5 Things to Know When Sourcing Products from China

5 Things to Know When Sourcing Products from China

Sourcing products from China manufacturers can be a hassle. Thousands of new companies are often interested in sourcing products, but not know where to start. Most them are either overwhelmed by the huge supplier list or fear the possibility of getting scammed. However, with a wealth of information online, that shouldn’t be the case. Here are several things to consider when sourcing products from China:

Choose the Right Supplier

You will get potential suppliers in online marketplaces in China such as Made-in-China.com, Alibaba, and Global Sources, but they will not necessarily deliver high quality. To find the one that meets your needs, you will have to cast a wide net and engage lots of them and choose the one that best suits your requirements. Also, get customer references from the manufacturers and call them to verify that they are happy with the quality of products.

In addition to the online marketplaces, trade shows are an excellent source of suppliers. An example is the Canton Fair, held twice a year in China and other industry-specific trade shows in the US.

Engage in Negotiations with your Supplier

Before drafting the contract, make sure you talk about more than just pricing. You need to discuss the quality of the product, terms of payment, times of delivery, your relationship with the supplier and other terms of engagement. To begin negotiations, communicate with suppliers via email, Skype, and telephone. You can also do it in person, which is vital for building a good business relationship.

When sourcing products from China, negotiating with Chinese suppliers is an ongoing process, meaning that you may get better deals as you get into long-term business relationships.

Ensure Products Meet your Standards

Check that product safety is fulfilled and that no patents are prohibiting the sale. Ensuring that all agreements are in writing will protect your company if problems on quality arise. If the supplier fails to meet your requirements involving measurements, product quality, packaging, and other specifications, refer back to this written agreement for appropriate action. Furthermore, let your contract prohibit subcontracting because it can lead to low-quality goods, which will significantly affect your business.

Always Deal with Full-Service Project Management Firms

Such firms have established an extensive network of manufacturers that is beneficial in the long run. This means that you can get virtually any product in the industry for your customers, and specific requirements of your customers can be easily be met. Additionally, on-time deliveries are ensured as full-service project management firms are able to ‘have feet on the street’.

Decide Between a Trading Company and a Manufacturer

When finding Chinese suppliers, you can partner with a trading firm that offers better service than the manufacturer. Although you will pay a higher price for the product, a trading company values their customers and will thus maintain communication, ensure the goods you are picking from any manufacturer is of the required standard. They will also ensure that they ship and deliver as quick as it is necessary, saving you valuable time to get your product to market.

Need help? HunterTyson, a Turnkey Contract Manufacturing Company is at your disposal.

Many people can foresee that China will soon be the largest economy in the 21st century. It will be the best in the world and surpass the United States. However, although the cost of manufacturing has risen in recent years in China, the country is still the most affordable location for manufacturers and American retailers to source goods or parts. At HunterTyson, we will make your dream of sourcing from China a reality. With over 30 years of experience, we will help you with product development, electronic manufacturing and certifications, and contract manufacturing. We will manage your product with representatives in china and follow up with your manufacturer and ensure that we deliver the highest quality products, as quick as you need them, and at the most competitive prices in the market.

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