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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 pat says at 23:12 et
Getting ready to ship next batch of 1500 units next week by sea :)
 
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 Elena76 says at 21:22 et
UPC? what's that code? better to buy from original or from resellers?
 
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 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.
 
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 freedom says at 21:41 et
Anyone knows on demand print for shopify in UK??
 
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 Lucy says at 21:41 et
Check https://apps.shopify.com/all-over-print and teemill.co.uk (it doesn't integrate with Shopify)
 
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 Vlad says at 21:41 et
Any good freight forwarder to help me ship?
 
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 jo says at 21:42 et
@Vlad Try flexport..Full-service air and ocean freight forwarder providing visibility and control over your entire supply chain through software..
 
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 victoria says at 23:07 et
Great stuff, thank you guys for the videos! I am launching soon next product and goal is to reach $450 profit per day.
 
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 Evan says at 23:08 et
Way to go victoria. Thank you for inspiration!
 
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Sallyann says at 14:22 et
Hi there,
On my own I have set up my Shopify website with my domain, I have Oberlo and have imported lots of products and listed them, however, i am really not sure that they are worded right in the SEO way and I have been trying social marketing but still have no sales, I've been doing this for several weeks now. so I have just discovered Sells Like Hotcakes and thought that you may be able to help me with the marketing, the conversions and eventually with Amazon FBA is this something that you can do or because I have done most of the set up myself do you think I should continue on my own? I really am struggling to get past this rut where I have done everything I should do and no sales. Please help?

thanks in desperation!
Sallyann
 
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 Mike says at 14:24 et
Hi Sallyann, it's hard to suggest anything blindly. I suggest that you post your website here http://sellslikehotcakes.co/critics.php in critics and we can all give suggestions to you!
 
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Angela says at 13:27 et
Mike

Thank you.
 
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Juan says at 03:38 et
Hi, I've been working on setting up my shopify store, I was just wondering how many items should i have to sell before i go live.
 
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 Mike says at 03:40 et
hi Juan. It depends a lot on your niche. There are stores with just 1 or 3 products. There are stores with thousands of products. If you sell a pill or something really unique then the less products the better. IF you sell more like everything store then the more the better.
 
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Juan says at 15:36 et
thanks for the feedback Mike, I will be posting the site for critique soon
 
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 Mike says at 15:38 et
yes please do so we can give more specific feedback!
 
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Ernesto says at 03:39 et
how much should i charge for international shipping for "free + shipping offers"? If a client buys a "free+shipping offer" directly from my site more than once - how much should i charge for every "free+shipping item" added?
 
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 Lane says at 03:41 et
It's hard to say without knowing your product, location or shipping costs how much you should charge. Best tip here is see what competitor is charging so you will get a rough idea. Maybe $19.95 for a Tshirt or $9.95 for a Mug

I don't see a need to limit the amount of "free+shipping item" as long as you are making profits and have good margins
 
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Ernesto says at 06:36 et
Thank you Lane!
 
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abigail says at 16:32 et
Ok, I've signed up for sells like hotcakes. I actually did the videos on Udemy course.
 
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 Mike says at 16:32 et
Welcome!
 
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 victoria says at 18:20 et
Great timing to start your Amazon and Shopify biz!! Cheers!
 
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 Alice says at 18:20 et
Have a great year and happy holidays people!!!
 
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Rodel says at 06:46 et
Could I use Alidropship plugin instead of shopify?
 
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 rick says at 06:46 et
of course you can