Sourcing product from China is a very interesting topic among businesses. Businesses are interested in knowing how to source products from China, What are the most popular products in China, What are the top manufacturing cities in China……
Well, It’s reasonable for fresher business owners who just step into their industry to feel confused about these problems.
That’s why we wrote this blog. In this article, We will shed some light on these questions and many more, helping you to solve the problem of Sourcing products from China.
Do not miss it!
This blog will include the following topic
Why do people focus more on sourcing products from China？
How to source products made in China in 5 Steps？
Why do people focus more on sourcing product from China？
The benefits of China sourcing products are numerous, and not all of them involve cost. The following list provides a number of the many reasons why you should consider sourcing your next product from China:
– The sheer amount of manufacturers means that no matter what shape or size you need, there will be a company out there who is able to meet your specifications
– The production will be far cheaper than it would if the product was made in America
– The quality is top-notch, and even though cheap there are no shortcuts taken to ensure the safety of your customers
– The speed at which you receive orders can be incredibly fast with many companies offering overnight shipping without any additional cost for this service
– The ease of communication is a massive benefit, as most companies will have an English speaking representative on standby to help you every step of the way
– The opportunity for outsourcing will help your company stay competitive with continually evolving customer trends
How to source products made in China in 5 Steps？
Research Product Marketability
When starting the Sourcing process, it is imperative that you first determine the viability of your product idea. The first step in Sourcing product from China is to research your marketability.
This can be done by taking a look at similar products currently in the market. Sourcing product from China must be done in a way that will allow you to differentiate your company and its product. Sourcing product that is too much like already existing products can cause difficulty when Sourcing, since there will already be competition for the Sourced Product.
2. Supplier Sourcing & Selection.
Sourcing product from China is no easy task, but the Sourcing process can be made easier if you are able to find Sourcing Suppliers who are capable of Sourcing your Sourced Product for you.
There is a large number of Sourcing Suppliers that specialize in Sourcing different types of products, so Sourcing Suppliers for Sourcing different Sourced Product types may require Sourcing more than one Sourcing Supplier. Sourcing your Sourced Product is no easy task, but Sourcing the right Sourced Product can be even harder.
Here we will introduce three-way for you to choose product suppliers
（1） Sourcing the product by e-commerce platform
Sourcing for products in China is best done face-to-face but this doesn’t mean it’s a bad idea to use a search engine to look for suppliers. It might sound difficult to find a Chinese supplier by writing down relevant keywords and inputting them into a search engine but actually, it’s much easier than expected.
Sourcing for exporters online does not require any registration or sign-up fees, there are no middlemen or salespeople to deal with and you only need the most basic Chinese to input keywords into a search engine.
Sourcing for products in China by searching online can be done at any time, anywhere it’s not limited to visiting websites during business hours or dealing with office politics.
Sourcing for products in China by e-commerce will give you access to suppliers that are much more flexible than traditional suppliers that might eventually become too rigid if your business relationship sours even slightly.
（2） Sourcing the product through trade shows
Sourcing through trade shows is one of the best ways to source new suppliers, letting you to meet as many Sourcing Product from china as possible at once, its a time-efficient way to Source Product from china, so don’t hesitate if the opportunity presents itself. Sourcing for Product from China Trade Shows normally has its own agenda and timetable.
Sourcing for Products from China by attending trade shows will give you access to hundreds of companies that might not have otherwise presented themselves as potential suppliers. Trade shows provide an excellent platform where previous customers and new business prospects can engage with Sourcing Products from china directly.
（3）Sourcing the product through Sourcing Agents
Sourcing products from China can also be done by finding agents or distributors who sell Chinese products exclusively to other businesses rather than consumers. ‘
Sourcing agents in the local countries normally have a list of approved suppliers and Sourcing for Products from China requires very little effort on your part as far as Sourcing for Products from China is concerned. Sourcing agencies normally has their own agenda and timetable that must be adhered to or you might end up wasting a lot of time.
3. Product Testing and Refinement
After determining your Sourced product specifications, you will then need to begin to test out the various prototypes that have been Sourced product testing can be done by Product testing consultants or product testing companies who will test out Sourced product for you to determine whether or not your Sourced product is worthy of being manufactured.
If your Sourced product passes the various tests performed against it, then Sourced Product testing is complete.
Sourced product testing can be very expensive, but it’s necessary, it can help reduce the likelihood of Sourcing production problems that can happen during the Sourcing process.
4. Negotiate the contract
If you decided to start sourcing products from China, the process of setting up and managing supplier relationships is very important. Negotiating a contract is one of the things that this process consists of, along with the Sourcing Agreement and Sourcing Plan.
A sourcing contract is needed to record terms and conditions for the Sourcing Agreement or Sourcing Plan.
Sourcing product from China is not an easy task; while you are negotiating a Sourcing Contract, it is important to understand contract terms and avoid any legal risks. It would give your sourcing business a stable development in the future, avoiding unnecessary financial losses.
What Sourcing Contract includes?
A sourcing contract contains a Sourcing Agreement and Sourcing Plan, which is a written agreement on manufacturing, packaging, labeling, quantities, and pricing between the Sourcing Agent or Sourcing Department of a company and supplier.
Basic Sourcing Contract also includes terms of minimum purchase volume, production start time, minimum delivery time etc.
However, if you want to add some more clauses, you are free to do so, Sourcing Contract can be adjusted according to your business situation. When the Sourcing Agreement is made between the company and supplier, the Sourcing Plan will reflect the crucial part of the Sourcing Agreement, which is about quantities, price, etc.
As Sourcing Product from China has difficulty in communication issues, Sourcing Contract should be written in Chinese, and Sourcing Agent should also check if there are any mistakes or misprints. Sourcing Contracts can be made online or offline, depending on your own circumstances.
5. Arrange the shipment and clearance
There is a lot of things to be considered during shipment and clearance. Here are some important items related to shipment and clearance during sourcing products from China.
– Choose the right shipping company
You must find the best shipping company for your products. Look for one that has all required documents, permits, insurance etc ready with them.
They should be able to handle all formalities and provide you with proper documentation. Do not forget to ensure that the shipping company is licensed and registered for exporting and importing.
– Prepare the right documents
Documents like commercial invoices, packing lists, weight lists, etc play a very important role during shipment. Also, make sure each document is accurate and up-to-date. If possible, cross-check everything before shipment and clearance with the shipping company and you might also need to take a print of it for your records.
– Choose the right kind of packing material
Proper packaging is very important in order to avoid any kind of loss or damage during shipment and clearance. Make sure all your products are properly packed according to the product’s weight and size.
– Buy insurance for shipment and clearance
Shipment insurance plays a very important role in case of any kind of loss or damage during shipment and clearance . Sourcing right kind of shipping insurance is very much recommended as it might save you from lot of problems during shipping. Sourcing shipping insurance along with the shipping company is the best option. Sourcing insurance on your own might not be as effective as it would require lot of documentation and procedures to be followed.
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.
With a sourcing team in different countries including China and Australia, 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!