Sourcing From China

Product Sourcing: The Complete Guide for Retail & E-Commerce

2025-06-19 15:34:10

Want your retail business to be special? Good product sourcing can help you. For example, optimized product pages can appeal more to online shoppers. They can raise conversion rates by up to 200% and also increase the average order value by 31%.

There are many advantages to sourcing from China. You can enjoy China's strong manufacturing industry, low prices, perfect international logistics system, etc.

However, there are some problems, such as quality control, supplier finding, and language and cultural barriers, that you might face. But don't worry, let's solve those together.

What is Product Sourcing?

Product sourcing is the process of finding reliable suppliers and buying products to sell in your retail or e-commerce business. It involves identifying suppliers, negotiating terms, choosing shipping, etc.

Effective sourcing means more than just picking items; it's about selecting bestselling products your customers want, negotiating favorable terms, and ensuring timely delivery. Whether you're attending fairs, browsing online marketplaces, or networking within the industry, product sourcing is how you keep your shelves stocked and customers satisfied.

As the foundation of any retail operation, like e-commerce, product sourcing is crucial to finding products that drive sales and customer loyalty.

What is Product Sourcing

The Challenges of Sourcing Products From China

Sourcing from China gives you many choices and lower prices. But there are some challenges too.

Long Delivery Time

Sourcing from China often involves long lead times, especially when dealing with custom made products or during hot seasons. Although China has strong manufacturing and transportation capabilities, production, port congestion, or customs clearance can still further extend timelines. This is crucial to e-commerce businesses: long shipping times will affect your ability to meet customer expectations or seasonal demand.

Unstable Product Supply

Inconsistent availability of raw materials, shifting factory priorities, or sudden policy changes can cause supply disruptions. Many retailers find that products available one month may be out of stock the next. These changes make it difficult for retailers to find stable manufacturers and suppliers and plan inventory or maintain consistent product listings.

Poor Product Quality

One of the biggest challenges for both retailers and e-commerce sellers is quality control. Without strict quality control, products may not meet the expected standards in China. Common issues include defects, material substitutions, or changes in product specifications without notice. The bulk product you receive may be different from the sample. Poor quality not only damages your brand reputation but also leads to high return rates and customer complaints.

Middlemen Cheating

Many newcomers in China deal with factories disguised by intermediaries unknowingly. These middlemen may inflate prices, misrepresent capabilities, or disappear after receiving payment. This is the most difficult problem to overcome for newers and is also a problem that wholesale sourcing from China must solve.

Lack of Production Control

When working remotely with overseas suppliers, it's challenging to monitor the production process. Due to you cannot monitor at the factory in person, you may face issues in the production process. Without visibility, ensuring consistency and compliance becomes nearly impossible.

Are you intimidated by these challenges? That's okay, read the Step-by-Step Guide carefully, and I believe you can overcome these problems.

How to Source Products from China? Step-by-Step Guide

Step 1: Decide What to Sell

Product selection is the foundation of successful sourcing. Before you start sourcing, please define your product list and sourcing requirements clearly.

Firstly, conducting market research, use tools like Google Trends, Amazon Best Sellers, or TikTok product trend reports to identify what's selling well. Your products should combine hot and your niche, target customers, and selling platforms. Then, create a product sourcing list that includes product descriptions, specifications, estimated order quantity, target price, and compliance requirements. A clear sourcing list helps suppliers quote accurately and ensures your rights later in the process.

Step 2: Find a Supplier

Finding a reliable supplier is one of the most important steps in the entire China sourcing process for retail businesses and e-commerce. There are different types of suppliers in China, and choosing the right one depends on your business model. Here are the 5 main supply methods:

find a reliable supplier

1. Manufacturer Sourcing: How to Find a Factory

If you're developing a private label product or need custom manufacturing, sourcing directly from factories is your best option. You can search "manufacturers" on platforms like Alibaba, Global Sources, or Made-in-China.

Visiting China in person also allows you to connect with real factories and inspect product quality firsthand. You can find manufacturers at the Canton Fair or Yiwu International City. Working directly with manufacturers gives you better control over pricing, customization, and production schedules. But it also requires more negotiation and energy.

2. Wholesale Sourcing: How to Find Wholesale Suppliers

If your goal is to buy finished products in bulk and get faster delivery, working with wholesalers is a practical solution. Wholesale suppliers typically offer products that can be shipped immediately, helping you refill inventory to follow trends quickly.

You can visit China online platforms like DHgate, EJET Selection, or AliExpress to source thousands of suppliers that display products across every category. While the per-unit price may be slightly higher than factory, wholesalers offer convenience, variety, and lower upfront commitment.

3. E-Commerce Sourcing: For Dropshippers & Amazon Sellers

E-commerce businesses need fast product fulfillment, brand packaging, and specific marketplace requirements.

For a dropshipping business, you can look for suppliers that support integrations with platforms like Shopify and that can offer print on demand or private labeling services. Such suppliers can save you more time and cost.

For Amazon FBA sellers, the product must be able to meet Amazon's packaging, labeling, bundling, and prep center requirements. You can work with many Chinese suppliers that now specialize in working with Amazon sellers. They can help identify vendors that meet Amazon FBA and ensure your products arrive at Amazon warehouses in perfect condition.

4. DIY & Artisan Suppliers: For Niche and Handmade Products

Maybe your businesses sell handmade, eco-friendly, or highly unique products. In this case, it's best to connect with small-scale workshops or independent artisans. They are often located in regions like Quanzhou (crafts), Jingdezhen (ceramics), or Anji (bamboo products). These suppliers may have limited capacity but offer exclusivity, creative design, and uniqueness that help your brand stand out.

