China is a manufacturing powerhouse accounting for nearly 30% of the world's manufacturing output. This means that out of 10 products sourced internationally, three are from china. This dominance can be attributed to the massive wave of innovation coming from Chinese firms, which is excellent news for any seller looking to find quality products. 

Because China has established itself as a manufacturing hub, businesses and online retailers are flocking, looking to get high-quality and affordable products. However, there can be a steep learning curve when sourcing products from china. Here's a realistic look at what to expect. 

Things to keep in mind when developing your sourcing strategy

Where are you sourcing from?

There are two main ways of sourcing goods from China:

Directly from factories - this means dealing with the manufacturers directly with no middlemen. It is a good option if you have experience, a good understanding of what you need and the manufacturing process involved, and don't require a high level of service. That said, it can be overwhelming, primarily if you have never sourced from China before. 

Using sourcing agents - these can be companies or freelance agents who handle the sourcing process on your behalf. There are numerous benefits to working with sourcing agents in China, such as conducting follow-ups on your orders, having a large network of suppliers, and having an in-depth understanding of consumer needs and wants.  

The first order will take longer than you think.

Once you have contacted a potential supplier, getting the first order of your product will take longer than you might think. This is because you have to work out all the details, such as product and package designs, samples, reviewing and approving the final products before production can begin. A good rule of thumb is to triple the quoted production time. So if you were expecting your first order in a month, a realistic timeline would be three months.

Always factor in all the costs

When calculating your margins, don't forget to factor in what you spent buying and shipping samples, custom inspections, and returns. Since you are covering these costs, it's imperative to factor them into your overall cost, or else they will eat into your profit margins. 

Consider your order size and its repeat potential.

The goal of sourcing from china is to get top-quality products at a low price. However, this model is only feasible if you can order a lot of products and frequently. For instance, a manufacturer will offer a lower price if you order 1000 products instead of 100. Therefore before looking to source your products from China, ask yourself what your order size is and what is its repeat potential. 

Don't expect fast, cheap, and top quality.

Lastly, watch out for suppliers who guarantee fast, cheap, and top-quality products. Quality is directly proportional to cost and with all the competition manufacturers in China have, some might try to entice you with a disingenuous quote or offer low prices but find ways to cut corners, eventually affecting the quality of the end products. Do your due diligence and if the deal is too good, think twice. 

With so many options and thousands of manufacturers to pick from, it's essential to know what the process realistically entails. This way, you can dodge getting scammed and get quality products at an affordable rate. With these pointers in mind, you have a better chance of sourcing quality products from China.