Are you planning on launching your own eCommerce business?
If so, one of the major challenges you’ll have is finding a manufacturer or factory where you can build your products. Many American eCommerce brands end up looking for domestic manufacturers and this causes them to have to overcharge for their prices.
Have you considered overseas manufacturing?
This is a process where you outsource your manufacturing responsibilities to a foreign country. In the case of drop-shipping, the manufacturer can also ship your products.
Here’s what you should know:
Keep Your Eyes Peeled
When you opt for overseas production, you’ll naturally have reservations about what’s going on at the factory. You’ll want to know if production is commencing and if it’s efficient.
You’ll have to monitor the production process of the factory. Make sure you strike up a relationship with the manager of the factory so you can keep an eye out for what’s going on.
It’s also important that you work with overseas production factories that have a reputation for working well with Western companies. You can find more information here on Chinese manufacturers that work with Western enterprises.
Cheap Shouldn’t Mean Poor Quality
One of the biggest advantages of outsourcing manufacturing is that you’ll get a cheaper price compared to domestic factories.
However, many of these overseas production facilities will offer poor-quality products. The workers won’t have much experience working in manufacturing. The factory won’t invest much time in training the workers to build their skills.
As a result, you’ll have to be stringent in your requirements. You should always ask an overseas production facility to provide you with demos of their products.
Make sure you always assess the quality of a product before releasing it. It’s best to produce a small number of products first. Once you’ve determined the quality, then you can go for mass production.
As a side note, make sure that low costs aren’t the main reason for seeking overseas outsourcing. This is a surefire way to end up working with a mediocre production facility.
Best Practices For Dealing With Overseas Outsourcing
Let’s now look at a few best practices on how to improve your relationship with overseas outsourcing.
You want to find an overseas production facility where the management team is fluent in English. You must be able to communicate directly with them without the assistance of an interpreter.
Make sure you also look at case studies of how they’ve worked with other clients. You should only work with overseas production facilities with at least a decade of experience.
That’s How to Handle Overseas Manufacturing
Now you know the advantages of overseas manufacturing and how to make it succeed for your business.
Make sure you always monitor the activity of the production facility. Ensure that you oversee the production process before working with the factory.
You mustn’t ever choose an overseas production facility solely because it’s cheap. Ensure that you assess the quality before working with them. You should also look at case studies before working with them.
Learn more about Business and Small Business at Digital Business Grow.