5. China Sourcing Agent: Your Local Partner in China

If you're new to sourcing and want to avoid scams, working with a China sourcing agent can be a smart move. A good agent helps you find qualified suppliers, verify their legitimacy, communicate in Chinese, negotiate pricing, request samples, inspect quality, and even manage logistics.

While agents charge a fee typically 3–10% of the whole order, the value they provide in risk reduction, time savings, and supplier access often outweighs the cost.

Step 3: Negotiate with Suppliers

Once you list your potential suppliers, begin negotiations. Negotiate politely but firmly and show that you need long term cooperation. China suppliers are open to low terms if they see long term potential.

Remind to request a detailed quotation and clarify payment methods (including product specs, MOQ, unit price, packaging, lead time, shipping terms, refund or replacement policies, etc).

If you're hiring a China sourcing agent, they can help you negotiate better terms and avoid miscommunication due to language or cultural differences.

Step 4: Request Samples

Requesting samples is a key point in product sourcing. Samples can truly reflect the quality of a product.

You'd better order samples from at least three suppliers to compare product quality, functionality, packaging, materials, and verify if they meet your expectations and match the product description.

For Amazon and other e-commerce sellers, this is also the time to evaluate if the product meets the platform's standards.

Tips: Some sourcing agents can consolidate and inspect multiple samples for you to save on shipping costs.

Step 5: Confirm the Contract

After choosing the best supplier on your list, formalize the cooperation with a written procurement agreement. This should clearly state product specifications, quantity, unit price, delivery schedule, quality standards, payment terms, packaging requirements, and penalties for delays or defects.

While small orders may not always involve legal contracts, it's still wise to confirm everything in writing. For large or custom orders, you must have a formal contract in both English and Chinese!

Step 6: Choose the Shipping Method

Air Freight vs. Sea Freight - Which is Best for Importing from China?

Sea freight is economical for bulk orders but takes longer (typically 2-6 weeks). Air freight delivery is faster but more expensive (about $3/kg).

If you're sourcing independently, you'll need to coordinate with freight forwarders, customs brokers, and possibly 3PL warehouses. If you work with a sourcing agent, they often handle logistics coordination and customs clearance for you, saving time, cost, and the headache of international paperwork.

Air Freight vs. Sea Freight

Step 7: Follow Up Your Orders

Continuous follow-up is essential. You need to check in with the supplier regularly, verify progress, and request photos or video updates. Ensure the supplier performs pre-shipment inspections and maintains quality throughout.

This may be cumbersome and troublesome. If you have a sourcing agent, they will typically help track the production schedule, conduct inspections, and ensure timely shipment to allow you to focus on your business while reducing risk.

How Can EJET Procurement Help with Product Sourcing?

With 20 + years of procurement experience, EJET Procurement makes product sourcing simple and stress-free. You get a partner who guides you step-by-step from finding the right products to building a strong brand. Let's break down how EJET can help you succeed.

Basic Product Sourcing Process

  • Market/Product Research: We provide customized market research and product solutions. We help you define your product requirements through what sells best and what your customers want.

  • Suppliers Screen: We research and screen suppliers for you. You do not have to worry about scams or low-quality factories. We check backgrounds and compare offers digitally, so you only see the best options.

  • Supplier Negotiation: Our team negotiates with suppliers on your behalf to secure competitive pricing, favorable terms, and optimized contract conditions, maximizing your cost-effectiveness.

  • Sampling and Order Follow-Up: We arrange samples so you can check quality before you source. From order placement to delivery, we provide continuous updates, proactively addressing any issues and ensuring that your orders are fulfilled on time and as expected.

  • Shipping Management: We manage global shipping, offering cost-effective solutions to get your products delivered on time. Whether it's domestic or international, we ensure your products are shipped via the best carriers for reliability and speed.

  • Supplier Management: We help maintain supplier relationships to ensure they meet your expectations for quality, reliability, and timely delivery while fostering long-term partnerships.

Product Branding

  • Branding and Customization: EJET helps you build a strong brand with clear, consistent messaging. We provide custom packaging, high-quality logo printing, and tailored marketing inserts to ensure your products reflect your brand identity and make a lasting impression on customers.

  • New Product Development: EJET works with you to develop new products. They help you gather customer feedback and use data to improve your ideas. Our Product development service helps you bring your ideas to life with expert design, prototyping, and sampling.

Ready to grow your business? Contact us for expert help and make your sourcing journey easier!

FAQ

Q1: How do I find reliable suppliers for my retail business?

A: You can find reliable suppliers through verified platforms or trade fairs in China.

Tips: Working with a trusted sourcing agent ensures quality and avoids scams.

Q2: How to optimize e-commerce store inventory management?

A: Use inventory management software to track your products in real time and try to forecast demand by looking at past sales and seasonal trends to avoid stockouts or overstocking.

Q3: Why is China Sourcing so popular?

A: China offers low prices, massive product selection, and efficient logistics. It's ideal for bulk sourcing, customization, and private label brands.

Q4: What is the Service Fee for a China Sourcing Agent?

A: Most agents charge 3%–10% of the order value based on service scope. This includes sourcing, negotiation, inspection, and shipping coordination.

Q5: How does a China sourcing agent work?

A: Lots of China sourcing agents handle supplier search, sample checks, production follow-up, and shipping. You save time, reduce risk, and get full support from start to finish.

 

Illustration source: Pexels