low-cost country sourcing

Low-cost country sourcing is a tried and tested method where you can save considerably and ultimately propel your business to new heights.

Since we operate in saturated, highly competitive markets, differentiating your business practices from counterparts is a huge initiative if you’re to grow and maintain success.

Low-cost country sourcing is a great way to cut costs and free up funds to reinvest into your company, something that’ll help you progress in the modern business world.

This will outline some beneficial tips that will help you secure a profitable sourcing strategy. However, before we get there, let’s begin by taking a closer look at what low-cost country sourcing is:

Need help? 

What is Low-Cost Country Sourcing?

what is low cost outsourcing

As a newly emerged trend that’s taken over the business world, many businesses are turning to developing countries as a source of low-cost goods. Rather than relying on local manufacture, which is usually much more expensive, the cheaper labor and manufacturing costs in countries like China, Taiwan, and India are certainly worth taking advantage of.

Having purchased goods at a reasonable cost, you’ll be positioned to offer your products or services to your target audience at a price they’ll be happy with.

Now that we’ve established what low-cost country sourcing is, let’s take a look at how you can benefit from this business practice:

What Are the Benefits of Low-Cost Country Sourcing?

Here are some of the top advantages of getting your goods from abroad:

Business development to success and growing growth concept. Businessman pointing arrow graph corporate future growth plan and increase percentage

Efficient & Scalable Production

Sourcing products from low-cost countries means you can take advantage of efficient, affordable production that’s easily scalable. When a large volume of products can be manufactured effortlessly, you can stock lots of inventory so you’re prepared for if demand rises.

When sourcing products from abroad, small to medium enterprises can order a large volume of goods at a fraction of the price.

scalable production low cost country outsourcing

Better Diversification

If you’re on a strict budget, relying on local manufacturing can leave a lot to be desired. By sourcing from a different country, you’ll have an opportunity to diversify your product catalog by selecting from the various choices at your leisure.

For example, when sourcing from China you can choose a vast swathe of goods and strike up deals with multiple suppliers at a fraction of what you would have paid domestically.

More Choices

Low-cost sourcing nations have experienced an economic uptown since striking up countless deals with businesses across the globe. These developing markets welcome investments from foreign companies, meaning you’ll have the luxury of choosing a company that provides the most competitive rates.

With so many options at your leisure, you can negotiate by offering competitive quotes and selecting the best possible deal.

Frees Up Time

Sourcing products requires a huge investment of time and resources, both of which are valuable commodities. However, by working with a sourcing agent you can free up time to focus on your core competencies, activities that directly impact the bottom line.

benefits of low cost country outsourcing - free up time

As a result, low-cost country sourcing can boost profitability and help you sustain it over some time. By freeing up time, your business will gain more and more customers and your profits will increase tenfold.

More Profitable

Relying on local manufacture will eat into your sourcing budget, especially when the cost of production is high. However, low-cost country sourcing will help your business become profitable in a short space of time, a huge incentive for embracing another country’s manufacturing.

A profitable, sustainable business is a healthy one that’s more likely to stand the test of time.

How to Create a Lucrative Sourcing Strategy

Here are some top tips for securing a profitable sourcing strategy:

Need help? 

Think Beyond Price

Always decide beyond price, because after all despite being an essential factor, price means nothing if it doesn’t translate to quality.

You should also evaluate further to discover any hidden costs you might be missing, which can include tax, tariff costs, customs processes, and legal compliance.

Ensure your low-cost manufacture meets quality requirements by ordering a product sample. Additionally, you should conduct a thorough cost-benefit analysis before choosing a suitable company.

Don’t Soley Rely on Virtual Meetings

building a sourcing strategy

Some foreign low-cost manufacturers will take advantage of the cultural/language barrier to secure a deal that works in their favor. Therefore, you should always exercise caution when communicating overseas, where virtual meetings alone are often insufficient.

The best way to verify a manufacturer is legitimate is by visiting them in person, which can be accomplished by working with a sourcing company in China

A reputable sourcing agent will represent your best needs by visiting factories of manufacturers to determine the qualities, weaknesses, and capabilities.

Ensure Manufacturers Meet Legal Standards

When you strike a deal with a foreign manufacturer, you’ll want it to be a favorable one that’s established as a long-term arrangement. You must therefore ensure all legal standards are being met, otherwise you could be hit with unlimited fines that eat into your profits.

When manufacturers are delivering products that don’t meet legal standards, this can be a sure-fire sign they’re offering inferior goods. Avoid legal trouble by carefully vetting/auditing your supplier.

Remember Plan B

When it comes to low-cost sourcing, industry and legal uncertainty means you’re never too far away from everything going wrong. A simple political misunderstanding or international sanction can leave you stuck, which is why it’s so important to safeguard yourself by having alternate options lined up.

The last thing you’ll want is for your production to come to a halt, which is why having a plan B solution is so useful. Consider setting up an alternative sourcing option in a different country so you can transition smoothly and effortlessly if anything goes wrong.

Use Longer Contracts

Shorter contracts can seem more affordable on the surface, but the reality is they’ll cost you more in the long term. Always collaborate with a manufacturer in China that promotes longer contracts, since you’ll appreciate they’re in it for the long term and you can take advantage of lower costs.

long-term outsourcing strategy

Short-term contracts have more limitations, can require you to terminate or see out your contract, and will ultimately cost more.

Regular Performance Assessments

If you’re poised to embrace the long-term contract ideology outlined previously, you should appreciate the importance of regular performance assessments.When you sign a contract, it’s essential to ensure the company you’re working with continues to meet the high-standards they set out to originally. With performance assessments, you can stay on the heels of your suppliers and ensure consistent product quality.


Having an effective sourcing strategy is crucial in today’s times, where you can seamlessly take advantage of the myriad of benefits outlined above. To streamline the process even further, you should definitely consider working with a sourcing agent like Easy Imex.

If you’re seeking a company that can execute performance assessments, company audits, and ultimately leverage considerable knowledge to secure the best possible business deals, working with a sourcing agent is the best route possible.

Need help? 

Get in Touch Now!

Need professional help to import from China? Tell us your needs in the form below and our professionals will get back to you within 24 hrs.

    I would like to receive tips and updates about importing from China
    [honeypot last-name]


    Leave A Comment