Sourcing things from China isn’t an easy task. People generally go on the internet hunting for various China sourcing blog that might help them with getting acquainted with the system in China. But still, I end up losing a lot of money to the smallest slip-ups missed. Hence, we present to you the five most essential yet effective steps to help you with the same.
- RESEARCH FOR THE ACCURATE SUPPLIER
The people who seek sourcing products from China usually land up on Google, Yahoo or Bing. There are also lots of online sourcing platforms when it comes to China, some of them being Alibaba, Made in China, and Global Sources, which do a commendable job of connecting the suppliers and the customers together.
It is evident that Sourcing platforms and Search engines throw up a few businesses, which may be the resellers and not the manufacturers. This sourcing from a middleman or a retailer might be acceptable when you are purchasing the goods to sell, such as cheap electronic devices, clothes, plastic parts, or toys.
But, when you are in search of products that need to fulfill certain specifications, for example, metal stamping, die casts, and plastic injection molding, it is advisable to purchase such items from the manufacturer and do the sourcing in a straight line adding to which this can be saving you some bucks too.
Global Sources and Alibaba being among the top online sourcing platforms, rate their suppliers, which makes it easy for the people visiting their sites to shortlist the suppliers according to the ratings. Alibaba provides its suppliers with a “Gold” rating which increases their trust in the customers. But the catch over here is that some of the dealers pay Alibaba an annual fee to obtain the gold rating, which increases their engagement and visibility on the site. So, this here may or may not really be a trustworthy indicator.
- VERIFYING THE DEALERS
Shortlisting the suppliers was the initial and the most important task, following which is verifying them and their credentials. Besides the information available online, you need to take care of the below-mentioned things:
- Check whether they are not a middleman or any retailer.
- Ensure that they are well versed with the technical specifications of the product and are capable of delivering the product as aforementioned.
You can always go looking for the product samples and ask the factory for its audited accounts. The Local Government offices will have the information on the factory’s location, registration records, or any major discrepancies done by the factory. You can also look out for such offices under whose jurisdiction the factory falls.
- COST IS DIRECTLY PROPORTIONAL TO THE QUALITY
Have you ever wondered why retailers from all around the world look up to China when it comes to their supplies? Prime reasons for this are the low raw material costs and manufacturing costs, cheap labor, and shipping charges aren’t high. In fact, they are the cheapest in the west.
Good research about the product can provide you with an insight into the charges associated with the raw material and market. And usually, the suppliers tend to degrade the packaging while cutting the costs, and the product gets minor damages while being supplied to the consumer. Nobody would like a premium product covered in wobbly packaging.
So, the thing to remember here is that if the suppliers bend below their minimum charge threshold, it is evident that it is going to affect somewhere or the other, be it the quality of the raw product or the packaging. Some of the suppliers might surpass the quality controls too, and this will affect your reputation in the market and thereby affect your business.
- TRANSPARENT COMMUNICATION
While sourcing the products in Asia, always be aware of the culture and language gap. The popular suppliers in the area have English customer support for our assistance. Even then, there are certain cases of misunderstandings that have come up just because of the communication gap, which isn’t deliberate. But purchasers can always keep in mind that overcoming this problem can save them costly delays and slip-ups.
- EXAMINING THE QUALITY CONTROL
A manufacturing agreement solves many loopholes when it comes to the relationship between the supplier and the purchaser. But you need not overlook the quality just by signing some documents. Hence, a consistent quality inspection is necessary to ensure the desired quality of the product.
All these points can give you a brief about do’s and don’ts for the inexperienced purchasers who are in the business of sourcing from China. If you wish to read more about China Sourcing Blog.