Correct Purchasing Strategy Helps Cost Saving

POSTED ON April 10, 2021

Today, China has gradually become one of the world’s biggest economic players. With respect to her rapid and innovative development particularly in the manufacturing industry, China has risen to become arguably the world’s second-biggest economy. Popularly referred to as the “world factory”, China has turned out to be one the exceptionally well-known sourcing destination for many startups and also established businesses. if properly applied Correct Purchasing Strategy helps a lot on cost saving.

Over the years, importing from China has proved to be beneficial to businesses, especially e-commerce. The many advantages include China’s continual development of real and tangible products that are easy to sell. Also, products from China are very easy to import into America coupled with the fact that you can easily make a lot of money with high-profit margins if all logistics are properly put in place.

For a successful business to thrive, it is expected that you should have your financial plan for all the costs of your business ranging from your sample cost to your shipping, product cost, and so forth. To effectively run your business, there are many ways on how to achieve the goal of cost saving through correct purchasing strategy and it is vital for you to put these factors into consideration on the off chance that you are running the logistics by yourself.

One of the most essential variables with international sourcing is how to save costs. Opting for a lower price for the same product makes you save cost and shipping cost is also that you can considerably reduce with savvy activity. It should also be noted that at times, the cost of shipping might even be higher than the cost of your product. Whether your business is a startup or an established company, the more your business is dependent on the movement of goods, the more your business will profit by chopping down the shipping costs. Regardless of where you are new to importing from China or a pro, it is basic that you investigate and search for the best methods to help save costs for your business. Every dollar saved is an equivalent in the improvement in your financial management and as such implies that your customers will receive reliable and cost-effective products.

How can I save costs on importing from China? This must be the main thought in your mind right now. Try not to worry, sit back, and relax as we will explain in details on the best importation practices and strategies to help you save costs.

Correct Purchasing Strategy: Planning Ahead

This is the easiest and most cost-effective sourcing captain strategy. Last minute search for product and shipping are always expensive and this to a large extent is a common issue among importers especially the first time importers. This is common among most new businesses because there is always an excitement from new entrepreneurs to make things move very fast. Unfortunately, this can regularly be wrong business practices because on the off chance that you require an express delivery of a product, the odds that you will be overcharged is very high.

Proper planning prevents your importation from disaster as urgency usually results in importing products not being explicit enough, lax quality control methods, factories skipping the right procedures to reduce the production time, poor packaging of the products and additionally missing out on great suppliers who may have quality products but are not super fast with delivery because of quality control methods and/or many customers.

Every one of these issues can result in quality problems and the loss associated with these quality problems are most likely more noteworthy than the time saving achieved by trying to speed up the importation process. Also, by planning ahead you do not only avoid the extra charges associated with an express delivery of products, you can as well benefit some nice discounts and this gives you the opportunity to increase storage if required and also enough time to search for the best carrier to reduce shipping cost.

Another noteworthy issue seen among individuals is negotiating with the supplier for a short delivery period and if the supplier can’t, they opt for a supplier who can promise them a shorter delivery time. While this might seem to save time, most times it is usually against the industry standards as the factory and quality control procedures may not be strictly adhered to leading to quality problems.

For the most part, proper planning helps you make a comprehensive process decomposition of the industry and products. Make sure to effectively calculate the cost through the commonly used cost accounting methods. Establish a model to avoid the false high price of suppliers by combining the model with the factory inquiry.

For a successful importation and to effectively reduce costs, make sure you carefully map out your plans ahead to prevent quality problems associated with urgency.

Purchasing Directly from the Right factory

After having a comprehensive knowledge about the industry and products, it is very important to find the right products. As the largest manufacturing country in the world, China has a vast territory. Every industry in China can basically find three or more products. It will directly save a lot of costs to purchase from the right place of origin and the right factory.

Once you can verify and identify a good factory, you can purchase your products directly from the suppliers or from appropriate procurement agents. Purchasing your products directly from your suppliers might seem to save you money if everything goes easily but it may leave you prone to being defrauded or not getting a refund if the products end up being of low quality.

Another important issue that may arise with purchasing directly from suppliers is regarding the type of payment. A more secure payment option includes paying through a bank letter or maybe through a reputable escrow. Unfortunately, other high-risk payment options are mostly used and this includes wire transfers and credit card payments. These payment options are of high risk because they do not provide easy platforms for refunds if the products are of poor quality or when scam and other legally binding issues arise.

Right Procurement Negotiation

Procurement negotiation is part art and part science. Procurement negotiation is known as the acquisition of the right products and goods a the best possible costs in the market aimed at meeting the purchaser’s need taking into consideration factory quality control methods.

Purchasing negotiations with the sellers is very complex but when equipped with the right strategies, it will help save you from losing money and agreeing to bad deals. Time is a big resource and if properly maximized and taken advantage of, it prevents you from missing out or being too late to make a big impact that is beneficial to your business.

It is also very important to carry out procurement negotiations and express purchasing intention at the right time. During the busy period of mass production, factories can purchase raw materials in batches to achieve better cost advantage of material purchasing. At the same time, factories also need basic order quantity to maintain the operation of factories in idle time. At this time, the price of factory orders will also have certain preferences, so they can choose the right combination. Proper preparation skills and planning time for purchasing can save costs to a large extent.

Sourcing Procurement Agents

If you want to reduce the risk associated with importing from China, you can look for a sourcing procurement agent who will help you through the entire process from start to finish.  A procurement agent will make it hassle-free to identify the manufacturing location, verification of suppliers, background review, price negotiation, quality control management, product maintenance, logistics arrangement, and other importation-related issues.

To effectively and safely save costs on purchasing your products from China, it is very essential to use the right negotiation strategies. Many foreign buyers do not know and understand the situation and operation of China’s industry and market. However, as a procurement agent, we are very clear about the needs of our customers and the situation of the supply side. We can really know each other and do a good job of appropriate negotiation strategies to implement our procurement needs.

Using sourcing captain value-creating strategies, best practice processes, appropriate planning and preparation skills, we will help you save costs and time on purchasing making you achieve mind-blowing deals and outstanding offers.


China’s industry and business culture are a little bit different from that in other countries. Therefore, it is vital you need the right aspects and strategizing to make your sourcing experience a memorable one with the correct purchasing strategy.

Saving time and costs of purchasing from China is very easy with us. Simply reach out to us and tell us the product you need. After undergoing an in-depth market and industry research, we will help you get the best manufacturer with cost-effective prices in China. You don’t need to have any experience or alter your daily schedule, we will help you handle all making it stress-free.

Reach out today, to avoid potential importation risks today. the correct purchasing strategy is really important.