Wednesday, December 1, 2021

Latest Posts

Things To Know About China Product Sourcing

According to many business experts and entrepreneurs, China is heading towards becoming the largest economy in the world in this century. Even though the approximate manufacturing cost has increased in China in recent years, this nation is still the least expensive location for American manufacturers and business companies to source materials and products. This blog focuses on the vital factors that you should know about China product sourcing.

What is meant by Chinese product sourcing?

By the term ‘China product sourcing’, we mean importing products from China. However, apart from readymade products, companies can also import raw materials and machinery parts. Companies that are financially unable to establish overseas offices and branches can benefit from product sourcing.

Things to know about China product sourcing

You can search on the internet for Chinese suppliers

The most effective and most accessible place where you can spot Chinese suppliers is the internet. There are plenty of sites that contain lists of thousands of suppliers. You can easily streamline your search procedure and filter results to locate the legitimate ones. Make sure you shortlist only those with labels like ‘verified supplier’, ‘gold number’, ‘accredited supplier’, ‘onsite supplier’, etc. 

For making the best choice, you should also look at the reviews posted by the clients. However, you must be very careful about one thing. The label ‘verified supplier’ means it has been verified only as a company and does not ensure its reputation or quality. 

Trade shows can be another option that you can explore to find legitimate suppliers

Another effective way to locate legitimate suppliers is attending trade shows. Here you will have the chance to personally discuss matters like company details, production capacity, product details, quality-control measures, and other business fields with potential suppliers. When you have direct interaction, it can help you assess the suppliers and verify their capabilities. 

Communication has to be very much effective when you are interacting with someone at a trade fair. Fortunately, a large number of people are now capable of communicating in English.

Always verify suppliers

When importing products from a foreign supplier, it will be necessary to verify their services strictly. Nowadays, most suppliers maintain websites where you can find the information of products they supply. Reading those blogs can be helpful in the beginning, but those will not be enough for verification.

You can verify the legitimacy of the suppliers in several ways.

  • You may consider visiting a local government agency to check if the company is registered correctly.
  • While verifying, you will have to get information on production capability, communication and technology skills, and certificates so that they can fulfil your requirements in terms of quality and delivery times. 
  • The supplier’s financial statements should also be verified, and for that, you can request audited statements or statements a reputed Chinese accounting firm had prepared. Knowing their financial condition is necessary to check if you can recover any loss in the case of a contractual dispute.

To-do when purchasing products directly from suppliers

Once you verify a potential supplier and find the information satisfactory, you can purchase items directly through a business-to-business sourcing website. Buying products from the suppliers now can save you a lot of money. However, there is one risk associated with it. If the products you receive are of poor quality, there will be no chance to get your money back.

Another vital issue that may arise when buying items directly from suppliers is the payment type. If you want to go for a safer payment method, you can receive payments through bank transfer. But it may take a lot of time. If you need the money faster, you have to go for wire transfers, credit cards, or other third-party payment methods. Remember that these methods pose high risks, and thus you may find it challenging to recover money if any problems arise with the contract.

Shipping, delivery and logistic concept. Earth and cardboard boxes on laptop keyboard. Online technology. 3d

You may choose a commission-based sourcing agent

If you think it will be risky to buy products directly from a supplier, you may choose the option of hiring a commission-based Chinese sourcing agent. There are several benefits of this method.

  • Being local, they will understand the market scenario better than you and provide valuable assistance in identifying and verifying suppliers.
  • They will also conduct better communication with the supplier and offer you a more competitive price.
  • Another benefit is that you will not need to travel to China to place your order and buy products, thus saving money.

However, even though they can provide help in several important areas, as a business owner, you have to keep track of the transactions. After working with them for several years initially, you will be able to manage your deals effectively.

Choosing a sourcing service company can also be an option

Choosing a reliable product sourcing company can provide you with the following benefits.

  • First of all, when you choose a top-rated sourcing service provider, you will be happy to know that they will clearly understand your product sourcing requirements and company objectives. Besides asking about your needs, their officials will also want to know about any issues you have faced.
  • A reputed service provider will always follow a step-by-step procedure. After receiving your product blueprint, they will start making prototypes. This stage is highly crucial, and thus they put undivided attention into creating them. They will send you models for feedback and will make changes until you are satisfied. To ensure the best quality is maintained, they use authentic machinery and measurement equipment.
  • After you give the green signal to the final design, mass production is started. Throughout the entire process of production, sourcing inspectors monitor the quality. Quality control involves function tests of the first article, raw material checks, and detailed inspection for a trial run. If the product requires specific certifications, then also they can arrange for laboratory testing.
  • Finally, you will receive your products in the most cost-efficient and fastest way.


Sourcing products can cost you huge if you do not choose the agent or service provider wisely. So, it is always recommended to verify their legitimacy and services mentioned on their websites.

Latest Posts

Don't Miss