{"id":8945,"date":"2021-03-10T00:37:58","date_gmt":"2021-03-10T00:37:58","guid":{"rendered":"https:\/\/staginggembah.wpengine.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/"},"modified":"2024-11-05T10:04:47","modified_gmt":"2024-11-05T16:04:47","slug":"what-you-need-to-know-about-sourcing-products-from-china","status":"publish","type":"post","link":"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/","title":{"rendered":"What You Need to Know about Sourcing Products from China"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#Why_You_Should_Be_Sourcing_Products_from_China\" title=\"Why You Should Be Sourcing Products from China\">Why You Should Be Sourcing Products from China<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#What_Products_Are_From_China\" title=\"What Products Are From China?\">What Products Are From China?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#How_Do_You_Source_Products_from_China\" title=\"How Do You Source Products from China?\">How Do You Source Products from China?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#Related_Research_and_Product_Development_How_to_Research_and_Vet_a_Product_Opportunity\" title=\"Related: Research and Product Development: How to Research and Vet a Product Opportunity\">Related: Research and Product Development: How to Research and Vet a Product Opportunity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#Types_of_Product_Research\" title=\"Types of Product Research\">Types of Product Research<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#Related_How_Custom_Manufacturing_Products_Increases_Company_Valuation\" title=\"Related: How Custom Manufacturing Products Increases Company Valuation\">Related: How Custom Manufacturing Products Increases Company Valuation<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/#Finding_a_Chinese_Supplier\" title=\"Finding a Chinese Supplier\">Finding a Chinese Supplier<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_You_Should_Be_Sourcing_Products_from_China\"><\/span><span style=\"font-weight: 400;\">Why You Should Be Sourcing Products from China<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you are an eCommerce reseller, you know the end goal is to <\/span><a href=\"https:\/\/gembah.com\/\"><span style=\"font-weight: 400;\">find products you can sell<\/span><\/a><span style=\"font-weight: 400;\"> at a healthy margin to fuel your business. While many sellers like the idea of sourcing their products from American manufacturers, the U.S. still can\u2019t compete with China when it comes to the cost of goods. As far as price goes, sourcing products from China will win every time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China and many other countries can simply make products for less, helping online resellers expand their margins for greater profit. Their labor is less expensive, they have fewer regulations and oversight, and they have access to cheap raw materials. And as much as \u201cMade in America&#8221; matters, people still care about price.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/hbr.org\/2020\/04\/bringing-manufacturing-back-to-the-u-s-is-easier-said-than-done\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Harvard Business Review referenced<\/span><\/a><span style=\"font-weight: 400;\"> the conflict between buying more local versus buying a Chinese product. \u201cIf an N95 mask is sitting on a rack at Home Depot that is made in China looks equivalent to an adjacent higher-priced one made in the United States, consumers typically opt for the less-expensive one.\u201d This is especially true for products that buyers don\u2019t care about the brand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can take this example to Amazon, where there are no shortage of Chinese products, yet few are overtly advertised as so. What ends up happening is a user searches for a product and pages of options pop up. Besides free shipping, <\/span><a href=\"https:\/\/www.marketingcharts.com\/industries\/retail-and-e-commerce-82536\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Amazon shoppers consider price<\/span><\/a><span style=\"font-weight: 400;\"> more than any other variable, with 64% of all Amazon shoppers saying price is their top purchasing motivator. And when asked which of various factors would prompt them to purchase from another online or offline retailer rather than Amazon, 81% said price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a reseller, if you can\u2019t get your product prices down low enough to compete on your online platform of choice, you are likely going to lose to the guy or gal who can. Sourcing products from China gives you a fighting chance.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Products_Are_From_China\"><\/span><span style=\"font-weight: 400;\">What Products Are From China?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/oec.world\/en\/profile\/country\/chn\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">According to OEC<\/span><\/a><span style=\"font-weight: 400;\">, China was the number two economy in the world in 2019 in terms of GDP and the number one in total exports. China has manufacturing down to a science, able to quickly access parts and raw materials to keep production humming around the clock. Even U.S.-made products typically contain at least some Chinese components.