Live from China: The Pros and Cons of working with Chinese Factories

 

If anything, my time in China has taught me that if we can strip ourselves from all forms of prejudice and view things strictly from a business perspective, we’ll see that China brings a lot to the table business-wise, especially when it comes to the e-commerce business. Like every other thing out there, working with China has its pros and cons. Let’s take a look at some of them.

The Pros

  1. Lower Manufacturing Costs

This has to be the primary reason why businesses are eager to work with Chinese factory rather than their domestic counterparts. Every good entrepreneur knows that lower cost of production always equals better sales and profits.

  1. Quick Delivery Time

When compared to the U.S, Chinese factories are faster and more efficient in their turnaround time. The usual complaint from factories elsewhere is that the domestic manufacturing capacity is limited and not as flexible as Chinese factories.

  1. Easy Customization Capabilities

The Chinese are quite proficient in this area, regardless of what you are manufacturing; most times you don’t have to reinvent the wheel. Your products can easily be modeled according to your specifications, and if you communicate your desires properly, you won’t have any issues.

The Cons

  1. Finding a good factory

Finding a good factory overseas for your business is no easy task and with China, this issues is actually compounded due to the fact that there is a variety to choose from. Making this decision can be quite confusing, but I’ve helped out with this issue in my previous post on finding a good supplier. In case you missed it you can take a look at it here.

  1. Communication Issues

The default language in china is Mandarin and not English. This single issue may lead to a number of other problems, with misunderstandings may have your products turning out differently from what you originally intended. Having said that, it would be good to know that communication transcends language. The Chinese are very specific people and they would take every word you say seriously. So, always bear this in mind when discussing deals.

  1. Product Quality Concerns

Generally, China has a bad reputation when it comes to delivering quality products, but take not that this isn’t necessarily the reality of the situation. It has been observed that in this regard, things tend to be riskier in the area of electronics compared to other niches like textiles for example.

Regardless of your factory’s location (whether it domestic or overseas), it would be wise to remain at the top of your game with regards to monitoring product quality. This aspect of dealing with factories is handled in our video course – FBA: Analyzing Samples. We’ll show you how to thoroughly analyze samples from factories step-by-step, why you should outsource product inspection and a lot of other INSIDER SECRETS! Check it out here.

When analyzing the pros and cons, you should bear in mind that some factors are more crucial than others, depending on your business and the products you’re involved with. From personal experience, it is great doing business with China, but having the foreknowledge of what you’re getting into is crucial in making better-informed decisions.

 

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Last Wall Comments

 
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 Sandra says at 22:59 et
Good morning, I'm Sandra from Spain.. I have been following your course for 3 weeks and must say SUPER WORK! VERY HELPFUL AND DETAILED even for tech newbie like me.. Keep up great work!
 
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 Wolf says at 21:13 et
What is estimates for air express and air freight?
 
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 Rob says at 21:13 et
Depends on the product and provider.. Usually express is around $6/kg and air freight $4 to 5.
Sea freight is much cheaper but slower.
 
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 emma says at 21:28 et
What are the ways to ship stuff from CHina to USA?
 
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Claudia says at 21:28 et
You can choose Express courier, Air freight, and Sea freight. Incoterms rules can be FOB, EXW, usually i suggest to choose FOB. So its not your duty to worry about exporting fees and china customs..
 
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 Aria says at 21:31 et
What shopify app allows you to quickly make branded Tshirts etc?
 
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 wing11 says at 21:31 et
@ARIA Try Teelaunch app, super easy to make tshirts, etc
 
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 max says at 21:42 et
What app to collect emails on shopify?
 
Claudia says at 21:42 et
We already discussed it Max... Fish Bowl app. it gives you an opp to offer great prize giveaways on your Shopify store and capture email addresses from your website visitors to turn those visitors into returning customers.
 
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 adam says at 23:03 et
Has anyone got their business insured?
 
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 Emili says at 23:03 et
Check with your supplier to see if they have product liability in placement for you first as a customer, as most do.
 
