China is recognised as the biggest exporting country. Chinese goods are widely available. It is impossible to have a home without an item bearing the “made in China” label.
This makes the business of selling Chinese goods an excellent option. One strategy to increase your revenue is by importing commercial goods from China.
Importing items is more complicated than it first appears and involves a number of steps. You must be aware of where to look for the best suppliers, how to talk to manufacturers and negotiate with them, and how to send your products.
Any trusted and proven China sourcing companies can be a great asset for you when you are planning to import from China. Let us first discuss why should you import from China in the following paragraphs.
Chinese products can offer you high-profit margins
Businesses frequently see cost reductions while sourcing from China, which boosts their profitability and competitiveness. You can then use these gains to expand your firm by reinvesting in it.
China is competitive because its manufacturing costs are lower than those of advanced economies like the US, UK, and Europe. When compared to the West, China’s production costs are generally lower since they include lower costs for labour, raw materials, and overhead expenses like power and maintenance.
Chinese products are now of reasonably good quality
Chinese factories are able to produce goods that practically meet western standards of quality. A few years ago, it was widely believed that products created in China at a low cost would surely be of inferior quality.
But Chinese firms can now produce goods without sacrificing quality. Of course, some firms continue to produce subpar goods. Simply exercise caution when checking sources.
Any proven China sourcing companies can easily liaise with the manufacturer and ensure better quality with better quality control.
Goods from China can be very unique
Chinese producers are also incredibly inventive and imaginative. They develop goods that are unique to their region of the world.
Nothing sells more than any distinctive and high-quality products. Your firm expands and your profits increase as you sell more goods.
You can get wide varieties
Chinese factories are capable of producing a wide variety of goods, including gym equipment, medical equipment, and aircraft parts. The largest trade show in China draws thousands of visitors from around the globe.
There are more than 200 football fields covered by the fair. You won’t be able to see each exhibit at the fair, even if you go every day, it is open.
China offers you the entire freedom to select desirable factories
Working with local vendors does not provide you the freedom to review their terms and conditions. The majority of these suppliers merely require a brief description of the goods you require, after which they can either confirm or deny their ability to meet your needs.
Chinese firms do not operate in this manner. You are free to go to the factory in person and look at the conditions of labour there. Because of this, sourcing your products straight from them is simple.
How to find a right Chinese supplier
Many B2B websites give a comprehensive list of vendors who supply practically anything you could need to source.
For instance, on Alibaba, suppliers can be filtered based on evaluation, company profiles, management systems, production capacities, and product and process controls.
In order to find leads for dependable suppliers, other western businesses typically turn to their business networks or trade and industry organisations.
You must conduct a more thorough check after choosing a supplier. Ask for their licenses and other documentation, such as
Audited accounts or reports
Value added tax
Check to see if the factory’s legal name is the same as the company’s name in the bank account, they want you to send payments to.
Hiring reputable and proven China sourcing companies is an additional method of obtaining goods from that country. For a fixed fee, such companies who may usually have their team who act as your representatives while dealings with suppliers in China.
Having settled your supplier, now let us look at a few factors to consider before sourcing from China.
Request for a samples
Request a sample of the product from the provider. The majority of providers will charge you retail pricing for a sample of the product you want to buy.
You can decide whether a product is perfect for your company and can you choose to spend extensively on it after you have seen and felt it.
Consider quality over cost
It is crucial to remember that every supplier has the very minimum price needed to produce the goods when negotiating with them.
It will be simple to calculate the pricing if you have done your study on the product, the prices associated with raw materials, and the market.
Additionally, avoid choosing providers who will offer you a price that is less than what it should cost you as per your finding to complete the entire production process.
Keep in mind that when suppliers lower their prices below their minimum price cap, it will undoubtedly have an impact elsewhere.
Negotiate with the suppliers
Since they typically provide low pricing, producers will be able to make more money if you place orders for huge quantities of goods. Therefore, they will make more money the more their items are bought in bulk.
It will be best to place an order for at least 50 units at the start of your company.
Learn the shipping
The entire cost of shipping needs to be between 10% and 15% of the selling price in order for you to make a reasonable profit margin.
However, some buyers pay more in transportation costs than the cost of procuring the commodity, particularly when the goods are lightweight and oversized.
Your shipping issues can be resolved from China with the help of your proven China sourcing companies.
China is renowned for having many top suppliers and manufacturers. However, this does not imply that there are not any fake goods or people out there trying to rob clients. To confirm, make sure you give the factory a direct phone call from your phone. Additionally, when importing, deal with proven China sourcing companies to ensure that you are not scammed.