Where you source your products has a big impact on your profit margins and customer service. But, what’s best? Sourcing your products from your home country (for me, Australia) or China?
Many people will instinctively assume it’s better to source from China – production costs are generally much lower – but it’s not always the case. Let’s investigate!
The case for China
There’s no denying that getting something made in China is much cheaper than it would be here in Australia. We have higher wages, rent and in a lot of cases, we have to import the raw materials into Australia. It all adds up.
If you’re selling a generic, low-priced item, it’s usually recommended to source from China.
5 Reasons It Can Be More Profitable To Source Your Products From Your Home Country
- Faster delivery
In my experience, getting a product made here in Australia is faster than getting it produced in China. Add to that, the shorter distance the finished good needs to go means you can get your product on the market faster.
- Cheaper delivery
As your product doesn’t need to travel overseas, you’ll also benefit from cheaper freight costs. This makes re-ordering simpler and quicker – which is comes in very handy if you have a sudden rush of customers.
- Lower minimum order quantities
If you order in low quantities, you may be better sourcing from your home country. Typically, manufacturers here in Australia demand a lower minimum order quantity than those in China
- Easier to visit the factory
I know a few Amazon sellers who like to visit the factory where their products are being made and meet the manufacturers etc. If that’s something you like to do, then it’s much easier to go to another city in your country than schlepping off to China. (No language barrier either!)
- Better perceived quality
As there’s more regulation around production and quality control in Australia, you’ll generally get better-made products. What’s more, you can increase the perceived value with the ‘Made in Australia’ seal on your products and listings, which undeniably carries more clout that ‘Made in China’.
This can be especially true if you ship to places like India, where they revere products made outside their country and view products made in China the same way they view their own products.
For many sellers, sourcing from China makes the most sense but my aim with this article is to encourage you to think about whether what’s best for YOUR business, products and niche.
Best of luck out there!