Seven Common Mistakes Businesses Make When Sourcing from China

Sourcing products from China can provide excellent opportunities, but seemingly small mistakes can quickly become expensive ones. Here are seven of the most common problems we see — and how businesses can reduce the risks.

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1. Choosing a Supplier Based on Price Alone

The cheapest quotation isn't necessarily the cheapest option in the long run.

An unusually low price may involve different materials, reduced specifications, lower-quality components or compromises during production.

Compare suppliers on capability and quality as well as price.

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2. Not Confirming Who You're Actually Buying From

A professional-looking website doesn't necessarily mean you're dealing directly with a factory.

Before committing significant money, it's important to understand who the supplier is and whether they genuinely have the facilities and experience required to manufacture your product.

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3. Providing an Incomplete Specification

Never assume a manufacturer understands exactly what you mean.

Something that seems obvious to you may be interpreted differently by someone thousands of miles away.

Dimensions, materials, colours, tolerances, packaging, labelling and other important requirements should be documented clearly.

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4. Approving a Sample Without Recording It

A good sample is important, but you should also establish that the approved sample represents the required production standard.

Specifications and agreed changes should be recorded so there is a clear reference when finished products are inspected.

5. Failing to Monitor Production

Placing an order and waiting for the factory to announce that everything is finished can be risky.

Regular communication during production can identify delays, material substitutions and other potential issues earlier.

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6. Skipping the Final Inspection

Discovering a problem after a container has arrived is considerably more difficult than discovering it while the goods are still at the factory.

A pre-shipment inspection can check quantities, workmanship, appearance, packaging and other agreed requirements before the goods leave.

7. Forgetting About the Total Landed Cost

The factory price isn't the final cost of your product.

Depending on the circumstances, you may also need to consider:

  • Packaging

  • Inland transport

  • Freight

  • Insurance

  • Customs clearance

  • Import duties

  • Taxes

  • Storage and final delivery

Understanding these costs before ordering helps determine whether a product is genuinely commercially viable.

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Good Sourcing Is About Managing Risk

International sourcing doesn't have to be complicated, but it does need to be managed properly.

East West Sourcing works with businesses throughout the process, providing practical support on the ground in China and a direct point of contact closer to home.

If you're considering sourcing a product from China, talk to us before placing your order.

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