China Sourcing Risk-Free: Is It Possible?

China Sourcing Risk-Free: Is It Possible?

Every single action in our world entails risk. Traveling to a new, unknown destination, Investing in the stock market, or even trying a new brand of cereal each has its risk factor. However, starting a new business through China sourcing is a risky situation if you don’t know what you’re getting into. 

But sourcing from China can be risk-free. It’s possible. You just have to find the right way to do it. 

We’ve already discussed how to build a business by sourcing products from china, how to find a good Chinese manufacturer, and even give you tips on how to source efficiently and avoid fraud. Today, we’re going to discuss all of this, related to risk.

China Sourcing Risk-Free IS Possible

In short, yes, it’s possible! You just have to follow a couple of tips to ensure you’re on the right track. Let’s discuss a few ways in which you can achieve this. 

Register Your Trademark

Many don’t know this, but trademark registration is incredibly important when you’re sourcing from China. When you don’t protect your trademark, Chinese copycats can hijack your brand and your hard work. Any unscrupulous manufacturer or seller can register your brand in China before you. The main problem is that whoever first applies for the trademark application owns it, even if the registration is not completed! So if you start producing your goods before registering your brand on Chinese soil first, you will be competing against local manufacturers to be able to sell your own brand! You see where we’re going with this, right? In order to avoid the risk of getting your brand stolen and taken advantage of, you need to protect it and register it first. 

And although this might seem like something impossible, it’s not so hard. There are plenty of sourcing partners that can help you run a trademark search and protect your brand.

Get Samples Before Purchasing

“The website may have a picture of a brand name product displayed on a page for sale, but when a customer orders from them they receive a low-quality knockoff of the item they ordered.”
Global Trade Specialists

This may seem like an obvious tip, but trust us… it’s very often that we come across a client who didn’t ask for a sample before placing an order. The results can be catastrophic. If you don’t ask your manufacturer for a sample, you have no way of knowing if the products made are up to your standards, if they are functional, or even if they’re what you initially asked and paid for! 

And even when you do everything right and ask for samples, you might even receive broken or incorrect samples. Add to it the time it takes for a sample to be shipped from China to other destinations, and you could receive incorrect samples months after you’ve started working with your manufacturer, slowing down your entire process. 

To avoid this huge risk, we’ve created a sample concierge service where we will review your samples before they leave Chinese soil. We’ll ensure they meet your quality standards, expectations, and requirements.

Verify Your Suppliers

Making sure that your manufacturer is trustworthy is one of the best ways in which you can avoid risk when sourcing directly from China. Checking their credentials, request to see their audited accounts, reviewing their Value Added Tax (VAT) invoice, and asking for product samples are a few of the ways in which you can make sure that they’re not trying to wheedle you out of your money and time. We have a full article on how to find a good Chinese manufacturer. But we can also help you find and vet suppliers directly in China so you can make sure they're the right fit for your sourcing endeavors.

Get Professional Help

“If you’re having trouble identifying a supplier, a sourcing partner or agent can help you find manufacturers that are a good fit for your product. They can also aid in negotiations, not to mention bridging the gap between differing business cultures.”
Gary Huang, JungleScout

When in doubt, leave it to the professionals. Finding a sourcing agent is one of the best decisions you can make. A sourcing agent can help you every step of the way, from finding the right supplier to even reviewing your shipment before it embarks on its way to your doorstep. In summary, an agent takes off the stress when China sourcing. You’ll only expect results, which leaves you free to do more important things, like plan your marketing strategy and brand campaigns. 

Avoiding risk when China sourcing is possible. You just need to make sure that you’re finding trustworthy suppliers, reviewing your samples before placing any orders, and protecting your trademark with savage pride. But if this seems like too much to handle, GlobalTQM has come to the rescue. We can help you source a package in 30 days, review your products before they ship, visit and verify suppliers, and much more. Check out our services here or book a call with us today.

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