FMS Sourcing Solution Is Your Best Choice For Sourcing Products In China
1) Ex-factory price / High quality / Zero risk / Perfect shipping
2) Provide one-stop service for your new products and new parts including design, manufacture and assembly
3）Tailor our services to support different business models
4) You can focus on your customers, we source the products for you, even produce your products
5) Professional, Efficient, Integrity, Good Quality But Not Expensive
6) Our sourcing service is a paid service. The commission structure is as follows:
5%: Product value < 20K USD per shipment. / 4%: Product value ≥ 20K USD per shipment.
3%: Product value ≥ 50K USD per shipment. / 2%: Product value ≥ 100K USD per shipment.
1%: Product value ≥ 200K USD per shipment.
The commission includes sourcing service fee, order tracking, cargo consolidation, warehousing, quality control, container loading, etc. but it doesn’t include the inland charge, shipping charge, and customs clearance fee.
China Souring and Wholesale
Sourcing service: Most discussions on strategies to reduce sourcing cost have focused on low-cost national sourcing. With the right sourcing plans, companies using Chinese sourcing teams can get big benefit, as long as they can ensure cooperation with the correct Chinese sourcing teams. Many problems can be easily solved. As an excellent and professional sourcing team, FMS sourcing team has been providing quality industrial products to companies around the world with the most attractive price
First-rate china sourcing solution
Our sourcing scope: Consumer products / Plastic products / molds / Mechanical Equipments / Computers / Electronic digital products / Smart phones and Mold accessories / Mechanical hardware accessories / Automotive accessories / Motorcycle accessories / Computer accessories / Mobile phone accessories / Electronic digital products accessories /Toys and Games/Furniture and Home Decor/Kitchenware and Housewares/Medical and Healthcare Equipment and accessories/Industrial and Machinery Components
If you need our sourcing service, please send an email to [email protected]
Customized product：FMS team not only provides product sourcing service, but also can help entrepreneurs, companies and e-commerce brands effectively bring their products from concept to market. We are the best resource for research, design, factory procurement and production, but we aren’t ideal for everyone.
The whole process from concept to market distribution requires capital, internal resources and patience. We work with our clients. We bring the people, technology, process and experience to the table. Our clients bring the investment capital, product ideas, proficient marketing and/or a resources throughout the process. if you:
1）Have the capital and marketing expertise/resources to bring a new product to market
2）Have identified a product in the market and believe you can improve it
3) Want to diversify/change your existing supply chain with reputable sources
4) Want to increase company value through product creation and have cash flow to do it
please send an email to [email protected]
Note：
If your sourcing products need to be designed, produced and assembled. or re-modified, re-produced and re-assembled. in that case, we need to make a new quotation
About warehousing
Since every customer has different requirements, we can determine the number of days you can use our warehouse for free through negotiation before sourcing.
Our advantages are: localized professional sourcing team with profound professional knowledge and experience, excellent communication skills, excellent supplier resources, efficient operation process, excellent cost control ability
Find the right sourcing agent for your business in China
Using a third-party sourcing team is a good choice because they allow you to directly access Chinese suppliers, which is the preferred destination market for low-cost products. What’s more, this option allows you to explore various Chinese sourcing services instead of running your own sourcing office. Because when you are calculating input and management costs, you conclude that there is absolutely no need to build an office or hire employees. Because many problems and costs can be ignored if you choose a right third-party sourcing agent , you just need to receive the goods you ordered in your office.
What is the right Chinese sourcing team?
The right Chinese sourcing team must have rich professional knowledge and sourcing experience and have a deep understanding of China’s industrial manufacturing, and handle logistics without incurring high expenditures. These are challenging tasks. In addition, they need to ensure compliance with social responsibility standards, safeguard intellectual property rights, and ensure that products produced by suppliers meet quality standards. Therefore, as a sourcing team with rich experience in China, FMS can use it’s own technology and professional expertise as well as a deep understanding of Made in China. they can find the right supplier very quickly and accurately, and minimize travel and related costs. Therefore, choosing an experienced partner to provide a wide range of sourcing services, including an understanding of the culture and results-driven sourcing technology, business practice and language in china is critical to successfully reducing costs. Enjoy the cost saving transferred from the Chinese economic stage and look for opportunities that complement your business vision.
Sourcing
Why can we make a successful sourcing?
Because FMS sourcing team has extensive manufacturing experience and a good understanding of the manufacturing companies in the sourcing place, with years of experience in serving overseas customer manufacturing projects, they can easily understand your purchasing intentions and goals, and quickly find the right manufacturing companies to make your products, and provide strong technical support to ensure your products are successfully completed
China is your best place to source
Through decades of rapid development, China’s technology and manufacturing levels have been unprecedentedly improved. The industry chain is becoming more and more complete, and the product quality has been recognized by more and more overseas consumers. The key is that the price still remains highly competitive.
Why do you need a local sourcing service?
Flexible global sourcing is becoming a viable option for every industry. However, due to the limitations of various markets, the rules are constantly changing. For example, in China, the government is trying to control and manage growth by limiting the types of business entities. To successfully source products, you must have a clear understanding of the culture, business, and government of the country of sourcing.
