5 Processes and Strategies for Procuring in the Chinese Market

Numerous mass-produced items originating from China were deemed as everything but quality merch, that is, up until recently. Namely, the situation has majorly changed, and the Chinese market now represents one of the fastest-growing markets on the global scale, reaching the top of the survey charts in charge of quality and production potential. What interests the entrepreneurs is how to source the merch from China, especially because the process is not as easy as it might seem at the first glance. Thus, read the following lines and learn about the processes and strategies for procuring in the Chinese that should put you into the driving seat and prevent you from making beginner’s mistakes.

Learn the Differences

Source: worldfinance.com

One of the first things on your to-do list should be to differentiate the Chinese market from any other market in the world, especially if you base your operations on an enterprise established over principles typical for the western world.

In China, you can find almost anything for an appropriate price, but the point of sourcing goods should be to distribute and sell them for profit. If the quality of the goods is far from matching the needs of a particular market, you will hardly earn from the venture. Thus, make sure you learn about a specific product or material before you decide to go all in and spend a small fortune on your first order from the first source you cross your paths with.

To ensure you always end up with a product you pay for, you must synchronize with your supplier. If they know what you want and have the means of delivering it, nothing should stop you from realizing the deal. Insisting on rules of engagement is what we advise you to stick to, otherwise, you might surprise by the results of your arrangement, unfortunately, in a negative way.

Cheap is not Optimal

A wise man once said he was not rich enough to purchase cheap things. What he meant by that is that the price tag usually reflects the quality of a product, and we ask you to think about his thoughts before you opt for the first offer you come across that appears too good to be true, because it probably is.

In a nutshell, top quality is the best merch you can find in both worlds, both western and eastern. Now, lower-quality goods are appreciated differently. Lesser quality goods produced in China would never find the right clientele in the West since the gap between the top and the average quality merch is not as highlighted as it is in the East.

Unquestionably, the point of sourcing products is to make more profit than you would do by dealing with alternative means. Thus, your job would be to examine the quality of the merch before you decide to order in bulk.

Basically, there are 2 major ways to realize the aforementioned. Let’s say you would want to purchase some toys and resell them afterward. You would do well if you would hire a reliable China toys sourcing agent, such are the ones you can learn more about at JustChinaIt, or if you would travel to China on your own and learn about potential opportunities on your own steam.

The Language Barrier

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Besides cultural differences and the ones that are easy to be seen in the trading sector, the unfamiliarity with the language represents one of the most prominent obstacles in realizing deals with Chinese sources. Unfortunately, online translating tools are not as proficient as we need them to be so using them to seal the deal with the other side that you know nothing about might be just the opposite of what the doctor ordered.

On the other hand, working with a mediator that would ensure you end up precisely with the goods you want and are willing to pay for would not only save you your time but also your nerves. Naturally, you would have to pay for their services, which is a mere change in comparison to what you would lose if you would accidentally agree on unfavorable terms due to a misunderstanding that happened due because faulty translation.

Customs Payment

Sourcing is profitable, but only when you are in control. Therefore, make sure you check with your source about potentially hidden expenses you might not be counting on. For example, the price of some products does not encompass the potential payments you would have to deal with once the goods reach the customs.

Your job would be to analyze whether the merch you are trying to import is legal to be imported to your country or not. Additionally, you would have to check if you would require additional permissions to finally get your hands on the goods you pay for. On the other hand, you can hire a sourcing agent and inquire about the aforementioned before you rush into making financial moves that only appear to be good.

Custom Clearance

Source: espego.it

Nobody likes to wait especially if you depend on your client waiting for the goods to be delivered at the previously arranged time. Still, the goods you order from foreign lands must go through customs, which can be seen as everything else but a time-saving process. The custom clearance implies the merch you ordered goes through legal protocols and officially arrives at the destination country.

As we have already mentioned, the process is time-consuming, and you should be informed about it before you finalize a particular deal. The job of the source is to sell their merch, so they will most probably try to avoid mentioning the details about customs if you do not ask for them yourself.

The alternative solution for lowering the potential risk would imply hiring a qualified sourcing agent. Not only to connect you to the manufacturer capable of delivering a product matching your wants and needs but also to provide you with any piece of information related to the goods you are after that you might ask for.

Hopefully, the aforementioned pieces of information and suggestions will help you get exactly the goods you are after for the price you are willing to pay and help you score as much profit as possible. Do your homework and find your source, or hire the others to do it on your behalf. The calculus is simple since the sooner you get involved in the venture, the bigger the advantage you should make over the competition.