Low Cost Country Sourcing


Low Cost Country Sourcing

Table of Contents

Low cost country sourcing is simply the sourcing of materials and products from a more low cost country to a business in a country where the costs are higher. Usually this means a company in a place like the US sourcing materials from a developing nation instead of more expensive materials from the US itself. There are many benefits to low cost country sourcing, from cheaper labour, to materials, to getting ahead of competitors and an increase in production volume.

Another hugely important aspect is the reduced risk that comes from using a company like SourceOne. We ensure that the product sourcing processes used match up with your values and goals and save you having to take the risk of going it alone, so you can focus on your business. Businesses of all sizes can reap the benefits of low cost country sourcing in the fast-developing world, and we can ensure you find what is right for you.

Key components of low cost country sourcing

There are many important factors to consider when looking at low cost country sourcing for your business. It is important to take into account many areas such as the tax and tariffs structures involved, cost of transportation, quality control and risks. Once again it is better to use an established company to source your goods, to ensure that each criteria is met and thoroughly checked.

Low cost country sourcing is only beneficial if it does actually save you money. It is crucial to understand levels of import tariffs and export tax between the countries involved to ensure that it is still a viable source. Similarly, while shipping is still a reasonably low cost way of transporting goods, it is still important to factor in these amounts into the overall sum to ascertain if you are truly getting the right saving.

Another important area is quality. It is common that the materials being sourced from low cost countries are the more simple parts of a product or cheaper goods. However, it is still important to have the level of quality you require from your goods to ensure you are not losing money down the line, and this requires inspections and research. Receiving poor quality products is just one of a number of risks you take with low cost country sourcing, along with potential political unrest, issues with supply chain, and the potential cost of missing tight deadlines. Once again these factors add up to a lot to deal with on top of your day to day business, and are all areas we focus on. With help from SourceOne you can skip the issues that come with quality control and goods inspection as we will ensure this is fully taken care of.

Key benefits of low cost country sourcing

There are many benefits to low cost country sourcing, the most prevalent of which is obviously the reduction in cost. From lower production costs, cheaper labour, and rising profitability, to more suppliers and the ability to raise production volumes, low cost country sourcing can be hugely helpful for businesses of all sizes. It is important to check the factors above to ensure that your business is making the most out of your sourcing, and ensure that you are getting the lowest costs possible and the highest possible profitability.

Beginning with lower production costs, in developing countries and particularly in areas like Asia raw materials are generally cheaper, as are overheads and your general production expenses. Clearly when you pay less money for the core materials and everything that goes along with your product, this will lead to more profit for you. Similarly, cheaper labour is a large factor in the profitability of low cost country sourcing. When you are paying for cheaper and usually less skilled labour than you would be doing again in a higher cost country, you can quickly see the difference. Product Sourcing from countries like China with the relatively low wages and large workforce, it is a simple matter to save money. With a large workforce and also large numbers of suppliers willing to meet demand and gain more investment, it is certainly an area worth exploring.

You can also raise your production levels through low cost country sourcing. With lower costs and cheaper materials, it is often cheaper to produce in larger amounts, which again not only saves you money but gains you more products; a win-win. You can also gain products of better quality, using reputable sourcing companies to ensure that you find the right products for you. This can help your business outshine your rivals, with lower cost products of higher quality and made in larger numbers. Low cost country sourcing is a great way to improve profitability while also allowing you to focus more on developing your business while SourceOne does the leg work for you. The benefits to low cost country sourcing are undeniable, as long as you avoid the pitfalls and work with experts.


Low cost country sourcing is an excellent way to reduce your costs by sourcing cheaper materials and products from low cost countries instead of those that are comparatively much higher in cost. While there are many factors to consider when sourcing, such as quality controls, transportation and tax costs and the risks involved, these can be mitigated through the use of a reputable sourcing company like SourceOne. The benefits to low cost country sourcing are manifold, with cheaper raw materials, overheads and labour costs alone making a huge difference in the overall saving. You can grow your business, increase production and get ahead of the competition no matter the size of your business currently. Contact us for more information on low cost country sourcing today.