When you see products listed in Amazon or eBay, most of them are imported from China. For an Amazon seller, there will be always gambling in sourcing from any place. But there is significantly more uncertainty while importing from china. This is because of many factors like communication, counterfeit or poor quality. However, the primary reason still most of the seller point towards chain because of lesser price. Also, one can get a large quantity of supply.
There is a lot of challenges need to face while importing from china. Although there is a trade war between China and the US, still many sellers prefer China. This is because of rising labour cost in the West. Here we discuss the risk involves while sourcing from China.
Importing complex products
Sourcing complex products are a high-risk game played by corporations or big firms and not recommended for small retailers. Proper communication and manufacturer visit is a must in this business. One most do market research before importing any products. Market research involves customer base, legal hurdles and product information. The product must be simple and this will eliminate the complexity. Complexity involves such as service, installation, electronic components, raw material used and so on. For example, if a product raw material is allergic to kids. Importing these products will get you in trouble. However, the same item is not banned from kids in other countries. Also, reading legal policies will help you deal with this kind of issues. If you are not aware of the products and respective legal policies properly, there are chances you might lose all the imported items to customs.
Sometimes complex products involve sourcing different items from different suppliers. This will create even more problem if are don’t know who is your manufacturer. Complex products involve assembly once you import the individual parts. If some of the items don’t match with the specification, one must seek stock liquidation.
Wrong products and supplier
Another big mistake generally made by new sellers is ordering the wrong products. Wrong products include fake items, faulty items etc. This will cost new traders a lot and they end up with a load of worthless items. Also, new sellers are manipulated by agents and supply poor quality goods. Therefore one must do the proper research while dealing with the supplier. Don’t fall for the trap of cheap price.
Private labelling errors
We strongly recommend new sellers to not to start Private Labelling. This requires a significant budget and experience in dealing with China suppliers. One must visit the factory and ensure quality and specification of the product. Inexperienced sellers who don’t make communication properly end up with products with errors. Errors might be unnoticeable to huge mistakes.
Supplier lack of experience in business
Dealing with inexperienced suppliers also a risk when sourcing from China. There are more than a hundred plus suppliers with the same items. So which choosing suppliers online one must deal with well-experienced sellers. Generally, good ratings with 1000+ reviews are great to start.
Quality issues
Poor quality items will destroy your seller account. This is a huge risk one must be aware of while sourcing china. To tackle this always order smaller quantity or sample before placing an order. For large order, one must visit suppliers or do business with known suppliers. Quality of products is directly related to the skills of labour and technology used. One can ask for a picture of a factory and look at the technology used to produce the items. In addition, the credibility of top management must be taken into account. Unskilled labours result in lack of quality of products.