Five years ago, flights to China from Europe, North America, and Japan were filled with sales managers seeking markets for their companies’ products. Today those flights have as many procurement and supply chain managers as marketers. Leading Western and Japanese companies are no less eager to source Chinese parts and products for developed markets than to sell into one of the world’s fastest-growing economies.
The country’s rapid rise as a low-cost manufacturing hub is what draws these men and women. Retailing giants such as Carrefour and Wal-Mart Stores are going to China to buy an expanding range of goods—from televisions and tools to clothing and crockery—for 25 to 50 percent less than the cost of comparable goods made in developed countries. Automakers around the world are pressing their leading suppliers to open operations in China or are themselves trying to source components there (see “Global sourcing in the auto industry”). Although the proportion of goods sourced in this way remains small even for companies that began buying Chinese-made goods more than a decade ago, the pace is accelerating, particularly in high technology, consumer electronics, retailing, and some industrial goods. The result is that leaders in these sectors are gaining cost advantages over competitors that source components or finished goods mostly in the developed world.
Although the opportunity is certainly enticing, it can be hard to get the many pieces of a procurement operation in China right. Lessons learned ten years ago by companies as they set up purchasing operations in other low-cost regions, such as Brazil and Mexico, travel only so far. Finding high-quality suppliers and negotiating agreements with them is a problem that companies face in any new locale, for example, but the greater geographic distance between suppliers in China and headquarters makes the job tougher for companies based in North and South America. Another challenge is coming to terms with the widespread use of sourcing agents, which can be a boon or a bane, depending on what individual companies need. Then too there are issues—such as sorting out logistics, securing reliable broadband connections, and cultural and language differences—that companies rarely face at home.
Those that do establish successful sourcing operations in China concentrate on a few fundamentals. They make changes at the home office to address the organizational inertia that can slow down the introduction of a purchasing program in China. They attend to the details, monitoring suppliers as closely as possible. And like one Western company that set and exceeded a $100 million first-year target, they establish a firm goal for sourcing and do what they must to achieve it. Such companies also learn to build local capabilities by staffing teams carefully and using third parties to support them in important tasks, such as quality assurance and logistics.
In these ways, companies lay a foundation they can use to relocate bigger and more crucial pieces of their supply chain operations. They gain cost and operational advantages that competitors can’t match and capabilities that competitors can’t easily replicate.
Why source from China?
You will find numerous opinions on why China is the hotbed of product sourcing. These opinions are often laced with personal biases. From a strategic and economic point of view, China offers numerous benefits that no other economy can at this moment.
Cost: Cost is the main reason so many businesses rely on China for their products. China has a huge, low-cost labor pool. The cost-effectiveness of this labor force is unparalleled. Other aspects where you can save money by sourcing products from China are tooling and molds, unit costs, packaging, design, and engineering functions. While sourcing products from China, you must also be cautious about the quality of the product you are getting. The Chinese market is flooded with poorly designed products with low-quality materials. However, a little knowledge and understanding of your niche will give you access to high-quality products manufactured at a fraction of the cost than they would if produced anywhere else.
Elimination of middlemen: A safe way to boost revenue is to deliver products to customers at a low price without compromising the quality. One of the ways to achieve this is to cut out the middlemen as much as possible. Chinese manufacturers recognize this and deal directly with the business they are sourcing to. Chinese sourcing agents eliminate the role of middlemen and deal directly with your business. Apart from the huge cost saving that benefits you, you also develop a better understanding of how the seller works and how to get the best products from them.
Chinese supplier base: It is a known fact that the Chinese supplier base is one of the best in the world, if not the best. China imports subcomponents and materials from other countries and does all the assembly in China. No matter which industry you are dealing in – textile, electronic, automobile, plastic, toys – you will find numerous suppliers in China. The factories in China are also well connected to a robust infrastructure that facilitates the production and transportation of goods, both finished products and raw materials. China’s booming economy is the reason such a vibrant supplier base exists there.
Reduced risk of fraud: Sourcing products from China is done through a well-managed process. It reduces the risk of fraud happening over business transactions. Since you will be directly in touch with the supplier, you will know what’s going on at every step of the process. You can deal with problems of untimely delivery, poor quality, and fraudulent transactions directly without any middleman. You are much more aware of what’s going on behind the scenes when you source your products from china.
Scaling capabilities: The efficient Chinese infrastructure coupled with manufacturers with in-depth knowledge and understanding of the global supply chain makes it possible to scale up production significantly with no additional hassle. You can scale up production from hundreds to thousands in just about a week’s time. On top of that, Chinese manufacturers allow a low Minimum Order Quantity (MOQ). If you have a startup or small business, it will greatly benefit you to be able to place small orders at a time, and then scale it up as and when your business grows. The time needed to scale up production will depend on the availability of raw materials and production time, but it would be better in China than anywhere else in the world.
No wonder China is often the first choice for businesses when it comes to product sourcing. The benefits listed above can boost your business to a different level. If you are looking for growth and boosted revenue, product sourcing from China is a reliable option. However, you should always be vigilant about the quality of the product you are getting. If the quality does not live up to expectations, you will lose customers no matter at what price you sell your products.
How to source high-quality products from China?
Sourcing products from China is definitely beneficial for your business, but this does not mean that it is easy. You will want a steady supply chain of high-quality products. To get the best value out of sourcing products from China, you will need a robust business strategy before you engage in business deals. Since the Chinese economy, culture, and people are often alien to us, it is very easy to make mistakes and bad deals. With just a few pointers in mind, you can greatly reduce any chance of making wrong business deals with Chinese manufacturers.
