China is popularly called the factory of the world. Despite the huge challenges that COVID-19 has created, it still offers huge cost savings in goods compared to any other destination in the world. Almost all global retailers rely on China sourcing to get their merchandise at a relatively low cost (the cost savings can vary from 10% to 50%). Although, sourcing from China is very profitable, as a retailer, you have to avoid some common pitfalls sourcing from China. 

In this article, you will learn about the common mistakes that you should avoid when procuring merchandise from China. 

6 Mistakes to Avoid While Doing Business with a China Sourcing Company 

Here is a list of common mistakes many retailers commit when procuring goods from China. 

  1. You Do Not Have Well-Defined Specifications: When you are contacting a reputable China sourcing company to source goods from China, you must be specific in what you want. There is a big cultural and language barrier, so, you must be very clear on what you want so that the manufacturer understands it and provide you with the right merchandise. However, if you are not sure about the product specifications, it will confuse the manufacturer, and you will find it hard to get the products that you require for your business.
  2. Excessive Focus on Pricing: When you source merchandise from China, it gives you significant profit margins. However, when you contact a China sourcing company, do not make price the sole criterion. If you are looking for the cheapest option, you may get merchandise of questionable quality.
  3. Not Ordering Product Sample: When you are buying goods in bulk from your supplier in China, you must ask for samples. The samples will give you a good idea of what type of product you will get. If you find the samples do not match your requirement, you can ask the manufacturer to make revisions. In this way, the manufacturer will also understand what you need and can then supply it to you.
  4. Not Auditing the Supplier: When you choose a company that will supply you with goods for your business, you must audit the company carefully. The best way to do this is to meet the supplier at his/her factory. It will give you a good idea about their capacity and their competence in providing you with the goods that you require.
  5. Not signing a contract: When you are buying goods from a third party, you should always sign a written contract in which everything is put down in black and white. A written contract will protect you in case something goes wrong.
  6. Not Hiring a Sourcing Company: If this is the first time you are sourcing from China and you do not have the experience, you should hire a sourcing agent. China is a sourcing hub and to profitably get the goods you require, at a good price and at the right time, you should hire a sourcing agent. A sourcing agent has a good network, and he/she knows where to buy good quality products that you need at the right price so that you get a high profit.
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