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Elksourcing：What Can a Reliable Sourcing Agent Offer You?

Apr 19, 2021 , by 露露

For many online sellers especially for new starters, direct sourcing from China is a daunting job, as there are lots of scammers online, they disguise themselves as good manufacturers, offer very attractive prices, but may disappear after getting your deposit. Also, there are many traps and hassles in the importing process.

So, it is recommended to using a reliable sourcing agent in China. What can they offer you? Below are some key areas.

1. Offer Competitive Prices

A reliable China Sourcing Agent is able to offer the most competitive prices to his client alongside good quality products. The sourcing agent has the capability to negotiate with suppliers for the lowest possible prices. They are able to offer competitive prices because they have a huge pool of suppliers, so is capable to source almost all products in their professional industry you may need at reasonable prices.

2. Offer Good Communication

Once you have selected your supplier and placed your order, you need to frequently communicate with the supplier about all details of the transaction, this is what a reliable China sourcing agent can do for you. They will keep checking the lead time and production progress and any manufacturing issues there might be.

An effective sourcing agent must be able to speak the language of suppliers to be able to do sound business. There is no room for miscommunication in this business. A slight miscommunication can mean loss of money.

3. Offer Knowledge of Chinese Business Culture.

A reliable China sourcing agent is able to effectively deal with Chinese suppliers if he understands how they conduct business. we should be aware of behaviors and beliefs and how suppliers conduct business transactions. Chinese business culture is very much different from the one is western world, many western people feel Chinese people often say “Yes” to their questions, but they are confused as the result may be opposite to their expectations. It is daunting for western people to directly communicate with Chinese businessman for complicated business projects.

4. Offer Daily Monitoring Chinese Suppliers

A reliable China sourcing agent has good negotiating skills and has enough time to monitor Chinese suppliers at a daily basis. Because of time zone difference and vast distance, this is very difficult for the western businessman to do so.

5. Offer Quality Control

You have various options for checking product quality of your first order. You can take the suppliers word for it that the product is as per the sample, plan another trip to China to see for yourself, or hire a reliable China sourcing agent to do this for you. The sourcing agent is professional in the industry, and experienced in quality inspections, so they can do online quality checks for the semi-finished products and finished products, along with checks to packaging, labeling, function and appearance, make sure the products you will receive are in conformance with product specifications and customers’ expectations.

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Elksourcing：Type of Quality Inspections in Supply Chain

Apr 19, 2021 , , by 露露

Quality inspection is an important part of the manufacturing process and have a place in a number of areas of the supply chain. The inspection of products is also appropriate in other areas of the supply chain such as inspections during the manufacturing process, inspection of the final finished product, and inspections while the items are stored in the warehouse.

1) Inspection of Samples

The quality inspection occurs so that a company can verify that the samples are within certainly prescribed tolerances in order for the mass products to be useful. For example, a company may purchase an aluminum part to be used in their manufacturing process, but before it can be used, it has to be inspected to see that the part is within the tolerances to be used in the process.

When a purchasing agreement is made with a vendor, it will define the characteristics of the product that are to be inspected and the tolerances that would be allowed. If the samples are received and found to have characteristics outside those agreed upon in the purchasing contract, then the company can warm the vendor to take corrective action, before mass production starts.

2) Inspections at the Vendor’s Facility

The quality inspection can also take place at the vendor’s facility. Some companies prefer to perform the inspection before the items are transported to their manufacturing plant. The inspections can incorporate more than inspections of the product, but also inspections of the production facility, equipment, documentation, manufacturing processes, and storage facilities.

These quality inspections are important when purchasing agreements are being negotiated. Some vendors may have ISO 9001:2000 certification which offers customers a greater sense of expected quality and may lessen the requirement of regular inspections.

3) Inspections on Production Line

When a manufacturing company creates finished goods, it cannot afford to wait until the items are coming from the end of the production line before they are inspected. Production issues need to be addressed early in the process in order to correct problems. This can reduce the loss of raw material and reduce the overall time that the production process is shut down. 

For example, in the manufacturer of consumer products, many inspections are performed so that components are tested as the final product is being assembled to ensure that the finished product will be fault free.

4) Inspection to Finished Products

When the finished products come off the production line, they should be inspected to ensure that they conform to the quality standards. The final inspection could include not only the finished products themselves, but the packaging used to ship them to the customer. If the packaging is damaged or not correctly labeled, then this could require the item to be reworked or scrapped.

5) Inspections in the Warehouse

Finished goods can be stored in the warehouse before they are sold. For some items, storage for a period of time can alter the characteristics of the product. For example, some products are susceptible to degradation by heat or cold.

Finished goods that are produced to be within certain chemical tolerances can be affected by environmental conditions so that some characteristics are no longer within the stipulated tolerances. Inspections in the warehouse can ensure that the finished goods are still able to be shipped to customers.

