Know the Risks of China Sourcing & How to Avoid Them

China offers a convenient one stop shop for all the manufacturing purposes. Sourcing items from China can offer you lower costs of goods, flexible minimum order quantities, custom labeling and packaging, reduced lead time and more advantages.

However, there is a learning curve attached for an importer to understand the process of sourcing products from China manufacturers. It will generally take three to four shipments to figure out the ways to avert risk and grasp the meaning of the terminology & acronyms involved in China sourcing. The majority of bad sourcing situations can be averted with just a little bit of due diligence early on. Avoid the pitfall of China sourcing with these tips:

Work with Sourcing Agents–

A sourcing agent is an individual or a company that can help you import products from China. They are often called purchasing agents. Good purchasing agents can be very valuable, but they’re extremely hard to come by. Applying their methodical approach and sound business skills, agents in China for sourcing can greatly minimize your sourcing risks. It is advised to all the business owners to at least visit China at once and meet with the agent or sourcing company personally and if it is not possible, try to arrange a meeting with the agent in your home country.

Verify That Your Sourcing Agent is Registered-

It’s crucial to independently verify if your agents in China for sourcing is registered or not. There are many scams, fakes, and just plain bad agents out there to watch out for. When checking out Chinese wholesale websites, go through all their policies (returns, damages, backorders), and make sure they have their contact information and physical address posted on their site. Requesting a copy of their business license is a standard measure to take, and this will display their Chinese name.

Screen your Potential China Supplier–

When selecting a China supplier, you should have a checklist of all the important aspects. Here we are providing some of the aspects you must check:

• Supplier’s references
• The scope of their business
• The system for quality management

You could also seek help from the renowned B2B websites like Global Source can help you select some of the trusted China suppliers. It is advised to narrow down potential suppliers based on nonprice attributes before initiating contact.

Scheduling the Shipment–

Scheduling the date and mode of shipment are some of the most important elements while sourcing products from the Chinese sourcing agents. When it comes to shipping, you want your cargo delivery safe, on time with the minimal cost of freight. Selecting the best delivery option is entirely dependent on your unique circumstances.

Shipping options from China:

• Shipping by air
• Shipping by sea
• Land shipping

Shipping will have the maximum impact on your bottom line. So it is important to keep them as low as possible at all times.