Author: 露露

How To Import From China

Elksourcing：4 Aspects to Look at Before You Import Products from China

Apr 10, 2021 by 露露

Are you looking to importing products from China? Before you proceed with an order and pay the bill, pls look at below 4 aspects, they will help you get into serious sourcing business.

1.Product specifications

Why do you need to figure out the product specifications?

1). Your potential suppliers will have to make an official quotation based on your required product details.

2). In China, there are many quality levels: basic quality, okay quality, good quality, excellent quality etc. You won’t like too much surprise especially on price and quality because of misunderstanding on product specifications.

3). The supplier might want to cut corners where the product requirement is “blurring”. If you don’t confirm with them as much detail as possible, they can be too lazy to mention OR they are more willingly to just let it go.

4). Most suppliers only have the initiative to make an offer if you know specifically what you need in detail. They tend to think you are a serious buyer only when you have specific order needs.

5). To provide specs of what you want to import from China can highly increase the efficiency of the entire import process, especially in the inquiry and offer round.

2. Packaging Specifications

Packaging can be discussed after the sample order in terms of different product categories. But keep in mind to get a basic picture with your supplier about whether the packing is included in the pricing and how the package will be like.

Primary packaging – first envelops your product, usually the smallest unit of distribution

Secondary packaging – the layer outside the primary packaging, can be used to avoid being stolen or group primary packages together

Tertiary packaging – used for bulk handling, warehouse storage and transportation, most commonly packed in pallets

There are many packaging categories in terms of materials, for example, Corrugated Boxes, White Boxes, Cardboard Cartons, Paper Bags and Sacks etc. Different product lines will use specific packaging material.

3. Compliance

How to deal with the product regulations, certificates, standards and compliance?

A. Where – the “go-to” options for compliance information

1). Testing labs (SGS, UL, Intertek etc.)

2). Customs Brokers

If you work with some customs broker for years, and build up a good relationship, you can try to ask and they will likely tell you for free.

B. What to confirm?

Which countries do you want to sell the products in?

USA, Canada, France, UK, Australia etc.

What information to get confirmed?

1) What tests need to be done for what purpose?

2) What is the cost for the various tests?

3) How long will it take to do the tests?

4) More information case by case.

4. Supplier Portraits

It’s necessary to draw your ideal supplier portraits because you might not stick to your standards for what type of suppliers to choose from, along with the long way where you are looking for your right Chinese supplier and might overlook certain important baselines.

Write it down at the very beginning so that you can leverage for the final supplier option and make sure the change (if any) is reasonable instead of being too excited about some too good to be true offers.

Final words

The groundwork is always tedious but it’s definitely worthwhile. It can avoid spending your time on suppliers that don’t well match your needs, meanwhile, you will build a good start on your importing project. It’s just like playing a stacking game. If you don’t stack right and well from the first layer, the blocks will fall and you will have to do it over again.

How To Import From China

Elksourcing：Important Sampling Process for Sourcing from China

Apr 10, 2021 , by 露露

When you have spent time to find and verify the good suppliers, and decided to actually start sourcing from China, pls do remember an important process: Sampling. You will need to request samples and manage the samples properly. In this article, I will share you some good practices.
1. Sample types

A. Prototype sample

After getting your design, before actually invest to cut moulds, it makes sense to make a prototype sample first. Usually, the sample is made by laser cutter, or by 3D printer.

B. Pre-production sample

Before starting mass production, it’s better to ask factory to make a few samples with actual moulds and machines. You can check the sample details, workmanship, specifications and much more. If the pre-production sample works well, you will be confident to approve mass production. In case it doesn’t meet some of your requirements, you may ask for adjustment to the moulds and remaking pre-production samples.

Pre-production sample is very important because it will be the standard for bulk production, especially if it’s a newly designed product, or if you are working with a new supplier.