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Elksourcing：4 Ways to Find Reliable Suppliers in China

Apr 19, 2021 , by 露露

Many buyers are probably familiar with the stress that comes with finding reliable suppliers in China. Especially, when there are hundreds of suppliers claiming to have what you need. How do you know the suppliers you have chosen are reliable? In this article, I’d like to share you 4 main ways to do it.

1) B2B Sourcing Platforms

The biggest platforms are Alibaba, AliExpress, Made-In-China, and Global Sources. Keep in mind that your best prices and long-term relationships with suppliers will unlikely come from these sources. Sourcing platforms are directories, which consist of suppliers who pay fees to have their products displayed on the site.

There are thousands of suppliers and millions of individuals browsing them. If you do that math, you’ll realize that many suppliers will get hundreds of RFQs a day, unfortunately for them; more than half of the individuals submitting RFQs are just browsing, or low ballers who aren’t serious buyers. And unfortunately for some buyers, they are not taken seriously either. 

If you commit to finding your suppliers through a platform; stay patient and do a lot of digging on your end before expecting to receive a competitive price.

2) Referrals

A great way to find a trusted supplier, like in anything else, is word of mouth or through a referral. If you’re fortunate enough to already have connections in China or have a network of companies and individuals working with great suppliers and manufacturers, ask them to introduce you to some of these contacts. 

Admittedly, this isn’t the most time efficient method, but networking and building connections is always good idea, so it doesn’t hurt to try!

3) Trade Shows

Attending Trade Shows in China is a great way to find suppliers. Unlike online sourcing platforms, you can start building relationships right away. Guanxi, translated as relationships, is an essential part of successfully doing business in China. 

Trade shows give you the opportunity to shop around, meet suppliers face-to-face and decide what you like and don’t in the same day – saving you time from having to wait for responses online. 

However, there are some disadvantage to consider: the costs associated with traveling to China, and the time lost away from your other priorities. Especially a pricey expense if your trip is unsuccessful. 

4) China Sourcing Agent

The other method is working with a China sourcing agent, one that you can trust and have built relationships on your behalf. Whether you are located in North America, Europe, or even Asia, it helps to have a dedicated agent in China representing you. 

One of the biggest benefits working with a trusted sourcing agent in China is that they represent you (the buyer), not the supplier. It is the job of the sourcing agent to find you trusted suppliers and factories, negotiate terms and prices, as well as finding and avoiding common hidden costs on your behalf. 

Working with the right agent will save you both money and time; helping you avoid costly trips to China, protecting you from fraudulent businesses and scams, and find you reliable suppliers that are right for you.

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Elksourcing：Tips about Verifying a Chinese Supplier

Apr 19, 2021 , by 露露

In the industry of importing from China, it is easy to find many Chinese suppliers on Internet, such as B2B websites, however, it is uneasy to find a good one, one that meets all of our requirements. In the online showroom, the supplier looks perfect, but it may not be. In this article, I want to share some tips about verifying a Chinese supplier.

1). Network preliminary screening

We can Google the supplier’s name to see if there is any information on the Internet that is detrimental to the company. If so, there is no need to continue, try to find other suppliers. Even if it doesn’t have any negative news on the Internet, that doesn’t mean he’s trustworthy and reliable. It needs to be verified in other ways.

2). Entrust a third-party company

Many companies in China can do credit checks on suppliers and can entrust these companies to help you confirm whether the suppliers are trustworthy. You can also assign your other suppliers to do the work for you.

3). Ask from the supplier’s clients

It’s a very effective way when you can’t go to China for field inspection. Many clients are willing to recommend their good suppliers. You can ask your supplier for the contact information of one or two of its clients. You can call them personally to confirm whether the supplier is worthy of cooperation.

4). Ask for product samples

You can also ask the supplier for samples to check whether they meet your requirements. However, it is ideal to know that this method is only suitable for honest suppliers. This method determines whether the product they are selling meets your requirements and is not valid for fraudsters. You can’t guarantee that the goods they send you are of the same quality as the samples they send you.

5). Go to China, visit factories, do field research.

If you have the conditions, you can go to China and have a real experience of the supplier you want to cooperate with in the future. If you cannot do it, you may use a trustworthy sourcing company to do it on behalf of you.

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Elksourcing：Tips about Finding Reliable Suppliers

Apr 19, 2021 , by 露露

There are a number of factors contributed to the success of your business. Among them, the crucial part should be locating a reliable supplier for a product you have in mind. Either you want to import it or find it in a local market. No matter which you choose, you have to identify a reliable supplier, which should be the key to run a smooth business. But how will you find such a supplier?

