Sourcing Products from China: Tips on How to Make it Successful
May 15th, 2020
Sourcing Products From China: Tips on How to Make it Successful
China’s economy is growing and manufacturing costs are very low compared to anywhere else in the world. You can get an extremely low unit price if you know how to do sourcing products from China and process them for a high-profit margin in your country. Finding products to import from China isn’t actually a difficult as many thinks, you can find anything and everything to import from China within a few minutes of research, choose the products, buy them, import them, and start selling as soon as they arrive!
But will these products be profitable? This is the most important part. How to find high-quality products that bring in profits. One of the most difficult things for any trader looking to start his business is choosing the right product to sell.
In the business world today, most companies that make a big profit are those with good or unique quality products, so you should know how to do research to get an estimated sales volume, and do not forget that everyone is competing in the market.
When people started buying from china, they were incredibly confused and had hundreds of questions racing into their heads.
is one of the groups of Alibaba Company, which was inaugurated in 2010 by “Jack Ma”, who owned the Alibaba Group, and provides AliExpress with services to individual buyers and sellers.
It allows sales to consumers in retail and in small quantities, thus the fundamental difference is the audience who provided They have their services either in bulk or retail.
Amazon can be also the right place for Choosing the right products to sell but it can take some time to figure out, many products to find in-demand, and profitable.
Check our guide, it may help you with your Amazon research so you can choose profitable products to sell on Amazon.
Google Trends Google Trends is a great tool for finding the right products that are trending. When looking for a new product to sell, you make your range for example from the “last 3months” to “2020-present”.This allows you to know the search volume if its increasing or decreasing. But it also allows you to see seasonal trends in one clear swipe.
b. Get ideas From Your Competitors
Making Reports on your competitors is a great way to find the right products that fit the market and also inexpensive resource tool for checking out their products and getting ideas on which ones are good to buy and which are not.
Making research also can answer many questions such as :
Are there no competitors, or a few or many competitors? If there is a large number of competitors in your field of specialization, this could be an indication that the product not good for selling at all.
c. Look for market requirements in order to determine the appropriate position
The biggest mistake that sellers make when trying to find products to buy from China is that they start looking for products first, this is a mistake, the first thing you need to do is to determine a specific classification you want to sell and then search for the products that fit specific classification.
The main key is that when you become familiar with a specific category, it becomes much easier to identify the right product you need, this is usually the best starting point for determining an appropriate position for it.
Looking for market requirements and make research is considered the main point to determine whether or not the product can succeed, and it also shows the extent to which consumers need that product. Therefore, it was the duty of the investor to study the market in all aspects to know the quantity of supply and demand, the marketing policies used, and the behavior of consumers and to know the appropriate price for the product.
Some of the specifications of the product that are good to consider before importing from china
d. Small and light enough
There are a lot of huge heavy products that you can profit from when importing from China, but these products are also more expensive when it comes to shipping. Also, the bigger the product, the more the error space. A good product will be small, to facilitate handling and less likely to have manufacturing defects. The larger and heavier its size, the greater the cost of shipping inside and outside China (not to mention any other returns or storage) so it should be small and light.
e. Does not break easily
this point is definitely clear if you are a beginner, you will not import glass or crystal in order for the customs loading and unloading employee to break half of it, or if you are lucky, a few of it will be broken. It’s preferred to avoid obvious troubles.
f. The product is very specialized
It does not import all kinds of bags, but rather special bags for university students. Please, you should focus on this point, do not forget, you pay money, but money a lot.
g. Sell at twice the purchase price
A good product is a product that you can sell for at least twice the purchase price Yes, you do not want to tire and invest money in the import process for a small profit margin.
h. Simplicity in manufacturing
Importing a product with sophisticated design and manufacturing such as mobile phones or electronics in general. These products have a very high risk of error because there are many things that can go wrong. And when something happens, you will be blamed. A good product means fewer errors.
i. Not a trademark
Stay away from counterfeit products bearing the trademark. And stay away from importing the product whose direct competitor will be a product of a famous brand.
For example, if you want to buy a soft drink, you will buy Pepsi or you will buy another soft drink, knowing that it is the same price, but Pepsi is a famous brand and the majority will prefer it over others, or if you want to buy a school bag for your child, you will buy an Adidas bag with the offer at $ 50, or you will buy a school bag for an unknown brand at $ 35 !! You will surely pay an extra $ 15 to buy Adidas.