C. Golden Sample

Golden sample is used for inspection reference. You can sign a good sample from pre-production samples you receive, and send to inspection company as reference for inspection.

When the inspection is going on, the golden sample will be used to check whether the bulk order products are made to the client’s expectations.

D. Testing Sample

Testing sample is normally for lab testing. It can be shipped to the lab or to you. The lab or your engineering department will test the sample for necessary safety, standard, compliance etc. Sometimes you may need to take several sets testing samples from the bulk cargo.

E. Marketing Sample

The marketing sample is used for taking photos and shooting videos and having copywriter creating marketing content. Then display vividly on your promotional material, posters, brochures, infographics, video, ads, official website or any other marketing channels.

F. Production Sample

When production starts, you can ask factory to send you a few samples to double check the quality, also, it is usually the good time to verify the packaging.
Production sample can help to avoid in time in case the vendor cuts corners. If it’s found earlier, instead of taking the unsatisfactory bulk products, you still have some time to demand the vendor to stop mass production and start to do necessary corrections.

2. Sample specifications

i). Product details

Have all product details written down on the sample order document. Make sure the vendor fully understands every detail of how you want the sample to be like.

ii). Sample price

Why do manufacturers charge sample cost (sometimes double the bulk price or even higher)?

Actual sampling cost is higher than product cost, the cost will cover raw material, labor cost, customization cost, etc. It takes extra time and effort to have workers create the sample separately.

In some cases, the supplier can’t tell whether you are a true importer or not, so, the vendor needs to get an incentive to build the sample for you, which would mostly be getting orders from you. If you don’t want to pay the sample cost, you do not look like a serious buyer, then the vendor will not be interested in spending time on you.

iii). Delivery Time

Keep in mind to confirm with the vendor about the sampling delivery time before placing your sample order. You don’t want to wait too long for the sample to come, especially when you need to have the sample done very soon for marketing purpose.

3. Shipping the samples

In most cases, samples are shipped by air. It can be shipped by the manufacturer’s freight forwarder or your own courier. Take a quick comparison between the vendor’s freight offer and your courier’s price.

4. Testing the samples

One of the core processes for getting a sample is to test it before you really get your products manufactured in China. You can send the sample to a lab (such as SGS) for compliance test, or show the sample to people around you or potential customers to see if the product will be marketable.

5. Managing the samples

1). Ask the vendor to label on the sample. Information can cover supplier company name, sample description, product specifications and so on.

2). Make a tracking record for samples. Update information like company name, product/label number, delivery date, waybill number, sample cost and shipping cost, etc.

3). Take photos (and videos when necessary) and collect necessary information.

4). Stock the samples properly by category or per your system so you can find them easily.

 

How To Import From China

Elksourcing：5 Ways to Improve Response Rate from China Suppliers

Apr 10, 2021 by 露露

It happens often that you send enquiries to the China suppliers you find online, but do not get any response after a few days, even a few weeks! Why do not the suppliers respond to your emails? Do not they want to do business and make money? It’s frustrating. In this article, let’s look at 5 ways that you can implement to improve the response rate.

1. Drafting detailed product requirements

An email with very limited information about what a buyer wants, is not taken too seriously, as it is a sign that the client is not invested in the process, i.e. hasn’t done his own research and hence the deal is not likely to close.

From my experience over the years, when we receive enquiries with very limited information we are almost certain those enquiries are not likely to result in business as the lead is simply not ready to import yet or are at a very early stage in the process.

So, making detailed product requirements can help you stand out in the supplier’s inbox, and make a big difference to your response rate. This tells the supplier that you understand the product and market well, hence are likely to be a serious importer.

2. Providing Order Details

Other than the product details, it is equally important to provide details about the “size” of the order. Every time you ask a supplier in China, for a quote, their first question would be, “what is your quantity”? If you do not provide this, they will ignore your enquiry, or sometimes quote based on MOQ.

