Why You Need Product Sourcing Services for Importing from China?

2021-11-19

63896801 copy.jpgIf you wish to import goods from China, then you may have heard about product sourcing services. If you don’t know much about product sourcing services? This post will tell you all that you need to know.

Suppose you are interested in importing products from China. Chances are, you may not have enough information on various manufacturers, vendors and suppliers in China. However, before you can commit yourself to anyone manufacturer, vendor or supplier, you will need a lot of information about them to make the right decision. This is where product sourcing services can help.

China is known as the world’s factory since it makes such a wide variety of goods and products. Finding products is easy. But finding reliable manufacturers and suppliers is much harder. You need trustworthy manufacturers and suppliers who ship high-quality products on time.

Finding a reputable manufacturer is vital for your business. With a good manufacturer, you will have easy access to an adequate stock of high-quality products, resulting in customer satisfaction and thus higher sales. Finding a good manufacturer can save you a lot of headaches and also boost your business reputation.

Although some people try to find reliable manufacturers and suppliers in China on their own, this is not advisable, especially if they do not have prior experience of dealing with businesses in China. You can run into several pitfalls and drawbacks this way. Costs incurred thus are just not worth it. You might end up incurring high costs and serious losses if you go this route without knowing exactly what you are doing.

Think of product sourcing services as your business representatives who will negotiate on your behalf with other businesses in China.

What Is a Product Sourcing Service?

A product sourcing service is a third-party service that you can hire when importing products from China. The product sourcing service will search for reliable manufacturers and vendors on your behalf so that you can receive timely shipments of good quality products.

The firm will seek to negotiate the best prices for you, test product quality, ensure that all your requirements are fulfilled and handle customs issues.

You must bear in mind that product sourcing services are different from distributors. Distributors purchase products and then resell them to retailers or customers. Hence, they are different from manufacturers as well as product sourcing services.

Here are the main reasons why you need product sourcing services for importing goods from China.

Finding Reliable Suppliers That Make High Quality Products

China is a very big place and is full of manufacturers, suppliers and vendors of all kinds. Hence, you must make sure that you select the best manufacturers and suppliers for sourcing products from China.

You will need to look into provinces and regions to locate the best manufacturer for your specific business needs. Product sourcing services have an idea of the place, region, or province specialising in the manufacture of the product you are interested in.

Looking at B2B platforms like 1688.com, AliExpress, Made in China, Global Sources, and Alibaba is insufficient. You won't have enough information that you need about suppliers and manufacturers to finalize your decision. Also, it can be hard these days to distinguish between distributors and manufacturers.

You will want to make sure that you are dealing with a manufacturer instead of a broker. The reason is that the manufacturer will be selling directly to you and will thus charge the most reasonable rate. However, brokers purchase products from manufacturers or wholesalers (who impose their own margins). Brokers then offer these products for sale to others. The price of these goods also includes their commission. So, with brokers, you are paying a higher price for hidden costs. Hence, for the lowest prices, it is best to buy from manufacturers rather than brokers. Product sourcing services will ensure that you are dealing with manufacturers and not brokers.

The manufacturer that you choose should offer top quality in addition to reasonable rates. That is, the manufacturer should be cost-effective. You should be getting exceptional quality at low prices. Doing so is easier said than done. If you don't know the Chinese business landscape, finding such a manufacturer can be much harder. A product sourcing service can help you find one more easily in less time. You will save time and money this way. The best part is that there is a much better chance that you will find the right manufacturer that provides quality at reasonable rates.

86044674 2 copy.jpgDeal with Cultural Differences and Facilitate Communications

Communication is the key to good business anywhere in the world. If you are new to China, you may not know the local language well enough and may not be fully aware of cultural differences. A product sourcing service can help fill the communication gap and take care of cultural differences for you since they have local staff who are well-versed in English.

More and more people in China are now speaking English fluently. However, there are still problems with communication in the English medium. A product sourcing service can help because they can communicate all your requirements effectively to the manufacturer. No misunderstanding can cost you money, time, and energy.

The product sourcing service can also take care of cultural subtleties. When you are on a business visit to China, you can partner with a product sourcing service to deal with the local culture with finesse, especially when negotiating with prospective business partners in China. You will create a much better impression this way.

The product sourcing service will take the whole list of requirements for your products and convey them to the manufacturer. The firm will explain everything in full detail to the manufacturer so that there is no room for miscommunication or misunderstanding.

Reduce the Risk of Doing Business in China

There are several risks if you decide to go solo in China. You may end up with the wrong product quality, or your requirements may not be fully met.

You may not be getting the best prices or receiving your products on time. There is a lot that can go wrong.

A product sourcing service will take care of all these things, and thus overall risk will be minimized. When you do everything yourself, especially when you are not fully aware of all risks, then there is a chance that you could miss out on several key factors. This is unlikely to happen with a product sourcing agent.

The sourcing service will take care of product testing, quality, fulfilling your requirements, facilitating communication, and doing all the necessary paperwork so that your risks are minimized.

Controlling Product Quality

You want to be double sure that you are importing high-quality products from China. Finding a manufacturer that produces the required quality is easier said than done. You will also have to check other things like whether or not they ship on time.

