Strike a Profitable China Sourcing Deal by Framing the Right Business Contracts

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Locating low-cost products in China is easy but finding quality products at an affordable price range is challenging. Sourcing agents solve that puzzle and easily identify manufacturing companies that offer standard product without charging high. Agents always try to strike a profitable deal for their clients.

Source your products from China

China is the hub of manufacturing cheap goods. Whether you sell electronic goods or toys, you can source everything from China. You simply need to find a reliable Chinese sourcing agent. By importing products from China at a cheap price, you can sell them to the retailers at a much affordable price compared to your competitors without denting your profit margin. It is an excellent way of running a wholesale business successfully.

The Growing Acceptance of Private Labels And Generic-Brand Items

Over the years, there’s been an influx in private-labeled goods. People are quickly learning private labels are the same quality as larger national brands. Consumers all over the world are feeling hugely satisfied with the private labels and generic-brand items, and both the online and offline stores have become more popular thanks to the way they are presenting their own private-labeled product lines. Retailers are using horizontal shelf display techniques, such as brand blocking, and end-cap display fixtures to make private labels stand out from national labels. That is the primary reason some private label categories are seeing strong growth all across the USA.


Have a well-written business contract for China sourcing

Most first-time importers put greater emphasis only in framing a PO (Purchase Order) agreement and start assuming it as a contract. You need to keep in mind that in spite of including many valuable provisions such as late shipment penalties, a procedure to deal with rejected inspections, and so on, but it is not exactly a contract. You can’t win a case in a Chinese court by showing the terms written and signed in your PO agreement as it is not a contract according to Chinese court. To be in the safe side, it is better to have an OEM/ODM agreement along with a purchase order.


Having a written legal business contract is the most important part of doing business in China. Make sure you get a written agreement on all your requirements, not just features or schedules. This can be used to test the product during a pre-shipment inspection. Watch out for large minimum order quantities (MOQ) when you order from China. Every Chinese vendor will have its own MOQs, which is the smallest number of units you can order.


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