Answer to a reader's question- Part 3

This time we are going to talk about things you should be careful of when sourcing in China.

Lets face it, sourcing in a foreign country poses many more potential problems than doing it domestically. However, the more difficulties you can overcome, the better it pays off.

When you communicate with a potential supplier, here is what you want to find out.
- Price
- MOQ (minimum order quantity - since most non-US companies have never heard of dropshipping, thus most probably would not provide that option)
- Payment terms
- Shipping time (typically 15-60 days, depends on the product)

Because we are talking about dealing with businesses in another country here, we got to be extra cautious. While most companies that you will find on those platforms I provided you last time are legitimate, some might not be. Therefore, it is highly recommended that you get 2 trade references (of a business in your country) from them before committing to the partnership.

Payment terms is another thing to be careful of. Most Chinese exporters would ask you to pay in advance. Use your judgement here, there are no absolute answers. Look ar the trade references and contact them to see it is trust worthy, if you are still unsure or looking at a large quantity, you might want to 1)set up an escrow 2)go visit the business in China.

Yes, visiting China seems a little much at the beginning, but that is how people usually do it. If you decide to do that, schedule several visits at once so you can check out more than one place.

I will elaborate this part a little more next time as sourcing in China is s quite difficult yet rewarding process.