You must find a manufacturer that will meet all its promises concerning quality. You need a trustworthy business partner that will not disappoint at any time in the quality department. This is of utmost importance for the reputation of your business. The product sourcing agent can greatly improve your chances of finding such a business partner in China. They will have an idea of reliable manufacturers with a solid reputation and high trustworthiness who will be most suitable for your business needs.

You want to make sure that all products you are importing have the quality that you desire. You cannot skip on quality testing since this is essential for the survival and growth of your business. Hence, you must have a product sourcing agent in China who can take care of quality testing for you to receive great products.

The product sourcing agent will be able to visit the factory on your behalf to check for quality. They can then confirm that all your requirements are being met. You will not have to make an expensive business trip to China with a reliable sourcing agent to ensure quality and requirement fulfilment.

By reporting product quality to you and ensuring that all your requirements are being met, the product sourcing agent can prove to be the trustworthy ally you need to take care of uncertainties, risks, and product quality.

Provide Support and Assistance at Any Stage

When importing goods from China, you may face problems at some point. You cannot afford to leave your own business to handle import issues. You need a reliable product sourcing service that can assist you when you need it most, especially when some unexpected customs issue happens.

In fact a product sourcing agent may be to anticipate this problem and tell you the solution so that it never happens. Hence, you can focus on your key business processes instead of wasting time, energy, and opportunity to deal with customs complexities.

Several problems can happen, especially at the start. For example, you find that products delivered do not fulfil your requirements. You can then communicate with the manufacturer via the sourcing agent to explain what’s wrong and what should be done about it.

Whether they are problems in the supply chain, shipment delays or customs complexities, you can count on your product sourcing agent to handle the issue for you.

The product sourcing agent can help you at any point in your relationship with your manufacturer. The agent can give you all the necessary advice to deal with import regulations, required documents, customs duties, and such complexities.

Familiarity with the Local Market

Product sourcing services have a good understanding of the business landscape in China and know which manufacturers provide better quality at decent rates. So you should hire a product sourcing service to take advantage of their knowledge of Chinese manufacturers, suppliers and vendors. Your sourcing agent can tell which one of these will be most suitable for your business needs.

You can save a lot of time, energy and money in this way. Becoming familiar with the local Chinese business environment may take a lot of time and effort. Instead of going through so much hassle, you should outsource it to a good sourcing agent so that you don't leave sight of your core business.

You should take advantage of the insights that product sourcing services can provide you with since they are invaluable. There is a much lower chance that you will commit a costly mistake this way.

Legal Complexities and Documents

A strong product sourcing service can tell you all documents that you need to do business in China. It will tell you all the business documents that you must sign to start importing goods from the country.

There is a strong chance that you may not be fully proficient in understanding the local language and script like other foreigners. Hence, there can be misunderstandings, especially with orders, and that can create problems of all sorts.

But with a good product sourcing service to take care of everything, including contract signing, product shipment and handling of customs issues, you need not worry since it will have everything covered. You can rest assured that you have all the necessary documents, licenses and contracts to carry on with your import business without problems.

68791485 2.jpgYour Representative in the Country

The product sourcing service can be your representative in China.

There are two ways that you can go about doing business in China. The first method is to do it alone. This method is a very high risk, especially if you are not familiar with the Chinese environment. You will also have to invest a lot of time, money and effort in traveling to the country and finding the right manufacturer for your business requirements. The cost is very high, and the risk is too great. You should take this course of action only if you have long experience of business in China. Even then, you will incur a lot of problems along the way.

The second recommended method is to make the product sourcing service your representative. The service will take care of all your needs so that you can locate the right place, the right manufacturer, the right rates and great product quality. With a product sourcing service to take care of these matters, there will be a much smaller chance of any problem transpiring.

Even if something goes wrong, the sourcing agent will resolve it for you in good time so that there is minimal hassle on your part.

Understanding the Factory Environment

Product sourcing services have long experience in the field and know how long it will take a good manufacturer to produce your order quantity and ship it to you. Hence, they can give you realistic lead times to know how long you will have to wait after your order before you finally receive your goods.

Knowing how long to wait and having realistic expectations is critical for your business success.

Sourcing agents are also aware of processes that take in Chinese factories and the impact that it will have on your product quality. Having this knowledge, they can show you suppliers with the best processes who can supply according to your order quantity and quality.

Sourcing agents can tour the factory in person and thus know exactly what is going on. They can provide you with valuable information as to what is going on inside the factory premises, the processes taking place, how the factory is handling your orders, what quality control and assurance processes they have in place, production capacity, and other processes matters.

A product sourcing service can still provide you with valuable service even after you have signed the agreement with your manufacturer. Sourcing agents can maintain a strong communication link between you and supplier to receive shipments as per the terms of the agreement. The sourcing service can handle shipping matters and supply chain disruptions as they arise on your behalf to minimize the risk of product delays.

Bottom Line

Product sourcing services in China can give you plenty of insights that will prove useful in helping to find the right manufacturer for your needs. With the services of a product sourcing agent, you have much better chances of finding suppliers who can supply the given order quantity in time at the required quality level. Having a trustworthy supply partner in China is paramount for the success of your business. Hence, you should always seek the expertise of a good product sourcing service in China to find such a partner.

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