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The top exports of China are broadcasting equipment, computers, integrated circuits, office machine parts, telephones, models and stuffed animals, and light fixtures. Not surprisingly, the U.S. is their number one customer, many of which are manufacturers that are sourcing products from China to build and sell their own products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is, of course, not a complete list of Chinese exports. Home decor and furniture, children\u2019s toys, pet supplies, clothing and fashion accessories, electronic gadgets, and kitchen supplies are among the most popular products to source from China, particularly for online resellers. They also happen to be among the most searched for on Amazon and other online platforms.<\/span><\/p>\n<div class=\"banner\">\r\n    <div class=\"title\">\r\n        <span class=\"light\">Launch Your Product Faster<br> with<\/span>\r\n        <span class=\"bold\">Gembah<\/span>\r\n    <\/div>\r\n    <div class=\"subtitle\">\r\n        <span>1000\u2019s of vetted factories, designers, and experts are a few clicks away!<\/span>\r\n    <\/div>\r\n    <a href=\"\/expert-help\/\" target=\"_blank\" class=\"cta-button\">Get Started Now<\/a>\r\n<\/div>\r\n<style>\r\n    .banner {\r\n        background-color: #0692FB;\r\n        background-image: radial-gradient(rgba(255, 255, 255, 0.07) 1.6px, transparent 1px);\r\n        background-size: 7px 7px;\r\n        color: #ffffff;\r\n        padding: 30px;\r\n        text-align: center;\r\n        font-family: Arial, sans-serif;\r\n        border-radius: 12px;\r\n        max-width: 540px;\r\n        margin: 20px auto 40px;\r\n        box-shadow: 0px 8px 16px rgba(0, 0, 0, 0.2);\r\n        display: inline-block;\r\n    }\r\n\r\n    .banner .title {\r\n        font-family: 'Poppins', sans-serif;\r\n        font-size: 28px;\r\n        margin: 5px 20px 0;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        line-height: 1.2;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    .banner .title .light {\r\n        font-weight: 400;\r\n    }\r\n\r\n    .banner .title .bold {\r\n        font-weight: 900;\r\n    }\r\n\r\n    .banner .subtitle {\r\n        font-family: 'Jost', sans-serif;\r\n        font-size: 18px;\r\n        font-weight: 400;\r\n        line-height: 1.25;\r\n        margin: 14px 60px 20px;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        word-spacing: 0.8px;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    \/* More specific selector with !important overrides *\/\r\n    .banner a.cta-button {\r\n        background-color: #fdbc52 !important;\r\n        color: #1e1e1e !important;\r\n        font-family: 'Jost', sans-serif !important;\r\n        font-size: 20px !important;\r\n        font-weight: 900 !important;\r\n        padding: 9px 19px !important;\r\n        border-radius: 6px !important;\r\n        margin: 15px 0 10px !important;\r\n        cursor: pointer !important;\r\n        text-decoration: none !important;\r\n        display: inline-block !important;\r\n        transition: background-color 0.3s ease !important;\r\n        box-shadow: 0px 6px 12px rgba(0, 0, 0, 0.3) !important;\r\n    }\r\n\r\n    .banner a.cta-button:hover {\r\n        background-color: #e6a946 !important;\r\n    }\r\n\r\n    @media (max-width: 600px) {\r\n        .banner {\r\n            max-width: 90%;\r\n            margin: 20px auto;\r\n        }\r\n\r\n        .banner .title {\r\n            font-size: 20px;\r\n            margin: 0px 0;\r\n        }\r\n\r\n        .banner .subtitle {\r\n            font-size: 16px;\r\n            font-weight: 500;\r\n            margin: 20px 20px 0;\r\n            margin-bottom: 30px;\r\n        }\r\n\r\n        .banner a.cta-button {\r\n            font-size: 16px !important;\r\n            padding: 10px !important;\r\n            width: 100% !important;\r\n        }\r\n    }\r\n<\/style>\r\n\n<h2><span class=\"ez-toc-section\" id=\"How_Do_You_Source_Products_from_China\"><\/span><span style=\"font-weight: 400;\">How Do You Source Products from China?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The first step in sourcing products from China is to do your research before you invest a single penny into purchasing products. Amazon, eBay, etsy, and other platforms have made it so easy to resell products, everyone it seems is putting their hat into the ring. Competition is fierce, with Chinese manufacturers often playing the game, along with Amazon. When they see an opportunity to sell lower and win a product category, they take it. And they win.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Research will help you identify untapped markets and how to reach an audience, products that have the best worst opportunities for you to make a play, how to price your product to beat your competition, and whether you can be profitable with that price. The goal is to find a \u201chole in the market,\u201d but beware. Your market reign may not last long. As soon as others see you are succeeding without much competition, you can be sure they\u2019ll be invading your territory at some point.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Related_Research_and_Product_Development_How_to_Research_and_Vet_a_Product_Opportunity\"><\/span><strong>Related: <a href=\"https:\/\/gembah.com\/blog\/how-to-research-and-vet-a-product-opportunity\/\">Research and Product Development: How to Research and Vet a Product Opportunity<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Types_of_Product_Research\"><\/span><span style=\"font-weight: 400;\">Types of Product Research<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">There is much that goes into product research, at least if you do it right, so you will need more than online skills and a few basic tools. For example, you\u2019ll want to look at Search Frequency Ratings (SFR) to determine how many people are looking for a particular product on a regular basis. You may think you found a fantastic product to sell, but if there aren\u2019t enough people looking for it, is it worth it to invest?