Types of manufacturers in China
Trade companies: Trade companies are large factories that offer a huge range of products. They would put an additional cost over the manufacturing cost for profit. If you need a low minimum order quantity, it would be better to deal with manufacturers themselves instead of trade companies. It is worth noting that when trading with trade companies, you will not be directly familiar with what is going on in the factories. For huge orders in a diverse range of products, they can be your top choice.
Wholesalers: Wholesalers typically deal in standardized products, and you do not have the option of customizing according to your needs. Wholesalers often have warehouses in foreign locations, which saves shipping and storage costs. To make a profit, wholesalers add a margin on top of the manufacturing costs. For new eCommerce businesses, wholesalers can be a good option.
Manufacturers: Dealing with manufacturers directly is the most cost-effective option out there. The profit margin is higher than what you would get from trade companies or wholesalers. The difficulty lies in effective communication with manufacturers because many of them do not have English-speaking front desk staff. Many manufacturers are also already acquired by big companies like Alibaba, so it will be difficult to find what you are looking for.
Now that we have distinguished between the three avenues from where you can get your products, it is important to know exactly how to prepare for product sourcing from China, and what are the things to keep in mind.
What do you mean by sourcing?
Sourcing is a specific segment under a procurement cycle that refers to identifying, evaluating, and selecting suppliers or vendors to obtain goods, services, or raw materials required for a business’s operations. It is a critical step in the procurement cycle and significantly determines the quality, cost, and availability of the goods or services purchased. By doing so, sourcing maintains the organization’s supply chain and guarantees that the organization always has access to the tools it needs to deliver on its objectives.
What is procurement?
Procurement, on the other hand, encompasses the entire end-to-end process of acquiring goods, services, or works from external sources. It includes identifying needs, sourcing, negotiating, purchasing, receipt and inspection of goods, invoicing, payment, and supplier management.
It is noteworthy that China has set itself up as the second-largest economy of the world. Recently it has shown its credentials as the largest existing manufacturer of the world. It has been acknowledged as the most influential manufacturing country for two years. This country’s economy is increasing rapidly and sourcing the products can prove a good step for a business owner. Most international companies identify the Chinese sourcing agent’s capabilities and establish a selling-buying relationship to flourish in the market. If you are still searching for ideal suppliers. Chinese sourcing agents can provide you with the required products.
Procurement professionals know that China is the world’s leading manufacturer of goods, making it an ideal source for businesses looking to acquire materials at competitive prices. we will explore the concept of China Sourcing, its benefits, and some tips for sourcing goods and services in China. We will also introduce you to some of the best sourcing entities in China to help you make informed decisions.
you will have a deeper understanding of how to source products from China and how to analyse which suppliers are ideal business partners. With China Sourcing, you can acquire high-quality materials at a lower cost, which will help you develop your company’s future.
China Sourcing involves searching for a supplier in China to acquire goods or services at a competitive price. China is popular for low-cost materials, but language barriers and different business practices can be challenging for foreign buyers. To overcome these challenges, foreign buyers seek assistance from sourcing agents or agencies in China, making their lives easier.
If you’re new to China Sourcing, you might wonder if you can manage it yourself. While it’s valid to have concerns, fear not as this guide is here to assist you. With our expert tips and recommendations, you’ll be well-equipped to make the most of China’s vast and diverse sourcing market.
Additionally, sourcing in China can also provide businesses with access to a wider range of products and materials. With China’s vast manufacturing capabilities, there are countless options for sourcing different types of products, from construction materials to consumer goods.
However, sourcing in China can also come with its challenges. As mentioned earlier, language barriers and differences in business practices can make it difficult for foreign buyers to navigate the market. This is where a sourcing agent or agency can come in handy.
A sourcing agent can act as a liaison between the buyer and the supplier, helping to bridge any communication gaps and negotiate the best possible deals. They can also assist with quality control and logistics, ensuring that the goods are delivered on time and meet the necessary standards.
In conclusion, sourcing in China can be a beneficial option for businesses looking to reduce costs and access a wider range of products. However, it’s important to understand the challenges and risks involved and to consider working with a reputable sourcing agent or agency to ensure a successful outcome. With the right guidance and resources, businesses can effectively source products from China and achieve their goals for growth and success.
An option for unlocking agility is near-shoring: bringing production geographically closer to end-consumers. Until now, this has meant moving out of China and closer to Europe or the US. But the world’s consumption epicentre is shifting to the East. By 2025, 40% of apparel sales will take place in Asia, according to McKinsey. More and more companies will thus see China as a near-shoring, rather than an off-shoring, location.
The benefits of sourcing from China：
There are three main reasons that make sourcing from China a good idea.
1. Sourcing from China can lead to Cost savings
Sourcing from China often leads to cost savings for businesses, which increases their competitiveness and profits. You can then reinvest these profits into your businesses to help it grow.
China is competitive because the costs of manufacturing are low compared with developed economies such as the US, UK and Europe. Production costs include the cost of raw materials, wages and overheads such as electricity and maintenance most of which are low in China when compared with the West. Additionally, the massive production capacity of Chinese factories allows businesses to give large orders, which further reduces the price per unit. All this ensures that you can get products sourced and manufactured inexpensively in China.
