For a lot of people - especially when they are starting their online business endeavor sourcing from China (or from another country) can be intimidating because without experience there can be a lot of pitfalls and unpleasant
surprises along the way. One of the solutions is to find someone, a sourcing agency or agent who can do the product sourcing for you. While it may sound good but the issue can be similar - how much you can trust now
not only your future supplier but also your agent. We saw countless examples when also agents were cheating their customers and also the suppliers to get the most money out of the deal and living in China is almost
acceptable and understandable if people will act this way under the title - just business.
The best approach (which is almost a necessity) to educate yourself so you have a better chance to succeed.
Here
based on our 20 years experience put together some basic information what a sourcing action list consist of and for each point a summary and advice what to do, what you need to be aware of and how to go about.
Here
we are summarizing some basic information but will be giving more detailed information along the way. We know there are a lot of self-made "experts" who learned some information from someone else or online within several
Months or a year and acting as they know everything. Their knowledge goes only to a certain point and if some "unexpected" situation arises the lack of long-term experience will show and they just fail in handling the
situation.
For example, you should be always looking for manufacturers who can actually produce your product and talk to them straight. Right? WRONG! Or at least is not necessarily true and we will explain in a separate
article. These and other "good to know" data will be discussed in the future.
We would like to keep this website dynamic and update it regularly. You are also welcomed to ask us any sourcing related questions
and we try our best to update the site with the information about the subject.
As we move forward each section will have its own page and you can find the related information under the appropriate page heading.
We hope the information below will help you to gain better control over your sourcing project.
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When talking to a Chinese supplier you need to realize that they often think differently based on their environment, local culture and traditions how they grew up. This factor counts more or to a less degree but you need
to be ready they can do or say sometimes things that will sound weird or even you will not understand and can lead to later frustrations.
A full article will come soon...
Finding suitable suppliers for the production of your products don't need to be a complicated thing. Doing sourcing several years we saw a lot of agents or agencies asking good money for it. The not too good part of their
"Finding suppliers" for you is they often do a pretty sloppy job and you end up with few suppliers from which is maybe only one is acceptable (this is one of the many examples we encountered after the customer asked
us to verify their suppliers).
The good news is you can also easily search for suitable suppliers on Alibaba.com and there are few things you need to be aware of during your search to look into. This way even
if is not 100% you can still get pretty good results and after you can just ask to verify your findings. There are more ways how to do it but here we give you one method for start with:
Go to and search for your
product keywords. (Note: You can try different keyword combinations for better results.)
In the search results the first thing is you check the supplier's "credentials" (if it is a Gold supplier, offers Trade
Assurance, had an onsite check, how many years on Alibaba, etc.) These are not "sure things" because some suppliers can cheat on these, but more positive things you see gives better chance of choosing the best.
The
next thing you can check in the Company Profile section if is a Trading Company, Manufacturer, etc. Also note how many employees they have, what certifications they have and their revenue. This doesn't mean that more
or bigger is better but gives you an idea about the supplier.
The next step is to contact the suppliers. This can be done by email, messenger or phone (if it is possible - though there can be a language barrier
if their English is not too good). How fast they will respond will give you more idea about them. The content of the communication can be misleading (some supplier can be nice but only up to the point they received
the money and if no quality problem or other issues come up - so this is not a solid point for decision).
A full article will come soon...
First, we need to know that there are several different sample types we can request the supplier to send us and that is based on in which part of the production process we are. This doesn't mean that we need all but in
general 1 or 2 samples, we should request before the final shipment to make sure everything is in order.
1. First Sample (Existing sample)
The first sample is the sample that the supplier has on
stock. Either they made several samples for the purpose of showing them to potential customers or is a leftover from earlier production. The purpose of this is to see the general quality of products the supplier is
producing.
2. Custom Sample (often handmade sample)
This is the sample the supplier makes based on the customer's specifications. This is maybe the most important sample regarding making sure that the supplier
understood your detailed request. We are regularly seeing some wild alterations. You as the customer know why some details important, the supplier doesn't and here in China people are pretty free-spirited in figuring
out solutions they - can often customize in a strange way your customization.
3. Production Sample
The production sample is often not really important. These are samples from the beginning of the
mass production and has a validity to make sure all (machine?) settings are correct that includes the size, color, etc. (we saw wheels on suitcases that didn't fit correctly and were slightly sticking out and bent -
so if the suitcase is dropped on the wheels it can break out). If such issues are spotted and corrected at the beginning will save us a lot of problems. Nobody likes to argue (customer or supplier) about how to fix
these issues when the production was already completed. It means only wasted time, money and work both everybody.
