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5 Outsourcing Mistakes You Need to Avoid

Starting a business on the right footing requires performing much due diligence; failure to do so could result in the total failure of the business. Doing this due diligence requires an even higher standard if you are planning on outsourcing parts of your product abroad. This article lists the five most common mistakes that people make while outsourcing products from abroad.

Weak Research

One of the most common mistakes startup companies make while sourcing products abroad, especially with China sourcing companies, is that they fail to do adequate research about the companies before dealing with them. This, in turn, can cause some to lose a lot of their capital to fraudsters. Some say it is part of the risk of business, but the truth remains that you can lessen the possibility of some of these risks by taking the proper steps:


  • Checking reviews about the company
  • Going through the supplier’s website
  • Asking for a copy of the supplier’s business license
  • Calling the supplier by phone
  • Checking whether the supplier’s business is duly registered with local authorities
  • Employing a sourcing expert to investigate for you


No Business Strategy

You need to have a business strategy to succeed and consider some factors before sourcing for your business from abroad. For example, if you are looking to have a sourcing partner in China, you have to do all of the following:


  • Identify a sourcing supplier in China.
  • Know the capacity of the company and how often they make deliveries to your country.
  • Don’t just buy because the products are cheap. Be sure the China sourcing company only deals in products that meet your quality standards.
  • Compare suppliers to know which company offers you the best price for the best goods.
  • Make sure you confirm that the company has an efficient customer care or support team to listen to your complaints or requests.
  • Check the refund and product return policies of the supplier to be sure it favors you.


Failure to Check Payment Protection and Security

After buying products from online platforms, some platforms expose your bank account details to third parties, who in turn may gain unauthorized access to this sensitive information, which could lead them to accessing your hard-earned money. You should ensure before making any payment on any platform that the payment gateway is secure and will not be disclosed to third parties for any reason.

Failure to Read Terms and Conditions

Many buyers have lost significant amounts of money to China product sourcing platforms due to their impatience in reading terms and conditions before dealing with such sourcing companies. For example, some platforms may state in the terms and conditions that they do not give refunds or accept returns or exchanges. Is this a company you want to risk working with?


Failure to Seek Proper Guidance

Before you venture into China parts sourcing to complete your project, you are advised to ask around or hire an expert in the sourcing business to help in choosing the best solution for your kind of business.

If you want to avoid the beginner mistakes, or you need adequate advice on sourcing products abroad for your business, feel free to contact Axia Sourcing. We will answer any questions you may have.

Axia Sourcing, Inc.

Phone: 800-840-1766
Fax: 661-554-7270

28486 Westinghouse Place Suite 130
Valencia, CA 91355

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