to manage suppliers (see above), and you can meet the vendor’s minimum order quantity (MOQ).
2. Use a China Sourcing Agent
There are thousands of people in China trying to make a living by providing this service. If they come from the right industry, you can use their network and save a lot of time. They can also act as your Chinese representative.
3. Buy from a Trading Company
This is a good choice if you can’t meet the MOQ, perhaps as a start-up or an entrepreneur who has been an early target.
Trading companies can place their products in small workshops that accept small ones. Apart from this particular case, I do not recommend working with intermediaries.
4. Use the Service Company
If you have find suppliers already, and need some production follow-up. Some Chinese purchasing agents provide services and charge fees. Everything is transparent (supplier name, a process followed, etc.). This is an investment in your company before you start production, but if you predict a lot of it in the future, it’s a good choice.
How to Source Products from China?
If you source products from China, you need time to identify all the suppliers, audit the candidate’s factory before negotiating an agreement, evaluate their internal product development capabilities (if needed), and spend time managing the entire project.
All the process will take several hours a day and is a complicated job. Here is the Complete 7 Steps to Source products from China:
1. Do Market Researching
You simply need to research before setting up your business. As we all know, there is much competition in the market, and if you jump into the crowded marketplace, it will be challenging for you to reach your business at the top.
You have to do more struggle to get your goals. So it is crucial before applying for any business your first step must be complete, compelling research.
2. Get In Touch With Chinese Manufacturers
Some people don’t like to contact manufacturers for different reasons. It doesn’t mean that they don’t know this, but they are confused about where to start or how to do it.
Types of Sourcing Products from China Suppliers.
There are three types of suppliers for importing from China-manufacturers, small trading companies, and purchasing companies.
Knowing which type is right for your business is crucial.
-
- If you are a big buyer and can meet the factory’s minimum order quantity, you can purchase products directly from the manufacturer.
- If you are not buying a large quantity, but looking for a wide range of related products, then a trading company is a good choice. You can carry multiple products in one store, and you can import a small amount of each product.
- If you are a supermarket company, you can try to purchase from Yiwu market. At the same time, you need an agent to help you turn around all these, such as Yiwu agent.
- It is better to choose a manufacturer when you supply products with technical requirements as you can source directly from them, not sourcing agent or company…
Where to Source Products from China?
The process of this is relatively straightforward: All you need to do is go to online wholesale websites like Alibaba (a massive network that connects you with hundreds and thousands of qualified manufacturers from China) to find the products that you want to buy.
Then, Send messages to at least 10-15 suppliers. You have nothing to lose.
Top 20+ Best China Wholesale Website List to Buy Wholesale From China
Share your message with your manufacturer by sending a simple message along with the mentioned below lines:
“Hello, my name is (your name). I’m texting you because I am in dire need of (your product name). Can you please offer me your price and quotations (also tell the number of units you want to order) and an estimated delivery time? Thank you! I would like to highlight one more thing as I’m not only contacting you but also your competitors, so please be kind and reasonable with your quote. Regards, (name).”
If you can fly to China, it is definitely better, you have the opportunity to participate in various trade fairs and professional wholesale markets.
3. Negotiate With the Suppliers
Before you negotiate, make sure you have all the data and information to present your case. This gives you a good reason to refute the supplier’s claim, and you understand the situation.
Every day, these Chinese companies receive so many emails and messages about samples. Sometimes, those people are also asking for samples that don’t have enough money to invest even in the first shipment.
Therefore, you have to show the idea that you are planning something big from the start. Once you have finished finding your reliable companies, you can send them the following messages to play with them and get better pricing:
“Hello (company/contact), we are looking forward to placing an initial order just to test the quality. We would like to place orders for (number of units) of (product). What will be your offered quote for this? Must keep in mind that we are receiving plenty of good pricing from your competitors too. But we want to check yours. Thank you!”
Like previously, you can check that no word like “sample” is used above either. It is better never to use that word.
The word sample order is replaced with “initial order” for quality testing of the product. See how your language affects the sentences. By doing so, you will instantly notice the manufacturers and see how seriously they take you.
It will be best to place orders for around 50 or more units for the first time. Ordering for only one to two products will give them the impression that you don’t have enough cash to invest with them and in this way they can’t make more money.
4. Start from Order Samples
After receiving the manufacturers’ quotes, you can now pick the best price among all and order your first round.
When you receive your first sample order, you should:
- Inspection of multiple units (to ensure a consistent level of product quality)
- Look for any defects, damage, or any low-quality components used.
- If you are not satisfied, you can request a second(3,4,5…) round of samples and make the necessary changes, or simply choose another supplier.
Other factors to consider when ordering your first round of samples include factory location, payment options available, and lead time.
