All you need to know about Product sourcing in China

Introduction

When looking for a supplier for product sourcing, China is always a top choice.

The country boasts a massive population, an abundance of resources, and low production costs.

But finding the right product supplier can be daunting – there are thousands upon thousands to choose from.

We understand how difficult for you to make a good decision. That’s why we wrote this blog.

So how do you go about sourcing a product in China?

After reading this blog, you will know how to successfully get the Product sourcing in China。

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This blog will include the following topic:

Why choose to source products in China?

How to choose the right supplier?

Reliable Soucing agencies from China

 

 

Why choose to source products in China?

Cost-saving

The cost savings associated with overseas manufacturing are significant enough to outweigh the burden of shipping the finished product from China to the USA.

Generally, a large enough order placed by a US customer can bring the unit price down so far as to make it cheaper than if the product was sourced domestically. This also goes for other countries such as Canada, Australia, Japan, etc…

For orders going beyond 20 units, this is true even more so.

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Labour force

 

The ability to directly control the process from start to finish means the quality can be kept to a maximum level as the first and last people the customer interacts with are the ones who will have the greatest influence on the outcome of the order.

This is especially useful for products that require assembly, which quite often ends up being outsourced to other countries where labor costs are significantly lower than those found in the USA or Europe – simply because there isn’t enough work available for local employees, causing them to seek employment overseas.

In either event, this leads to lower quality output as these people aren’t typically skilled laborers, but rather hired hands looking for any job they can find due to their home country’s lack of economic opportunity.

Without middleman

 

The ability to conduct the transaction directly with the manufacturer, rather than an agent or broker, also has a lot to do with the price reduction.

The markup you will find associated with importing through other parties is typically between 10%-20%, but can be as high as 30% of your order size isn’t large enough to justify the extra cost it takes for them to import the product.

Not only that, but they will then pass this upcharge down the line to you while still making their margin. This is why it’s often beneficial to deal directly with the company that will make the product – even if your order comes in under 20 units.

Also, when the product is made in the USA or Europe the only way the price can be brought down as far as China is with the order size – making it even more beneficial to place larger orders.

Where can you find a reliable product supplier for product sourcing in China?

1. Trade show

  •  No more hassle and time-wasting with emails and phone calls.

You’ll meet real decision-makers face-to-face, your sales messages will be heard and you can start building relationships immediately.

If you market a quality product or service, you will be able to get quotes from the exhibitors who are displaying in the booth next to you.

 

  • You can find a reliable supplier yourself instead of having a middleman between you and them.

 

  • Many exhibitors are eager to have you visit their factories after the show. This is a great way to start building good business relationships with Chinese companies.

There is no time lost having to travel back and forth several times before making orders. And you can save your company’s people power because the negotiations will be done at the show by you or someone else on your behalf.

 

You’ll get a lot of information about market trends and other business data that will be invaluable for future reference. At Canton Fair, you can find all the information about a product at a glance because it is organized by Product Category.

 

You can get an idea about the following: Prices of Chinese goods in terms of the currency of your own country. You can compare the prices to find the most competitive one.

 

You can find out about the Chinese companies’ creditworthiness and product liability insurance policy (in some cases), which you might need in the future.

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2. Online platform

The following are some of the advantages you get from using these specialized websites:

 

  • The information on the website is updated regularly by its users who find it easy to find reliable Chinese manufacturers and suppliers. A majority find it helpful to find reliable suppliers that can meet their specifications.
  • You get the contact details of these suppliers, be it email/ telephone number or website address if they are listed on the website you are using. The fact they are members on these websites means they have proved their reliability through stringent screening.
  • Sometimes the suppliers are given star ratings, which you can find helpful to find reliable Chinese product suppliers. The supplier with the highest rating is deemed most reliable and clients find it easy to find dependable manufacturers and suppliers.Some Cartoon building serves as background

3. Sourcing agencies

As the demand for the product increases and the business’s standards become higher, it becomes necessary to look for a more efficient source of the product sourcing service. Sourcing agencies/sourcing companies  have been known to be beneficial in this regard because they offer the following services:

  •  Assistance with initial contact with the manufacturer

    This is an important service because not all manufacturers can understand the English language.This can lead to the business losing the best deals because the manufacturer is not aware of the specifications and the limitations of the product.

  • Offer visits to the factories that impress you before the initial order

    On these visits, the sourcing agent will help you inspect the factory and ensure that it is up to the standards required by the product.This is important when the manufacturer needs to know the specifications of the product in order to be able to produce it.

