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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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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