1). Getting you prepared

You will have to develop a group of suppliers who can give you happy deals without any aversion. The most important things you must look for should be the price, quality, and speed.

Price: Finding suppliers with low price is a difficult task. There’s a chance of importing low-quality products. If you’re looking for a good customer response, then think very little about cheaper products. But, if you want to make a large purchase, then cheaper suppliers with good products can be found.

Quality: Stumbling into better products depends on your instincts. A little homework would be nice to know if the product of your choice can actually reach your standards. For instance, after finding a reliable supplier, give your product a trail in the market and see if customers are falling for it.

Speed: If you are thinking about importing on a small scale then importing from online sources like Wal-Mart, E-bay and Amazon.com is a better option. Since it will take a wholesale supplier at the same time to process a deal of a few dollars to a deal in thousands of dollars.

2). Categorize your supplier

Manufacturer: Approaching companies directly. Many retailers execute deals with sales representatives of a company. One of the advantages of this type of supplier is lower prices. Another advantage is that you will be able to lower the prices on your products and thus out pricing large chains of supplies. But if the manufacturer is from another country then freight charges may not worth it. Moreover, it also depends on the quantity. Importing from manufacturers in large quantity is a better option to lower the price on your products and differentiate yourself from your competitors.

Domestic Wholesaler: There are wholesalers and distributors who import foreign goods in great quantities and then operate at a domestic level. Their prices are comparatively higher but the good thing about them is: they can entertain small orders. Selecting a domestic supplier is a good option if you don’t have any familiarity with foreign sources. It saves your energy and time. You will not have to run quality checks on shipped items because they have already done it. But, you can always improvise. Start with a domestic wholesaler, and then continue to grow and execute deals with foreign wholesalers or manufacturers.

Craftsmen: If you’re looking for unique products, such as handmade rugs or cultural dresses, manufactured by craftsmen then it’s a unique idea. However, such products are hard to come by. But you can find such craftsmen in trade shows or through sourcing agents.

3). Searching for the right star to shoot

If you are not sure how to start, then perhaps some reading might help you. Go to your local library and ask the librarian to find publications relevant to your trade industry. You can also find trade publications on search engines like Google or Bing.

4). Assistant Web

If somehow you were unable to locate a supplier in publications and magazines, then perhaps try the internet. Enter keywords of a product along with word likes “suppliers” “manufacturers” or “wholesalers” in any major search engine; for example, write in Google search engine “Wireless headphones supplier”. The search engine will come up with a list of suppliers from different regions. You can select one from those and evaluate if the supplier is reliable enough.

5). Evaluation of supplier

After selection of a supplier from any of the sources mentioned above, you might consider the following key areas that can help you evaluate your supplier. If you selected a foreign supplier call for assistance from the embassy or consulate of your country to find out about the authenticity of the supplier. They must have something to assist you with.

6). Knowing the details

In addition, you can follow other means to further evaluate if your supplier is reliable. For instance:

a.    Survey other products, similar to the one you chose, of your supplier in the market.

b.    Keep in mind supplier freight policies. Have a look of them before you conclude a deal.

c.     Look for the company’s administrative and operational policies. Your supplier must be a well-reputed vendor.

7). Characteristics of a Reliable Supplier

Since we are discussing the characteristics of a reliable supplier, some of the detailed qualities you might look for in your supplier can be:

Established Suppliers: it’s normal that you will be looking for suppliers who have been in business for a good period of time. A supplier with a solid reputation with other customers is another good sign. Since, you will be able to assess the history of his company, troubles in delivery, customer responses and overall standing of the supplier in the market. However, this does not necessarily mean you have to exclude freshly started suppliers.

Location of the supplier: Finding out the location of a supplier you chose is very important for your business. Shipping goods from a foreign country will take a longer time than you can expect. Moreover, there are shipping charges too. If you’re looking for the fast delivery of goods, then the foreign supplier is maybe not the right choice. However, if you’re looking for a large-scale business, and you think that shipping from abroad will also cover the freight and can generate better revenue, then the foreign supplier is a good choice.

A Competent supplier: You’ll be looking for a supplier who can deliver the latest, unique and advanced products. They should offer you attractive financial deals, and service their goods in a professional way. You are their customer, and they should be able to go above and beyond for you.

8). Develop Supplier relationship to a higher level

Suppliers are much more than just help to your business. They can be your first-hand source to information, evaluating products, tracking competitors, and knowing new trends in the market. Once you have found a reliable supplier depending upon your business- you might not need to look for new suppliers.

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Elksourcing：Yes or No to Use Agents for Shipment?

Apr 19, 2021 by 露露

If you are an Amazon seller, you need to constantly ship products from China to Amazon FBA. Do you want to arrange by yourself, or to use agents? Here are a few key advantages you can avail if you choose to use agents in getting your products shipped from China to FBA:

1) Higher Consolidation

If you are using agents, they will make sure that your products leave China in a consolidated form. This will increase the safety of the products and the chances of them matching the standards set by Amazon.

