DIY Sourcing From China Part 2: Negotiations, Terms, Leverage, & Quality Standards [Podcast]

We originally discussed the types of suppliers you might use when sourcing from China, including the option to do your own sourcing!

In order to help importers who want to follow that route, we’re creating a series of episodes that explore how to source effectively from China and get a great result, with insight, tips, warnings, and best practices from Sofeast’s CEO Renaud Anjoran.

In part 1, we focused on the earliest sourcing stages: finding your potential suppliers, verifying them as being suitable, and creating backups just in case.

Now, here in part 2, we’re going to explore how to avoid being taken for a ride by unscrupulous suppliers, the terms you need to negotiate from the getgo, why it’s practical and smart to keep some leverage over suppliers, and how devising a clear quality standard will help you get exactly what you’re looking for from suppliers before production starts.


Listen here!

Listen: Sourcing from China (Part 2): Negotiating terms, leverage over suppliers, and describing your needs. 

Watch: Watch it on YouTube


Episode sections

  • 00:00 Introduction. 
  • 02:20 – The importance of preparation and looking experienced when negotiating.
  • 05:27 – Terms you need to negotiate:
    05:50 – The price of the goods
    07:02 – Lead time
    09:58 – Incoterms
    10:53 – IP protection
    12:11 – Transparency over the supply chain & access to the manufacturing site
    15:35 – The quality standards
    17:53 – Payment terms
  • 24:29 – How to keep leverage over suppliers? 
  • 28:09 – Payment tools that benefit importers. 
  • 35:36 – Keeping control over your tooling (injection molds). 
  • 38:20 – Paying by letter of credit. 
  • 40:49 – The quality standard and how to clarify what you need.
  • 49:13 – Wrapping up.


Related content…


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