As a progressive business person or procuring manager, one of your top most priorities is to source products and supplies at a reasonable price to enable your business to remain competitive as well as safeguarding your profit margins. China is the best place to go if you want to get high profit margin by sourcing internationally since it is well known to be an economic and industrial super-power. However, many business owners are still wondering whether sourcing products direct from the companies in China is valuable and a workable option. This is true for every business owner, but if you get it right, the returns can be good, if you get it wrong the consequences can be expensive.
It is good to know that when sourcing products from China, every business owner faces certain challenges since every project is exceptional and comes with its own challenges to take care off.
The purpose of this article is to highlight the key points to consider when sourcing from China. You may also read the 13 Tips You Should Keep In Mind When You Are Thinking of Outsourcing from China
- Hire an independent sourcing agent
Many business owners who have been in the industry for many years may be able to go the DIY way when sourcing products and purchasing from China. This is a good idea if you are able to visit the country yourself and spend time finding trustworthy suppliers. However, there are many dangers that come with this approach although it is possible. There is also a plan B that is recommended even by the state which is hiring an independent sourcing agent with local workplaces and staff in China.
Note that your sourcing agent must be independent and not “independent” as there are many sourcing agents in China who claim to be independent but when you examine them closely, you will realize that these are just upcoming Chinese sales agents who might make your sourcing process a miserable one.
- Language barrier and cultural difference.
These two things must not be overlooked by business owners since they can make or break your business profitability and can ruin the whole sourcing process when not properly considered. Many Chinese suppliers are not willing to work with sales staffs that are good in English as they serve a lot of domestic buyers. For that reason, it will be hard for the supplier to meet your needs. Additionally, Chinese people feel good when having a personal relationship more than the spirit of contact.
- Fraud and scam prevention
In the business world, especially when it comes to sourcing and purchasing products from China, the main concern that business owners experience is the issues of scammers and fraudsters. This therefore calls for ways to prevent oneself from being corned. The screening process of suppliers is hectic.
The only solution to curb scammers is to request for samples to enable you to choose one that is suitable for your business needs. Remember sending samples serves as a way of screening suppliers and also can help to test the package.