How to Find Your Best Supplier in China: Tips to Know
January 4th, 2021
When it comes to buying from China, Working with a reliable supplier in China is the key to your success and it literally determines whether it will be a good start to the entire procurement process or not.
Now here comes the question: how to know the supplier is reliable or not before you working with a supplier. you may spend a lot of money and waste a lot of time on some unreliable supplier.
In this article, we will show you how to find your best-matched suppliers in China in 4 steps:
Now that you have a clear and better idea of what exactly you are looking for, as well as the advantages and disadvantages of local versus external sources, where do you start your search?
Of course, the internet is the best place to start, here are the various resources on how you will be able to find the best reliable Chinese suppliers for your business:
a- Online wholesale websites
The main feature of online business websites, for example, Alibaba, Aliexpress, Made in China is that they include a variety of items. In other words, the seller’s store contains many types of items and stocks a large variety of stocks.
On both Alibaba or other websites, you can research to see what types of products are popular before deciding what to sell, Plus, it allows you to filter products, see what they look like, find photos, and search for detailed information about the supplier in China.
b-Google search engine
Search engines are the first tools available to anyone looking for sources about something, and Google is the best place to find what you’re looking for in the first few search results.
Search engines can also help you locate local wholesalers or suppliers. Therefore, before executing a deal with a supplier from outside the country and abroad, it is best to find local suppliers and evaluate them according to your specialty.
c-Forum and social media
Contemporary Chinese manufacturers are aware of the importance of building a social media profile as it can help them reach remote buyers.
That way, you can search by “industry + product” on these two social media platforms to find a manufacturer in China, Doing this so may lead you to the profile of the manufacturer you need.
The problem you might encounter is that you may not be able to choose from many suppliers from these informal social media platforms. This is on the grounds that many Chinese suppliers still do not have access to social media.
d-Fairs and shows
Perhaps the most ideal way to spot Chinese suppliers is to go to the Chinese fairs held in various cities across China, For example, the canton fair is held in Guangzhou twice a year (usually during late May and early November) and is one of the largest (if not the largest) resource fairs on the planet where you can meet and find huge suppliers for different categories.
Visiting exhibitions is the best solution for you to find reliable suppliers, and fairs are where suppliers and manufacturers display their products from all over Asia, and without much effort, you can discover which supplier in China offers the product you want or who can make what you want to sell.
2)How to verify a manufacturer?
You may find your Chinese manufacture online. the company looks very good, there is a potential for a business opportunity that could actually take off.
But there are many scams, scams, and bad Chinese suppliers to watch out for. So how can you make sure you are dealing with reliable manufacturers you can trust?
When you investigate a potential manufacturer, you are primarily looking at these two aspects:
-Is the company a legitimate, reputable company and not a scam?
-Does the supplier have the ability to produce the products you want to buy?
a-Use search engines and Chinese supplier directories
When checking out your suppliers’ Chinese wholesale sites, you should review all their policies (returns, damages, and late orders), and make sure they post their contact information and physical address on their website.
Open Google or any other search engines and search for the name of the supplier or manufacturer.
b-Make a phone call
To avoid being tracked by law enforcement, most fraudsters do not provide real registration information online. For example, they will present a fake company address, phone number, and fax, or persuade buyers to contact them via a mobile phone only.
Make a phone call to the landline of the supplier in China and ask for the company registration number, trade license number, or any other information you think is useful in order to be able to diagnose suppliers.
c- Verify commercial licenses
Chinese suppliers are required to register with Chinese government authorities and obtain a unique registration number for the company to do business in China If your supplier is unable to provide you with a unique company registration number it is extremely dangerous to continue
doing business with it.
To verify the registration number, visit the local administrative government website, or contact the local industrial trade office to verify the reliability of these suppliers.
d-Visiting the company or factory in person
This is the best way to check with your suppliers – you won’t know much about an organization unless you visit. You can also discuss your products, pricing, quality check, and delivery time forecast face to face.
e-Ask for a sample
Whether you import wholesale clothing in China or something else, ask for a sample – even if you have to pay for it when you have a sample on hand, you can check the quality to make sure the product is exactly what you are looking for and the company is assured of.
3)How to negotiate with a manufacturer?
To reduce your expenses so that you can make more profit in your business. Everything is negotiable, but you need to be prepared before you go to the table if you want to get the best deals with your own suppliers.
a- Sell yourself as a big and professional businessman
Suppliers are like any other business owner: they want to sell as many products as possible and make big profits and value customers who will help them reach this goal.
