China is a good choice to source products, the common perception in the world is that China’s labor force is cheap and its products are cheap, but in fact, the products produced by many factories in China are high-quality products, which are quite competitive in the market. If you have the idea of starting a business, you can consider sourcing products from China. Of course, the premise is to improve the product purchasing strategy, so as to overcome the complexity of purchasing business from China.
This article will explore why and how to source quality products from China.
Why buy from China?
Why can China become the first choice country for sourcing products? The following points can be used for reference.
Cost is the main reason for sourcing from China. Low labor costs in China also include tooling and die, unit cost, packaging, design and engineering functions, etc. However, considering the cost, it is also necessary to consider the quality, because some products in the Chinese market may have problems such as poor design and inferior materials, so it takes time to screen.
Chinese supplier base:
China has huge supplier resources, many well-known brands are assembled and processed in China, no matter which industry – textiles, electronics, automobiles, plastics, toys – China has many suppliers. China’s booming economy provides convenience for various suppliers.
Reduce the risk of fraud:
Because you are in direct contact with the supplier, you can directly deal with any problems that occur during the process, such as untimely delivery, poor quality, fraudulent transactions, etc. Without the middleman, you will have better control over the terminal and reduce fraud risks of.
How to source quality products from China?
How to Source High-Quality Kitchen Storage Products from China
In order to purchase high-quality products from China, it is necessary to have an in-depth understanding of the Chinese market in advance and formulate a sound business strategy.
Types of Chinese Manufacturers
Trading companies are the first choice for all kinds of large orders. They make money by adding extra profit on top of manufacturing costs. If you have a low MOQ and want the lowest price, it’s best to deal directly with the manufacturer. The biggest advantage of a trading company is that it can help you manage the production progress of the factory and control the quality. If it is a large order, the trading company can also help you obtain a very competitive price with their strong supplier resources.
Wholesalers usually have warehouses abroad, saving on shipping and warehousing costs. However, the unified and standardized products of wholesalers cannot be customized. It may be an option for a small number of products that do not require customization, such as e-commerce companies.
Dealing with manufacturers directly, the profit margin will be higher than working with trading companies or wholesalers. However, there are also disadvantages, that is, communication with manufacturers. Although many manufacturers have low prices, they have no foreign trade qualifications and cannot export independently. At this time, they need to cooperate with traders and wholesalers.
After distinguishing the types of suppliers, the next step is to prepare for the process of purchasing from China.
Research what products to sell
In fact, the current market has become saturated. You can find all the products you want to develop from the Chinese market, but many products may have already been launched by others, so it is very important to find products that are unique and meet market demand. Otherwise, it will be difficult to stand out in the fiercely competitive market.
How to find suppliers
Searching for suppliers on the Internet has become a convenient option during the pandemic. For example, online platforms such as Alibaba, Global Sources and Made in China, or direct search on Google, many suppliers have established their own independent websites, which are good channels for understanding suppliers.
After the epidemic situation improves, it is a good choice to visit China in person offline, for example, through some trade exhibitions, Canton Fair, etc., to talk directly with suppliers, see samples, discuss prices, and learn more about supply chain management.
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