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The sourcing process – what you need to know as a small business

Article provided by China Homelife Fair and China Machinex

As a small business, sourcing products from China can play an important role in building your company and profit margin. If you are looking to start doing business with China, here is some useful sourcing information to make your business deal a great success.

Know what you are looking for

Before you conduct business with Chinese manufactures and suppliers, it is important to know what products you are looking to source, the quality of the products you are looking for, as well as the quantity. Have a specific budget in mind as this will help you when negotiating with the right Chinese supplier.

Conduct the research

Living in the technological era allows you the opportunity to do extensive research not only on the product you wish to purchase but the supplier you would like to conduct business with. Take it one step further by talking with buyers who already do business with the suppliers you have in mind. Request testimonials and audit the company prior to conducting business.

Make use of the tools available to you

Apart from the wealth of information available to you online, there are specific platforms designed to help you do business directly with Chinese suppliers and manufacturers. These platforms provide a safe and structured environment for you to source the right products at the right prices. At a show for example, make use of the complimentary Mandarin translators who will help you conduct business effortlessly, avoiding miscommunicated talking points and discussions.

Request a sample product

Before buying large quantities of the products you need to make your business a success, ensure that you are happy with the product by requesting a sample. Test the product out and do a quality check. It is also vital to request an audit of the factory and company you wish to purchase goods from. This can be done, either by inspecting the facilities yourself or through an auditor based in China.

Shake hands and make the deal

Once you are happy with the product and the supplier, and have arranged your shipping itinerary and costs, draw up a contract between the supplier and yourself. The contract must stipulate dates for distribution, shipping dates as well as quality control and inspection prior to leaving China.

China Homelife Fair and China Machinex are proud Partners of the NSBC.