How This Sourcing Company In China Makes Money
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How Chinese Tiger Sourcing Company Makes Money in China
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Conclusion
Disclosure: Hi! It's Vova :) Some of the links in this article may be affiliate links. I get a commission if you purchase after clicking on the link, this does not cost you more money, and many times I can even get a nice discount for you. This helps me keep the content free forever. For you. Thank you! :)
Thinking about how a sourcing company earns in China?
It’s not all fortune cookies and tea ceremonies — here’s the scoop.
Recently, I posted a video where I chatted with Jane from Chinese Tiger, a company that helps businesses like mine source and ship products from China to anywhere in the world.
They offer services like product sourcing, manufacturer research, inspections, and shipping.
My audience really enjoyed the video, so I thought you might find it interesting too.
What’s even better is that if you decide to use Chinese Tiger’s services, just mention my name, Vova Even, and you’ll get a free product sample inspection.
Sounds pretty good, right?
Keep reading to find out more about how Chinese Tiger makes money while helping businesses like yours succeed!
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How Chinese Tiger Sourcing Company Makes Money in China
Vova: Jane! Let’s imagine you’ve found a great factory that offers excellent prices, and the client is really happy with the deal.
They’re like, “Okay, We want the Chinese Tiger team to just keep handling this process for us.”
But I’m curious — how does the business model usually work in this situation?
Is it the same for every customer, or do you negotiate different deals based on the needs of each client?
What’s the usual setup for these kinds of situations?
Jane: Of course, it’s negotiable because we work with many clients who have different needs.
They order different products and in different quantities.
Usually, we charge a percentage based on the invoice.
For example, it’s typically around 10%.
However, the price can change depending on a few things.
You Also Might Be Interested In: Is It Worth Delegating Everything To A Chinese Supplier?
For instance, if you order the same product a second or third time, we might reduce the percentage.
It also depends on the quantity you order and the price of the product itself.
Some clients have large, expensive products, and we can’t charge them the full 10% because that would be too much money.
In those cases, we negotiate a better price that works for both sides.
So, it’s about offering a fair interest rate and price for everyone.
In addition to this, we also provide extra services that have fixed prices, which stay the same for all customers.
Vova: Cool! I think there’s a lot of value in what you do.
You handle most of the work, like negotiating, reordering, doing inspections, and managing communications.
That’s a lot of time and effort for sellers, and I can see why they would want help with all of that.
The percentage you take from the invoice might seem like a cost, but if the seller is still making a profit, it seems like it’s worth it.
From what I’m seeing, to build a successful Amazon business, sellers need to have higher profit margins.
Of course, it’s possible to succeed with smaller margins, smaller sellers with limited capital need higher margins to grow and turn a small investment into something bigger.
Sellers with more capital might afford lower margins, but for smaller sellers, focusing on higher margins is essential.
This is where your company can help.
By working with you, we can save a lot of time and still make a fair amount of money.
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Conclusion
To sum it up, working with a company like Chinese Tiger can save a lot of time for Amazon sellers.
They take care of the heavy lifting, like negotiating with manufacturers, handling inspections, and managing orders.
This can be really helpful, especially if you’re trying to grow your business while keeping your margins healthy.
For smaller sellers, having higher margins is often the key to turning a small investment into something bigger.
So, if you’re looking to save time and still make good profits, working with a sourcing company might be a smart move.
It’s all about finding the right balance between saving time and making sure your business stays profitable.
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How Chinese Tiger Sourcing Company Makes Money in China
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Conclusion
Disclosure: Hi! It's Vova :) Some of the links in this article may be affiliate links. I get a commission if you purchase after clicking on the link, this does not cost you more money, and many times I can even get a nice discount for you. This helps me keep the content free forever. For you. Thank you! :)