For global business owners and entrepreneurs, China is a gold mine that holds enormous business opportunities. China sourcing has an inherent advantage due to its lower cost of manufacturing. Sourcing agents know the value of time and constantly pressurize the manufacturing company to finish the order on time.
It is a good approach for American companies to form a long-term relationship with the Chinese sourcing agents by meeting them in person. But it is not possible due to the Corona pandemic. So, arranging a virtual meeting via Skype or another medium with them will certainly solidify the business relationship and make your China sourcing easier.
China has huge and enormous economics that holds it at the top. For the U.S. businesses, China sourcing has an inherent advantage due to its lower cost of manufacturing. But pricing is not the only area where China has an upper hand. They are also focusing on product innovation. Chinese goods are cheap because of the cheap labor cost. China is about 1,410,802,352 people, therefore workplaces are high valued, and people are ready to work for a low salary. It will be a long time before there is a labor shortage, and basic farming income in China is dwarfed even by the factory labor rates hover around the $100-$150USD per month range.
Identify the goods you want to source–
Trade companies make money by selling products. Choosing the wrong products means you are losing time and money. If you’re going to be a successful importer, the first thing you need to do is to choose the correct product for sale in your home.
- Vehicles excluding locomotive
- Car accessories
- Iron and steel machinery
- Plastics and their made products for decoration purpose
- Apparels that are not knitted or crocheted
- Footwears and their parts thereof
- Toys, games, and sports equipment
- Power Generation Equipment
- Electrical Machinery and equipment
Online directories or trade shows are the best possible place to find a sourcing agent or a buying company for your organization. But the final selection should be verified via a background check, hands-on experience, and job expertise. In China, three types of sourcing agents are available:
- Commission Based Agent
- Trading Company
- Third-Party Service Provider
Maintaining on-time delivery of the project according to the client’s specifications is perhaps the most vital role a sourcing agent plays for their clients. In China, sometimes it becomes hard to get your order completed within a deadline. And things get even worse if you are not present physically in China. Sourcing agents know the value of time and constantly pressurize the manufacturing company to finish the order on time.