INTRODUCTION:

Whether you are sourcing for a dropshipper or sourcing for an FBA seller, sourcing products from China is not a simple task. You have to be consistent and an expert to source the right products from the right suppliers or agents. In this article, we have provided you with a complete guide that will make sourcing from China easy for you. Let’s have a look at the detailed analysis of sourcing products from China.

WHY CHOOSE CHINA FOR PRODUCT SOURCING:

China is considered to be the center of manufacturers and suppliers which manufacture and supply products all over the world for e-commerce business.FBA or dropshipping, Amazon or Shopify, through its channels such as Ali Baba, Ali express, and various other platforms China has become the hub for product sourcing for e-commerce businesses.

China is an ever-growing and strong economy and hence it offers such opportunities to e-commerce business owners that no other economy can offer at the moment. Let’s look at the factors that make China the center of attention for product sourcing:

• The availability of low-cost human resources in China has made it possible for the manufacturers to manufacture products at low cost as well. The engineering, packaging, shipment, and designing of everything related to manufacturing a product are available at rates that are unmatchable all over the world. Hence the availability of products at low cost is a major factor that attracts business owners to China. However, business owners while sourcing products from China should make sure that they do not compromise a product’s quality over its price.
• The manufacturers in China now do direct dealings with business owners through their supplying agents. This eliminates any middle man between the business owners and the manufacturers. As a result of this, the expectations and demands of both the business owners and manufacturers are communicated very clearly. Also the cost increase because of hiring a middle man is reduced and hence an increase in revenue is the outcome.
• A major factor in making China the priority for e-commerce business owners is the immense number of suppliers it has. For a single product, there can be hundreds of suppliers selling the same product. The booming economy in China has made the manufacturing of every product possible. Hundreds and thousands of products are manufactured and assembled in China and then sold to e-commerce business owners across the world.
• The business infrastructure developed by Chinese manufacturers and Suppliers is well established. The whole process of selecting a particular product and sourcing it through a manufacturer or a supplier is transparent, smooth, and systematic. Consequently it brings with it two benefits. First of all the risk factor of fraud is reduced. Secondly, the whole process from sourcing a particular product to getting it fulfilled seems like running on autopilot. Both sourcing for dropshippers and sourcing for FBA is highly convenient when done from China.

ADVANTAGES OF SOURCING PRODUCTS FROM CHINA:

1. EASY

Sourcing products from China has become very convenient for e-commerce business owners. Manufacturers and suppliers have made their online presence prominent through platforms such as Ali baba, User, etc. Moreover, the presence of China-based dropshipping and fulfillment companies such as Tesen has also made it easier and possible for business owners to source and fulfill their products online from the comfort of their homes.

2. COST-EFFECTIVE

As stated before the availability of low-cost labor reduces the manufacturing cost of products. Business owners thus purchase low-cost products and sell them at a higher price under their brand names and customized packaging.

3. LOGISTICS

Chinese manufacturers and suppliers have a strong network of logistics. They have strong contacts with freight forwarding companies. They always provide a variety of shipment options to business owners such as by air, sea, or land. Moreover, the availability of warehouse management services also strengthens the logistics and control over the supply chain.

4. LESS RISK

Known as the powerhouse of Asia China has provided its business owners with an enabling environment with favorable policies to do business. All you need is thorough knowledge and experience. If you succeed in finding the right product to sell to the right people and find the right supplier to deliver then the risk of not earning profit in your business is reduced to the minimum.

5. RELIABLE SUPPLIERS

Chinese business market has a huge reliable supplier base. All you need to do is find a trustworthy supplier that conducts the whole business with you in a transparent manner.

MISTAKES TO AVOID WHEN SOURCING PRODUCTS FROM CHINA

1. NOT ASKING FOR PRODUCT SAMPLES

It is highly recommended to ask for a sample before ordering the product in bulk or putting it for sale in your store. A sample can reassure about the quality of the product because often products at low cost have low quality which results in losing customers.

2. NOT SIGNING A WRITTEN CONTRACT

Both the business owner and manufacturer or supplier should have a written contract signed between them. No business activity should be done apart from the contract and both of them are bound to follow it.

3. NOT HIRING A SOURCING AGENT FROM CHINA

Business owners who are beginners in the industry or do not have much experience should always hire a sourcing agent from China. Sourcing agents help in sourcing the best quality products from trustworthy suppliers. Moreover, they also help in the reduction of a language barrier between the business owners and the manufacturers or suppliers/

4. NOT DOING SUPPLIER’S AUDIT

Inspection and audit are a must when ordering from a supplier. Either personally or through the sourcing agent, business owners should conduct an audit of the supplier about how products are manufactured and what kind of processes are being used.

CONCLUSION:

The valuable information in this blog has made sourcing from China easy for e-commerce business owners. However the best learning is through experience.No doubt when it comes to sourcing products from China where there are a lot of opportunities and advantages, but there are some risks as well. One should make sure to conduct thorough research and spend ample time sourcing the best quality products from trustworthy suppliers.