Providing these details early helps ensure that there can be a match between you and the supplier because not every supplier would be right for your order quantity.

Other than the quantity, it also helps if you are upfront about your country of import, certification requirements & other important details like which incoterms do you want to be quoted for, i.e. FOB, CIF, etc.

3. Standing out as a hot prospect

Just like you are shortlisting suppliers, suppliers are shortlisting and qualifying leads too, so they can invest their limited human resources in chasing the best leads. So, it is important you come off as a hot prospect.

How do suppliers define a hot prospect? A hot prospect for a supplier would be someone:

1). Who is ready to buy from China “RIGHT NOW”

2). Has the capital to invest to at least meet their MOQ

3). Has great “repeat potential”

There are other factors but the above 3 are the most critical qualifying criteria. Because suppliers in most industries in China work with wafer-thin margins, “repeat-potential” is very important.

Other than approaching the supplier armed with product knowledge, you can appear as a “Hot Prospect” by:

1). Approaching as a business as opposed to an individual

2). Having a professional company website

3). Provide a company introduction. A couple of lines about your business and your previous China imports make a big difference, because new importer = low repeat potential.

4. Follow Up a Phone Call

This is where “culture difference” really comes to the fore. Just because you have sent an email to someone in China, does not mean they are obligated to reply. A phone call to let them know that you have sent them an email is often needed for them to take your email seriously.

This simple change alone in your approach to suppliers in China, can make a big difference in your response rate. Many westerners would argue that this is a sign that the supplier may be less than professional, while that may be true, this is a cultural difference, the faster you get to live with it, the easier to get to navigate the China landscape.

5. Visit China

Finally, if you are really not having luck getting enough responses from suppliers, or your product is truly unique, visiting China and meeting the supplier personally might be the best solution.

Conclusion

If you look at approaching suppliers like a “sales process”, you will find that a few tweaks in your approach can make massive differences to your response rate.

China Sourcing Agent

Elksourcing：What Can a Sourcing Specialist Contribute?

Apr 10, 2021 , by 露露

Why do many importers use sourcing specialists for their international procurement? Because they want to reduce costs, ensure quality, shorten sourcing lead time and mitigate risks. Most importers don’t have the in-house resources or skills to implement all these by themselves.

Good sourcing specialists can achieve a 20% or more reduction in overall cost. The sourcing specialist can also negotiate on your behalf, manage quality and ensure on-time delivery. So, what do a sourcing specialist do?

1. Choosing right place for your sourcing needs

Sourcing specialists can pre-qualify suppliers, develop the relationship for you and ensure that the products you require are provided in the right place at the right time for the right price. Some specialists have expertise in supplier chain management across borders.

2. Price negotiations

Negotiation on product price, packaging and transportation cost is one of the key roles of sourcing specialists. They provide clients with the lowest possible price based on long term relationships and volume buying power.

Souring specialist can utilize their experience to source directly from manufacturers in right areas, as local language speakers, they can handle negotiations better on behalf of buyers.

3. Sourcing suitable manufacturers

Selecting the most suitable manufacturer for your new product is not easy, you can use the sourcing specialists with a track record in locating and identifying reliable, transparent and capable factories in the best territories. You can focus yourself to marketing for the new products, and make more money at end.

4. Quality control

Good sourcing specialists monitor and ensure that all the factories that they work with meet all government regulations and your product requirements. They can visit factories frequently on behalf of buyers, to monitor incoming materials, semi-finished parts, finished products, and packaging, also witness container loading, to make sure you receive good quality products.

5. Value added services

Good sourcing specialists should be able to provide A to Z full service, including coordination of logistics and shipping, engineering improvements, new product development, and so on.

Conclusion

Regular communication between you, the client, and the sourcing specialists are crucial, try to find the one who have good English capability in both written and spoken, and who are fully aware of culture barriers. Besides of emails, you can do regular video conferences to discuss things thoroughly and make sure you are always on the same page.

