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.

 

========

P.S. Upgrade to VIP Club and Unlock All The Videos and Tools. Instant Access and $1 Easy Trial

Last Wall Comments

 
9
Claudia says at 22:23 et
Welcome guys to Sells Like Hotcakes LIVE Q&A SESSION! I'd be glad to answer all your questions. Lets rock!
 
50.0000
 Jeff says at 21:15 et
Can i get negative feeback removed??
 
9
Claudia says at 21:16 et
yes, JEFF. please see video about feedback removal. It's pretty easy to prevent negative feedback with followup series.
 
50.0000
14
 Elena76 says at 21:22 et
UPC? what's that code? better to buy from original or from resellers?
 
50.0000
10
 Uncle Sam says at 21:23 et
UPS is Universal Product Code A barcode used for tracking trade items in stores. It usually has 12 numerical digits, which are uniquely assigned to each traded item (GS1 US). You can buy it on speedybarcodes and other sites.
 
50.0000
7
 mya says at 21:29 et
I am excited to start and ready to ship first product... How to print the labels??
 
50.0000
15
 little_tiger says at 21:29 et
Just buy a simple Laser printer and print on the sticky paper! EASY :)
 
50.0000
11
 USA says at 21:31 et
What is amazon/shopify connection?
 
50.0000
 lou says at 21:31 et
Maybe you mean this app? https://apps.shopify.com/amazon (Sell your products on Amazon using Shopify)
 
50.0000
6
 Spider Fuji says at 21:39 et
Would love to hear your suggestions.. How tto optimize the shopify site for speed?
 
50.0000
1
 Alice says at 21:39 et
USe the image compression app! Called IMAGE OPTIMIZED.
 
50.0000
4
 nicholas says at 23:20 et
Does anyone have a checklist of optimising your listings or a go to place for some tips?
 
50.0000
5
 Tyro Meg says at 23:20 et
Target the keywords that convert well for your product via PPC
 
50.0000
3
 Boris says at 23:21 et
Automatic or manual PPC better?
 
5
Claudia says at 23:21 et
@Boris, please watch the video about PPC advanced strategies.
 
50.0000
6
 Father says at 23:25 et
When running a promotion, what is the recommended discount for the sale to count as a verified review and feed the amz algorithm?
 
50.0000
7
 Emili says at 23:27 et
Amazon does not reveal exact cutoff data for "verified" vs "unverified". some people say it's 50% but it's a wild guess. It does not matter really. Don't overthink it Father.
 
50.0000
4
 Emili says at 23:27 et
I give minimum of 80% off. Keeps buyers happy and many reviews coming (WITHOUT asking even with new policies all ok).
 
5
Leslie says at 14:32 et
Thanks Diego. I did think of that. Easier to change niche than fight the crocodiles.
 
11
Claudia says at 05:59 et
Do you know number 1 reason most people fail in ecommerce?

It's because they never get themselves a chance, they never get started, always procrastinating and delaying the start.

I get questions and complains like "I don't have time for this", "How much time do I need?" Well if you can't even find time to learn how are you supposed to build your passive income?

The beautify of Amazon and Shopify business is that once it is set, you are set "for life" with a strong passive income.

The problem? Most people don't realize it and never start!

"I'm too busy working" (the old way)

So the hashtag for the day - TAKE ACTION!

Start implementing what you learned and you will become successful, I believe in you!
 
50.0000
6
 Alex says at 05:59 et
true words!
 
3
wade says at 05:00 et
I know that combating procrastination is an important common theme here – But I think maybe you guys have forgotten how intimidating and overwhelming some of this is. Yesterday for about 6 hours I was really going though some negative emotions – Thinking no way this can work and no one is going to responded to these products I am putting up – What took me out of this funk was 1) the fact that I am starting this business for very little money 2) the realization that doing something I least had a better shot and making it than I had doing NOTHING – Might sound simplistic but that’s the edgy thinking it took for me. I think what maybe the more experienced folks here have disregard is how over whelming it can be when you can latterly chose ANYTHING for you shopify niche and product line – that is awesome and daunting all at the same time….. God I hope I get the White label level soon …LOL One last thought fear of success and fear of failure seem to go hand in hand and feed off of one another…
 
50.0000
7
 adam says at 05:02 et
Wow well said Wade. I went through similar hardships when starting out... What if people don't buy my product? What if it's too late? But then again what do I have to lose? It's not like i am investing 100,000 into this.
 
50.0000
5
 Rob says at 05:03 et
Good Luck Wade! You are on the right track just by giving it a try. 99% of people fail because they never start and give it a chance.
 
50.0000
3
 rick says at 02:28 et
New store is in Critics http://sellslikehotcakes.co/wall.php come and post your feedback to help fellow seller
 
6
sol says at 05:00 et
I want to better my bullet points as i mentioned i have many best sellers and in house softwares that i built myself but i am lacking in describing my products so wwell
 
50.0000
5
 Amelia says at 05:00 et
try bulletpoints tools and keyword research!