4. Shipping Sample
These are the final samples at the end of the production. This is basically
part of the quality check/inspection part of the sourcing. If the supplier is capable of producing quality products (which should be determined right at the first step when searching for suppliers), this is the final
test that all the actions beforehand were correctly done.
A full article will come soon...
When we talk about negotiation is important to understand that it covers much more, not only negotiating the best price. The second thing is to know that the best price doesn't mean the cheapest price but the best in comparison
to the quality, quantity, service (ease of communication, speed of delivery, extra care in handling the products/production, etc. - we got a product delivery before from a supplier that almost all the boxes were damaged
inside the shipping cartons, meaning the damage didn't happen during shipping!)
When we are negotiating we also need to include in the process all areas of the sourcing cycle. We negotiate on the samples, speed
of delivery (samples and main production time), negotiating on design and packaging and whatever comes up.
Is important to understand that a good business is where everybody wins by finding a good balance - something
that is important for you but almost makes no difference for the supplier - i.e. I pay the price but please deliver it a week faster...
It also helps if you know how to talk to a supplier and understand what
is between his/her ears.
A full article will come soon...
Based on our experience we often experienced a situation that in the beginning phases with the supplier was helpful, they promised a lot (see Yes-es) but when the final payment was made it appeared that for them the business
is finished and they weren't interested to do anything later if some question came about the quality, etc. As the result several times we had people turned to us crying for help to contact their supplier and somehow
get the issue handled.
This means you need to keep the supplier accountable and aware they will fall short if they don't do the production correctly. (Now is important to understand that this situation can happen
also the opposite way. We had suppliers contacting us to help get their deserved payment from the customer who didn't want to pay because of any other personal reasons, family, financial, etc.). At this point, we don't
take up that situation and we naturally assume the first scenario.
First, don't pay out all the money to a supplier before the final inspection was made OR if you have someone representing you who can step in
(a good, responsible and knowledgeable agent) and still can get the supplier to fulfill the contract. Here is strongly suggested to use an online service that can hold your money and release it to the supplier after
everything is okay. This is not only good for you but also to any responsible supplier because they know the money was paid and the customer can't "run away" with the goods without the full payment.
The best
is to use a combination, meaning if you have an experienced agent AND using an online payment service at the same time.
There are also other situations where not each supplier (if you are sourcing beside Alibaba
also from Chinese websites - through your agent - which gives you a much better chance as you can reach out to suppliers you can't find otherwise) that not every Chinese supplier can accept payments through PayPal or
bank transfer from a "Western" bank - they can accept payments only through bank transfer from a Chinese bank account. In that case, have a trustworthy agent/agency who can offer this kind of service is important.
A
full article will come soon...
A picture has a value of thousand words. We all heard this or such saying and for a reason. Good pictures can sell your product much better. Now what choices exist to get those good pictures done fast efficiently and
for a good price?
1. The first choice is to get already existing pictures from a supplier which if you are lucky you can get some acceptable photos - we don't recommend this approach - just too risky and this
is like buying a cat in a bag. Besides that, you will probably get the same pictures that the supplier will give also to your competitor. We assume you don't want to play out your cards this way.
2. You always
have a choice to get a sample from the supplier and take the pictures yourself IF you know how to take good pictures. Besides that, it is also time-consuming to get a sample shipped to you and only after you can take
care of the pictures.
3. Next choice is to hire a professional to do it. It will be still slow if you hire someone (and the photographer is not in China) and also can be more expensive.
4. The "digital
solution" is when you can get a supplier to take a series of basic pictures for you and based on your picture a professional creates 3D rendered images on a computer with additions, like adding a model. If the high
quality of the images is vital for you, this is a good way to go by. This can be done fast as the actual sample is not required to be shipped - assuming you can get the source images straight from the supplier. The
only week point in this solution is the price. With the high-end product, you will get the high-end price tag.
5. There is also one more (and often the best) choice. Make an arrangement with a local Chinese photographer
or photography studio who are working together with the supplier or your agent (if you have one or also can find a photography studio for you). They can take care of this part of the sourcing while the products
are still being produced(!). If you can manage your photos this way, it will be handled fast. The price can be also very cheap in China and you can get very good pictures for the price.
Here is some advice regarding
pictures:
a) prepare a set of pictures beforehand (take screenshots - from your competitors :) - on the internet with comments and send it to the photographer so they know what kind of pictures you are looking for
b) Keep in mind that you need pictures that sell your product and your customers want to buy it. This means you don't always necessarily need to spend time and money to get high-end pictures. It will be like
trying to shoot a sparrow with a rocket launcher. The pictures must be (very) good enough to get the sales going. And that's all.
