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China as a global supplier to the world | Episode 3: Methods of purchasing from China

Purchasing from China is beneficial to many suppliers. Purchasing specifically from a factory in China has its advantages as it is the most convenient method for the buyer. In the previous article we mentioned how different parts of China focuses on different product aspects.

In this article we will focus on different aspects of purchasing from China:

  • Buying directly from the factory

This is the most convenient method for buyers as the point of contact in only one. However, there are different issues that may arise. Since factories are more focused on products, they are less conversant on export procedures. This means that most of the factories are not professional exporters thereby having many complications. In addition to this due to the language barriers there may be many communication issues that come about, while in certain instances the pricing of the products from the factory directly maybe more expensive. Due to these issues, the buyer will need to evaluate all facets prior to proceeding to purchase directly through a factory.

  • Buying through a single agent

This method is more suitable when the buyer knows the agent personally. This is more relationship driven and trust plays a major role. Buying through a single agent is relatively cost effective as all needs will be handled by one contact in China. However, the risk is relatively high as there is no guarantee if something does go wrong and the single agent is not the owner of the product

  • Purchasing through a company

Purchasing companies are generally professional agencies. They are well reputed, and the risk involved in purchasing from China is generally low. However, the quality of the products cannot be guaranteed as it depends on what is being purchased by the buyer. Generally, as a norm – if the prices are relatively low, then the quality of the product will be low. This is not a problem that probes from the purchasing company.

  • Long term supplier or partner Company

This I yet again another trustworthy source when purchasing from China. However, it should be noted that these partners generally would have sufficient time searching for your requirements exactly. This alternative is perfect if the buyer has a narrow set of products to be delivered.

  • Site office

This is ideal for a Company that intends to purchase many products in bulk. This method usually costs high. However, the control of this is with the buyer.

  • Trading Company

This is usually a professional approach, and mor applicable if the product requirement is focused. Trading companies usually charge a set commission for the services provided.

With COVID, the dynamics of trade have changed drastically. This article will help you get a comprehensive understanding of how you could deal with China in the current situation. We hope this will be useful.

Thank you

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