When you’re launching your business, it can be hard to figure out how to do everything on your own, especially when it comes to getting your product manufactured and shipped quickly and cheaply so you can start selling right away. That’s why more and more entrepreneurs are looking towards the Chinese market for their product procurement needs, as China has long been known as the go-to source for cheap mass production of high-quality goods. Here are seven reasons why you should consider procuring from China, too.
1) Cost Effectiveness
If you’re looking for low cost, China is hard to beat. Even if you aren’t as concerned with price, it’s difficult not to appreciate just how inexpensive certain goods are in China. Take toys, for example: manufacturers can create a top-quality toy for roughly one tenth of what they’d pay here in North America.
Some may assume that cheap prices mean low quality or lack of safety—but neither is necessarily true. In fact, an increasing number of companies prefer to procure their products directly from Chinese factories because it gives them more control over what goes into their final product.
2) Faster Delivery Time
Time is money, which means when you increase your speed of delivery, you also reduce costs. With shorter lead times, companies can respond faster to consumer demand and market changes. They can focus on other parts of their business that are a greater priority or more in need of management attention. When it comes down to it, shorter lead times mean cost savings and lower risk—and that’s what smart businesses look for in procurement.
3) No Minimum Order Quantity (MOQ)
Let’s face it—in many instances, making a large order is out of the question. The minimum quantities that some manufacturers require are often so high that they prohibit individuals and small businesses from placing orders.
When purchasing directly from China, there are no MOQ requirements so you can buy just one unit if you’d like. With just a little bit of forethought, you can place an order as big or as small as your needs demand.
4) Tailor the Product According to Customer Requirements
China is home to some of the world’s largest factories and supply chains. This means you can quickly get your hands on an impressive variety of products at very low prices. Some import companies specialize in procuring or manufacturing goods in China, while others simply organize and connect buyers with suppliers.
In either case, if you want it, they probably have it! Their extensive network of suppliers allows them to provide customers with a wide selection of different types of goods at all price points. Many Chinese manufacturers are happy to produce small quantities as well as large volumes at short notice—all without blowing through your inventory budget. Get in touch with a China sourcing agenttoday so you can start your own journey down.
5) Easy Access to Wide Variety of Products
In addition to having a wide variety of products, China is home to many manufacturers that are capable of producing goods in bulk and at low costs. This means you can afford a larger number of units without increasing your investment in inventory. In addition, even if you need something customized, you’ll be able to find a manufacturer who has experience working with overseas buyers (and English-speaking workers).
Many potential issues surrounding quality or communication can be addressed by choosing a company that already has relationships with American businesses. The key is knowing how to procure products for your business so that you don’t end up wasting time and money on mistakes.
When it comes to manufacturing, China offers one of its biggest advantages in terms of flexibility. Large manufacturing bases in cities like Guangzhou have an abundance of factories that are constantly changing product lines and factory processes, which means companies can easily scale up or down as needed. From prototype through production, Chinese manufacturers also tend to be more receptive to change than their Western counterparts.
For example, if you want to tweak your product based on consumer research halfway through a campaign, most Chinese suppliers will offer little resistance. In many ways, they’re used to dealing with big customers who need things done quickly—and since they often work on large quantities at once (think 1 million units or more), working with a smaller order isn’t much different for them.
7) Quality Assurance
In any country, but especially in China, there is a concern that products or services may not be up to par. However, procurement companies in the USAare always on guard and attempt to mitigate risk. The advantage of using a supplier in China is that you have access to an entire network of suppliers as opposed to one product at one company like in other countries. When products are procured from China, there are also quality checks conducted before they arrive at your warehouse or business for final distribution.
With so many advantages, it’s clear that China’s sourcing is beneficial for both buyers and sellers. In fact, global procurement of Chinese products has become a central part of doing business with China. It has allowed American and European companies alike to access new markets and products while allowing Chinese manufacturers to broaden their reach in an ever-globalizing world. Regardless of your role in any given transaction, you can expect numerous benefits from sourcing goods or services in China—as long as you do it right.