5 tips to guide you when sourcing from China

Sourcing from China

There are quite a lot of effort and things to consider when sourcing from China. Here are five tips to get you started.

1. Spend time looking for the right supplier

‍A Google, Bing or Yahoo search is the default option for many people seeking to source products from China. You can also go to online sourcing platforms such as Alibaba, Global Sources and Made in China, which connect buyers to suppliers in China.

While all these resources are useful to draw up a shortlist, it is important to remember that many businesses thrown up by search engines and sourcing platforms may be resellers and not manufacturers. While sourcing from such middlemen may be ok if you are buying products to retail such as toys, clothes or cheap electronics, when you require products that must meet specific technical requirements such as die casts, metal stamping and plastic injection molding it is best to identify a manufacturer and source from them directly. Most importantly, this also reduces costs.

Online sourcing platforms such as Alibaba and Global Sources, also rate their suppliers, which could help in the shortlisting process. Alibaba, for instance, gives its suppliers “gold” ratings, which purchasers see as a sign of trustworthiness. However, it is important to remember that any supplier who pays Alibaba an annual fee for premium membership can get gold supplier status, which increases the vendor’s visibility on the site. That is therefore not exactly a very trustworthy reliability indicator.

2. Verify suppliers

‍Once you shortlist suppliers, you need to verify their credentials. While some obvious information is available online, you need to evaluate:

Whether they are indeed the factory and not a middleman.Whether they have the technical expertise and production capability to deliver what they say they can deliver.

There are many ways you can do this. You could ask the factory for its audited accounts, check its Value Added Tax invoice, ask for product samples. You could also identify the factory’s Chinese name, its location and the local government office under whose jurisdiction it falls. This office will have the factory’s registration records, which you can use to verify the details they have provided to you.