Now China has emerged as one of the well-known manufacturers in the world for all kinds of consumable and industrial products of reasonably good quality that are offered at very attractive prices. Therefore, China has captured the attention of all businesses in the world.
However, managing direct sourcing from China sitting in any European country or the USA is a daunting task. China is a country located in other parts of the globe and the business culture is entirely different from the western countries.
Although the government of China is doing enough business promotion for Chinese products, however, in China only a few people can communicate in English. That is another big hurdle to doing business with any Chinese company.
However, Chinese companies offer their product at a cost that is too attractive to ignore. Any business can earn a good profit to manufacture products in China.
Therefore, it will do a lot of good to your China direct sourcing efforts, if you hire a trustworthy sourcing company in China, who can speak both English and the local Chinese language fluently.
How can you buy from China?
Once you have made up your mind that you are going to source your products then try to explore all the information that is necessary to know for importing from China.
China can offer you a wide variety of goods and if you buy products from China in bulk quantity then you can increase your profits tremendously. You can follow these steps for your China direct sourcing.
1. Find your product to import
China can offer you a wide range of products at very economical prices. Therefore, it will be beneficial to you, if you decide to buy them in bulk quantity. You can generate lots of profits.
For your successful business, it will be better to choose a product that has very high demand in the market, as it will be easier to sell and earn a high profit.
2. Find a few reliable Chinese suppliers
Choosing your supplier is one of the most difficult steps in the process of China direct sourcing. A good supplier can become almost like your business partner who can either make or break your business. Therefore, you must select your supplier judiciously.
There are different ways to find a suitable supplier:
Search on the internet
Visit Chinese trade shows
Survey the wholesale market in China.
However, using Chinese sourcing service can be your best option. Once you have identified your supplier, you must start discussing with a local sourcing agent.
3. Request for a sample
After you have shortlisted a few suppliers then the next step will be to get the samples of the product for your evaluation. Before you finalize the deal, it would be better to ask for the sample.
It is very important to evaluate the quality of the product sample because the future of the business will depend upon that factor. Therefore, before you place an order for a bulk quantity you must order a few samples first from all the suppliers whom you have shortlisted.
Often few suppliers may send catalogue with a photograph, however, that may not be good enough for you to evaluate it.
Even if you have to pay a little extra, you must buy a few samples first.
4. Place your order and also negotiate payment terms
After you are satisfied with the quality, then the next step will be to place an order so that after receiving your goods you can start selling them in your market.
Here, the price is very important therefore, before placing your order you must negotiate the price properly so that it is profitable for you to buy.
You must calculate the landed price rather than look at the price offered by your supplier.
5. Preparing for your shipment
Your shipping method can play an important role in several ways:
The shipping method that you choose will decide the actual landed cost of your product.
Sea shipping will be cheaper than other methods, but it will take a very long time to receive the products.
Air shipping can deliver your products quickly, but it can be quite expensive.
While shipping products it requires several documents like commercial invoices, bills, and packaging lists.
You also need to pay a bond, something similar to the insurance policy in case, you default on the payment of your customs duty.
Above all, many products may be banned in your country that you cannot import them. Therefore, you must keep all of these in mind when you go for China direct sourcing.
6. Shipping the goods from China
The delivery of your items will be simple, and you won't run into any problems, only if you have all the necessary paperwork. You may have a number of problems if a document is missing.
In the event that your delivery is delayed, be prepared to deal with all of these concerns and explain them to your clients.
Using a freight forwarding business or a sourcing organisation that is knowledgeable with and partnered with freight companies is the ideal approach to getting ready for shipping after you have finished purchasing a product from China.
How a trusted Chinese agent can help you?
1. Offer market guide
Any reliable China sourcing agent will be quite knowledgeable about the Chinese market and therefore can be very useful while selecting your product supplier.
A sourcing agent can offer you many options based on your convenience so that you can select your supplier comfortably. An agent can offer proper feedback about different suppliers so that it becomes much easier for you to choose one.
In short, your agent will become an effective guide for you to explore China market.
2. Order tracking
After you have placed your order, then your sourcing agent will track your order with the supplier and let you know the current status of the order from time to time so that you can be proactive.
This is necessary to ensure that your lead time, delivery time, quantity, product specification, and quality are all monitored properly. You will remain fully posted with every situation for all the orders that you have placed.
3. Quality control
Any professional China sourcing agent will ensure your product quality in China in three different phases:
In the first phase, they will check your orders are all perfect in quality, quantity, as well as a package before production starts.
In the next phase, they will check the quality of your product during the production, which is called DUPRO inspection. They will ensure that no quality procedure has been bypassed by the supplier.
In the last phase, they will do the quality check of your product after the product is ready for shipping. They will take a random sample and check their quality.
4. Warehouse facility
Most of the China sourcing agents may have their own warehouse facility or they can hire space in a certain warehouse to collect your ordered item to make them ready for shipping.
If they have more customers to take care of then they will take special care of all customers to store their products with proper identification.
After that, your products will go for shipping.
5. Container loading
Your China sourcing agent will first start with any large and heavy items to load them on the floor and thereafter place all the lighter items on the top.
Finally, all containers will be tightly packed so that nothing can move during transit.
They will professionally handle all the logistics so that when it will reach your country it will remain in good shape.
6. China customs declaration
The next important part of the process is dealing with the customs authorities at the China port after all your containers are loaded for shipping.
They will ensure that all your documents are presented properly before the authorities such as:
Customs declaration list
Original sales contract
Cargo declaration list
To ensure that the details on the documents match those on the actual goods in the container, the China customs department will review and verify them. Once China Customs has given its approval, the cargo will be allowed to ship.
Your China sourcing agent will confirm with you the packing list, invoice, or any other required papers such as CO (Certificate of Origin), fumigation certificate, Embassy Certificate, etc.
After all the documentation, a container will be booked and will ensure that the last step of shipping is done properly.
Further, your agent will coordinate with you on clearing customs in case you need any help at your end. All these will be done to ensure you receive your goods well in time.
Finding your ideal China sourcing agent is one of the key steps for you while you go for China direct sourcing. Receiving your top-notch products at a fair price and also on schedule can surely help your company to grow faster. So, devote some time to choose the best China sourcing agent. The future growth of your business will largely depend on it.