Sourcing Goods and Services from China—A Step-by-Step Guide for Small Businesses

If you take a look around yourself today, it is most likely that most of the products contain some of their parts or are themselves made in China. Believe it or not, China is quickly becoming the largest hub of manufacturing in the world. It is predicted that soon the country will become the biggest economy in the world, even surpassing the United States of America. One key factor behind this growth, as experts predict, is their growing network of outsourcing goods and services around the world. Although production cost has gone relatively higher during the past couple of years, China still remains the most preferred location among entrepreneurs for services and product sourcing China.

Sourcing from China can be particularly beneficial for small businesses. The major reason behind this is the relatively cheaper manufacturing cost and relaxed import-export regulation in China. Many American entrepreneurs are increasingly looking forward to Chinese manufacturers and service providers for cost-effective purchasing and generating major revenues for their businesses. As opposed to some common misbeliefs, one doesn’t have to have an overseas office to operate sourcing from China. Instead, you can hire a reliable sourcing agent China who would manage the operation on your behalf. This is where things become a little tricky. Many people express their concerns about finding the right vendors and sourcing agents that would assist them in sourcing goods and services from overseas. However, there are some easy ways of locating reputed and reliable sourcing agents. Read on to know more about them.

Ask the Internet

Searching the internet is one of the easiest ways to look for suppliers in China. Google is always the most reliable and largest search engine that can guide you in this regard. However, plenty of other search engines, such as Bing, Yahoo, etc. can also come to your assistance. Generally, when you enquire about the reliable B2B sourcing platforms in China, the most popular name you will come across is Alibaba. But there are several other B2B platforms like Made-in-China.com, Global Sources, and so many more. Millions of suppliers are listed on these sites. It is always advisable for new entrepreneurs to cast their networks wider and look for China product sourcing agents that best suit their requirements. Before settling on your supplier of choice, you must always look for more information regarding the platform, including their performance, certifications, product and service types, contact information, reviews, factory photos, etc. to gain more insights. This will help you to stay clear of fraudulent companies and counterfeit products, which have been increasingly troubling small and large companies alike.

Explore Social Media and Networking Sites

Social media has become the largest growing form of networking these days. Although it is not usually regarded as an ideal or popular platform to look for suppliers, it can nonetheless direct you to a reliable sourcing agent China. Not many suppliers have a strong social media presence, but it is an effective source to gain valuable reviews or feedbacks from potential sourcing agencies. You can search across professional forums and groups intended for sourcing on popular social media platforms in Facebook, LinkedIn, Reddit, etc. However, you must be very cautious in believing those reviews, for most of the information provided on the social media platforms are unverified. To avoid being duped, you must verify the companies or their products before you enter any negotiations or transactions. Asking for samples before ordering in bulk is always a good idea while partnering with overseas suppliers.

Attend Trade Shows and Exhibitions

Trade shows and exhibitions are perhaps the most reliable way to get hold of legitimate, reliable sourcing agents in China. By attending these, you will get a chance to meet your potential suppliers face-to-face and inquire them about their products, services, quality control procedures, production capacity, terms and conditions, certifications, and other key areas necessary for making a business deal. Such direct communications will not only help you verify their credentials but will also give you an opportunity to evaluate their reliability and authenticity. While there are numerous trade fairs held each year in China, two of them are particularly worth mentioning. The first one is the Canton Fair. It is the largest and most popular trade fair in China. Taking place in Guangzhou near Hong Kong, this fair is held usually twice a year. Each year, it attracts a vast number of attendees and allows them an opportunity to look through thousands of products and services offered by the suppliers. On the other hand, the East China Fair is the largest regional trade fair in China. It is usually held in Shanghai once a year. The offerings of this particular trade fair are usually industry-specific.

If you don’t want to travel overseas scouring for potential suppliers, there are alternative options. The popular trade fairs held in the United States have a strong presence of suppliers and sourcing agents from China. However, the only shortcoming of finding your supply chain from these trade fairs is that you will be limited within a small pool of suppliers to choose from and thus, may be left out on the best deals.

Contact a Trading Company

If narrowing down your search for reliable products or suppliers feels rather complex and arduous, you might consider buying from a trading company. It is a relatively better option for sourcing from China if you are buying a small number of products.

 

Sourcing from China involves many potential risks for small US-based businesses. Poor quality issues, receiving counterfeit products, difficulty in enforcing negotiations and contracts are some of the major problems that you may come across in this process. In addition to these, there are the problems of the language barrier, import-export regulations, meeting the industry standards of the importing country, etc. that may disrupt your supply chain. To avoid them, you must collaborate with a reliable and efficient sourcing agent China. Moreover, don’t forget to do your own research and verify the suppliers before you make any purchase.

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