  • Assistance in the translation of the product information to the manufacturer

    The sourcing agency will assist with the translation of the details about the product that are listed on the business’s website or the product catalog.This can help the manufacturer better understand the product and the way it is produced. It makes the process of production smoother because the manufacturer will be familiar with the specifications of the product to meet the standards required by the business.

  • Negotiate the best deal with the manufacturer on your behalf

    The sourcing agency has the ability to negotiate better prices when the manufacturer can understand the specifications clearly.The agency also has the necessary connections to the different suppliers in the market, which helps it find a suitable supplier for the business.

benefits of cooperating with China sourcing agents

How to evaluate a Product supplier?

not all product suppliers you find are trustworthy to deal with. Here are some tips on how to locate the trustworthy product supplier at a trade show that can supply quality products for your business:

 

  1. Provides samples  of the product

 

A product supplier that cannot provide samples is not a product supplier you want to deal with.

There are product suppliers who will only reveal their product catalogs, but refuse to show any sample of the product you can hold. Ensure the product supplier provides samples of product, so you know exactly what quality of the product is you are getting.

 

  1. The product supplier provides a list of their product clients (or links to their product client’s product website )

 

The product supplier has product lines that are similar to your product is an ideal product supplier for your business.

Product suppliers often have product clients who are satisfied customers. For you to be certain of what quality of the product you are getting, ensure the product supplier provides a list of their product clients or links to product client product websites.

avoiding scams

3. The product supplier has product certifications (or product accreditations )

 

A product supplier that can provide product certifications or product accreditation is a product supplier worth dealing with.

Product suppliers at trade shows have product accreditations from trade associations and/or industry standards for the products they produce, so product suppliers with product accreditations are product suppliers worth dealing with.

 

  1. The product supplier can offer competitive product pricing

A product supplier should be able to offer competitive product pricing, as there are fewer overheads for the product supplier because product samples are not ordered.

A product supplier should be able to offer product pricing that is competitive to product suppliers online, so ensure the product supplier can offer product pricing that is competitive.

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Matters You Have to Pay Attention during Cooperation

The process of cooperating with product suppliers in China is a daunting task.

There are hundreds if not thousands of manufacturers and factories producing all kinds of products, from clothing to cell phone cases, from pots and pans to computer hard drives.

You can get almost anything you want to be made in China.

In the following part of the content, we will share our experience about how to cooperate with product suppliers in China.

The process of cooperating with product suppliers in China is made up of five steps:

– quality inspection

– sample production

– the start of mass production

– delivery and payment

I’ll briefly discuss each step now.

feature of bad China sourcing agents

 

Sample production and Quality inspection

Quality inspection is performed after cooperating with product suppliers in China who have produced the product samples.

Working with cooperating with product suppliers in China who will accept returns is critical because you’ll need to send those samples back for inspection.

In order to find cooperate with product suppliers in China who are willing to accept returns, you need to provide them a sample so they can see your design and give their approval before cooperating with product suppliers in China starts production.

You should make sure the product supplier you cooperated with can provide the product that 100% meets your standard.

This step is very important because some of the product suppliers in China often use substandard components, materials, or labor to save money, and you’ll end up losing money if cooperating with product suppliers in China produces your product the wrong way.

Staffs working in the factory

Payment

The final step in cooperating with product suppliers in China is delivering your product and paying for product suppliers. This is also an important step because product suppliers in China will be reluctant to give you a refund if they’re not paid immediately for completed work. Also, product suppliers in China will likely charge you interest if cooperating with product suppliers in China don’t get paid on time, which can add up to a substantial amount.

 

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Why Pangea Sourcing is your first choice?

PANGEA is your one-stop-shop for Australian product sourcing. With partnerships in China, UK & HK among other markets you can be sure that we have access to all the right factories needed so as not only to save 20% on orders but also to provide top-quality products at an affordable price!

Conclusion

It is undeniable that China’s manufacturing sector has been the backbone of its economic growth and an indispensable contributor to global supply chains.

As such, it should be no surprise that there are plenty of reliable product suppliers in China for you to choose from when sourcing your products.

The challenge will be evaluating which supplier suits your needs best and offers the quality and service level you’re looking for at a competitive price point. By following these tips on how to evaluate a Chinese manufacturer, we hope this becomes less daunting than before!

If you still have any problems, please feel free to contact us! Thanks for your reading!