How To Import From China

Elksourcing：What to Look to Verify Suppliers in China?

Apr 10, 2021 , by 露露

When it comes to importing from China, finding the right suppliers is critical. It determines whether it will be a good start of the entire procurement process or not.

After you have found out some candidate suppliers, you need to figure out which one is your right fit. There’s no one-size-fits-all supplier. That’s why you want to find a supplier that matches the portrait you draw in the groundwork for supplier evaluation.

So, what to look to verify suppliers in China?

1). Company background

Is the supplier legitimate?

Is the product compliant with importing country regulations?

Ask suppliers whether they can send you copies of these official documents like below:

Business license, Business registration, Certificates, Patents, and so on.

Check the company presence on the internet. Are there any reviews about this company online?

Can the company provide any references from their real clients?

2). Business model

Check the product range on their official website or other directories where you find them.

Do they display one niche product or multi-category products?

What products do they display in the eye appealing areas?

Is the business scope correspondent with what they are promoting?

3) . Supplier scale

Your desired supplier scale should match your business and order scale. Take a look at how they rank in different metrics.

Price level: Big scale supplier > medium scale supplier > small supplier

Quality stability: Big scale supplier > medium scale supplier > small supplier

Flexibility (design alternative, service in place): Small supplier > medium supplier > Big supplier

Lead time: Big supplier > small supplier > medium supplier

Bigger manufacturers have higher pricing because of the equipment and management etc. cost higher, for which reason they have more stable quality and fewer quality issues.

The flexibility for a big supplier is usually not good because they have a system in place. A big company have to follow the system and can’t change things easily and conveniently.

4). Is the supplier pro-active? 

How the potential suppliers are interacting with you can be seen as a signal for follow-ups.

Being pro-active before the order is placed doesn’t mean they will do it well in the entire process, but if they are not doing a good job at the first place, there’s little chance they will change after taking your money.

Are they responding what you are asking and what you care about?

Do they take it seriously to communicate with you?

5). Price, quality level, lead time

These are core factors you want to check whether the potential supplier can meet your baseline or not. Price can be the very one biggest factor that drives you to import from China. Good price is surely important but it is not the only factor. Try to look all aspects and judge based on their overall performance.

6). Are they professional?

The professionalism of product knowledge is a basis. Factory capability, product strength, R&D skills, market trends, and other knowledges are also important.

It is very difficult to find a perfect sales or supplier, but please pay attention to spot them and see whether they have good service traits. It will help a lot along the entire import process. The mindsets do matter.

7). Factory Visit

A face to face talk with the supplier in the factory plays a vital role. Apart from telling the good and bad of the supplier from virtual interactions by emails and calls, what the supplier performs in real life can give you a clearer picture, and help you better understand the actual situation.

If flying to China to visit the suppliers by yourself is time-consuming and not cost-effective, you can find a third-party sourcing company to help you with it. It can save you time and efforts.

China Sourcing Agent

Elksourcing：How to Choose Product Sourcing Companies?

Apr 10, 2021 , by 露露

Product sourcing companies are agents who facilitate relationships with suppliers. They specialize in importing goods from various regions of the world on your behalf. They locate the best sources at the most competitive prices to save your cost, at meantime, they contribute in quality control and communications.

1. How do product sourcing companies actually work?

Product sourcing companies source goods and, usually, store them in their warehouses to provide you with a responsive, reliable and a readily available service. They work with multiple wholesale suppliers and manufacturers aggregating purchasers’ needs into one service. Many products are sourced from low-cost countries in Asia, mostly China.

2. Who are the product sourcing companies?

They may be called trading companies, third party sourcing, importers, brokers or drop shippers and they only represent the purchaser, not the supplier. Services may include sourcing specified products at the best price to managing the whole import process and all possible services in between.

They make their profit through leveraging group spend, buying in bulk and selling for profit.

