Sourcing products internationally can feel like navigating a minefield. From trading companies posing as factories to unexpected hidden fees, the traditional sourcing route eats into your margins before you even make a sale. By cutting out the middlemen, D2C brands can increase their margins by up to 40%.
The key is identifying actual manufacturers. This means conducting deep background checks, requesting factory audits, and negotiating directly with the floor managers. When you deal direct, you not only get better unit economics, but you also gain control over minimum order quantities (MOQs) and product customizations.
Most founders assume they need millions of rupees to start manufacturing in China or India. In reality, direct negotiation can secure MOQs starting as low as ₹1 Lakh. However, a low MOQ is useless if the quality is poor. Never wire a bulk payment without having a third-party Quality Assurance (QA) team inspect the goods on the factory floor prior to shipment.