Sourcing products from China refers to procurement of goods at a whole sale price to sell through a reliable business concern based in China.  A major chunk of sourcing company established in China validates their skills of marketing strategies, product sourcing, capability of managing exports, predicting the global market trend, etc. The need of the hour is to locate and identify sourcing companies that offer premium services in sourcing different products in China.

There are innumerable benefits of sourcing products from China that would lead your business towards success.

Whether you are an e-commerce business owner who needs the help in Amazon product sourcing and identifying private label manufacturers who provides OEM serivce for Amazon private label, or a wholesaler who import from china on a regular basis, a reliable China sourcing agent is very essential to the success in your procurement journey. Some B2B sourcing platforms, like Alibaba and Global source, might be good to look for information, but due the large number of resellers on these websites, it’s hard to verify their credentials.

Importance of Sourcing Products from China

Here are some valid points that would help you decide why you should choose China to be your first preference as your buying agent.

The Expanding Economy of China

It is noteworthy that China has established itself as the world’s second largest economy.  In the recent times, China has also proved its credential as the largest manufacturer existing.  Over the last two years, China has been acknowledged as the most powerful manufacturing country. The economy of China is even faster than before and investment in sourcing products from China will prove to be worthwhile for business owners.  More and more international companies are recognizing the capabilities of Chinese sourcing agents and are motivated to build buying-selling relationships with them in order to thrive in the market.  Thus, Chinese sourcing agents can prove to be ideal suppliers for you.

Minimum Order Requirements

Usually, sourcing agents only entertain companies that give bulk orders.  They specify Minimum Order Requirements (MORs) which becomes a challenge for small business firms to meet.  Significant investment is required to qualify for minimum order requirements.  Large organizational set ups may not be wary about stretching their order as they have enough capital for the investment.   They would also have a strategy to expand their business.  However, this may not be a possibility for startup companies or small business concerns which have limited finance.  Sourcing products from China is ideal for small scale organizations as it does not entail them to make massive investment to match their Minimum Order Requirements. 

Some sourcing agents of China offer MORs that is 90 per cent cheaper than other sourcing agents.  MORs offered by sourcing agents from China grant greater flexibility to businessmen.   This acts as a stepping stone for new crops of companies that are coming up to establish themselves as brand names.

Direct Sourcing

The market is driven by cost.  Common people are inclined to purchase quality products at a cheaper rate.  A company can thrive only if it meets these requirements of their customers.  To keep the cost of your merchandise low and also earn profit, you should rely on procuring products where there is absence of middleman.   Sourcing products from China is the most cost-effective way of sourcing as the agents deal directly with the party.
   Direct sourcing eliminates the involvement of a middle-man.  Thus, it reduces the cost incurred to hire a third party to procure goods.  Furthermore, it enables building a congenial and harmonious rapport between the buyer and seller.  The pillar of trust and reliability is strengthened between the supplier and the procurer.  Not only does, direct sourcing from China saves money, but it also develops a cordial relationship between the two parties. One of the most common approach is to visit famous wholesale places like Guangzhou wholesale market or Foshan furniture market with a guide of a experienced local Guangzhou sourcing agent.

Freedom to Choose Factory Suitable To Make Products

You do not get the freedom to choose your manufacturer while placing your order when you are working with a local importer. As per the usual working process, you just inform your supplier what specific product you want. If their factories are able to meet your requirements, you will surely get your product, otherwise hard luck.

This is not only true in mass production but also in the processing of creating your China prototype or PCB China for electronics.

Every manufacturer possesses own sets of strengths and weaknesses. Thus, it is very much possible that the manufacturer with whom your supplier is working does not possess the correct combination of strengths that you require. This is where you may have to compromise on the desired quality, timely delivery, services, etc. Moreover, then also in some situations it may not mean that you will get the guaranteed quality.

However, if you source your products directly from the factories in China, you get the freedom to choose from a variety of factories. In fact, if you have contacts with the right kind of people, they can introduce you to various factories dealing with manufacturing of your product. Thus, if you feel that a specific factory is not able to fulfill your demands, you can easily switch over to another one.

Thus, when directly sourcing from China, you get to even choose which products are more appropriate for production in a particular factory. You can choose the products that are low in price, that are sensitive and even tougher to make, etc.

Negotiating based on your priorities

When there is the presence of a third party between you and your manufacturer, a new angle is added to your decision making process, and obviously it is not yours. Thus, it becomes difficult to find the medium way when you consider prices, payment terms, etc. However, when you are directly sourcing from China, you get the choice to decide your own terms for working, such as payment circle, demand for high quality product, etc.

You may even decide whether you can accept longer delivery terms or not. Thus, absence of any middlemen can get you many benefits while sourcing products from China.

Reducing the risks

When you are sourcing products from China, a well managed sourcing process can assist you in cutting down the potential risks while sourcing. Since you will be personally involved in the sourcing process, the risks of fraud, untimely deliveries, undue profits, etc can be reduced to a great deal.

Reliable tips to successful sourcing products from China

When you choose to invest in a firm, you are not going to do so blindly. The same goes for product sourcing from China. Here are some tips to lend you a helping hand for getting information on successful sourcing from China.

Judge the supplier’s communication abilities

Many suppliers initiate the process of sourcing from China by seeking suppliers who can offer them the desired products at their suitable prices or not. However, one should also assess the supplier’s abilities to communicate. A poor communication between the client and the suppliers can cause many hazards. Thus, it is always advisable to judge the communication skills of your suppliers based on responsiveness, clarity, and attention to detail. A supplier possessing strong communication skills is sure to answer all your queries correctly and can lead to a good relationship.

Always request samples from the factories

Requesting product samples is an easy and ideal task to narrow down your list of potential suppliers. An imperative step when sourcing from China is to ask for product samples as it can help you in judging the real abilities of your supplier. Most of the reputable suppliers are very much eager to send their product samples. With product samples in hand, you can easily check the products against an approved list of suppliers, conduct appropriate lab testing, and can even run comparison testing against the different samples.

Audit the facilities offered by the suppliers

It is always advisable to visit the factory of the supplier in person. This will give you a clear vision regarding the working conditions and facilities offered by the supplier. This holds true for sourcing from China as for any other country. You can decide to either visit the factory yourself or ask a third party to do so.

Moreover, you should pay special attention to audit quality managements systems in a factory. The results of this audit would assist you in confirming whether the factory is legitimate or not, is operating legally or not, ad is capable of manufacturing the desired products or not.

Place clear expectations for product requirements

Unclear expectations may not get you the desired product as per your specifications. In fact, unclear expectations regarding product requirements can be termed as the main cause of problems related to bad quality, delivery delays, and nonconformance to the laid specifications. Thus, while sourcing from China, you should make your goals and requirements as clear as possible to your chosen supplier.

Always conduct product inspection

Once you have confirmed the supplier with whom you would be working with, it is imperative to check the quality of the goods. In fact, product inspection is an imperative step with sourcing from China.

Remember to rent a warehouse 

Leasing a China warehouse sometimes can be a good option from the logistics and inventory management perspectives since centralizing your products in China not only saving the cost in storage but also expediting the shipping process with the help of a China freight forwarder.

Why CNSourcelink?

Once you are all clear about sourcing from China, the next step is to choose your buying agent. There are some requisites for doing so and you may get many options as well. However, one reputed sourcing company in China that can very well meet your demands of a buying agent is CNSourceLink.

The company has been venturing in the business since many years and has created a niche for themselves in the field. Their main field of services is sourcing and they have a wide base of clients to cater to.

Author's Bio: 

Torsi is a professional blogger.