How to Source Products from China?

How to Source Products from China?

If you source products from China, you need time to identify all the suppliers, audit the candidate’s factory before negotiating an agreement, evaluate their internal product development capabilities (if needed), and spend time managing the entire project. All the process will take several hours a day and is a complicated job. Here is the Complete 6 Steps to Source products from China: 1.Do Market Researching You simply need to research before setting up your business. As we all know, there is much competition in the market, and if you jump into the crowded marketplace, it will be challenging for you to reach your business at the top. You have to do more struggle to get your goals. So it is crucial before applying for any business your first step must be complete, compelling research. The competition in the market is becoming high day by day, and if you want to earn more profit, it is nearly impossible to skip this step. It will be nearly impossible for you to compete with the market and replace the old sellers. Though there is a significant demand for sourcing products from China, you will still find it tough. 2.Get In Touch With Chinese Manufacturers Some people don’t like to contact manufacturers for different reasons. It doesn’t mean that they don’t know this, but they are confused about where to start or how to do it. Where to source products? The process of this is relatively straightforward: All you need to do is go to online wholesale websites like Alibaba (a massive network that connects you with hundreds and thousands of qualified manufacturers from China) to find the products that you want to buy. Then, Send messages to at least 10-15 suppliers. You have nothing to lose. You can have a brief talk with them, chat about different criteria, and take advantage of their experiences. After that, please select the manufacturer that you think fits best to comply with all your needs and then start working with them and source products from China. Then share your message with your manufacturer by sending a simple message along with the mentioned below lines: “Hello, my name is (your name). I’m texting you because I am in dire need of (your product name). Can you please offer me your price and quotations (also tell the number of units you want to order) and an estimated delivery time? Thank you! I would like to highlight one more thing as I’m not only contacting you but also your competitors, so please be kind and reasonable with your quote. Regards, (name).” 3.Negotiate With The Suppliers The main reason for not adding the word “sample” in the above portion is that it might give your manufacturers a severe non-impression. Every day, these Chinese companies receive so many emails and messages about samples. Sometimes, those people are also asking for samples that don’t have enough money to invest even in the first shipment. If you place orders for large volumes of products, factories will be able to earn more money as they usually offer low prices. So the more the project, the more they will earn. Therefore, you have to show the idea that you are planning something big from the start. Once you have finished finding your reliable companies, you can send them the following messages to play with them and get better pricing: “Hello (company/contact), we are looking forward to placing an initial order just to test the quality. We would like to place orders for (number of units) of (product). What will be your offered quote for this? Must keep in mind that we are receiving plenty of good pricing from your competitors too. But we want to check yours. Thank you!” Like previously, you can check that no word like “sample” is used above either. It is better never to use that word. The word sample order is replaced with “initial order” for quality testing of the product. See how your language affects the sentences. By doing so, you will instantly notice the manufacturers and see how seriously they take you. It will be best to place orders for around 50 or more units for the first time. Ordering for only one to two products will give them the impression that you don’t have enough cash to invest with them and in this way they can’t make more money. 4.Start to Order Samples After receiving the manufacturers’ quotes, you can now pick the best price among all and order your first round. Then you need to select the location. It could be a warehouse or maybe your home or business, send them a message asking for payment methods and also about the delivery date. Now sit back and relax, wait for the ordered product to arrive. Meanwhile, you can work on your website, your marketing strategies, your copy writing, and all the other aspects as well. When you get your initial order, you have to inspect at least five to ten units to check the quality level and defects. The final thing you would do is to check for damaged or flimsy products. If you are not feeling satisfied, you can contact the factory and ask them for replacements or simply go through for other factories. 5.Order a Bulk Amount Once you have followed all the steps correctly, you are set to order for a bulk amount from China. But you have to pay attention to the payment in case face a scam. What are the standard methods of payment when sourcing from China? Many suppliers require a deposit of around 30%, and the remaining amount would be paid before shipment. This means that you are risking your deposits, but you have full control over the remaining balance, which needs to be paid after quality control and lab testing. how to send money to china payment risks? Is it an excellent option to pay my supplier after the arrival of goods? No, it is a must to pay before you receive your parcels. This is your supplier’s choice if he agrees to accept payment upon the release of the bill. Many suppliers are aware of the fraudulent nature of some buyers (not targeting all the buyers). So, they usually don’t offer payments after delivery, as by doing this, they will end up with no payment by the fraudulent buyers. Can I get credit from my supplier? There are some big buyers like Wal-Mart that can offer you free credit lines. For example, they can allow buyers to pay after 90 days of delivery. However, this does not apply to other small buyers. Can I pay Chinese suppliers in different currencies like Euros, AUD, GBP? These days most of the Chinese suppliers will accept the payment in US dollars other than any currency. While some of the old suppliers from 2010 can accept the payments in Euros. What will be the safest payment method while sourcing products from China? The safety of payments is entirely dependent upon the type of transaction, and its management. For instance, if we talk about wire transfers, they are counted as unsafe ones because they don’t offer any refund. On the other hand, Letter of Credits offers an extra layer of security, but this could also be highly risky if a third party sets the terms. Am I supposed to open a USD bank account to pay my supplier? No, not necessarily, you can convert your local currency whatever it is into USD when transferring payments to your supplier’s bank account. Opening a USD bank account can save your exchange rate risks, and you can quickly source from China. 6.Arrange Ocean Freight or Air Freight. The first thing you need to do at this stage is that you must familiarize yourself with shipping incoterms. Incoterms are trade terms that are used internationally for determining where and when the cargo will be transferred. source from China shipping options Usually,  there are 5 ways to shipping from China. Air express Air freight LCL ocean freight FCL ocean freight Expedited ocean freight (competitive with air freight lead times)