The Definitive Guide to Sourcing from China

Many importers want to source goods from China at affordable prices and sell them in their own countries to increase their profits. However, sourcing from China can be challenging, especially for newcomers to the Chinese market. This post provides detailed information on sourcing from China.

• How to source products from China?
• Sourcing agents vs wholesale websites: how to choose?
• Tips when sourcing in China

How to source products from China?

When importing goods from China, you have two common options:

Wholesaling existing products: You buy products in bulk and resell them to your customers or label them with your own brand. This is a white-label business.

Creating private label products: You can make adjustments to already-proven products on the market or make a new product and then sell it to your customers.

This post will explain how to source products from China using these two methods.

Sourcing an existing product from China

You can find suppliers directly on Chinese wholesale websites such as Alibaba, Made in China, AliExpress, DHgate, etc. To find the best supplier for your product on these platforms, you should compare several suppliers and ask them for quotations and samples. After receiving the samples, you can choose the best one to place the order. Then you can negotiate shipping incoterms with the supplier and arrange shipment.

Create your own product in China

Creating a new product and selling it under your own brand is a more complex process. First, you need to understand what product you want. If you have your own design draft or product spec sheet, you can send it directly to your supplier. If you only have a rough idea and the number you need is very small, like a few hundred, the factory will not accept your order.

Therefore, it is best to find a purchasing agent, such as Onestopimport, who can help you design from scratch, including product outlook, materials, techniques, etc. The next step is to find suppliers who can manufacture your product. You can find them on your own and tell them your needs, or you can find a sourcing agent to help you find suitable suppliers and communicate product details. After receiving quotations from different suppliers, you should compare them and choose the one that is most suitable to place the order. Your supplier will then arrange mass production and shipping according to the negotiated incoterms.

Sourcing agents vs wholesale websites: how to choose?

Although there are countless suppliers on Chinese wholesale websites, most importers still choose to work with sourcing agents. Why?

Wholesale websites

It’s hard to know which suppliers to work with on Chinese wholesale websites. Moreover, 70% of them are actually trading companies and are not all reliable. In many cases, you may spend a lot of time and effort and still not be able to find suitable suppliers.

In addition, factories that you find directly are more focused on production than service. If your product requirements are unclear, they will produce them based on previous experience and industry standards, which means that the product you receive may not meet your needs at all.

Furthermore, suppliers on many wholesale websites have large MOQs, such as thousands of pieces. If you are not up to their requirements, and your product is too complicated and needs several factories to work together, they will reject you.

Sourcing company

Cooperating with an experienced procurement company can solve the above problems. For instance, Onestopimport is located in guangdong, the largest wholesale market in China, where many factories are located. This means that once you tell us your needs, whether it’s an off-the-shelf product or a complex custom project, we can quickly find suitable suppliers with competitive prices for you.

In addition, we select several suppliers from dozens or even hundreds, and then you choose the best one, which simplifies the difficulty of supplier selection.

Besides helping you find suppliers to produce and customize products, we also provide many other services, such as sample collection, production follow-up, quality control, customs clearance, and shipping. We can control the whole supply chain, which greatly improves your procurement efficiency.

Therefore, we are a better choice for importing from China, especially if you are:

• first-time buyers with little importation experience
• purchasers with customization requirements but low MOQ
• importers sourcing special/multiple product categories

Tips when sourcing in China

Importing from China is a complex process, and you may encounter various problems and challenges. Here are some tips that may be helpful for importers when sourcing in China.

Arrange for product QC

Before shipping, do a quality inspection to avoid receiving unqualified products. For defective products, you can immediately communicate with the factory and ask them to re-produce or compensate you.

Estimate sourcing time

Estimate the sourcing time before you source from China. If you want complex customization or to create new products, it may take three to four months, sometimes even six to eight months.

Don’t focus only on low prices

Although you can get huge profit margins from Chinese manufacturers, price should not be the only factor to consider. If your supplier offers a much lower price than others, they may cut corners on raw material quality, packaging, and other aspects. Remember that quality is directly proportional to cost. Your consumers won’t pay for your low-quality products.