Pros and Cons of Sourcing from China
813Businesses in the west have always been on the lookout for profitable product sourcing opportunities. Sourcing and global procurement used to be concepts that just big businesses conside...
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To test the market and limit the risks, for new projects, usually buyers will try to purchase a small QTY. However, Chinese suppliers will always require MOQ – usually it’s a QTY larger than importers are comfortable to start with.
So, how to get lower MOQ from Chinese suppliers?
The easiest way to get low MOQ is to buy the supplier’s existing design.
However, buyers taking this strategy will then face packaging as the key issue. There are three main choices:
1. Plain box: MOQ is low (around 100 pcs). The buyer uses a plain brown box at supplier’s same die cut, and put stickers with brand name, model, product description and barcodes on the box. Should be fine if products are sold online (Amazon, eBay, etc.), but unacceptable for retail.
2. Supplier’s non-branded packaging: MOQ usually is medium (around 500 pcs). Should be fine if products are sold online (Amazon, eBay, etc.) Sometimes it’s acceptable in retail, but many times it’s not acceptable as retail channel emphasizes more in brand recognitions and promotions.
3. Custom color box: MOQ is high (around 1,000 pcs). Consequently, the factory will set MOQ at 1,000 pcs.
Some factories, on the other hand, work with box suppliers that may do smaller runs but at a higher price. One company, for example, quoted $300 extra to accommodate the setup, ink injection, test run and other steps. Other suppliers will quote a higher per-box fee.
If the factory’s box supplier won’t do smaller runs, the buyer can find its own box factory, and have it print and deliver the boxes to the factory. If the buyer has lots of repeated business at the box factory, it is possible to get factory’s support to do small runs.
Then, factory will typically accept the smaller MOQ if boxes are provided by the buyer.
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