Guide on Product Sourcing

Article Catalog

1. Introduction        

2. What is Product Sourcing?        

3. Types of Product Sourcing        

4. Five Steps to Successful Product Sourcing        

5. Five Tips for Product Sourcing        

6. FAQ about Product Sourcing        

7. Conclusion        

 

 

1. Introduction

Are you looking for a reliable and cost-effective way to source products from China? If so, you’re in the right place. You are not the only one thinking about product sourcing in China. Many business owners choose to source products from China because of the low cost and the large number of manufacturers.

 

But, there are a few things you should keep in mind before you start sourcing products from China. In this blog post. And we’ll take a look at what you need to know about product sourcing in China. We’ll share our top tips for product sourcing in China, including how to find the right supplier, how to negotiate prices, and how to avoid common pitfalls.

 

2.What is Product Sourcing?

Product sourcing is the process of finding and acquiring products for your business. This can be done through a variety of means, such as manufacturing, wholesale, dropshipping, and more. The goal of product sourcing is to find high-quality products at the best possible price in order to maximize profits.

 

Since 2018, product sourcing in China provides you with the service of dropshipping which means that you won’t need to hold or manage inventory and shipment by yourself. In this way, you can choose the supplier with which you like to cooperate.

 

Therefore, you will have more energy to focus on building your own brand, running a more effective business, and providing more thoughtful customer support.

 

And when we look deep inside, product sourcing in China also includes market and product market research, price control & calculations, and negotiating with suppliers.

 

There are a few things to keep in mind when you source products to sell.

·       First, you need to be aware of the different types of product sourcing.

·       Second, you need to know where to look for products.

·       Third, you need to consider the cost of the product and shipping.

 

3.Types of Product Sourcing

After we know the exact meaning of product sourcing in China, we should learn more things about it, such as how to do product sourcing in China. How to use it and how to make the best profit from it. We need to know how many types of product sourcing there are in China in order to answer this question.

 

In the normal sense, we will achieve sourcing products in China in the following ways:

 

– DIY Products（Customization） or Services

 

There are a number of reasons why you might want to consider making your own products or services. Perhaps you’re looking to save money, price of limited products and services is usually cheaper than the whole services that the sourcing agents provide.  Or you enjoy the satisfaction of creating something by yourself. Whatever the reason is, you should keep the following details in mind when you want to use DIY types of products sourced in China.

 

 Pros:

·       You can learn a new skill for your handmade goods business.

·       For small businesses, selling DIY products is a low-cost choice and the profit margin will be high.

·       Maybe you can find innovation and business opportunities in the DIY process

 

Cons:

·       DIY has low efficiency, a high time cost, and high requirements for your technical level and ability to integrate supply chain resources.

·       You may need to conduct market research and product research, which is time-consuming.

 

– Manufacturing

There are lots of manufacturers in China. By working with a manufacturer, it will be easy to produce and assemble products in China.

 

Professional manufacturers It can effectively help you to improve the products you designed, and based on its rich production experience, it can make your ideas really land and mass production, saving your time, assisting you to build up your brand and increase your profit, so that you can have more energy for business model and marketing promotion. Let "Eason Electronics" help you achieve business success!

 

– Wholesale

Wholesale is the process of buying products in bulk from a supplier. This is a good idea if you’re looking for low prices and don’t mind dealing with other trivial things such as inventory and shipment. But in this kind of product sourcing, you can immediately access a wide selection of inventory, you will also have the chance to compare prices and negotiate bulk purchase discounts. Moreover, you can stay in better control of supply as you’d be dealing with one company, rather than many people at once.

 

– Dropshipping

Dropshipping is a type of eCommerce where you sell products without having to carry any inventory.  It’s a product sourcing method where another vendor fully fulfills a customer’s order. It realizes in such a way: when a customer places an order, you simply contact the supplier and they ship the product directly to the customer.

 

Dropshipping is a kind of DTC (Direct to Customer)solution, you only list what you have in inventory on your website, while your dropshipping suppliers or the China sourcing agent you have hired will handle everything that happens after the sale including packaging, shipping, and so on.

Dropshipping is a good option if you’re just getting started and don’t have the resources to invest in inventory. It helps you deal with all the issues in one transaction. It’s a really worry-free choice for those startups. And fortunately, “Eason Electronic” is also a China manufacturer that provides e-commerce startups with dropshipping services.

