Sourcing Strategies

How to Source Products from China

September 23, 2025
🇬🇧

Welcome to Your China Sourcing Journey

Starting your sourcing journey from China can feel overwhelming, but you're in the right place.

Whether you're looking to import kitchen gadgets, electronics, clothing, or any other product, this guide covers everything you need to know - from finding your first supplier to your next product launch.

1

Getting Started: Your Foundation

Before you start looking for suppliers, you need to set up the proper foundation for your importing business. This step is crucial for legal compliance and successful operations.

Business Registration Requirements

To import goods into the UK commercially, you'll need a registered UK business. This can be:

  • Limited Company: Most common choice, offering liability protection
  • Sole Trader: Simpler setup, but less protection
  • Partnership: For multiple business owners

Pro Tip

If you're just testing the market, you can start as a sole trader and convert to a limited company later. This saves initial costs whilst you validate your business idea.

Understanding Import Basics

Here are the fundamental concepts every UK importer should understand:

Term What It Means Why It Matters
FOB (Free on Board) You pay for shipping from a Chinese port Most common pricing method
MOQ (Minimum Order Quantity) Smallest order that suppliers will accept Affects your initial investment
Lead Time Time from order to shipment Critical for planning cash flow
Landed Cost Total cost including all fees and taxes Your real cost per unit

Step 1 Checklist

  • Register your UK business (if not already done)
  • Open a business bank account
  • Set up basic accounting system
  • Research your chosen product market
  • Set initial budget for sourcing (£3,000-£10,000 recommended)
  • Understand basic import terminology
2

Product Research & Market Analysis

Choosing the right product is absolutely critical to your success. Many beginners rush this step, but thorough research here will save you thousands of pounds and months of frustration later.

Identifying Profitable Products

Here's how to find products with genuine UK market potential:

Market Demand Validation
  • Google Trends: Check if search interest is growing or declining
  • Amazon UK: Look for products with 100+ reviews but few competitors
  • eBay Sold Listings: See what prices products actually sell for
  • Facebook Marketplace: Check local demand and pricing
Profit Margin Calculation

For sustainable business, aim for these margins:

Business Model Minimum Margin Ideal Margin Example
Amazon FBA 35% 50%+ Cost £10, Sell £20
eBay/Online 40% 60%+ Cost £10, Sell £25
Wholesale to Retailers 50% 100%+ Cost £10, Sell £30

Competition Analysis

Before committing to a product, thoroughly research your competition:

  1. 1
    Identify main competitors - Who's selling similar products?
  2. 2
    Analyse their pricing - What prices can the market support?
  3. 3
    Check their reviews - What complaints do customers have?
  4. 4
    Study their marketing - How do they position their products?
  5. 5
    Find gaps - What improvements could you make?

Step 2 Checklist

  • Identified 3-5 potential products
  • Checked Google Trends for demand
  • Calculated potential profit margins
  • Researched main competitors
  • Validated products don't require special licences
  • Chosen your top product candidate
3

Legal Requirements & Documentation

Getting your legal documentation sorted is essential before you start importing. This step might seem boring, but it's absolutely crucial for avoiding problems with HMRC.

EORI Number Application

Your EORI (Economic Operators Registration and Identification) number is mandatory for importing into the UK. Here's exactly how to get one:

  1. 1
    Visit gov.uk/eori and click "Apply for an EORI number"
  2. 2
    Choose GB EORI for importing into England, Scotland, or Wales
  3. 3
    Fill in the online form with your business details
  4. 4
    Wait 3-5 working days for approval
  5. 5
    Receive your number starting with "GB"

EORI Application Tips

  • Apply at least 2 weeks before your first import
  • Use your business registration address exactly as registered
  • Keep your EORI number safe - you'll need it for every import
  • If importing into Northern Ireland, you may need an XI EORI as well

Understanding UK Import Regulations

Different products have different requirements. Costs vary, so the figures below are only indicative ranges:

Product Category Key Requirements Estimated Compliance Cost
General Consumer Goods UKCA marking, safety standards £200-£500
Electronics CE marking, EMC testing £1,000-£3,000
Textiles/Clothing Fibre labelling, safety tests £300-£800
Kitchen/Food Contact Food safety standards £500-£1,500

Note:

In the UK, CE marking is gradually being replaced by UKCA. However, for electronics the CE mark is still widely accepted during the transition period.