A full article will come soon...
I am a frequent online shopper in China and I can say throughout the last 6 years I hardly bought anything WITHOUT also getting some gifts or bundles items with my order. True! In China, they don't give big speeches and
advertisements about the product BUT if you buy something it is normal to get 2-3 (or more) additional items in the package. This is the way here how they say "Thank you for your order" and come back again. If
you want to succeed you also need to stand out with some personal communication to your customers and if you are an online seller to get those 4-5 star reviews.
When you are selling your product think through
what else would you like to say to your customers and even better - what they would like to hear from you. With Greeting cards or Thank you cards and any additional nicely designed inserts, you can do that further step
that other people don't do.
Here are some tips for the start you can arrange as your communication to your customers:
- Thank you for your order
- I would like to hear from you about any issues so I
can fix it
- Please let me know when you like my product in the review section
- Include any discounts, offers, and promotions
and so on...
The main purpose of these inserts to let your customer
know that you care about your product (quality), you care about the customer and you want to offer him/her something he/she can be interested about in the future. Basically, You Care!
Your communication with
your customers should be part of your sourcing and you should treat it that way. That also needs to be considered as your "bundled item". Need to be figured out, designed and get it produced.
A full article will
come soon...
When you are sourcing your product you should find out right in the beginning if you need to arrange any certification and what kind exactly. By knowing and arranging it ahead of time you can save yourself from a lot of
frustration even "failed sourcing". We know many failed ideas just because it turned out a certification was required and the supplier wasn't able to offer it.
The good news is a lot of suppliers already have
the necessary certificates. On the other hand, as part of the supplier search time, you should be looking for suppliers that they have the certificates OR they can manage efficiently (with or without your agent if you
have one) to obtain the required certificates.
In China, there are few major international certification/testing agencies, SGS and RST - and few smaller ones as well. These agencies require to give them all the
details of what kind of tests they need to perform and based on that they prepare the appropriate certificate which is internationally accepted.
A full article will come soon...
This is one of the most important parts of the sourcing project. We are in China and based on the general mentality people are focused on getting something done fast and thinking about the quality comes later (though it
is improving every day). The rule is you don't accept products without checking the quality first! And that is not only when you are sourcing from a new supplier for the first time. Checking the quality is necessary
for every shipment.
We experienced lots of times throughout the years that the first shipment was pretty good and we hardly found any issues. And when we did a re-order (the exact same product without modifications
from the same supplier) the second shipment was terrible - over 70% bad. Not just slightly, I mean BAD! When we took it up with the supplier (showing pictures and videos upon receiving the shipment) even they were
surprised and didn't want to believe. The material was changed to a lower quality, the products were damaged, etc. It was necessary to remake the whole batch. The old Czech saying applies in full: Trust but inspect!
So
what do you need to be aware of regarding the quality inspection?
If you will be receiving your products at our place/warehouse (because you have your own shop or you are selling online but you can check and
send out the products) it is ok, do get a "random check" arranged right after the production but before the products leave China. Don't trust the supplier on this, you need to have an agent or agency to do it for you.
A good agent/agency will not only check the quality and give you a report but also find a solution and help you to fix any issues with the supplier (get them to remake, refund your money for the bad products or get
a discount for your next order - if you are planning to re-order). This should be in coordination with you.
BUT
If you are selling online and getting your products shipped from the supplier straight to
the (i.e. Amazon) warehouse, besides the initial random check you should consider a 100% inspection done - meaning every product/package need to be inspected if a good random check indicates there can be issues. The
reason is if the product quantity you ordered is several hundred pieces/sets and let's say 95% is very good and no issues at all but what happens if 10-20 bad products are shipped out to your customers (if you ordered
500 it is about 2%-4%) and you receive 10-20 negative reviews?! That can really hurt your sales or worse.
Based on what we saw in the past is good to know what to be aware of during the quality check because
often it can be totally unexpected what can go wrong. That we will discuss in a separate article in more details.
Note: Keep in mind what is your purpose in sourcing from China which is to get a good (low)
price for the production so you can sell for a higher price and make money.
Now is interesting that people can forget this and they expect very high-quality products from the supplier. Now I don't say it can't happen
and often that is the case. But sometimes you need to be open to compromise to a degree and to know that your purpose is to have good quality products (but maybe not high-end) that people will buy - meaning your products
are sellable. Same like for high-quality products you are not going to Walmart but to a famous brand name store, right? On the other hand, a lot of suppliers can make (and making) very high-quality products but again
it will maybe not have the cheapest price - so probably is not what you want. Is better to find a good balance in price and quality equation: What is the quality you can accept and what is the best price for that quality.