2. Quality
Chinese factories can manufacture products to western quality standards. This wasn?t the case a few years ago, which led to the popular perception that cheap China-made goods would undoubtedly be of poor quality. However, Chinese factories can now manufacture products inexpensively?without compromising on quality. Of course, some manufacturers do still deliver shoddy products. You just have to be careful while verifying suppliers you have shortlisted to ensure that you have selected a reliable one.
Finding a Chinese sourcing agent who can liaise with the manufacturer on your behalf will help stay on top of quality control.
3. Variety
Chinese factories can manufacture a huge range of products, from gym equipment to medical devices to aircraft parts. Visiting China’s biggest trade fair, the >Canton Fair, will give you an idea of the variety of products its factories can churn out. The fair is held in Guangdong province, twice a year, in April and October, and attracts thousands of buyers and sellers from across the world. The fair is spread over an area larger than 200 football fields. Even if you attend the fair every day it’s open, you won’t be able to see all the exhibits.
Because the United States and China are currently engaged in a trade war. But I still think that China is irreplaceable in the field of manufacturing, because China has a complete industrial chain and sufficient manufacturing and technical talents. Products made in China are of good quality and cheap. Why should I refuse?
2022 is coming to the end! It’s been working almost a year with these sourcing guys of yours. From strange to familiar, from doubt to trust. We have become a very friendly partner along the way. I really thank God for meeting you fun guys. Hope to see you again in 2023. Merry Christmas & Happy New Year 2023
Thank you so much for your kind words! Our valued customer Mr. Sameer, hope you have a happy Christmas and New Year holidays with your family and your friends. And look forward to cooperating with you in 2023
Five years ago, flights to China from Europe, North America, and Japan were filled with sales managers seeking markets for their companies’ products. Today those flights have as many procurement and supply chain managers as marketers. Leading Western and Japanese companies are no less eager to source Chinese parts and products for developed markets than to sell into one of the world’s fastest-growing economies.
The country’s rapid rise as a low-cost manufacturing hub is what draws these men and women. Retailing giants such as Carrefour and Wal-Mart Stores are going to China to buy an expanding range of goods—from televisions and tools to clothing and crockery—for 25 to 50 percent less than the cost of comparable goods made in developed countries. Automakers around the world are pressing their leading suppliers to open operations in China or are themselves trying to source components there (see “Global sourcing in the auto industry”). Although the proportion of goods sourced in this way remains small even for companies that began buying Chinese-made goods more than a decade ago, the pace is accelerating, particularly in high technology, consumer electronics, retailing, and some industrial goods. The result is that leaders in these sectors are gaining cost advantages over competitors that source components or finished goods mostly in the developed world.
Although the opportunity is certainly enticing, it can be hard to get the many pieces of a procurement operation in China right. Lessons learned ten years ago by companies as they set up purchasing operations in other low-cost regions, such as Brazil and Mexico, travel only so far. Finding high-quality suppliers and negotiating agreements with them is a problem that companies face in any new locale, for example, but the greater geographic distance between suppliers in China and headquarters makes the job tougher for companies based in North and South America. Another challenge is coming to terms with the widespread use of sourcing agents, which can be a boon or a bane, depending on what individual companies need. Then too there are issues—such as sorting out logistics, securing reliable broadband connections, and cultural and language differences—that companies rarely face at home.
Those that do establish successful sourcing operations in China concentrate on a few fundamentals. They make changes at the home office to address the organizational inertia that can slow down the introduction of a purchasing program in China. They attend to the details, monitoring suppliers as closely as possible. And like one Western company that set and exceeded a $100 million first-year target, they establish a firm goal for sourcing and do what they must to achieve it. Such companies also learn to build local capabilities by staffing teams carefully and using third parties to support them in important tasks, such as quality assurance and logistics.
In these ways, companies lay a foundation they can use to relocate bigger and more crucial pieces of their supply chain operations. They gain cost and operational advantages that competitors can’t match and capabilities that competitors can’t easily replicate.
There are truly many misconceptions which people have about sourcing products from China, but in actual fact things are much simpler than what anyone can imagine them to be. One of the best way to solve the issue is to work with a experienced China sourcing agent or a China import agent when you import from China to us. A reliable sourcing agent operated in the targeted city where most of the suppliers are located can do a lot not only in identifying the ideal suppliers but also can work as a perfect China freight forwarder when it comes to, say, shipping from China to US,for example. Taking consumer electronics products for an instance, Shenzhen is the hub of electronics in the world. And therefore a qualified Shenzhen sourcing agent can offer a lots of values to you when it comes to sourcing electronics in Shenzhen electronic market for wholesale, finding a solution provider for OEM service in electronics and electronic manufacturing services or making China prototype or pcb China. Since most of the sourcing agent speaks fluent English and Chinese, they can also be your Shenzhen interpreter or Guangzhou interpreter when you visit the city physically for suppliers or examine the products. The most common misconceptions are that the products will not reach, if they do reach they will be in a rather damaged condition, products are not what they seem like in the images and also that there is plenty frauds which take the money and disappear without a trace. Though this might happen in some rare cases, isn’t this something anyone is afraid of when doing business with anyone?