2) Ensuring Inspection

If there are any specific changes being made to the packaging of your product to meet the Amazon standards, you will be called by the agents to inspect them thoroughly before they are shipped out of China. You can suggest them any changes you feel regarding any aspect of shipment and the agents will duly implement the same.

3) Privacy Regarding Strategies

If you are using agents, the sales strategies will only be discussed between you and them (if you wish to) and the Chinese suppliers will not be a part of discussion at all. This gives you more privacy as a seller.

4) Low Chances of Rejection

As agents double check that your products are packaged suitably and meet all the standards set by Amazon, there are very low chances of them being rejected by the FBA rules on any grounds.

Disadvantages of Using Agents for Shipment

Here are the major shortcomings you are likely to face if you choose to go with agents in order to ship your products from China to Amazon FBA:

1) Agent Charges

If you are choosing to use agents in shipping your products, a considerable amount of your money will be spent in paying them for the services they provide. It is therefore advisable to work out all the finances before you choose this route.

2) Chances of Delay

If your customer queries are filled with questions like, “why does Amazon take so long to ship?” there are higher chances for using agents. As the route your products will follow from the suppliers in China to the final customers get extended, there are chances the customers will get your products later as compared to you shipping the products directly.

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Elksourcing：What Can a QC Company Do for You?

Apr 19, 2021 , by 露露

When importers sourcing in China, it is very important to make sure the quality of your products, so, you may need quality inspection service from a third-party QC company.

The main role of a QC inspection is to spot, and report issues based on the standards agreed upon by the client and supplier, the QC inspector will thoroughly check chosen goods per sampling plan, conduct visual inspection, function check, on-site test, and confirm packaging and other details.

The QC inspector visit the factory and check the products according to the customer or importer’s criteria. sampling the products according to AQL standard, any issues found are documented on-site in a detailed report, which is then sent to the importer for review.

Based on the actual findings shown on inspection report, the importer can make a decision whether to ship the products. If serious problems are spotted, the importer can reject the lot and ask the manufacturer to rework the whole lot and arrange a re-inspection.

The QC inspection company acts as your eyes and ears in facility is what QC inspector excel at. They give you a snapshot of order quality and status. But a third-party QC company doesn’t have the same relationship you have with your supplier. If your goal is to fix issues with an order or factory after reviewed the inspection report, you need to be the one to directly address these with your supplier and jointly determine what action is needed the next.

You know the kind of products you and your customers expect. Chinese suppliers are more likely to take action to fulfill a request of their client than of the third-party QC company. 

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Elksourcing：Tips about Finding a Supplier in China

Apr 19, 2021 , by 露露

Suppose you come up with an idea of certain products which you have market channels, and you want to find a supplier in China because of the low product development cost and low production cost there. 

If you Google the product name, you will find tons of China suppliers. However, it is difficult to choose. Many people get frustrated because they have been communicating with suppliers in China for months, but fail to move forward. The reason, most likely, is that they did not find the suitable one at the beginning. To successfully find a suitable China supplier, you need a strategy. Below are some practical tips to find a suitable Chinese supplier for you.

1. Understand what you need. You need to first know what is available and have a way to categorize the information. For example, if you need to import products in a narrow range, you may choose a manufacturer other than a trading company. If you are a small business and need dedicated attention, you may want to develop a good relationship with a small or medium sized supplier.

2. Use search engines to search information related to your product name. The first 50 results would be the most relevant websites related to your products. You can also find your competitors’ information and develop a better sense of market segment and marketing channels.

3. Use popular business directory websites to obtain very structured information for Chinese suppliers. The directory websites are also good resource to obtain industrial knowledge.

4. Narrow down the list of suppliers to a manageable amount. At this stage, you may already know what your real needs are and what is available. Initiate contact with the suppliers you want to work with, and further develop relationships with them. Eventually, you will find the one. If you feel the process is complicated, you may use a professional sourcing agent to assist you.

Analyzing the types of suppliers will help you to understand where you are, what kind of results to expect, and what are the things you need to take care of in the mutual cooperation. You may want to have an experienced person help you to analyze the information. You may seek advice from Chinese professionals who understand the Chinese mentality, culture and business practices. 

5. Visit the Chinese supplier in person is the most reliable way to truly know its capabilities. You can check the factory organization, process flow, quality of products, assembly and packing lines, facility, workers’ training level and overall working conditions. These will give you an indication of how the company is managed. A face-to-face meeting with the supplier’s management team will also give you an idea of their experience and willingness to embark on your project. You will also be able to create a friendly relationship, which is crucial for your project.