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 Emili says at 23:04 et
He means product liablity probably... If you have a professional account you have to have insurance. Under ATO all Pro accounts must have $1 mill liability insurance. Its pretty straight forward. Also If you sell $10k for 3 consecutive months on your "Individual account" you have to provide insurance. Check Amazon TOS!
 
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 little_tiger says at 23:04 et
He means product liablity probably... If you have a professional account you have to have insurance. Under ATO all Pro accounts must have $1 mill liability insurance. Its pretty straight forward. Also If you sell $10k for 3 consecutive months on your "Individual account" you have to provide insurance. Check Amazon TOS!
 
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 Ethan says at 23:18 et
Looking for product to sell... Selling mobile accessories is a good idea or not ?
 
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 Midas says at 23:19 et
Bad idea, totally crowded with big sellers with deep pockets, Too easy to copy any product, too much competition also
 
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Xuan says at 13:08 et
Hi I'm newbie here :)! 3 days I run camp ads fb but not effective
. I till not have first sale for me :(. I don't have direction right for me? How do you make the first sale?
 
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 Theo says at 13:09 et
hi Xuan, it depends on many factors. what is your store? what product you sell? what ads you run? You might want to submit your project to Critics here http://sellslikehotcakes.co/critics.php and everyone will help brainstorming it.
 
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Andres says at 10:01 et
Hello Im a fresh rookie Im a little confused on the Goal of 45,000.00 .....It reads...."Our goal is to make at least $10 per product per sale and at least make 10 sales per
day from each product, which means from five products, we are going to make
$45,000 at least per month plus your Shopify store profits and, of course, minus the
cost of sales, production, shipping and advertising. Our estimated profit is $45,000
per month. Well you can’t live with that but you would agree it’s a good start "

Is that goal only when you start with Amazon, or still good if you take the Shopify to start with...?
 
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 Mike says at 10:02 et
Welcome Andres. $10 per product per sale and 10 sales is a universal rule of thumb for any ecommerce store. 10-10 rule some people call it. It's same rule no matter if you start shopify or amazon or even better BOTH channels combined.
 
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 Diego says at 10:04 et
I agree, starting both is a way to go, you never know the future and which source will be more profitable for your product or niche! Good luck!
 
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 meni says at 05:04 et
Great tips, thx guys!
 
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Serenade says at 14:06 et
Hi All, I'm new here, Does teelaunch handle customer service? ?
 
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 Oleg says at 14:06 et
Regarding deliveries and fullfillments yes.
 
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 jo says at 16:30 et
They are very helpful, i use them too!
 
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 Mike says at 16:31 et
Here is a new video i added "I don’t have TIME! + surprising ending" to address the most common question I get "I don't have enough time!" "I don't have time to learn!" "I dont have time to watch 12 hours of videos!" I dont have time to research a product!" "I dont have time to find a supplier" I dont have time to open my own ecommerce store!"

http://sellslikehotcakes.co/blog/index.php/2017/04/17/i-dont-have-time/
 
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Alexander says at 04:45 et
Should I finish all the videos before I start building my E-commerce store?
 
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 Highlander says at 04:46 et
You can start building it alongside watching videos, but it's good also to finish all to have a FULL picture!
 
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Jaikishin says at 03:40 et
Hi guys need help to configure the theme like the videos how do I color backgroundto the main menu and put the menu on the side bar on the collections page ? Help
 
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 Evan says at 03:41 et
In shopify go to menu Online Store - > Themes -> click customize theme.
 
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Dimitrios says at 16:12 et
Hello,
I just started in this member's area. I am using AsinInspector for researching Amazon products and I compared its results with Best Seller Finder. I have noticed a huge difference in Estimated Monthly Sales. Best seller finder shows almost three or four times more sales. Can you explain why this is happening?
 
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 Mike says at 16:14 et
We'll check! probably different update time, as asin inspector is usually updating more often!