Alternatively, if you want to buy a wristwatch, will you buy a Rolex B $ 90 or will you buy a watch with the same design as a Rolex B $ 35? Sometimes it better we think outside the box.
j. Sold throughout the year
Do not enter in trends or seasonal commotion unless you have good capital. You want something that will sell continuously throughout the year. Yes, I know there are many profitable seasonal products, but you want a good product that has a market every month and every day.
k. Who is your customer
At this stage, you do not need to go into extreme detail, but you must be aware of the type of customer and his purchasing capabilities.
l. Is it possible to dispose of the product over time or what
Products that do not have a total life such as socks or towels are good products to invest in.
m. Are there problems on the product from the customs side
Before diving into the position and choosing a product, make sure there are no regulations or restrictions or make sure that it is at least controllable. It can carry some chemical products, food products, cosmetics, or toys Children have many restrictions.
Chapter 2 Find the best manufacturers for Sourcing Products From China
To find the direct factories from China most people use Alibaba to find the Chinese suppliers, but there are so many factories that you will not be found on Alibaba so the best solution is to fairs and exhibitions, canton fair and Yiwu fair are the best choice for you as a seller who looking to source products from china.
a. Alibaba Chinese website
As we mentioned before, Alibaba site includes thousands of companies and factories from all over the world, and of course, most of them are from China which makes it a source of all products, factories, and suppliers that you may be looking for your business.
b. Hire a sourcing agent to find manufacturers
Finding a good sourcing agent will help you find the best Chinese factories and conduct effective negotiations with them to get reasonable prices, also can check the quality of your products and store them if necessary.
Your sourcing agent will assist in the processing of customs documents by expediting the delivery of manufactured products to you as a customer.
As a sourcing company in china, we will:
–Save your time and money
-Help listing your trusted manufactures and suppliers
-Help with price sessions
-Help with quality control
-Management of freight and logistics
-Reduce the risk of importing from China
c. Attend trade shows and trade fairs for sourcing products from china
When you’re attending trade shows and trade fairs you’re able to talk with the supplier face to face about their company values, their products, their production capacity, their quality control procedures direct interactions with potential suppliers allow you to see their abilities up close and personal.
There are two highly popular trade shows or trade fairs in China each year the Canton Fair and the East China Fair.
The Canton Fair is the largest trade fair in China and is held twice a year in Guangzhou this fair attracts thousands of attendees with a wide variety of products, thousands of buyers and thousands of companies offer more than 120 thousand products at competitive prices.
The East China Fair is the largest regional trade fair held in China and is held once a year in shanghai this fair is usually the one with the most traders the greatest
Variety of exhibits and the most on-site deals, in other words, this Fair has the highest turnover, however, you’re going to be limited to a small pool of potential Chinese suppliers most of them don’t attend this type of trade show and therefore you might not get the best deal possible you may be out of luck too if the product you’re sourcing is not covered at this domestic trade show Chinese market places.
Chapter 3 Negotiate The Right Price When Sourcing Products From China
Negotiation is a good opportunity for the buyers to increase the profits of their companies and satisfy their appreciation needs, but actually, it’s an ”Art”.
a. Never accept the first offer
When you negotiate a price with your supplier, don’t accept the first offer, and make a lower counteroffer, the supplier will surely offer you a revised price.
b. Find out about the characteristics of the contract
Perhaps some are useless to you, so you can ask to remove them and therefore lower the price.
Establish a price with a scale: it could vary according to market changes for example.
Present quotes from competitors: show that your supplier’s price is higher than other supplier’s competitors so you could ask what is more for that price, and get more benefits during the negotiation.
Define your priorities: Make a list of the things that are most important to you, and decide which ones you can make concessions on. You have to be realistic and understand that the supplier has expectations too and list the advantages that could help you get what you want during the negotiation.
Know your supplier’s situation: Do not hesitate to ask for references to confirm that you can trust your suppliers, If the supplier doesn’t accept, you have to start being suspicious, It might not be worth negotiating and better to find other suppliers to negotiate with.
c. Know your supplier’s position in the market
Ask your supplier about his previous orders booked and make sure your not their primary customer, on the other hand, if the supplier is more or less the only one with whom you can negotiate (because he is the only one to have a material with the characteristics that you are looking for for example), then it’s him who will have the advantage.
d. Do not neglect the general conditions of sale
Try to get a contract that will give the supplier responsibility if something goes wrong. Also, make sure to include penalties in the contract in case the supplier has late deliveries and does not meet standards.
In any case, do not sign if you feel forced to accept conditions that you will not be able to assume later: it is better to take a break from the negotiations at that time and talk about it later, or even find possible other suppliers.
Chapter 4 Check The Best Quality During Sourcing Products From China
Manufacturing is not an exact science and the question is not whether there are quality problems, but how serious these problems are.
Have your product inspected before it leaves your Chinese supplier’s factory will be the best choice and great job to avoid downstream quality issues and guarantee the arrival of the products as it worth having arrived.
We have inspected hundreds of orders from our customers as a quality inspection company in china, and this is what we have often found:
scratches, Dirt, Brands, Minor cosmetic issues
It is even to be expected. However, there are also more serious quality issues:
Detached pieces, Incorrect labels, Incorrect design, Incorrect colors, and Damage.
