Sourcing goods from China offers cost-effectiveness and scalability, with the country being a top merchandise trader, according to the World Trade Organization. However, pitfalls exist, necessitating careful supplier selection.
While shipping from China to the US, there are chances of a few common mistakes which must be avoided to ensure successful sourcing and partnership ventures in China.
1. Not ordering samples
Ordering samples or having a representative assess them in China is crucial, offering insight into:
– Product quality
– Product delivery
– Speed alignment with your standards.
2. Not forecasting costs accurately
Finding a supplier with a low initial cost does not guarantee huge returns. Additional factors like the following can reduce profits:
– Platform fees
– Courier charges
– Photography
– Unexpected customs charges or returns.
3. Creating unrealistic production/price targets
Striving to keep operation costs low and profits high is common, but pressuring suppliers excessively can strain relationships and lead to receiving subpar products or losing key vendors. Avoid unrealistic targets and over-bargaining.
4. Not balancing details
Achieving the right balance between overwhelming suppliers with information and providing insufficient details is crucial. Clearly define smaller specifications like packaging and design, along with larger manufacturing concepts.
5. Overlooking the communication barrier
Language barriers with suppliers may affect communication. English might be foreign to sales representatives, and factory managers may hesitate to clarify unclear details. Simplify requests, double-check with suppliers, and ensure they understand instructions to meet goals and requirements effectively.
It is better to hire a certain trustworthy sourcing agents like Maple Sourcing in China with whom you can easily follow on Facebook to resolve communication barrier.
6. 100% communication via online channels
Online communication lacks the warmth of in-person interaction. To establish rapport and verify suppliers effectively utilize:
– Phone calls
– Video meetings
– Face-to-face discussions.
Building relationships through multiple contacts enhances supplier selection and partnership development. Your sourcing agent in China can bridge this gap.
7. Not paying attention to packaging
Perform a shipment assessment with your supplier to ensure packaging meets your needs. Understand their packaging process, freight method, and precautions for fragile items. By verifying quality shipping practices, you mitigate risks in the shipment process.
8. Choosing the wrong options for payment
When working with foreign suppliers, payment methods can be tricky due to international transaction safeguards. Choose for safer payment options like escrow, letters of credit, or bank credit lines to ensure security and ease of transactions.
9. Forgetting insurance
While most shipments arrive on time and intact, unforeseen issues can cause significant losses. Having appropriate insurance ensures coverage for delays or damages, offering added security for your business.
10. Not getting terms & conditions cleared in writing
While most suppliers are reliable, unforeseen issues may arise. A well-drafted contract is crucial, covering terms like quality control and manufacturing time. Negotiate contract details with suppliers to ensure mutual understanding before ordering.
11. Not performing QC checks prior to dispatch.
Before international shipment, inspect goods to ensure quality and compliance with standards.
To mitigate sourcing issues in China, hiring a reliable agent is essential. Aaron Li, Managing Director of Maple Sourcing, has steered the company effectively, benefiting numerous clients with his vision.
