People say China is a sleeping giant, but it's wide awake. It's the elephant creeping up behind us. Only, it's so big we can scarcely see it moving. It's undeniable that China's export market has grow so rapidly that everyone started looking into sourcing from China for various reasons.
The quality, variety, prices and flexibility of various products that manufactured in China has implanted a strong root for the China's export market. However, it's not an easy task to source directly from China's manufacturers due to the following reasons:
1. Scam
Many overseas businesses start searching for a China's manufacturer via internet or directories. This is actually the beginning of a nightmare. There are thousands or even millions of scammers on the internet providing Fraudulant information which caused overseas buyers lost millions of dollars. With this being widely discussed over the press and internet, there are still a lot of buyers being scammed. Hence, it's very important to get the China's suppliers verified (either by yourself or an expert such as registered sourcing company, trading company etc)
2. Intellectual Property Stolen
The risk of intellectual property theft is very high in Asia especially China. A newly invented products has high chance of being copied and being released even before the inventor. If you want your newly invented product to be protected, you need not only get your invention patented but also need "CHINA'S" confidentiality contract to protect your rights in accordance to China's trading law. To do this, you need assistance from expert such as ABCSOURCES.COM
3. Marked up Price (Foreign Price vs Local Price)
China's suppliers understand that oversea buyers are not familiar with China's market. Hence, there are normally two types of quotes for their products - one is for local Chinese, another is for oversea buyers. As they also understand that their "FOREIGN" Price is still competitive compard to oversea's prices, the "FOREIGN" Prices are normally highly marked up. Many oversea buyers are still very happy with the "FOREIGN" Price but they have no idea they didn't actually save the full capacity.
4. Unmatched Quality
It's very common that the actual production of products vary from the sample showed to the buyers. Oversea buyers have no on site control over the whole production. This has caused millions of cases that the shipped goods are difference from the samples showed (but still within the quality range stated on the contract). To avoid this, you need proper guidance from the expert or even hiring someone to do on site inspection. This is the money you can't avoid as it can cause you lost even more.
5. Unfamiliar with Chinese Trading Laws
There are many complex laws and regulations in both China that govern the import process. Various products can't be export or need to be licensed. Suppliers in China will not tell you the whole picture and when you got your goods shipped, it might not be able to get pass the Custom.
No matter how careful you think you are, there are still smarter suppliers in China that could trick you without you even noticed. Keep the 5 points in mind and constantly seek for expert to help out if you are not 100% certain with something.
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