You need to adopt a solid sourcing strategy while importing goods from China. Over the past few years, China has become the favorite destination for sourcing high-quality, low-cost items. There are many global manufacturers but none can surpass the profit that a Chinese manufacturer brings. This country is undoubtedly the finest place to shop.
Through this blog, we are highlighting the basic sourcing strategy all importers should use as a guideline.
Take Time to Build a Sound Relationship with your Chinese Counterparts-
China may seem a difficult place to build business relationship. But if you eager to understand their work culture, their laws and the mentality of the Chinese people, you can easily overcome all the difficulties. Treat your supplier with trust, mutual respect, and confidence. Try to build a good bonding with your Chinese counterpart while sourcing products from China. Start a long term relationship with a face to face meeting.
Use the Right Resources–
In order to identify your potential supplier, you can make use of the factory website. You could also check the service directory of potential customers. Just make sure the entire negotiation should be conducted with the help of a Chinese local who represents your interest. The process may be a tough and long that will try your patience, but surely it will bring a huge profit at the end. Plan on this stage of the process taking at least six months of continuous communication.
Place Sample Orders-
Even after getting your hands on a reliable sourcing agent, do not place a huge order at the very first time. Take your time and don’t take any hasty decision. Ask for sample orders initially and after evaluating the quality of the product go for bulk order. This will save you thousands of dollars. You just need to have a provision in your purchase agreement that the sample costs are deducted from your final order cost.
Understand Tariffs for your Country-
Keep in mind that you have to pay import tax on the goods and items you are sourcing. A US importer may have to pay 0% to 17% tax (approximately). It is recommended that you have the right harmonizing code.
China is one of the world’s export powerhouse, going directly to a manufacturer is almost always the best approach, as you’ll have the most profit margin.