Scott Reid and I from Ecommerce Optimizers had a great chat about tips for mature brands sourcing from China. 

Key Takeaways:

• Direct Sourcing vs. Trade Companies: JK explains how working directly with factories, rather than trade companies, can save up to 40% on product costs while ensuring better quality control.

• Negotiation Tactics: Overcome the cultural mindset and learn how to effectively negotiate with Chinese factories to lower costs and improve terms.

• Return Policies: Setting up a return policy for defective products can significantly reduce costs. JK shares how to establish this with your factory.

• Streamlining Operations: By optimizing direct sourcing and transportation networks, brands can save up to 32% on landed costs and improve product turnaround times.

• Importance of Boots on the Ground: Having representatives in China to visit factories, negotiate, and ensure quality control is crucial for smooth operations and better terms.

• Financial Impact: JK breaks down the potential savings for a brand doing $1 million in revenue, showing how optimization can lead to significant cost reductions.

Give it a listen—I hope you’ll discover some useful information to boost your business. Episode link here: https://www.linkedin.com/feed/update/urn:li:activity:7212077696527273985/ 

Thanks again for having me on the show, Scott!

Stay Ahead of the Sourcing Curve

Become a sourcing super hero! Get the latest China sourcing news and tips—handcrafted and delivered to you by our team.

No spam, ever. Our monthly newsletter will share tips on negotiating, increasing quality, best ways to communicate with your suppliers, and many more insights and stories.

Subscribe Now to get “in the know” about what’s happening on the ground in China.