Misconceptions about Sourcing in China

As marketplaces evolve, sourcing goods from China is becoming increasingly accessible to businesses of all sizes. However, there are a number of misconceptions surrounding the practice. Knowing the difference between myths and facts will help buyers make an informed decision. Here are some misconceptions about sourcing in China: 

Sourcing Goods in China Is Cheap

Price plays a significant role in determining whether to import products or not. However, while production costs may be lower, various factors can influence the final price. These include production costs and quality standards defined by product customizations. While sourcing in China might be cheap, it should not be the only determining factor when outsourcing your products. 

Sourcing in China Is Only Ideal for Large Organizations

This misunderstanding is related to the initial investment. Some people believe that in order to source in China, you must place a large number of orders and have a large amount of money. Businesses should limit their purchases in order to stay within their financial capability. But it is also worth noting that making a significant investment increases your negotiating power, allowing you to achieve greater overall profitability.
 
You Must Visit China to Succeed in Your Sourcing Venture

We live in the digital world with numerous tools available to help you track your sourcing activities regardless of your location. You don’t have to be physically present in China. However, you may want to have a representative in the production department to monitor the execution process and intervene as needed.

Suppliers Cater to Compliance

A supplier's role is to manufacture and sell products while adhering to local regulations. They are not required to follow the rules of the importing country. It is your responsibility as an importer to comply with your country's laws and regulations.

To avoid conflicts with regulatory agencies in your area, conduct extensive research. Trademarks, patents, FDA compliance, and safety approvals are just a few examples of things to look out for when importing to the US.

Remember, regulations vary based on your niche. While some products are heavily regulated, others are not. To be on the safe side, entrepreneurs should be familiar with the certification requirements for their niches. Take time to find a good supplier who is willing to offer the necessary guidance.  

Due Diligence Amounts to Verification

Aside from language and cultural differences, China operates under different rules and regulations. To protect your investment and build a strong working relationship with your supplier, you must first understand how they operate.

To ensure a successful sourcing venture, you may need to do more than due diligence. Use the proper authority to verify your supplier and determine their financial capability. Only start placing orders after completing the verification process successfully. 

Sweet Tips from Ally

If you source goods in China regularly, you must be aware of the common misconceptions surrounding the process. This will allow you to expedite the shipping process while also ensuring compliance with regulatory agencies.