 

Product sourcing in the way of dropshipping has lots of advantages as well as disadvantages. Let’s see them one by one.

 

Pros of dropshipping:

1. Wide selection of new products

2. Low-cost and fast way for startups

3. No inventory and shipment costs and risks.

4. Small MOQ (minimum order quantities)

 

Cons of dropshipping:

1. Lower profit margin

2. Fierce competition for startups

3. Can’t guarantee the quality of products

4. More challenging

 

– Sourcing agents and trading companies

purchasing agents and trading companies act as middlemen for manufacturers. This team can help you source products and your production, help you with quality management, and monitor production for you by communicating directly with suppliers. You can transfer the entire task of finding a manufacturer and supervising production and shipment to a professional third-party company (sourcing agents and trading companies). As a result, even without better management, your procurement process will become less complex.

 

– Online Marketplaces

A marketplace is a platform that allows buyers and sellers to trade goods and services. Marketplaces are usually online platforms that provide a space for businesses to list their products or services and connect with potential customers. It’s also a good way to do product sourcing.

Some popular marketplaces include Amazon, eBay, and Etsy. These platforms are used by millions of people around the world to buy and sell everything from books and clothes to electronics and furniture. However, these are B2C platforms, suitable for ordinary consumers, if you want to do your own wholesale business. Let’s see the following 5 apps that can help you do product sourcing.

 

1. Alibaba

Alibaba is a Chinese wholesale website founded by Jack Ma. It is located in China and has a history of 22 years.

 

Alibaba has a large number of manufacturers and suppliers. Therefore, you can find different categories, such as clothing, electronics, machinery and beauty products.

 

2. AliExpress

AliExpress is an e-commerce APP under Alibaba Group. AliExpress has a reputation for low MOQ. But most of them are pre-made products, which means buyers cannot customize them.

The reason is simple. Most of the suppliers on this platform are middlemen. As a result, they prefer to sell only prefabricated products.

 

3. DHgate

DHgate is a perfect Chinese wholesale website and app for beginners. One of the largest leading B2B markets & my first recommendation for beginners.

 

A fast and easy wholesale shopping experience is the hallmark of DHgate.

Wholesale procurement is not an easy task. You need to put a group of proven sellers on the shortlist, talk to them, and then close the deal. These activities do take a lot of time. With DHgate, simply add the product to the shopping cart.

 

4. Made in China

 

Made in China is an app that connects Chinese suppliers and global buyers. It handles wholesale and B2B services.

 

Their products focus more on industrial and construction products. The product range on “made in China” is similar to that of Alibaba. However, made in China provides a detailed description of the products listed.

 

5. Global Sources

 

Global Sources is a Chinese wholesale app that positions itself as an one-stop platform to meet all your purchasing needs. Global Resources is not only an online market, but also a trade show facilitator and procurement service provider.

 

As an online market, it connects wholesalers and buyers. Just like CDH Investments, Alibaba and Express. And, as a facilitator of trade shows, it lists and helps register upcoming Chinese trade shows / trade fairs.

 

– Wholesale Market

 

There is also a very direct way of sourcing products to quickly see many of the product categories you want, which is to visit some well-known wholesale markets, such as China Yiwu Trade Mall or Vietnam International Trade City (VITC). This product sourcing method is suitable for three types of purchasing managers.

 

1. Want to know the future features and appearance trends of a certain category of products

2. Worry about choosing suppliers online.

3. For a large number of product categories and small quantities

 

We have compiled a list of various categories in China’s well-known wholesale markets.

 

 

– Trade shows

 

Trade shows are a great place to do product sourcing. There is numerous trade show around the world during the year. Trade show is a connection that can effectively get the suppliers and the buyers together. It’s a good way for startups to source products in China and build their own brands. 

 

It’s also a great way to meet new private label products to ease your difficulties when sourcing products in China and other countries.

 

This method of product sourcing also has its cons and pros.

 

Pros of trade shows:

1. Access to a host of different suppliers at once

2. Ability to see and feel the product in person

3. Novel and innovative products

4. Faster pace of supply deal negotiation

 

Cons of trade shows:

1. Extra travel and attendance costs

2. Intimidating process for first-timers

3. Many suppliers prefer to work with bigger brands

 

-Supplier websites

 

Supplier websites are a great place to source products from China. Most suppliers have an online catalog of their products. And usually all of their information can be found on their website. You can search the product you want, then find a series suppliers  and contact them directly on their websites. You can usually request a quote or price list directly from the supplier.

