Despite the onslaught of the pandemic, China’s export and import sectors have remained strong. Their exports witnessed a growth of 3.6% and it is the only country that reported a positive picture. Therefore, retailers seeking the best sourcing services continue to find it one of the most attractive destinations. Usually, sourcing from China can save an e-commerce store considerably. The opportunities presented by this Asian powerhouse are immense. However, sometimes while sourcing from China many retailers commit great mistakes as most of the time they are busy looking at the brighter side of the picture and forget about the drawbacks.
Dealing with suppliers based in China requires a certain amount of skill and experience. You can easily get scammed and supplied with extremely cheap quality products if you don’t stay cautious. So, if you want to stay informed about the mistakes that are commonly committed by retailers, then keep on reading.
5 Common Mistakes You Must Avoid While Sourcing from China
Let’s take a look at what are the mistakes that one commonly commits while sourcing products from China.
Framing no strategy
Transactions overseas are always risky affairs as they involve handing off a large amount of money while transacting. This is why it is necessary to frame an effective strategy beforehand, as it serves as a roadmap in determining the best supplier. Always remember while creating a strategy you must take into consideration all the problems that you can run into while conducting the business and make provisions for them as well.
Following no definite specifications
While sourcing products, one of the most common challenges that retailers often face is the cultural and language barrier. In that case, retailers commit a great mistake by not conveying clearly the product specifications, requirements and expectations. Here, the key is to find an expert and credible supplier and communicate the necessary details.
Not testing product samples
Agreeing to your supplier’s rosy words about product quality is never a good idea. So, what you must seek is the agreement made between you in print. Plus, you must check product samples before sealing the agreement as that will help you to verify whether the supplier is genuine and you can benefit from this agreement.
Solely focusing on pricing
Since one of the major benefits that China’s sourcing offers is a huge profit margin. However, you must not make the mistake of solely focusing on the price factor. Taking into consideration the price factor only may result in compromising on quality and that way you can lose your customers’ trust and spoil relationships.
Not hiring a sourcing agent
To deal with overseas suppliers you require a good amount of experience and expertise. Lacking in these areas can bring extra challenges for you. So, if you are dealing with overseas suppliers, especially Chinese suppliers, it is wise to hire an experienced sourcing agent, because they have the right skills, knowledge of the market, and proper network and will ensure that you deal with a genuine supplier.
These are some of the most common errors that retailer commits while they source from China. Learning the mistakes besides, studying in-depth about the risks involved with product sourcing from the country are some of the ways you can follow to benefit genuinely while sourcing from China.