Why More Companies are choosing China Product Sourcing and the Steps you can Take to Manufacture your first product in China


China product sourcing is not just a trend or a fad. It is a new way of doing business and more companies are recognizing this China continue to prove that they are capable of large scale mass production using highly advanced technology and an army of workers to get the job done efficiently and fast. If you have been exploring the idea of China product sourcing for quite some time now, but have just recently decided to take the plunge and commit your business to this transition, then you probably have done a lot of research on the topic.

Despite all of your research, you might still have some lingering questions about how to seamlessly transition from sourcing domestically to China sourcing. Keep in mind, establishing a strong pipeline of China product sourcing can take a little bit of time, so you don’t want to cut off all of your current sourcing channels just yet.

As you begin to set up your plan to integrate China product sourcing into your business model, you will want to gradually implement this change, slowly replacing your current sourcing methods with China sourcing, until all of your sourcing needs are being fulfilled through Chinese suppliers, if that is your end goal. Maybe you want to maintain relationships with your best domestic suppliers just in case things don’t go the way you anticipate with your new model of China product sourcing. Ultimately, how you make this transition and implement this change is up to you, but you are advised to take your time and make carefully thought out decisions since this type of move can significantly impact the way you do business.

This guide consolidates all the information you need to know about getting started with China product sourcing, so that you can use it as a quick reference when you begin to formulate your plan. Whatever prompted your plan to start using China sourcing, congratulations. You are making a great decision for your company that will result in higher profit margins for you as long as you execute this change well. There are many things that can go wrong with China sourcing, but as long as you are prepared, you will be able to manage any issues that arise to make sure your inventory remains fully stocked with quality products from China.

Steps you should be taking right now to manufacture your first product in China:

1. Consult with a product sourcing company to find the right Chinese supplier for you. If you don’t think that you have room in your budget to hire a professional product sourcing company to assist you with finding a supplier in China to manufacture your goods, then you need to find a way to make room. Picking your supplier is hands down the most important part of this entire process. If you are not working with a credible supplier that you can trust, you will never be satisfied with the products being manufactured for you. If you just settle for the first supplier you come across, all of your China product sourcing efforts will be wasted. You will likely find yourself embroiled in a lengthy legal battle over some breach of contract that could have been avoided if you had simply taken the time to select a reputable China sourcing supplier.

2. Negotiate the terms of your partnership. Once you have done all of your research and taken the advice of a professional product sourcing company, it is time to establish a contract with the Chinese supplier of your choice. If you are used to creating traditional contracts for co-packers, you can forget about everything you know and approach this situation with a totally different attitude. While settling on a mutually beneficial contract is an important formality when striking any type of China product sourcing deal, a signed piece of paper is not always going to hold a lot of weight in the courts if you find yourself in a lawsuit situation. Negotiate firm yet fair terms and recognize that your word will earn you a lot more respect in the Chinese business world than a legal document. You might not believe this is true until you begin working with your supplier, but you will quickly understand that China product sourcing comes with a whole different set of rules that is completely different than anything you thought you knew before.

3. Decide on products and begin soliciting resellers. You don’t want to bring a ton of product over from China if you have no place to put it. That would just be a foolish decision and it certainly isn’t the right way to go about China sourcing. China product sourcing is all about getting in large quantities of your product and turning it around as quickly as possible. If you move your product quickly, your supplier will value your business even more and you will have an upper hand in the business relationship. So, before you can put your China product sourcing plan in motion, you have to work hard to find resellers that will buy your product at wholesale quantities and prices for you. If you want China sourcing to work for your company, you need to create a sales force that you can rely on to move your product. Do this and you will definitely reap the benefits of China sourcing.

4. Protect your product. China product sourcing has a lot of benefits, but it definitely comes with its fair share or risks too. You need to do everything you can to protect your proprietary information from being unlawfully copied and reproduced without your knowledge or consent. This sort of thing happens all too often to people who have not done the proper amount of research on the dangers of China product sourcing. You can avoid these problems by being savvy and always being one step ahead of your supplier.

If you follow these four steps, you will be able to manufacture your first product in China faster than you expect. Of course you can always head over to Alibaba.com and check there first but if you want full control, avoid this method. China product sourcing may seem like a lot of effort, but it will be well worth it in the end.

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