A
full article will come soon...
Bundling and Packaging are increasingly becoming a more important part of a sourcing project. The main reasons are to be unique when selling our products and make it more difficult for potential competitors to copy.
When
you have a product (package) where all is produced by the same supplier there is a high probability that the next day the supplier will show it to someone else who is or will become your competitor. Let say you do your
research for weeks or Months(?) and you come up with a solution/customization that you are pretty sure will be a very good selling item. Working with your supplier you get the final version figured out, pay for the
model fee and get your sample done. And the next day someone else contacts the supplier for a similar product and the supplier will show him/her your sample too. And a few weeks later you just see your product (or your
solution) in someone else's store. How do we know this? We had this situation countless times when we were looking for a supplier for a product and the supplier just shows us a sample saying: "This is a good selling
item" or "One of our customers was ordering this". The supplier just trying to show you they are good and making good products so they can have your business too.
Of course, the supplier can also tell you that
they can't make it (they agreed to not make it for someone else) but they can make something similar. They already know your solution so is not complicated to figure out a different product with the same solution OR
you saw the sample so can contact another supplier to make even a better version of the product.
To have an agreement with the supplier that they will not show you or make your product to anybody else, Yes, is
a minimum you MUST do but often it will not stop the supplier to do it at least to a certain degree.
A good solution to avoid this is to prepare a set with few bundled items from different suppliers and get it
shipped and assembled by your agent/agency - if they have the capability to do that for you. Now there are also companies who can assemble your package when you will ship to them the items. Is better if the company
is in China, so you don't need to pay multiple international shipping fees for each part of your package from different suppliers OR your agent can assist you to collect the items and get it shipped at the same time.
In that case is again best if he/she can also assemble the packages for you.
A full article will come soon...
For shipping, there are several choices and which method to choose depends on the speed of delivery, price and also the total volume or weight of the shipment.
There are 3 ways by transportation method: 1. Air, 2. Sea,
3. Train
1. Air
Courier - Express (DHL, UPS, FedEx): Delivery time is within 3-5 business days
Courier - Regular (DHL, UPS, FedEx): Delivery time is within
5-7 business days
Regular Air Door to door delivery within 15-20 business days
2. Sea
Fast Boat (fast shipping time and fast customs clearance):
Delivery
time is within 18-25 days
13-15 days on the ocean since the sailing date and after arriving at the destination port (it is a personal port) there is the customs clearance then transfer to UPS or FedEx carrier delivery
to the final destination (FBA warehouse or other address).
The customs clearance, in this case, is much faster than a regular port (i.e. we are getting it done within 1-4 days.
Regular boat (slowest
and cheapest)
Delivery time is within 35-45 days
25-30 days on the ocean and the customs clearance at the destination can be 7-14 days.
After is the delivery by truck to the final destination
3. Train
This
is a fairly new way to ship and is mostly to European countries.
The delivery time is around 14-18 days.
Important to know that being a new service, not too many trains are going yet at this point so the demand
is higher, meaning the availability is more narrow the price is also higher as it will be later on.
Documents
- Commercial Invoice (CI)
- Packing List (PL)
For the shipment, you
must have CI and PL from suppliers with full details
CI
This document needs to include:
- head title from supplier's company name, telephone number
- your company details, title and phone
number
- quantity (for example pieces, pairs, sets, meters, etc.)
- unit price, description (product name), the total amount
PL
Include:
- head title from supplier's company name, telephone
number
- quantity (for example pieces, pairs, sets, meters, etc.)
Additional for the shipping rules and knowledge
This includes about the Brand name / Packing / each unit KG from each carton / Battery
/ Shipping labels / additional fees for materials (that are not considered regular - any requests from customs) / higher taxes / the Max and Min CM of each unit side / Claims in case of any products will get lost, etc.
A
full article will come soon...
A good sourcing project is like cooking. Is better to have a recipe and you need to arrange all the ingredients and get them ready on time. If your soup is already cooking and you realize that you don't have an important
seasoning at home and you need to run to the store to buy some, your soup can be overcooked (and that is the best scenario) or if you try to improvise fast and replace the ingredient with something else - maybe your
customers (your family?) give you some funny faces after tasting your product.
To help you to test yourself and determine you are ready and prepared for your sourcing project we prepared a survey for you. Answer
the questions so you can see what else is needed.
