Everything you have to know before Sourcing product from China

Everything You Have to Know before Sourcing Products from China

Introduction 

Product sourcing is an industry that has existed for decades.   Product sourcing entails importing products from overseas manufacturers to resell in your own country. Product outsourcing (also known as product manufacturing ) is simply the act of contracting out production to a manufacturer or supplier located in another part of the world. Product wholesaling, on the other hand, is when you buy products wholesale and then try to re-sell them at retail prices – just like any other retailer might do.

In this article, we will discuss the topic about sourcing product from China, which is a popular place for product sourcing. If you have interest, don’t miss it!

 

The benefits of product sourcing

Efficiency

Product outsourcing (also known as product manufacturing) has become popular because it is efficient, cost-effective and keeps companies competitive. Product subcontracting makes it possible for manufacturers who are unable to produce goods domestically due to lack of infrastructure or expertise to quickly acquire the means of production without having to shoulder the costs of starting a business from scratch. Product sourcing allows companies access to products they wouldn’t otherwise have access to, enabling them to rapidly expand their market reach without compromising quality or introducing logistical problems. Product outsourcing (also known as product manufacturing) provides both flexibility and variety – allowing companies using this approach to vary their products according to consumer tastes and demands with minimal effort on their part, which in turn helps them to become more profitable. Product subcontracting provides companies with access to goods that would otherwise be prohibitively expensive or impossible to get hold of, which is why Product Sourcing From China has grown in popularity over the last few years .

Expand operations in a rapidly speed

Product outsourcing (also known as product manufacturing) allows businesses to expand their operations quickly , while keeping costs under control and ensuring that they don’t get bogged down by logistical issues like long waiting times for deliveries or large storage fees . Product sourcing from China makes it possible for any company – regardless of size – to easily start importing goods without having to invest too much time and money into the business. Product wholesaling also gives businesses access to goods at deeply discounted prices compared with buying domestically produced products – making Product Sourcing From China a highly sought-after practice . Product sourcing is an approach that allows companies to build their businesses domestically, but source goods from overseas.

 

 

The Popularity of China when it comes to product sourcing

 

   China has become one of the best places in which to source product because there are so many suppliers located there who specialize in pretty much every type of product that you can imagine. You could find anything from garden supplies made out of weather-resistant steel through to high-tech water bottles and children’s toys . Product sourcing from China allows you to purchase large quantities of items for a discounted price, and then sell them yourself or through another third party. Some businesses specialize in buying these products and selling them at retail prices.

 

Product sourcing from China has become extremely popular over the years because it is easy to find manufacturers who can produce goods very cheaply compared with costs if they were produced domestically. Product outsourcing (also known as product manufacturing) remains one of the easiest ways that companies can get products into their inventory without having to pay for expensive warehouses, delivery trucks, labour costs and other logistical issues involved with importing goods directly from overseas countries. Product subcontracting gives companies access to products without having to lease storage space, build inventory , or hire employees to work on inventory.

Quality control of Product Sourcing From China 

When sourcing products from China, Quality Control is a must in order to maintain a healthy business relationship with your suppliers and also to protect the image of your company/brand. Quality Control should be part of your Quality Management System when you have an own factory or just when you work with 3rd party suppliers.

 

The Quality Control has two different aspects: Quality Control during product manufacturing and during product sourcing.

 

 Quality Control during product manufacturing

 

Quality Control is the physical and/or the chemical examination of a product, material or an installation with the purpose of finding deviations from specified requirements. Quality Control is taking samples from your suppliers and testing these in order to find any problems for your business relationship with them

 Quality Control during Product Sourcing

Quality Control during Product Sourcing consists of both Quality Assurance Sampling and Quality Control Sampling: Quality Assurance Sampling needs to be done at regular intervals on all incoming lots which are defined according to risk assessment. This is due to the fact that you do not know where the eventual problem could come from.

Quality Control Sampling can occur as 100% sample testing (every single unit tested), part-to-part testing (parts tested from different units) or as variable sampling testing (the sample size is varied according to certain criteria). Quality Control sampling gives you the opportunity to test a small number of samples and if everything is OK, you can assume that all products are fine. Quality Control Sampling is used for incoming lots where Quality Assurance Sampling alone would be too expensive or time consuming.

What about Certificate of Conformity?

A Certificate of Conformity (CoC) certifies that a given product fulfills a set of requirements which has to be determined during Quality Control. Quality Control will take place before the product leaves your suppliers factory. The CoC consists of three parts: Quality Management System (QMS), Quality Assurance (QA) and Quality Control (QC). Quality Control is the process of testing which your supplier has to conduct. Quality Assurance is the part where you check up on Quality Control which your suppliers have to conduct. Quality Management System describes all processes inside your suppliers factory.

How to deal with faulty goods?

Quality Control during Product Sourcing should help you getting rid of faulty products from your suppliers. For further information, please read our article “The right way to handle non-conforming material in China”

 

 

 Tips to avoid getting scammed:

 

1) Verify the company’s information using any available means (Wikipedia, Dun & Bradstreet, Google search by business address etc.)

 

2) Find out whether or not they are selling brand new products (not repackaged, refurbished etc.) of the quality described in their sales pitch. Most importantly, make sure you know what is included in the product (for example Apple’s iPhones do not include headphones). Ask them to send you pictures of what is included in the package.

 

3) Make sure that it would be legal for you to import the product into your country. For example, most countries ban adults from importing realistic looking toy guns; while all electronic devices manufactured after 2006 have to meet certain efficiency standards which don’t apply to older models. Check with your customs department before placing an order.

4) Make sure that you can reach their customer support when  you have a problem with the product.

 

5) Make sure that they have a refund or exchange policy if you are not satisfied with what they sent to you.

 

6) Be wary of anyone who claims to be able to send you an order within 3-5 days,or even 7days/week. This is impossible because most Chinese factories are closed Sundays and it can take at least 1 week for goods to travel by sea from China to the destination country.

China sourcing agencies

7) It is a bad sign if a company does not list their business address, phone number and email address on their website. However this is not always true as some companies deliberately leave off their contact information for obvious reasons (for example, avoiding complaints). Ask them directly about this before placing an order.

 

8) Check whether or not they are using PayPal as their payment method, as there have been cases where Chinese vendors have used stolen credit cards to purchase goods on eBay and PayPal’s “Seller Protection” policy won’t cover the loss if the goods are never sent.

 

  • Have a native speaker of your target language phone them if possible. If the person who picks up speaks your target language poorly it is likely that they’re working from a boiler-room (a location shared by many telemarketers) in another country, and may be difficult to do business with.

 

To avoid all these problems, we would advise you to coopearate with soucing agencies at the beginning of your business. Though you have to pay for the commission, rising the cost, the benefits you get from the soucing agencies will definitely make them up. You can save more time and low the risk of getting scammed.

Why choose Pangea Sourcing

Pangea is your No.1 choice for product sourcing in Australia and they have factory partners all over the world, so you can be sure that when it comes to finding suppliers Pangaea will find just what you need!

The company has offices across Asia Pacific as well a number of other countries including China (Mainland), United Kingdom(Britain) Hong Kong SAR(China).

 

 

Conclusion

Conclusion paragraph: Choosing the right company for your product sourcing needs is important, so it’s always wise to do some research before you make a decision. Pangea Sourcing has been in business since 2006 and we’ve helped over 10,000 clients get their products sourced from China with high quality control measures in place. We’re proud of our record when it comes to client satisfaction, which makes us confident that we can provide you with what you need whether it be finding factories or managing production overseas. Contact us today if you want more information on how our services could help improve your business!