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Deciding Factors that can Bring you Benefit While Sourcing from China

Importers all across the globe often face various types of logistical, procurement or administrative hurdles for sourcing products. By sourcing products from China manufacturers, business owners can easily skip all these impediments. But hiring a China supplier is a tough task and you need to plan strategically for getting things right. In this blog, we will try to provide you a guideline that you can follow while appointing a China supplier for your business.

  • At the time of hiring China suppliers, take note of their work experience and the expertise of their team. Only a qualified manufacturing team and a correct manufacturing process can offer you the much-needed new product introduction support. Try to get details about the past projects they have worked and the experience they gained working on it.
  • Ask your manufacturers whether they provide dropshipping This service may free up a lot of your time to focus on marketing and customer service instead of the logistics. Find suppliers who can add value to your business. While sourcing products from China manufacturers, negotiating better terms is a better strategy than focusing on price.
  • The Minimum Order Quantity (MOQ) requirement is the minimum number of units you need to order from a supplier. While deciding their MOQ, consider factors like product type, cost and mode of transportation, their production capacity, level of customization and their individual policy. The MOQ is often specified on the suppliers Alibaba page, or website. You can also contact them directly to ask for their MOQ.
  • Make sure that you ask for samples, before ordering in bulk. Many Chinese companies try to make you pay for samples and postage on top of this. Placing orders without checking the sample is the biggest no while procuring from China.
  • Payment term is the most important and often the most overlooked aspects for the foreign businesses. Be it making a payment to your sourcing agent in China or transferring money to the account of your partner, knowing the process of sending money to China should be your top priority. Bank transfer, PayPal payment or cryptocurrency, make sure you have settled the payment terms with the China supplier before signing out the contract.

China Sourcing Strategy

China offers a supremely efficient workforce, lower production cost and state of the art infrastructure, making this country the best place for manufacturing all types of products. By following the correct approach, you can take home maximum benefit out of your China venture.

About Michael Wong

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