To avoid things like this from happening it is indeed imperative that plenty of care is taken to ensure that everything functions in a smooth and fuss free manner apart from this companies who are sourcing products from China, must ensure that they are only trusting companies which are worth their while and which also have a good reputation. So, to start things off on the right note, it is truly advisable to go step by step.
Hiring an injection mold maker in China allows you to reduce plastic manufacturing costs in numerous aspects. The biggest upside to this is you do not sacrifice quality, production efficiency or any other manufacturing factors in doing so. However, you should have proper quality assurance in place and work with verified factories. Your standard operations remain the same except injection molding is removed from your manufacturing processes and you are now paying a third-party injection molding manufacturing company in China to do it for you. Let us break down the aspects where you are able to save money and cut down expenses from outsourcing injection mold manufacturing. Tariffs on an injection molds are no big problem at the moment.
1. Reduce equipment costs
Once you outsource plastic injection molding to China, there would be no need for you to purchase an injection molding machine for in-house operations. The machine itself is a major part of your investment money and the cost can now be reduced by renting injection molding services all the way in China. Since there is no need to own an injection molding machine, you would also be able to dodge the need to purchase quality assurance tools, packaging devices and other equipment needed for the plastic injection molding process. Also, there are many options for companies that build prototypes so that you can lower your set up cost right along with it.
2. Dodge maintenance costs
Having an injection molding machine as part of your in-house operations includes maintenance costs. The molding machine is a complex device and you need to allot time and money for its regular checkup and maintenance. The worse news is when your molding machine is up for repairs. Repairing advanced machines requires special skill which means the service fee for it does not come cheap. If you outsource the molding process, then these costs are now shouldered by your mold manufacturer in China.
3. Save up on personnel salaries
Having an injection molding machine will require you to hire personnel with certified skills and qualifications in operating such machinery. These specialists are not your average workers due to their skill specialization and would normally demand salaries higher than your average factory worker. Once you outsource plastic injection molding to China, you are able to dodge their salaries and not to mention the time you save from looking for these so-called injection molding machine specialists.
It can often be difficult for companies (particularly those new to China) to decide on the optimal solutions needed to support their mainland sourcing activities. With so many quality control and trading agents available offering one-stop sourcing services and B2B online platforms that allow direct contact with suppliers, many will argue that it could be just as effective to utilize a subcontracting agreement and intermediate parties to get the job done.
Although this can be true and is a perfectly workable option in certain cases, to be more competitive within the global supply chain, many SMEs now require an on-the-ground presence either to gain better control of their supply chain, or to be able to continue servicing their international customers who have also entered the China market.
Therefore, to select the most suitable business model, it is important to carefully balance the capability of each option against the primary needs of the sourcing activities. For example, foreign SMEs that consider China an unknown market may prefer the low capital risks associated with a representative office. Alternatively, the wider business scope and operational flexibility that a service company or a foreign-invested commercial enterprise (FICE) offers may also be tempting. However, while an overseas company that has been purchasing directly from China for many years may wish to take full control of the supply chain through a FICE, they may also be deterred by the heavy operational complexity of such an entity – a FICE involved in exporting goods is directly involved with China’s complex VAT system and has to comply with customs requirements.
If you want someone who can help you with the entire sourcing process from end-to-end, hire a sourcing service provider, which can provide a wide range of services: supplier identification, price negotiation, supply management, quality control management, logistics and shipment management, and other sourcing matters.
Sourcing service providers charge certain fees for managing purchase transactions, but there are pluses and minuses to consider. On the plus side, a sourcing service provider can relieve you of the hassle of identifying and verifying suppliers, production inspection, product quality control, and logistics arrangement. However, using such a service can really save your time and money
One of the main reasons why you should source China products is the vast supplier base in the country. What’s more, China’s supplier base is diverse. From textile and consumer goods to apparel and electronics, you can find the right sourcing company to make any type of product that you want.
The country has different industrial clusters including a large number of companies and firms located in a distinct geographical area. For instance, you can find supplier bases for cosmetics in Guangzhou while Tongxiang is the manufacturing center for home utility products and fabricated kitchenware.
If you want to source the OEM manufacturing for metal tools and the kitchen sink, you should get in touch with a sourcing agent that’s familiar with this geographical area.
Additionally, you can source hardware in Yongkang and electronics products in Shenzhen. When China sourcing, you’ll never miss out on the product you’re looking for. It’s your one-stop shop for all your business product needs.
Lower Labor Cost
Wondering why it’s cheaper to make products in China? It’s due to the lower labor costs. Labor cost is an essential factor that helps regulate the overall production cost in the manufacturing sector.
Since China is one of the most populous countries in the world, it’s easy to get plenty of skilled and unskilled labor locally. The abundance of local labor allows sourcing companies in the country to set lower manufacturing costs.
What’s more, their government policies also allow manufacturers to ensure quality work standards without the need to increase labor costs. Additionally, most workers in China have years of training and experience in their respective niches.
As a buyer, you don’t have to spend time and money in training to get quality products. A China source agent can help you find cheap but skilled labor so you don’t have to hassle.
Excellent Product Quality
There is a common misconception that products from China are not durable, with some people referring to them as use-and-throw-quality products. But this is far from the truth. Many small and medium businesses have sourced high-quality products made in China.
Most suppliers in China have years of hands-on manufacturing experience so they know the ins and outs of the process inside out. They also know the best and the cheapest places to get premium-quality raw materials. Also, they may have the right equipment needed to maintain a stellar quality standard.