5. Order a Bulk Amount
Once you have followed all the steps correctly, you are set to order for a bulk amount from China.
But you have to pay attention to send payment to China in case face a scam.
Standard Sourcing Products from China Payment Methods
Many suppliers require a deposit of around 30%, and the remaining amount would be paid before shipment.
This means that you are risking your deposits, but you have full control over the remaining balance, which needs to be paid after quality control and lab testing.
6. Do Quality Control Checks
Although having a good production agreement is an excellent way to start your relationship with your suppliers, regular quality control inspections are necessary so that you can ensure that the quality of your products meets your standards.
This prevents costly mistakes from being made in the future. Studies have shown that late problems found in the production process are always more expensive than early problems.
7. Arrange the Shipment
The first thing you need to do at this stage is that you must familiarize yourself with shipping incoterms. Incoterms are trade terms that are used internationally for determining where and when the cargo will be transferred.
Shipping from China is also a seemingly simple job, but it is full of challenges: because there are too many forwarders to choose from, but it is difficult for you to find the real high-quality forwarders.
For the agent you cooperate with for the first time, you need him to give you some more transparent services rather than the lowest price.
Usually, there are 5 ways to shipping from China.
- Air express
- Air freight
- LCL ocean freight
- FCL ocean freight
- Expedited ocean freight
| Condition | Airfreight | Ocean freight |
| Reliability | More Reliable | Less reliable |
| Speed | 3-15 days | 30-40 days |
| Cost | Expensive | Cheap |
| Logistics | rules | paperwork |
| Tracking | provide | some provide |
| safety | safe | possibility of damage |
| Charge method | weight/dimensions | weight/dimensions/fix price |
Shipping and Logistics Considerations
Navigating the logistics of importing products from China can be tricky. Different shipping options (air vs. ocean freight) come with varying costs, lead times, and reliability. Choose your shipping method based on the urgency of your shipment, the size of your order, and your budget.
If you are importing for the first time, consider using a professional freight forwarder to handle the complexities of customs and shipping documentation.
How to Build Relationships with Chinese Suppliers:
When sourcing products from China, building a strong and professional relationship with your suppliers is key to success. Whether you are negotiating online or visiting in person, maintaining a clear, consistent, and respectful line of communication can lead to better deals, improved quality, and faster responses to issues.
Chinese business culture places high value on trust and long-term partnerships, so it is essential to cultivate this from the beginning. Use local communication tools like WeChat and QQ to stay in touch with suppliers, as these platforms are widely used in China.
Maintaining an ongoing relationship may also open up other opportunities for collaboration. Your supplier might help introduce you to other reliable manufacturers if you need additional products, saving you time and effort.
Understanding China’s Manufacturing Capabilities
While China is known for producing cost-effective goods, it is important to understand that not all suppliers focus on low-cost production. Many Chinese manufacturers specialize in high-quality goods and are competitive globally, especially in areas like electronics, furniture, clothing, and automotive parts.
Depending on your business goals, you can work with these high-end suppliers to deliver premium products at affordable prices. Make sure to clearly communicate your quality expectations and ensure that quality control measures are in place from the outset.
Key Considerations When Sourcing from China
Sourcing from China offers immense potential, but it also comes with certain challenges.
Here are key factors to consider:
- Quality Assurance: Ensure consistent quality control throughout the production process to avoid costly mistakes. Consider hiring an independent quality control agent if necessary.
- Lead Time: Always account for longer production and shipping times. It’s advisable to plan for delays, especially if your products depend on raw materials from various regions in China.
- Supplier Reliability: Due diligence is crucial. Make sure to verify the legitimacy of your suppliers, especially if you are dealing with small trading companies or new contacts.
- MOQ (Minimum Order Quantity): Manufacturers often have MOQs that you must meet. If your business is just starting, you might want to work with trading companies that can combine orders from multiple clients, helping you meet the MOQ.
The Importance of Product Samples
When sourcing products from China, it’s critical to order samples before committing to a larger purchase. Samples give you a chance to check the product’s quality, assess any potential defects, and ensure that the manufacturer understands your requirements. Consider inspecting multiple units of the sample batch to verify consistency in quality.
Don’t be afraid to ask for multiple rounds of samples if needed, especially when sourcing products with complex designs or technical specifications.
By integrating these points into your article, you will cover crucial aspects of building supplier relationships, China’s manufacturing capabilities, quality control, logistics, and negotiation strategies, creating a more comprehensive guide on how to source products from China.
Now, leave your comment if you need a product sourcing company to help you source products from China.
[…] The other exciting thing about these platforms is that they offer free sign-ups for clients without compromising the quality of their clothes. Also, you can find wholesale clothing vendors from China wholesale websites. […]
[…] Source: https://www.supplyia.com/source-from-china/ […]