Required Business Insurances

Before importing, make sure you have adequate insurance cover:

  • Public Liability Insurance: £1-2 million cover minimum
  • Product Liability Insurance: Essential for consumer goods
  • Transit Insurance: Covers goods during shipping
  • Professional Indemnity: If you're giving advice or services

Legal Setup Timeline

Week 1: Apply for EORI number, research product regulations
Week 2: Get insurance quotes, understand compliance requirements
Week 3: Purchase insurance, finalise legal structure
Week 4: All documentation ready to start sourcing

Step 3 Checklist

  • Applied for and received EORI number
  • Researched specific regulations for your product
  • Obtained appropriate business insurance
  • Understood UKCA marking requirements
  • Confirmed product doesn't need special licences
  • Set up record-keeping system for compliance
4

Finding Reliable Chinese Suppliers

Finding the right supplier in China is perhaps the most important step in your sourcing journey. A good supplier becomes a long-term partner, whilst a bad one can cost you thousands and destroy your business reputation.

Best Platforms for Finding Suppliers

Alibaba.com (Beginner-Friendly)

The most popular platform for beginners, with built-in protections:

  • Trade Assurance: Protection for orders up to $500,000
  • Verified Suppliers: Background checks completed
  • Easy Communication: Built-in messaging system
  • Price Transparency: Multiple quotes easy to compare
1688.com (Advanced Users)

Alibaba's domestic Chinese platform - better prices but Chinese language:

  • Lower Prices: 20-40% cheaper than Alibaba
  • More Suppliers: Access to domestic manufacturers
  • Challenges: Chinese language, need agent for communication
Trade Shows (Professional Approach)

For serious importers, trade shows offer face-to-face meetings:

  • Canton Fair: Twice yearly, largest trade show
  • Global Sources: Electronics focused
  • 🇬🇧
    UK Trade Shows: Meet suppliers visiting the UK

Search Strategy That Works

Don't just search for your exact product. Try these variations:

  • Use different product names and synonyms
  • Search by material (e.g., "silicone kitchen tools")
  • Look for product categories (e.g., "household products")
  • Check supplier company profiles for other products

Evaluating Supplier Quality

Here's how to separate good suppliers from risky ones:

What to Check Good Sign Watch Out For
Response Time Within 24 hours More than 3 days
English Level Clear, professional Very poor or confusing
Company Age 5+ years experience Less than 2 years
Factory Photos Detailed, recent photos Generic or no photos
Certifications Relevant certifications No certifications shown

Initial Contact Strategy

Your first message to suppliers is crucial. Here's a template that gets results:

Subject: Inquiry for [Product Name] - UK Importer

Dear [Supplier Name],

Good day! I hope this message finds you well.

I'm [Your Name] from [Your Company], a UK-based company looking to import [product name] for the British market.

Could you please provide:
• Product catalogue with specifications
• MOQ and price list (FOB prices)
• Sample availability and cost
• Production lead times
• Your main export markets

We're planning to start with a trial order and build a long-term partnership with the right supplier.

Thank you for your time.

Best regards,
[Your Name]
[Your Company]
[Your Contact Details]

Red Flags to Avoid

  • Prices too good to be true - Usually means poor quality
  • Pressure for immediate payment - Professional suppliers don't rush
  • No factory photos or videos - May be a trading company
  • Poor English communication - Will cause problems later
  • Unwilling to provide samples - Legitimate suppliers always offer samples

Step 4 Checklist

  • Identified 10-15 potential suppliers
  • Sent professional inquiry messages
  • Received responses from multiple suppliers
  • Evaluated supplier credentials and experience
  • Shortlisted 3-5 most promising suppliers
  • Prepared for detailed supplier verification

Ready to Verify Your China Supplier?

Our verification report will tell you everything you need to know about a prospective Chinese manufacturer or supplier.

07551 136406