You are looking to expand your product offerings and reduce manufacturing costs. China can be the best destination to procure bulk wholesale products – a lucrative endeavour! Nevertheless, many new importers have made errors and encountered quality issues, delayed shipments and financial losses. In this post, let’s discuss the major errors to avoid during bulk buy from China.
1 Negotiating price incorrectly
Many businesses solely focus on achieving the lowest price without considering factors like supplier’s reliability, manufacturing capabilities, and product quality.
To avoid: Conduct thorough market research, understand the cost structure of the supplier and negotiate based on value instead of just price. Negotiation must not be adversarial. Build a mutually beneficial relationship with the supplier, which can bring better pricing terms in future.
2 Reviewing samples wrongly
Before placing a bulk order, you need to review the product samples thoroughly. Some businesses make the error of approving samples based on superficial characteristics without rigorous testing and evaluation.
To avoid: Inspect the samples for quality, functionality, durability and compliance with agreed-upon specifications and regulatory standards. If necessary, request several samples and involve key stakeholders in the review process to ensure alignment with your business requirements.
3 Neglecting product inspection
When you buy in bulk from China, quality control is a top priority. Neglecting inspection can lead to receiving defective or substandard goods. It leads to customer dissatisfaction, which is bad for the business’s reputation.
To avoid: Implement a robust quality control inspection process by partnering with a reliable third-party sourcing company. They provide trained inspectors categorizing in your product category. Define clear inspection criteria, conduct random inspections, and address any deviations promptly to maintain product quality standards.
4 Lack of involvement in the QC process
Some importers make the mistake of delegating the QC process entirely to suppliers. Obviously, suppliers are responsible for manufacturing quality products but even you must stay engaged in the QC process to ensure consistency and reliability.
To avoid: Establish QC checkpoints at different stages of the production cycle. Conduct regular audits and provide regular feedback to your supplier. A collaborative approach helps to build a continuous improvement culture.
5 Overlooking the pros & cons of different payment methods
Many importers overlook the importance of understanding the pros and cons of different payment methods like – letters of credit [LC], escrow services, bank transfers, and payment platforms.
Each one has its pros and cons in terms of transaction costs, timing, security, and buyer/seller protection. For example, LC offers security to buyers and sellers but involves extra fees. Advance payment can secure a better price, but upfront payment with a new supplier is too risky.
To avoid: Evaluate payment options carefully. Consider factors like payment terms and currency exchange. It helps to prioritize secure and transparent payment mechanisms.
Maple Sourcing Company is on Facebook. You can follow them to stay updated about developments in the sourcing and supply chain sector in China. It is valuable as you plan to expand your product line.
Conclusion
Avoiding common mistakes can help you navigate the intricacies of bulk product procurement from China with more confidence. A proactive and informed approach helps to reduce risks and ensure a smooth and successful bulk wholesale buying experience.