3. The advantages of using sourcing companies

Using product sourcing companies has the potential to save you costs and management time, and time is money. They can source your products where they get the best price and pass the cost savings, up to 50% directly to you. Some companies will also do new product research for you and deliver you samples for approval and competitive pricing.

Also, sourcing companies have QC inspectors who can visit factory frequently to inspect the products, monitor the production lead time, and feedback the first-hand status report to buyers.

4. Selecting the right product sourcing company

Many business owners don’t even know where to begin because it is complicated and time consuming to find a reputable sourcing company. There are many unreliable and fly-by-night operators in this sector, so, it’s important to only choose the verified sourcing companies.

You may visit business forums (such as UK Business Forums) to ask for other people’s recommendations, or do Google search. Remember to do due diligence and ask for references from the candidates you have found.

5. Reputation is the key

A company’s track record is a good indicator of the service you can expect. If they have been in business for more than 5 years and can provide references from satisfied customers, you can be reasonably confident that they are able to perform the services you need. Talk to the references by yourself so you will learn full details.

China Sourcing Agent

Elksourcing：For New Starters How to Source from China?

Apr 10, 2021 , by 露露

China is now an industry leader with its expertise in various products, including electrical appliances, electronics, textile, metal, plastic and consumer goods. However, for new starters, it is difficult to start. In this article, I’ll introduce some basic steps to follow.

1. Know Your Product

The first step is often the most difficult. You often don’t know where to start or who to talk to. Knowing exactly what type of product you are looking for is the first thing you need to figure out before anything else. Knowing the product will make it easier to narrow down potential suppliers and then later determine what qualifications the supplier should have. Having a clear photo ready to show suppliers is a necessity. And any additional specifications about the product would be ideal. Basically, the more information you have on your product, such as having a clear description of the material and function of the product, the easier it will be to find a qualified supplier. Making a list of questions to ask suppliers, along with a brief description of your company, will ensure leaving a meeting in good standing.

2. Search for Chinese Suppliers in the Right Places

Your best bet is to start by searching for your potential suppliers on B2B websites. At the moment, the top three websites for sourcing in China are Alibaba, Global Sources and Made-in-China. Using keywords to start your search is best to get the widest range of suppliers possible. Although you may need to change the key words a couple times to find exactly what you are looking for. Apart from just looking on websites, attending trade shows and using search engines are two effective options for finding suppliers.

3. Initial Contact with Chinese Suppliers

When you finally find the product, and have narrowed down some choice suppliers, your next step is to contact them. If you’re attending a trade show, you will likely be able to communicate with a representative directly in person – giving you the benefit of live feedback. Suppliers at a trade fair might also have product samples on-hand at their booth, which can offer practical insight as well.

When contacting a supplier which you’ve found online, reach out to them by email. Email the supplier by using the internal messaging system provided by the website you are using. Have a brief introduction of your company and what product you are looking to source. But most importantly, leave your email address and request for the supplier’s email address. The website may not have this information, so it is important to get it as early as possible. Follow up with the factory by email back and forth to verify their ability to communicate properly and efficiently. This will help you gauge their cooperation level and interest of doing business with your company.

4. Evaluate Your Chinese Suppliers

Get a feel for prospective suppliers’ attentiveness and communication. You might find it helpful to rate each supplier on how comfortable you would feel doing business with them. Judge them on their email and phone call communication, rather than only considering prices. Choosing a supplier based on price alone can prove to be costly in the end, by refusing a batch of worthless product. Some of the most important points to focus on are communication and the supplier’s management ability. A supplier that is slow or dodgy when responding to questions before an order is placed is far more likely to be unreliable once they’ve received your deposit for an order.

