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Today we will talk about how to choose and check a good supplier in China. Trading with China is becoming increasingly important trend on Amazon. Therefore, this topic should interest many of you.
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At first, forget about sites that focus on retail. You are interested in B2B segment, so you should not use Tmall. On the Internet, you only need Alibaba.com, the largest Chinese B2B platform.
When choosing a supplier, you should not primarily hang on the Gold Supplier status. If the company supplier has this status, it is an advantage, but should not be fully depended upon.
Nevertheless, Gold Supplier status is still useful. Especially in the case of that company having that status from more than three years time. This gives some level of credibility that should be taken into account.
In any case, even during the choosing a supplier stage, make sure that supplier actually exists. Go to the company’s website. Make sure it works, and that it really belongs to your probable supplier. It’s a good sign if the site has a link to a corporate account on Alibaba and/or Aliexpress.
Now go to Aliexpress. In the “feedback” menu, check the reviews and ratings. You should pay equal attention to both positive and negative feedback. Analyze them and assess the dynamics. Are the negative assessments more recent?
Do the same on Alibaba. Unfortunately, there are usually fewer reviews, because retail customers give feedback much more often than executives do.
Small companies don’t always need to look for a manufacturer: working with his agent can be more profitable. Manufacturers often work with big customers and large orders. If your purpose is small a purchase, then you’re not a priority customer for a manufacturer. An agent can offer a small company a more favorable term than a producer can. You may also get a lot of useful information from them, or some additional services.
- Does the supplier have experience with your market?
- What is the minimum amount of supply?
- How does a price change depending on order volume?
- What delivery options are possible?
- How does your supplier handle the packaging of the product?
- Is some prepayment needed? (Never pay the whole amount up front!)
It is a bad sign if your potential supplier cannot clearly answer these questions.
Finally, remember: Alibaba is not the only way to find good supplier in China. It is only the largest source. After gaining more experience and business contacts in China, you will be able to obtain better offers.
Now we should to talk about how to check the supplier you have selected.
Primarily, you need to make sure that the supplier understands you well. A lot of Chinese suppliers aren’t proficient in English language skills. Make sure you find one that you can communicate with effectively. If you do not hold this is a top priority it may cause a lot of problems down the road.
Always check trademarks, patents, safety certificates, and all other needed documents. Do not expect that a supplier in China will take care of the various legal import issues! Since you are an importer, you are fully responsible if something goes wrong.
Next, you should order a sample of the product. It is absolutely necessary! It does not matter, what your company is going to import from China, and in what quantity. Remember: you really need to spend a small amount on this test sample. Why? The test sample is used to ensure the quality of your product. Is your order all right? Has the provider performed all of your arrangements?
Some big suppliers send samples in large quantities only: about 10-15 pieces. Therefore, It’s not good if you want to buy only 50, is it? In this case, you may want to use one little trick: order one unit of the product on Aliexpress – as a retail buyer
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Another important element is trying to find out how the product is made.Ask a few questions about the manufacturing process. Based on the answer you get, you can assess how serious the operation of the factory is.
Following these simple rules will allow you to avoid many difficult situations and disappointments! Good luck!
When sourcing goods from China, you have to face a difficult matter: choosing the right supplier. You have to check if your potential supplier is credible and if their terms are acceptable to you. To make this task easier for you, we prepared for you a list of issues that you should ask your future business partners about. There are 10 questions for Chinese suppliers that are worth asking before starting the cooperation.
One of the basic questions you should ask the supplier is about MOQ. MOQ is a minimal amount of goods for which the order can be realized. Due to the bulk nature of most orders, the price is a factor that changes along with the amount of ordered product. The more pieces of product you order, the better price you may get. At the same time, it means that you should first take an interest in MOQ and then the unit price, as this price will be conditioned by the order volume.
It is worth noting that strict adherence to the MOQ is, of course, a matter of the supplier’s will, and they may change the MOQ during negotiations. This carries the risk of receiving products of worse quality as dishonest suppliers may want to recompensate themselves for the smaller order with saving materials costs.
When ordering products, you should check if you are dealing with the actual manufacturer or only a so-called “trading company,” a middleman. As a rule, purchasing a product from a trading company usually means lower MOQ limits but also carries a bigger risk. It is not a direct manufacturer, so in case of faulty products, it is hard to blame the responsibility on them. Due to this, it is very sensible to verify who actually is our supplier.
Due to the fact that product samples may differ from the actual batch manufactured for you, a reasonable method to verify it is conducting quality control. Factory inspection in China may be carried out at various stages of production.
If the seller refuses to have an inspection carried out (of course, they have the right to do so), it takes away their credibility. In that case, it is better to choose another supplier.
An important matter you should mention in your negotiations with a business partner is how much you want to change the initial project, its design, and the production process. It is defined as OEM and ODM.
If you want to adjust the product to your brand, it is necessary to determine this matter at the beginning stages of negotiations with a potential supplier.
Particular regions of China are specialized in certain branches of the industry. It is worth finding out the exact address of the factory as it will make it easier for you to verify it by conducting the audit or pinpointing the factory on the industry map in China.
Incoterms are internationally standardized short terms of International Commercial Terms. You should, in advance, determine the obligations of you and your business partner. It is also good to know what mode of transportation your supplier uses. Depending on the chosen mode of transportation, the time of delivery will differ. It is worth negotiating those matters, so they align with your preferences.
It is worth asking if your business partner has any certificates or if they have conducted audits. A good practice is to ask an open question, as it will get you more information than asking only about specific certificates.
If you import to the EU, the document that you will be interested in most cases will be a Declaration of Conformity, that means that a particular product fulfills quality and health regulations and is safe, so it can be sold on the territory of the European Economic Zone. You should also remember that the received certificate should be verified to confirm its authenticity.
To minimize the risk of being scammed, it is good to ask for a copy of a Chinese business license. The document is often forged, so you should make sure to receive a scan in color of good quality and to further verify the information contained in the document (it is fully in Chinese).
You can have a chosen Chinese supplier verified in a matter of days!
To make sure what your supplier represents, you should ask about their clients, if they regularly send products abroad, if they have any references from past business partners, or ask for them to make a list of clients available to you.
Your product will probably be in transit for a long period of time. You can ask your supplier for photos of the products packaged for other clients to make sure that your order will endure the hardships of the travel.
A set of questions that you should ask your potential Chinese supplier may look like this:
Of course, throwing too many questions at a potential partner in the first or message is not recommended. You should follow the rules of Chinese business culture and establish a relationship. First, you should introduce yourself and talk a little about yourself, your company, and what you are looking for in a future business partner. The communication will be more efficient if you take your time.
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