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How You Can Minimize The Risk While Sourcing Products From China

Figuring out how to find a supplier to partner with, how to structure the negotiation, payment, and quality control is a critical step while sourcing Chinese products. In today’s market, China is the country that offers tremendous business opportunities to American business owners and entrepreneurs. But they need to keep in mind that sourcing goods from China is not at all a risk-free business. There are huge possibilities that you may get duped by the fraud supplying agents.

However, the news is that U.S. companies can reduce the risk factor to a minimum by adhering to some of the tried and trusted importing methods. Here we are providing an accurate methodology American can companies can adopt while sourcing products from China.

Identify a good product-

When companies source new products about which they have no previous experience, it is quite obvious differences are sometimes missed, leading to good suppliers being shot down because their first quote looked expensive. So it is advised to conduct some up-front researching & understanding the specifics and finer details of the product as well as expected quality problems with that product. Businesses need to brainstorm a lot while selecting products to import and sell.

Take help from modern technologies-

Make use of the modern technologies to locate, find and import Chinese goods. WeChat and other messaging tools have made it easy to contact suppliers quickly and chat with them in real-time. Merchants can engage suppliers early than setting up official meetings in China. Communication tools will enable you to speak about product features on the fly.

Cautiously select a supplier-

Find a supplier you feel comfortable with. If you sense they are not trustworthy during your initial discussions, then move on to another supplier. Review carefully how they have done marketing in other nations. For example, if they have a history of opening new markets via outside commissioned sales partners at first, but later set up their own sales offices once business grows. That should be a red flag, unless the original sales partners were treated fairly in the process. If you only have one supplier, then that company know that strategically you are not in a strong position and this can lead to them dictating price, delivery times and quality. So it is a clever decision to work with multiple suppliers.

Be as specific as possible-

Tailor your vendor inquiries for specific product categories. This might sound obvious but it’s important to be very specific from the start about what you are looking to buy including types of products, materials, size, color, etc. Examine the high tech capabilities of manufacturers. Look for their Web and CAD-Cam capabilities in particular.

China is not a difficult place for doing business. But you can’t expect Chinese to play by your rules. You just need to have a proper plan in place and everything will be smooth and uncomplicating.

About Michael Wong

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