China also has leading manufacturers that are willing to invest in suitable equipment and technology to make products. Besides, you can hire a third-party quality control company to confirm that the source products from China confer to your technical specifications and quality standards.
Most reputed manufacturers in China are aware of this, so they are willing to submit your products to quality inspections at several stages of the manufacturing process.
Better Scaling Capabilities
The infrastructure in China is robust and well established and robust. Furthermore, most Chinese manufacturers also have years of experience comprehensive understanding of global supply chain management. These factors enable them to scale-up manufacturing as and when needed.
For example, you can increase your China sourcing products from a thousand to more than a million in just a few days or weeks. But the specific time for scaling up will depend on the type of product you’re sourcing, the availability of raw materials, and more.
In addition, most manufacturers’ policies in China do not need buyers to invest heavily in Minimum Order Quantity (MOQ). Since you can pay lesser costs for MOQ, you can start sourcing products in small amounts. As your business grows, you can scale up. This can be good for startups.
Direct Sourcing
When it comes to outsourcing products, buyers often have to deal with middlemen, resulting in delays and increased costs. But sourcing products from China is different. You can ditch the third party and directly deal with the manufacturer.
China has an extremely competitive OEM sector. This is why most of their manufacturers prefer to deal with the buyers directly to eliminate the increased costs of third parties. In some instances, you have to work with just one product sourcing agent, ensuring it’s easier to source products.
You can connect with a reputable China sourcing agent or supplier by visiting several traders’ markets in China or attending international trade fairs via online marketplaces.
Reactivity
Want to get your products fast? China sourcing is your best bet. Thanks to the country’s manufacturing maturity, you can easily get suppliers that offer swift production setups and smaller batch sizes. China sourcing has also unlocked agility through near-shoring. This has brought production closer to end consumers.
Sourcing companies fully manage importing and QC operations for their clients, essentially becoming their client’s office in China by managing their sourcing, developing product samples, negotiating and managing contracts, ensuring QC, and frequently handling logistics. They differ from trading companies by maintaining independence and not earning commissions from sales on behalf of factories. Consequently, they have no vested interest in protecting manufacturers and instead represent their client importer’s interests in China to retain their business.
Sourcing companies can vary significantly in terms of their size, scope, and sophistication. There are freelancer sourcing agents, small- to medium-sized sourcing companies with three to 15 employees, and very large sourcing companies that work primarily for the retail giants.
Different sourcing companies fit with different kinds of buyers. Some are great for buyers just starting out and others for buyers who have larger orders and different priorities. For example, at FMS Sourcing team, they tend to work with medium-sized and large buyers who have been selling for at least one year. their focus is more on quality issues, problem solving, and helping our clients scale and launch new products with “speed.”
The advantage of working with a sourcing company is that they can leverage preexisting supplier networks for better per-unit costs and conflict resolution, such as disagreements that could arise over delivery schedules, quality of the goods, variance in price, intellectual property infringements, or other issues. A good sourcing company will also work to understand specific consumer needs and try to fix problems with a product by understanding them, rather than offer an under-researched quick fix that simply gets to the next order.
Sourcing companies also tend to better understand compliance, certification, and international trade procedures, which helps ensure that the product being imported meets the compliance standards and regulations of the importing market. It is important to note, though, that sourcing companies aren’t experts at setting compliance standards, only enforcing them on the ground.
However, sourcing companies may be fairly expensive to work with, particularly for small orders, because sourcing companies require a significant amount of manpower-intensive work. Investing in and maintaining a network of suppliers with strong relationships, finding the right company for the client, negotiating quotes, and then engaging in back and forth communication on samples is risky for a sourcing company if the client declines to pursue a project. For that reason, sourcing companies tend to charge more for their services.
When using sourcing companies, it is important that you know exactly what you want to source, because unlike trading companies, sourcing companies don’t promote or recommend any products and most are product specialists.
Sourcing products from China is definitely beneficial for your business, but this does not mean that it is easy. You will want a steady supply chain of high-quality products. To get the best value out of sourcing products from China, you will need a robust business strategy before you engage in business deals. Since the Chinese economy, culture, and people are often alien to us, it is very easy to make mistakes and bad deals. With just a few pointers in mind, you can greatly reduce any chance of making wrong business deals with Chinese manufacturers.
Types of manufacturers in China
Trade companies: Trade companies are large factories that offer a huge range of products. They would put an additional cost over the manufacturing cost for profit. If you need a low minimum order quantity, it would be better to deal with manufacturers themselves instead of trade companies. It is worth noting that when trading with trade companies, you will not be directly familiar with what is going on in the factories. For huge orders in a diverse range of products, they can be your top choice.
Wholesalers: Wholesalers typically deal in standardized products, and you do not have the option of customizing according to your needs. Wholesalers often have warehouses in foreign locations, which saves shipping and storage costs. To make a profit, wholesalers add a margin on top of the manufacturing costs. For new eCommerce businesses, wholesalers can be a good option.
Manufacturers: Dealing with manufacturers directly is the most cost-effective option out there. The profit margin is higher than what you would get from trade companies or wholesalers. The difficulty lies in effective communication with manufacturers because many of them do not have English-speaking front desk staff. Many manufacturers are also already acquired by big companies like Alibaba, so it will be difficult to find what you are looking for.
