Many small and medium-sized businesses understand the benefits of sourcing products from China. Industries also turn to Chinese companies for reliable and high-quality products with a competitive value in the market.
Are you a business owner based in any country across the globe? If so, there are immense benefits you stand to gain by sourcing Chinese products. Discuss this further as we look at the benefits of sourcing products from China.
Why Source Products from China?
There are numerous options on why China is the hotcake regarding product sourcing. From a strategic and economic point of view, China still surpasses all other countries regarding the exportation of goods.
Reduced risks of fraud
Chinese suppliers have a well-managed structure that reduces fraudulent practices to the nearest minimum. As a business owner, you will be directly involved with the supplier and follow through with every step.
Dealing directly with the suppliers also prevents untimely delivery. Especially when suppliers are closely connected with reliable and trusted freight forwarders that ship products from China to Canada or anywhere globally.
Many business owners today rely on China products because of its huge, low-cost labor pool, which helps cost-effectiveness. Comparing the prices of goods manufactured in the US and Europe, China products still have a price advantage over other countries, even though the margin has been narrowed recently.
However, when seeking products at a low cost, you must be careful about the quality of the product you’re sourcing because the Chinese market is flooded with substandard products.
Expansive Network of Suppliers Base
As a business owner in the Western world, you benefit from China’s expansive network of suppliers. With this supplier’s base, you can work with a sourcing agent that leverages knowledge, years of cultural understanding, and relationships to help import your products.
No matter the industry you’re dealing with – electronics, textile, furniture, plastic, toys, etc., you’ll always find numerous suppliers in China. These manufacturers are connected with vast infrastructures that speed up the production and transportation of goods.
Elimination of Middlemen
This is another benefit why you need to source products from China. Chinese manufacturers prefer to deal directly with the businesses they are outsourcing to. It boosts revenue at a low cost without compromising the quality of the products.
Eliminating middlemen and dealing directly with the customers help businesses understand how the suppliers work and how to get the best goods from them.
Better Scaling Capacities
Chinese infrastructure is well established and robust. Many manufacturers have years of experience and sound knowledge of the global supply chain. These qualities help them scale-up manufacturing of goods as when due, with no hassle.
How to Source from China as a Business Owner
Having known the reason you should source products from a Chinese manufacturer, you might be wondering how to go about it. Let’s help you solve the puzzle;
- Understand and distinguish the three avenues/manufacturers to get your products. The three manufacturers in China are; trade companies, wholesalers, and manufacturers. Having this understanding reduces the risk of making wrong decisions.
- Carry out thorough market research for products in high demand but low supply. For products already competing in the market, you need to conduct internet research on obtaining these products from China’s manufacturers.
- Search for different suppliers on the internet. Made-in-China.com, Alibaba, and Global Sources are some of the common and trusted suppliers you can get.
- Negotiate the best prices and order in bulk if you like the product samples.
The benefits of sourcing your products from China have been trashed out above. Although the disadvantages linger, you might want to stick with the advantages and achieve the best for your brand.
The information contained on this page is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, or timeliness. As the information contained on this page is provided by an independent third-party content provider and hence there are no warranties or representations in connection therewith.