Although importing consumer items from China has several chances for financial success, there is no room for improvement. The trip is not without its challenges, whether they be industrial, economic, or just the results of having a new perspective and mentality. The Chinese market is not comparable to that in North America or Europe.
In reality, quality, delivery delays, export prices, and profitability may all be significantly decreased even with significant price reductions. Spending a lot of money is necessary to find a Chinese supplier. Visits to manufacturers, sample requests, negotiations, verification of conformity with European standards, and effective monitoring of the production process are all necessary.
When faced with this challenging challenge, Chinese sourcing firms provide effective answers. Its mission is to identify reputable suppliers who meet a company’s needs and technical specifications.
So how do you find a sourcing firm or agency in China? Let’s assess it now.
What are the difficulties of the Chinese import-export market?
China has a big manufacturing capability since it is the most populated and largest exporter in the world. It is important to consider the effect on MOQs (Minimum Order Quantities), or the minimum quantities of items required for each order.
Chinese suppliers aren’t as interested in a client who purchases modest numbers, since doing so is less profitable in terms of time and labor when compared to major multinational organizations that negotiate the creation of manufactured goods on a global scale.
A new customer is not in a position of strength if it has no strength.
China has also only recently joined the World Trade Organization (WTO). For Chinese industries, international trading is still a relatively new endeavor. Due to their resistance to change, they frequently have trouble communicating with and negotiating with their clients.
The danger of errors and failure is increased by cultural and linguistic barriers, particularly for businesses that are new to doing business internationally. To avoid unpleasant surprises, everything should be planned out in detail, including the requirements and demands.
How to do sourcing in China without making mistakes?
To lower the manufacturing and development expenses of a manufactured good, sourcing in China entails finding and evaluating new potential partners and suppliers. The goal is to achieve the optimum quality, price, and production time ratio.
Supplier prospecting necessitates ongoing monitoring, which is only possible with expertise in the area and the development of a trustworthy network.
Contrary to common assumption, purchasing goods in China is not simple, even though there are ways to make it easier, such as supplier portals like Alibaba, which list thousands of vendors in China and around Asia.
Many vendors, however, avoid using these platforms and are frequently more affordable.
Controlling the many source facets is challenging. It is essential to:
- anticipate several months in advance ;
- visit and audit factories
- negotiate ;
- compare ;
- agree on conditions and prices;
- request and test samples;
- master the purchasing process;
- perform quality control;
- learn about logistics;
This is why assistance from specialist businesses, like sourcing agencies, may be crucial, especially for startups in business or e-commerce sites.
Why use a sourcing company or agent in China?
In China, the purchase process is a distinct activity. Import-export professionals with extensive knowledge of the Chinese market and strong local relationships are sourcing agents.
By utilizing their extensive network of dependable suppliers, businesses, and factories, who are able to uphold the manufacturing quality and the compliance of the made goods to the requirements, they take care of selecting eligible suppliers. Along with negotiating with suppliers, they accompany and counsel their clients.
Some sourcing companies even go over and above by providing factory audits, quality checks, and administrative formalities for exports and logistics. You may save a lot of time and lower the risks involved with importing by using sourcing agents. Purchasing organizations frequently have offices throughout the nation, whether in Shanghai, Hong Kong, or another significant Chinese city.
This location is perfect for outsourcing the buying process since it suggests that the client firm is always on-site. To guarantee effective communication with the sourcing agents, particularly if their native tongue is not French, is crucial.
How to choose a sourcing agent in China from France?
The only thing left to do is to act when the firm has mastered all the sourcing-related components and the hunt for a sourcing agent or company.
Find your sourcing agent
A quick Google search for “China sourcing agent,” “China sourcing firm,” or “China sourcing” in English will turn up numerous businesses and specialized agents. However, not all of these sourcing firms are dependable. It is possible to find sourcing agents on Alibaba and independent professional websites like Fiverr or Upwork, but it is harder to judge their caliber. Rarely do well-known, wide-sourcing firms have an online presence.
They are more difficult to reach since they don’t need to use digital marketing to discover their new clients. These latter are frequently seen during trade events like those held in Hong Kong, Guangzhou, or Yiwu.
Compare the services provided and the sourcing company’s standing
It is essential to evaluate the sourcing services provided by each organization, as well as the quality of their services after the skimming operation is over. In order to compare the client’s goals and expectations with what the agencies are offering, the client’s goals and expectations must be clearly stated in terms of the expected products’ specifications, the purchasing procedure, the cost of production, the product development, and the quality control.
To assist you to choose amongst them, ask about their reputation, level of knowledge, and experience. The quality of their website should be given special consideration by taking into account the site’s development date, contact details, images, client testimonials, infrastructure, location, and team size.
If they don’t have a website, their clientele’s reviews and their reputation are reliable indicators. A trustworthy sourcing company should have a team of at least 5 individuals, some of whom should be fluent in Chinese, and have at least 2-3 years of experience.