Now that we have distinguished between the three avenues from where you can get your products, it is important to know exactly how to prepare for product sourcing from China, and what are the things to keep in mind.
Product sourcing describes the process of finding a source (i.e. a supplier) for a product you want to sell.
Simply put, a sourcing agent is someone that helps you find the right supplier for you and ensure they meet your requirements. Services provided by sourcing agents include
market research / supplier selection /price negotiation /quality assurance / quality control / pre-shipment inspection /customs clearance / and many more.
Sourcing agents are usually located close to potential suppliers, speak the same language and are familiar with customs.
One of the most popular countries for sourcing is China as most products can be manufactured very cheaply there. China is the world’s largest producer of factory goods and a world leader for many product types. If you want to have a customized product, there is a good chance finding a suitable manufacturer in China for it.
That’s why there are so many sourcing specialists in China
I suggest that you can ask any prospective sourcing agent the following questions before hiring them:
How will they get paid, and by whom?
Will you be able to visit the factories before/during production?
Can they provide referrals or testimonials from satisfied customers who are using his services and who buy the same type of product as you? Make sure to contact two of them and get confirmations.
Do they do quality inspections by themselves? Or do they resort to a specialized third-party? Will you get a report every time?
Will you get an update every week on the production status?
Can they share their management system with you? You need to make sure they have processes in place. The vast majority of agents don’t follow any established procedures.
What guarantee do they offer in case a supplier scams you? If shipments are behind schedule? And if you receive junk product in your warehouse?
Are they located in the area where your products will be sourced?
If you keep re-ordering the same products from the same sources, will you pay less for his services after the first order?
This is a real 2.0 sourcing agent!! this team is a company’s full-time specialist who helps foreign people in business import goods from China and also can provide some extra service with small amounts, like packaging, customization, ODM, OEM, dropshipping, fast delivery.
Our company has been cooperating with this company, so we are qualified to recommend to every merchant who wants to source products from China
There is a huge difference in the way Chinese businesses and businesses in the west operate. The differences can be largely attributed to the differences in culture, customs, and mindset. It is wise to choose a sourcing agent that has several years of experience in China. A sourcing agent that has extensive experience of working in China will have a large network of reliable contacts vital to your business.
China is one of the most important manufacturers of industrial products due to its low cost. If you want your business to be cost-effective, sourcing from China can be an excellent decision. However, language barriers and mixed business practices can prove to be a hurdle for many foreign buyers, not to mention the huge variety of products available. Here is when a sourcing agent can greatly benefit you.
With a reliable sourcing agent, you save a lot of time as you do not need to scour through pages of suppliers trying to find the right one. You also save a considerable amount of time that you would have otherwise spent on vetting the suppliers and undergoing long negotiations. Your sourcing agent will handle all of this to save you valuable time.
Furthermore, when you hire a sourcing agent, they know exactly how original certificates look. They are aware of the inspection bodies and the requirements that the manufacturer must meet. With a sourcing agent, you drastically reduce the chances of being duped by a supplier.
We already know that finding suppliers in China is so complicated, either my MOQ (Minimum ordered quantity) is low or the product’s price is high. Sometimes, new Amazon vendors claim that they are selling well, as a result they have placed new orders from the same supplier, but they figured out a quality difference between initial and new orders, somehow it led to negative ads reviews.
To prevent your business from negative feedback, you have to adhere to certain process before even starting your supplier’s search. First, analyse well your business model. Specify the quantity required for your first order, and assess your market niche. Choosing a right supplier will be helpful for your business on the long run.
That China remains a manufacturing powerhouse despite its rising costs shouldn’t be surprising. Sourcing is more than just chasing cheap costs, and this statement is only becoming truer. Competitiveness is increasingly driven by other considerations. While China may not be the cheap sourcing paradise it once was, it has gained an edge by enabling faster, better supply chains.
Government-led investment in skills, infrastructure, and industrial upgrading has also contributed to China’s efficiency gains. Improvements have concentrated in China’s coastal regions, but this is changing. Since 2012, the government has pumped US$550b into transportation and utilities in western provinces, and boosted incentives for factories to “go west”. Sichuan already produces 1/5 of Chinese-made computers and Chongqing is becoming an important tech and automotive hub. China’s interior is emerging as a lower cost, efficient alternative for manufacturing.
The sourcing definition is global sourcing is sourcing products and (sometimes services) irrespective of national boundaries. It is particularly popular within the EEC countries in Europe and Asia. Both of these areas are less concerned with geographic boundaries.
The rise of Chinese and Indian manufacturing capabilities has meant that sourcing from these countries has greatly increased in the past few years. Purchasing companies are seeking low labor and production costs which are not countered by high delivery costs. Many improving countries also offer attractive tax and tariffs to encourage purchasing from them.
Another definition of sourcing is that of sourcing personnel. This is use of proactive searching for potentially highly skilled members of staff that may provide your company with a competitive advantage. Sourcing of staff is also a complex procedure and is used when numerous part time or short term staff are required.
The most common definition of sourcing is the process of identifying potential vendors, conducting negotiations with then, and then agreeing supply contracts with these vendors.