 

4.Five Steps to Successful Product Sourcing

Product sourcing can be a daunting task, especially if you’re a startup. But never fear! We’re here to help you every step of the way.

 

Here are five steps to successful product sourcing:

 

1. Contact any potential suppliers

The first step is to reach out to any potential suppliers that you’re interested in working with. Get in touch via email or phone, and be sure to ask any questions you might have about their products, services, and prices.

 

2. Ask for samples

Once you’ve narrowed down your list of potential reliable suppliers, it’s time to ask for samples of their products. This will help you get a better idea of the quality of their goods, and whether or not they’re a good fit for your needs. It’s an important way during product sourcing process.

 

3. Choose a supplier to trial-run an order

After you’ve received and reviewed your samples, it’s time to choose a supplier to trial-run an order with. This will help you gauge their turnaround time, customer service, and overall reliability.

 

4. Evaluate suppliers

After you’ve placed your trial order, it’s time to sit back and evaluate your chosen supplier. How did they do? Did they meet your expectations? Would you recommend them to others?

 

5. Keep other supplier options

Even if you’re happy with your chosen supplier, it’s always a good idea to keep other options open. You never know when you might need to make a switch, so it’s best to be prepared.

We hope these tips have been helpful! Product sourcing doesn’t have to be difficult or time-consuming. With a little know-how, you can find the perfect supplier for your needs in no time.

 

5.Five Tips for Product Sourcing

Product sourcing is one of the most important aspects of running a successful business. It can be the difference between a successful and a complete flop. Here are five tips to help you source the best products for your business:

 

1. Do your research

This may seem like an obvious one, but it’s important to do market research before you start sourcing products. You need to know who your target market is, what they want, and what they’re willing to pay. You also need to know what your competition is offering. This research will help you make informed decisions about the products you source.

 

2. Find a reputable supplier

Once you’ve done your research and you know what products you want to source, it’s time to find a reputable supplier. This is one of the most important steps in product sourcing. You need to find a supplier that you can trust to provide you with high-quality products at a fair price. Take your time to find a supplier that you’re comfortable with and that you feel confident about.

 

3. Negotiate prices

After you’ve found a reputable supplier, it’s time to negotiate prices. This is where your research will come in handy. You need to know what the going rate is for the products you want to source. Then you can start negotiating with your supplier. It’s important to remember that you don’t have to accept the first price you’re offered. Be prepared to needs to compare goods if you can’t get the price you want.

 

4. Get everything in writing

Once you’ve negotiated a price, it’s important to get everything in writing that is listed in the contract. This includes the price, the delivery date, and the terms and conditions. This will protect you if there are any problems with the product or the delivery.

 

5. Stay organized

Finally, it’s important to stay organized when you’re sourcing products. This includes keeping track of your orders, invoices, and delivery dates. This will help you stay on top of your business and avoid any problems.

 

Product sourcing is a vital part of running a successful business. By following these tips, you can be sure that you’re sourcing the best products for your business.

 

6.FAQ about Product Sourcing

 

Q1. What are the benefits of product sourcing?

Product sourcing can help you find the right products for your business at the right price. It can also help you build relationships with suppliers and manufacturers.

 

Q2. What are some common product sourcing methods?

There are a few common product sourcing methods, including:

·       Searching online directories

·       Attending trade shows

·       Recommended by a friend

 

Q3. What is sourcing for Amazon?

What is Amazon Product Sourcing? According to the book definition of Amazon product procurement, it is defined as the process of finding high-quality products to be sold on Amazon at a reasonable price from trusted and reputable suppliers.

 

Q4. What should I consider when sourcing products?

When sourcing products to sell, you should consider:

·       Your business needs

·       Your budget

·       Your target market

·       Your competition

 

7.Conclusion

In summary, sourcing products in China is an excellent means of obtaining high-quality items at lower prices. However, it is crucial to conduct thorough research, collaborate with partners, and follow this guideline for product procurement. Taking the time to carry out these tasks will ensure the avoidance of any issues, ultimately guaranteeing satisfaction with the final procured products, delivery timelines, and associated services.

 

💡 Contact us now and let Eason Electronic become your trusted partner in realizing your business vision.