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should also consider data on pricing distribution and pressure. This will help you determine what you can likely sell your product for and whether the margins will support a profit. Understanding how products are priced over time will also allow you to identify important trends. For example, if the price for a product keeps dropping over time, it could be telling you that too many people are vying for market domination. Each seller is lowering their prices to compete for buyers, leaving little room for you to make any money selling the same product. Move on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rankings and reviews matter, and they are correlated. Higher-rated products get better page positioning, but that doesn\u2019t mean you can\u2019t spot an opportunity on page three, for instance. Many products simply need refining to get a bump in ratings. You can win a product category by working with a manufacturer to make slight modifications that <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/services\/product-design\/\" data-wpil=\"url\"><span style=\"font-weight: 400;\">make a product more attractive<\/span><\/a><span style=\"font-weight: 400;\"> to the consumer. In doing so, you can build your own brand selling products you own and manage.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Related_How_Custom_Manufacturing_Products_Increases_Company_Valuation\"><\/span><strong>Related: <a href=\"https:\/\/gembah.com\/blog\/how-custom-manufacturing-products-increases-company-valuation\/\">How Custom Manufacturing Products Increases Company Valuation<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h2><span class=\"ez-toc-section\" id=\"Finding_a_Chinese_Supplier\"><\/span><span style=\"font-weight: 400;\">Finding a Chinese Supplier<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are many other metrics you will want to consider before you land on the right product to sell. Once you do, sourcing products from China will require you to find the manufacturers of that product (yes, there are likely more than one) and understand how factory pricing impacts your ability to turn a profit. You will need to negotiate a deal where you have assured inventory at a price that allows you to effectively resell the product for a big enough margin to justify your efforts and investment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep in mind that before the manufacturers give you a quote, they will want to know you can sell enough volume to make it worth their while. They are in it to make money as well. Make sure you have the cash flow to order enough inventory to keep the manufacturer on the hook. They will likely have other resellers knocking on the door, so if you want to stay competitive, you have to play the game.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before you order your inventory, however, you need to see and touch a sample product. This is a good time to compare manufacturers beyond price. If the product doesn\u2019t live up to your standards, move on. Chances are, if you don\u2019t think it\u2019s high enough quality, either will your customers. They\u2019ll quickly move on to a competitor, and you\u2019ll be stuck with inventory you can\u2019t give away.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dropshipping is an option to reduce your risk of holding too much inventory, but it comes with its own risks. For instance, without any stock, you are at the mercy of your supplier. If they can\u2019t get you the product your customer ordered quickly, you\u2019re the one who has to deal with customer service. If you are sourcing products from China, how quickly can you fulfill a customer order? And what happens if your Chinese supplier hikes their shipping rates after you\u2019ve promised your customer a set rate or free shipping? You have to choose between absorbing the loss or dealing with an angry customer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While Chinese products are relatively inexpensive, sourcing products from China is not as easy as some make it out to be. Work with a reputable product development company that has vetted Chinese suppliers and can guide you through a proven process. Want to learn more? <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/contact\/\" data-wpil=\"url\"><span style=\"font-weight: 400;\">Contact Gembah<\/span><\/a><span style=\"font-weight: 400;\"> to see how you can find the right product and supplier to make a meaningful profit.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why You Should Be Sourcing Products from China If you are an eCommerce reseller, you know the end goal is to find products you can sell at a healthy margin to fuel your business. While many sellers like the idea of sourcing their products from American manufacturers, the U.S. still can\u2019t compete with China when &#8230; <a title=\"What You Need to Know about Sourcing Products from China\" class=\"read-more\" href=\"https:\/\/gembah.com\/blog\/what-you-need-to-know-about-sourcing-products-from-china\/\" aria-label=\"More on What You Need to Know about Sourcing Products from China\">Read more<\/a><\/p>\n","protected":false},"author":14,"featured_media":7300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"topics":[19],"class_list":["post-8945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","topics-sourcing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.1 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What You Need to Know about Sourcing Products from China<\/title>\n<meta name=\"description\" content=\"Sourcing products from China seems simple enough, but it takes a lot more than basic research to limit your risk. 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