What to Look for in a Product Sourcing Company

You’ve done your homework. You have researched the market and you know there is a demand for the product you plan to sell. Now, one thing remains to complete your business plan: You need to decide how to get the product. Will you make it yourself? Will you buy it from a local manufacturer? Will you have it shipped from an offshore location?

Bear in mind that product sourcing, the process of getting your product made, packaged, and ready for selling, could be the most challenging part of getting your business up and running. Unless you know for sure that you can afford to create and package the product in-house, you will have to find a partner who will provide you with the product according to your specifications as regards quality, packaging, delivery schedule, and price.

Getting your product made, packaged, and ready for selling is one of the most challenging parts of establishing and growing your business. Flickr.com photo by // Manuel Garcia //

Finding the Right Sourcing Company
As mentioned earlier, you have the option of sourcing your products domestically or internationally. While it may seem cheaper to source from a local supplier to avoid shipping costs, you may want to look into the possibility of sourcing your products from countries like China. If you’ve taken the time to study the latest business trends (as you should have), then you’ll realize that China has recently emerged as the leading source of low-cost product development services.

Many businesses based in Western countries have attested to the fact that sourcing from China often costs much less than sourcing locally. Of course, one of the key components to success in sourcing your products from China is finding the right sourcing company to partner with. There are generally three things you need to look for in a sourcing agent:

• Familiarity with your industry and product
• Experience in sourcing/purchasing your product
• Export and import experience in China

The need to hire a sourcing company that is familiar with the product you plan to sell is obvious. After all, how can they provide you with the best product of its kind if they don’t even know the first thing about the product? Sure, they can learn as they go along, but that’s an unnecessary waste of your time and investment. But familiarity with the product isn’t enough. You should also choose a company with ample experience in sourcing and buying the product in question. This assures you that they already have a solid network of suppliers from whom they can get the best deals and products of excellent quality.

It’s important to make sure your sourcing agent is familiar with your product and has ample experience in sourcing and buying that product. Flickr.com photo by edkohler

Since you will be dealing (albeit indirectly) with suppliers from halfway across the globe, you need to understand that there are cultural differences to consider. A sourcing company such as Asian ProSource, which has years of experience operating in China, will already have a good relationship not just with China-based suppliers, but also with local government authorities. They are well-informed on export and import policies, so you can be assured that your transactions in the country will all be above-board.

And just because you’re hiring someone else to do the sourcing for you doesn’t mean you lose control over product quality. You can set up a quality assurance process where you need to verify components such as color, size, and overall quality before payment is made.