Sourcing from China: A Podcast Episode on Key Strategies for Established E-Commerce Brands

Jun 27, 2024 | 0 comments

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: 

Thanks again for having me on the show, Scott!

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