5. Further Investigation

Once you have narrowed your search to one or a few potential suppliers that you feel comfortable about, do NOT go ahead and place an order. Before any financial transaction or order takes place, perform an audit of the supplier or hire a qualified 3rd-party to verify the supplier on your behalf. This type of audit, sometimes known as a Supplier Review, is based on internationally-recognized ISO 9001 standards. A Supplier Review looks at various aspects of a supplier, such as production capacity, quality control and management to determine if this supplier is reputable and qualified for manufacturing your product. Find a verified China sourcing agent for help, if you feel difficult to do it.

Conclusion

Sourcing in China can be a daunting task when approaching it from another corner of the world. Remember these important steps to improve your chances of success:

1) Know what you are looking for in order to alleviate the process of finding an appropriate supplier.

2) Utilize B2B websites or attend trade shows to have the most access to viable candidates.

3) In order to establish a strong relationship with a future supplier, send a respectful email to introduce yourself and your company, rather than just requesting a price quote.

4) Evaluate your suppliers carefully and make sure you feel comfortable communicating with your supplier on a regular basis.

5) Carry out an audit to verify the supplier’s information and increase your chance of obtaining the best possible product from your order.

How To Import From China

Elksourcing：How CNY Impacts Your Products and What to Do?

Apr 10, 2021 , by 露露

Chinese New Year (CNY) is the most important nation holiday in China, during this period, hundreds of millions of people move across China in order to join their families for the holiday. But the congestion can make traveling very difficult, so it is not recommended to plan any type of trip during this time period.

How Can CNY Impact Your Products?

Chinese New Year affects manufacturing in a major way. The majority of the Chinese factory work force consists of migrant workers. And there are so many factories all over China that offer similar wages. It should come as no surprise, then, that some workers choose to return to work after the holiday, while some choose to stay at home and others choose to work in another factory or an entirely different city. It’s no exaggeration to say that all Chinese factories have difficulty getting their workers back after the holiday.

Chinese New Year affects manufacturing by forcing factories to rush to meet deadlines. Imagine you have a factory with 100 workers. After Chinese New Year rolls, around you’ll be lucky to retain 70 workers. What does this mean for your factory? This means you will have to hire and train new workers within a very short period of time or risk delaying orders. As a result, very few factories can deliver orders on-time with the same quality consistency during this period as compared to before Chinese New Year.

Now the question of quality over timeliness is raised. Of course, suppliers will make promises to meet certain quality standards and deadlines when you’re placing your order because they want to secure the business. But when a factory is faced with worker turnover as high as 30 percent after the holiday, the chances of a supplier following through on these promises will be slim to none. With a shortage of both time and trained workers, factory management often resorts to using inexperienced workers and rushing production. The predictable result is usually a dramatic drop in product quality. If you’re a buyer importing goods from China during this time, do you value product quality over receiving your order on-time? What can you do to make sure your order ships on-time and meets quality standards?

How to Avoid Delays and a Drop in Quality?

The next time Chinese New Year comes around, be sure to stock up your product inventory. By keeping some inventory in reserve, you will have a cushion in case your next order is delayed. Secondly, plan out your orders well after the holiday so your factory will have sufficient time to recruit and train more workers. Talk to your supplier about CNY and ask the factory manager how they plan to limit the negative impact of the holiday on production. Finally, carry out product inspection to verify the quality first-hand and before the order ships. This is especially important if you must receive orders close to CNY, as quality is more likely to slip around this time period.

Conclusion

CNY is a busy time for people in China. Delays are very common among travelers and factories. So, if you’re manufacturing goods in China during this time, be sure to minimize delays and maximize quality by:

1). Stocking up on inventory to avoid a shortage during CNY

2). Planning out your orders after the holiday and establishing deadlines with suppliers

3). Talking to your supplier about measures they plan to take to protect their production; and

4). Carrying out product inspection of your orders to make sure the products you will receive meet the quality standards you pay for.

And if you happen to be in China during CNY and get invited to someone’s hometown nearby, go have a look and experience how Chinese people celebrate their New Year. But remember to stay far away from highways during this time, or you’re sure to face some serious delays.