How to Source Products from China (Full Guide)

Sourcing means identifying, evaluating, and managing Chinese suppliers to produce and deliver goods that meet a company’s quality, cost, and compliance goals. It’s not only about finding a factory, but also about managing conversations, risk, and quality across the entire process.

Step 1. Define Your Product Requirements

🎯 Goal: Clarify requirements to prevent misunderstandings.

❓ Challenges: Without a detailed Tech Pack, factories may interpret your ideas differently and produce based on their “common practice,” often missing your critical details.

✅ What to do:

• Develop a comprehensive Product Specification Sheet. This must list materials, dimensions, colors, functions, target price, required certifications, packaging details, and quality standards.
• Provide visual references or product photos to minimize miscommunication.

Step 2. Research and Shortlist Suppliers

🎯 Goal: Identify 2-3 qualified supplier candidates that match your needs.

❓ Challenges: Forged business licenses & reviews, inflated certifications, and trading companies posing as factories.

✅ What to do:

• Search through trusted platforms (Alibaba, Global Sources, 1688) and verify company profiles.
• Check registration details, business licenses, and years in operation.
• Request on-site photos or videos of the production floor, QC area, and warehouse.

Step 3. Request for Quotation (RFQ)

🎯 Goal: Get accurate quotes from suppliers and compare pricing to assess cost-effectiveness.

❓ Challenges: Different quotation structures (FOB, EXW, etc.), not including mold fees, etc., low “fishing price” at the beginning

✅ What to do:

• Send a detailed and uniform file that includes specifications, expected trade terms and volumes to all potential suppliers.
• Ask suppliers to list mold fees, packaging fees, material fees, or any other potential surcharges.
• Clarify quotation details, stating: the validity period of the price, payment methods, minimum order quantities, delivery date, and final total cost.

Step 4. Conduct a Factory Audit

🎯 Goal: Verify the chosen suppliers’ actual capabilities.

❓ Challenges: Poor quality systems, weak production management, or non-compliance with labor standards.

✅ What to do:

• Perform a factory audit via a third-party.
• Review production capacity, quality control procedures, equipment, and certifications.
• Identify gaps and require improvement in final negotiations.

Step 5. Request Samples and Validate Quality

🎯 Goal: Confirm that the supplier can meet product requirements and find the final candidates.

❓ Challenge: Sample quality not equal to mass production quality, design or idea leakage

✅ What to do:

• Pay for samples to ensure they are from the production line.
• Run lab or third-party tests to confirm function, materials and safety.
• Sign an NDA (Non-Disclosure Agreement) before sharing detailed drawings.
• Keep a sample approval form to serve as the reference for mass production.

Step 6. Negotiate Pricing and Terms

🎯 Goal: Finalize cooperation terms based on verified audit results and risk assessment.

❓ Challenges: Payment risk, hidden costs, vague contract clauses, or IP ownership disputes.

✅ What to do:

• Use the audit report as leverage to negotiate pricing and improvements.
• Avoid 100% upfront payments; use 30/70 payment terms or other secured methods
• Sign a comprehensive contract covering:
  1. Product specs and quantity
  2. Pricing and payment terms
  3. Delivery schedule and penalties for delays
  4. Quality acceptance criteria (Acceptable Quality Limit – AQL)
  5. IP rights and non-disclosure
  6. Dispute resolution clauses

Step 7. Mass Production and Quality Control

🎯 Goal: Ensure that bulk production follows approved samples and maintains consistent quality.

❓ Challenges: Using cheaper materials without notice, production delays, inconsistent workmanship.

✅ What to do:

• In-line inspection: On-site inspection when 20 to 30% of production is complete. Check the quality of raw materials, semi-finished products to catch defects early.
• Final inspection: When 80% is packed, conduct standard AQL sampling inspections before the goods leave the port.
• Require detailed QC reports with photos before shipment.
• Don’t rely solely on the supplier’s QC; hire a third-party inspection team.

Step 8. Arrange Shipping & Customs

🎯 Goal: Ship goods safely, manage payment, and avoid unexpected costs.

❓ Challenges: Logistics delays, incomplete documents, or unexpected surcharges.

✅ What to do:

• Choose suitable Incoterms (FOB, CIF, or DDP) based on your experience and risk control preference.
• Work with a reliable freight forwarder rather than leaving shipping fully to the factory.
• Prepare accurate documentation (Commercial Invoice, Packing List, CO, B/L).
• Understand hidden costs: inland freight, port charges, customs duties, VAT.
• Maintain control of payment release after goods pass final inspection.

Step 9. Maintain Communication & Build Partnerships

🎯 Goal: Turn a one-time supplier into a long-term strategic partner.

❓ Challenges: Time zone differences, Chinese holidays, lack of proactive updates, or miscommunication due to “face culture.”

✅ What to do:

• Create a production calendar noting production stages, your delivery date and China’s holidays (e.g., Chinese New Year, Golden Week).
• Set up a structured weekly progress and risk report system, requiring suppliers to flag any potential issues within 48 hours of discovery.
• Offer constructive feedback and recognize good performance.