Many overseas merchants like to find suppliers on Alibaba, in fact, it is a wise choice to find a purchasing agent like you,Save time, save cost, don’t worry about quality, just wait in your own office
thank you so much！ We source the right manufacture from day one! We know unless we get the right factory for the right product, your doomed from day one! 70% of the factories we export from are not even listed on Alibaba.com!
We’ll negotiate you the best possible price, but with a clear and agreed specification to ensure you get the right product at the right price!
A sourcing agent assists a company with the process of locating sources for products and supplies at low prices so the company can save money on production. Sourcing agents may represent a single employer or could run a business that serves a number of companies. The work can require knowledge of multiple languages as well as a good business sense and coordination skills. Pay typically occurs on a commission basis, where the sourcing agent makes a percentage of the order’s value.
A sourcing agent is the one that locates the product suppliers for your agent. They speak the language of the suppliers that you want to buy from, thus giving you the edge of finding affordable products.
Since China is the biggest producer of the goods as cheaply priced goods can be attained from its market, you can hire a sourcing agent from China to help you in locating suppliers for your business needs.
The overseas sourcing agent can also deal with issues like import/export duties, tariffs, and taxes. These can be challenging for companies not familiar with the norms in a given nation to handle. The agent’s skills can cut down on expenses and also move goods through shipment more quickly, with less risk of a holdup at some point along the supply chain. In regions where corruption can complicate business negotiations, a local sourcing agent familiar with the community and the traditions can cut through red tape quickly and efficiently.
in China there are many sourcing agents who work on their own. They usually don’t have many clients at once and can therefore build up a very personal relationship with you.
However, there are also disadvantages to working with only one person.
You are 100% dependent on her and it will be difficult to find meaningful information about her professionalism and performance in advance. In addition, their network is likely to be smaller as compared to a bigger sourcing agency.
The main drawback, however, is that they can disappear very easily as compared to a bigger company.
The risk of getting scammed is therefore a bit higher.
You don’t need to hire a sourcing agent that takes a lot of time to find a supplier. That is important since your business has needs and everything should be carried out swiftly. The entire business is stagnant if the sourcing agent doesn’t find a supplier for you.
Moreover, if the sourcing agent is skilled and experienced, they will be able to locate suppliers for you instantly. Since they have a wide network and been working in the domain for years, it should not take time for them to locate suppliers. If it takes, then it’s a red flag.
Sourcing agent services include:
Communicating & negotiating with suppliers
Overseeing the production
Providing you with updates
Arranging storage & shipping
Performing quality inspections
If it makes sense to leave all those tasks to your sourcing agent depends on how you’re paying them. If they work on commission, you shouldn’t use them for quality inspection.The reason is that if something’s wrong with your product and you don’t pay the supplier for it, they will lose their commission.
The primary reason for hiring a sourcing agent is that you need to get things done on time. A sourcing agent helps you get started with the suppliers right away.
You don’t need to go through the hassle of finding one or negotiating them with specifications on your own. The sourcing agent does that for you.
The primary services of a sourcing agent can include:
Communicating and negotiating with suppliers
Overseeing the production
Updating you with the proceedings
Arranging storage and shipping options in and from your preferred location
Helping perform quality inspections
It is to remember that you don’t need to tell pay them for quality inspections if they’re working on commission. The sourcing agent will lose its commission if the product quality fails
an important element that sourcing agents help you with is negotiation. They help you negotiate in terms of the specifications, making sure to maintain quality at the minimal pricing.
Here, a sourcing agent is the most needed since they are aware of the market, and know the common practices more fluently.
Simply put, a sourcing agent is a third-party that helps you find the right supplier for you.
Product sourcing describes the process of finding a source (i.e. a supplier) for a product you want to sell.
They usually speak the language of the country you source from, are geographically close to potential suppliers and are familiar with customs. One of the most popular countries for sourcing is China, because most products can be manufactured very cheaply there.
China is the world’s largest producer of factory goods and a world leader for many product types. If you want to have a customized product, there is a good chance finding a suitable manufacturer in China for it.
That’s why there are so many sourcing specialists in China.
The core function of a sourcing company is to identify qualified suppliers, based on the customer’s needs and technical requirements.
There are no industry standards for how the supplier sourcing process is managed. Some Sourcing Companies have a more relationship-based approach, funneling customers to their existing supplier network.
This can be a win-win for both you and the sourcing companies, assuming they select suppliers based on the product’s technical specifications – rather than the size of the kickbacks they receive.
Previously, most sourcing companies charged a commission based on the order value. However, in recent years, more and more sourcing companies have adopted fixed pricing. Thus, they charge based on a per project or service basis, rather than a commission. Of course, the final cost depends on what exactly you want the sourcing company to do for you.
Please find a sourcing agent who acts as a one-stop import service and offers a wide range of services that include product sourcing, purchasing & negotiating, shipping & logistics, quality control, customs, tax duty, and factory audits and tours.
6 steps for working with sourcing agent in china:
1）Understand Product specification
2）Discuss with sourcing agent, I don’t recommend you source by yourself
3）Ask for Product samples
4）Placing your order
5）Quality control and lab testing
6）Shipping
yes! I recommend to hire a dedicated monthly sourcing agent, which is a good option for you if you’re looking for a full-time agent in China. you can require the agent you work with to provide multiple purchasing solution with different features like feasibility check and similar add-ons. This way, you can have an option to choose one based on your needs.