How to Choose the Right Sourcing Company in China

Finding a low-cost manufacturer or supplier does not have to be challenging when you consider those in China. The country itself is reputable for its low production costs, making it an easy choice among businesses looking to cut costs and deliver affordable goods to their customers. That said, issues like mixed business practices and language barriers could be pitfalls for most international clients. Moreover, there is a wide selection of suppliers and products. In that case, China sourcing companies can help.

Sourcing companies in China are third-parties that can help you find and choose the best suppliers that can meet your requirements and budget. The suppliers have sourcing agents who are familiar with the customs and business practices in China. Also, they speak the local languages and dialects, too.

The next challenge is choosing a good sourcing company in China, especially if it is your first time doing so. Here are some tips to help you make an informed choice:

Determine and verify their location

As you look up China sourcing companies, take the time to identify their location, as they could be a foreign company which is located in China, or native Chinese companies. It may be better to find a foreign company, so you can be more confident in their capabilities, especially if they speak your language. Just make sure their operations are legal and authorized to operate in China.

Verify the sourcing agent

Once you have decided on a China-based foreign sourcing company, determine their credentials and the quality of their staff. Check how long they have been in business in the country and ensure they have a proven track record of serving as sourcing agents to discerning international companies. When in doubt, ask for resources from the company.

Go over references and reviews

Look for recommendations from other businesses or at least check if the China sourcing companies are highly recommended by others. Take your time to interview the references and find out how long they have been contracting the agent. Make sure they are highly satisfied with the service of the sourcing agents they are working with.

Know their experience

Western and Chinese businesses operate differently in terms of their mindset, customs, and culture. So, make sure that you are considering China sourcing companies with extensive experience in the country. That should give them more edge in terms of the size of their network and contacts, which may be essential to your business.

Ensure quality control

Product quality must be verified when sourcing goods from another country. So, ask the sourcing agent about their measures for quality control, and emphasize your refusal to accept any sub-standard quality goods.

Look for essential documentation

Reputable China sourcing companies must be able to provide official and authentic documentation describing their process for sourcing and shipping. They should also provide the Bill of Lading, a packing list, Certificate of Origin, and others. Make sure the paperwork is presented in your native tongue and it is easy to understand. That should give you an idea on the sourcing company’s capability.