Hiring a China Sourcing Company: 7 Tips for Success


Hiring a China sourcing company can seem like an overwhelming prospect if you’ve never done it before. You might not know what questions to ask or even where to start looking! With China sourcing companies popping up everywhere, it can be hard to weed out the good ones from the bad ones. By following these seven tips, you can find and work with the best China sourcing company available and get your products made in no time!

1) Get Legal Help

Choosing the right China sourcing company agent to work with is important. Before selecting your sourcing company, you should know what kind of services they offer and how much it will cost. Once you’ve selected an agent, make sure to make agreements in writing before any money changes hands. It’s also important to get legal help before signing any contract with a sourcing company agent or buying anything from the agent on behalf of your business.

2) Determine What You Need

You should determine what you need. You might not need to hire an agent at all; find out what your needs are first. Do you just want someone who is knowledgeable about working with factories in China or do you also want someone who can help guide and educate you on how to source products? What skills will they have that align with your needs? Is their pricing reasonable? If it seems too expensive, remember that the quality of the person may make up for this factor. A China sourcing agent will likely have experience sourcing products in order to know what factory is best suited for what job and be able to negotiate on your behalf because he has more experience dealing with factories than most individuals.

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3) Evaluate Suppliers Before Placing an Order

Choosing the right supplier is crucial for producing the best quality product and at an economical price. Use this list of questions to evaluate prospective suppliers before placing an order.

  • How much experience do they have in your industry?
  • What certifications do they have?
  • Do they have reliable contacts or suppliers?
  • What are their payment terms?
  • Have they ever worked with people from your country or company before?
  • Do they provide an English version of their contract so that you can make sure you understand it thoroughly?
  • Can you afford to place trial orders with them if needed, or are these firm orders with no room for errors?
  • What value-added services can they offer you, such as free samples, volume discounts, and expedited shipping?

4) Consider Quality Control Measures

You must take an active role in the quality control process of your product. To mitigate risks, it is wise to have one or two extra samples made per week and save them until your order has been fulfilled. Additionally, when ordering sample quantities of fabric, ensure they are labeled with the color and weave code so they can be cross-referenced properly. These practices can help you avoid long lead times and costly mistakes.

5) Shipments Should Arrive on Time (or Early!)

1. Send advance emails to your supplier, reiterating the date they are expected to ship.

2. Give them contact information, including phone numbers and email addresses, in case there is an issue.

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3. Ask them to use FedEx or DHL Express to deliver the packages because they are fast and provide tracking that you can follow online.

4. Create a shipping schedule for multiple shipments if you have time-sensitive products coming from China.

5. Follow up with an email or call when the packages arrive and update them on where it is currently located.

6) Understand Shipping Charges and Exchange Rates

Shipping charges and exchange rates can be a touchy subject, but that’s not something you want to overlook. When shipping from one country to another, the receiving country’s central bank sets the conversion rate that their banks use in currency exchanges. This is called the wholesale exchange rate or sometimes the mid-market or mid-rate. This is different than a retail exchange rate and is the charge on which large companies will trade goods internationally, whereas smaller businesses can pay up to an additional 3% more for an international purchase. Because international shipping charges are usually higher with wholesale exchanges, it’s worth shopping around before you decide on your company’s China sourcing company and shipping agency.

7) Building Trust is Key

If you are looking to hire an outsourcing company, they will require proof of your company’s credit and ability to pay. Have these records on hand when you meet with them in person. Give your potential partners more than enough time to review your materials before committing anything on their end. Be upfront about what you are looking for so that everyone is on the same page from the beginning and trust can develop throughout the process. Don’t be afraid to ask for references or testimonials from clients who have done business with your potential partner before!

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Conclusion

If you’ve decided that it is time to get serious about sourcing from China, and you want to ensure that the company you decide to partner with has a reputable team, we hope this post has helped clarify some of the important criteria for finding the right sourcing partner. In general, when looking for the best partner for your business there are two main questions to ask yourself. The first question is why are they contacting me? If they just contact me without any discussion on what I am looking for then I am not interested. But if they have read my website or made an offer to make a product or solve my problem, then I will review their company and look into it further.


Hammad Hassan

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