Instead, you must ensure that your products meet all of the technical specifications and quality requirements before paying the balance.
To avoid these issues ask your supplier about everything that can be done with the available equipment.
Some examples follow:
Ask your suppliers about product photos and labels
Ask about dimensions and measures
Function tests, Label verification, Drop tests, and Packaging.
Asking for a report will be better from your suppliers because the report shows the number of faults, as well as pictures and descriptions. Therefore, the report can help you decide whether or not you approve of the order.
Still, the best way to make your quality and inspection control successful is to hire an agent in china, Ejet sourcing will be the best sourcing company for you in china
The inspection process will ensure the quality of your product at each stage of the manufacturing process:
Initial production control Inspection during production
Container loading control
Chapter 5 Choose the Right Shipping Way Sourcing Products From China
We must say that the shipping method is a big problem for many buyers, and the majority of shipping methods for small quantities are very expensive, but let’s talk a little about shipping methods.
Knowing the methods of shipping goods, the types of containers, their sizes, and methods of their use aim to choose the shipping method and the type of container that will suit your goods.
There are internationally accepted methods for shipping goods that are used by everyone who works in the field of import and export, and they are represented in three methods as follows:
What are the different shipping methods?
It is the fastest express shipping method, such as DHL, Aramex, FedEx, EMS, and other companies specialized in fast shipping.
b. Air freight
Air shipping is one of the easiest shipping methods from China, and it is intended for light or precious goods, while heavy cargo is not preferred to be shipped by air because it will be very expensive, and also air freight needs the same sea shipping operations, meaning you must receive the goods from the airport and from Then start clearing.
It is not possible to ship huge quantities by air, the lowest freight can carry is 100 tons, and the maximum load for the largest cargo plane is 600 tons of cargo compared to 400,000 tons in sea freight.
In terms of cost, air freight is the most expensive way of shipping compared to other methods.
c. Sea Freight (Partial Shipping) – LCL
LCL is the best choice for shipping small quantities from China, and they are specialized in ports or designated areas in specific places. Its idea is that it simply collects merchant shipments in one container, whether it is 40 or 20 feet, and it is the one that carries out all shipping procedures And so on, when shipping goods you will arrive at the company’s warehouses, and you only need to receive them and pay the freight. Yes, it is an excellent service, and a large percentage of import and export companies offer this service.
d. Sea Freight(Full Shipping) FCL
FCL is the process of shipping goods into containers that are loaded into the back of a giant cargo ship carrying approximately 15 thousand containers, which means that the maximum load of the ship can reach 400 thousand tons. And sea shipping is the most economical shipping method even compared to land shipping because land shipping does not reach everywhere compared to sea shipping.
It is the most economical in terms of quantity. A 40-foot container cannot be shipped to a single customer, for example, by air.
In most international trade operations (import and export), the sea shipping method is used more than others due to the possibility of carrying a greater amount of goods.
The freight cost decreases as the merchandise increases, which means less additional cost for the products and more opportunities to sell them.
Chapter 6 Some tips you need to know before Sourcing Products From China
How long is shipping from China?
Container: 4 -6 weeks after pay the shipping fees to the shipping company.
Air Cargo Shipping: 1- 2 weeks after payment of fees to the shipping company.
Shipping Express: 3 – 5 days after paying the shipping company fees.
Several things you need to consider before making the order
Here some tips you may need to know before making your order in china:
a. Ask for a simple product
Requesting a sample of a product is an essential step before negotiating a price or placing your first order.
You should not be shy about ordering samples because it is common and acceptable to all factories and the suppliers but always stay away from the company that does not accept providing a sample before making the order and paying.
b. Payment Method
if you decide to make the order with your final supplier, use PayPal for small purchases or samples, but if you ordering a big quantity better you pay your suppliers using :
Telegraphic Transfer (T/T)
Letter of Credit (L/C)
Alibaba Trade Assurance
Don’t send money via Western Union or sending money to an individual, not to a company.
When using Western Union, a representative of a legitimate and large company can defraud you. The legal company always has secure payment channels and usually gives you payment methods.
c. Choose cheaper suppliers
Cheaper prices make the suppliers feel a great achievement, do not deal with the supplier based on the lowest price, because cheapest prices sometimes mean bad quality
Buying from the factory is not always the best solution: buy directly from the factories will not always provide cheaper prices but sometimes the suppliers do, so better you deal with factories if you will order big quantities and deal with suppliers if you will order a small quantity.
Sourcing products from China presents many problems and without experience, you can face many problems that will affect your business and make your sourcing in China unsuccessful.
To avoid these problems, you need a sourcing agent to help you succeed with your sourcing products in China, Ejet Sourcing, the standard of reliability will be your guide in China.