When negotiating with suppliers, make sure they know that you are the one who will bring them back in the long-term repeat business and that you will make big orders in the future.
b- Talk to multiple suppliers
To encourage competitive pricing and find the right price for your product, talk to at least three suppliers, and inform each of them that you are getting other quotations.
c-Do not accept the first offer
As in any business negotiation, the rules are the same when dealing with a supplier, and the basic rule is not to accept the first offer from suppliers.
Alternatively, you can issue a counter-offer or ask them to respond to you at a better price to end the negotiations and begin the buying process.
You can justify this by the size of the business and the offer you are offering them, or the fact that you want a long-term partnership with them, or because the price includes services or features that you do not intend to use.
d- Think outside the price box
If the supplier does not budge on the price and does not accept your offer, you can still negotiate other things that will help reduce your expenses and get a good offer.
e-Consider doing business with one supplier
Suppliers love buyers who buyers products in bulk, and these people often get bigger discounts and other perks from suppliers.
If you’ve sent your business to multiple suppliers, consider moving all of that to one supplier to get discounts. But before you make the transition, contact the supplier and talk to them about increasing discounts for all of your business.
4)How to make a contract with the manufacturer?
With a manufacturer contract, you can quickly create a comprehensive supply contract that covers all of the important required terms and conditions.
It will also give you a sound basis for reviewing the supplier’s performance during the contract, as you will have a clear set of performance standards and delivery milestones that you can measure as well as ensuring your rights in any future issues.
The contract will help you document the supply contract that specifies:
-Deliverables to be made by the supplier
-Training, documentation, and support will be provided
-The responsibilities of both parties
-Performance standards and review process
-Schedule pricing and billing process
-Contractual terms and conditions
You will save time and effort by using it to create your own supplier agreements, as these are pre-formatted and completed for ease of use.
5 Tips for choosing a reliable supplier in China
Importing from China can be an annoying process if you don’t know how to do it or what import requirements are needed and how to find reliable suppliers with quality products that meet the standards.
Here 5 tips that will help you select the right supplier when you decide to buy from China and to grow your business.
a- Find suppliers online
Many importers start their business looking for references on the Internet, others don’t know where to choose, and the network is such a big “place” that you won’t know for sure if you can trust what is in it.
The good thing is that the internet has good references, although they are not 100% reliable, they are most famous for finding the right supplier and product at an affordable price.
Some of the recommended sites for trusted Chinese supplier listings are Alibaba, Global Sources, and MadeinChina. It has a large number of suppliers, each of them working with a different product.
b- Quote with more than one supplier
Anyone who goes to the trouble of searching for suppliers in multiple places knows that it is not always wise to accept the first price those suppliers offer, especially if the item is too expensive. The same logic applies when it comes to factories.
It is necessary to obtain quotations from different suppliers before purchasing an order. You will get a better understanding of the total market price of some items. If you accept the supplier’s first offer, you may be disappointed later when you discover that there are better options available.
c- Find suppliers that offer FOB
Many beginners do not know the concept of FOB, it is the term Incoterm referring to a series of terms that define responsibilities, in case something happens to the product while it is being transported to your final destination.
–FOB (abbreviation for “Free on Board”), the seller clears the goods for export and ensures that they are delivered and
loaded onto the vessel for transport at the specified port of departure.
–EXW Ex-factory (to be determined): The seller prepares the goods on his premises.
–FCA Free Carrier (place determined): The seller delivers the goods to the first carrier (identified by the buyer) at a
specified location and the goods are ready for export.
–FAS payslip to the freight dock (the port of loading is specified): the seller must place the goods on the freight dock at the
specified port. The seller prepares the clearance of the goods for export.
–CFR – Costs and Freight (named port of destination is specified): Seller pays the costs and freight for the goods to be
delivered to the port of destination.
–CIF Costs, Insurance, and Freight (to be determined by the port of destination): This condition is similar to the CFR clause
except that in this case the seller must buy and pay the insurance to the buyer.
–CPT – Cargo Paid To (named port of destination): The seller pays the cargo to the destination, except that the risk passes
to the buyer once the goods are delivered to the first carrier.
–CIP – freight, and insurance paid to (the port of destination is determined): the seller pays transportation and insurance
costs to the destination point, except that the risks pass to the buyer once the goods are delivered to the first carrier.
Unfortunately, some suppliers online are not reliable, some of them are dedicated to scams, sell stolen items or do not
have the necessary permits to sell, if you pay attention to these minimum details, you will know where to buy in China
You must be careful with this point since we are talking about strong investments, so it would mean losing a large part of your money if you not taking your attention.
e- Look for suppliers personally
Visiting China to do business would be the best way to find the right supplier, unfortunately, there are also certain disadvantages in this regard, as it is much more expensive to travel to this country to investigate.
If you have the financial possibilities to travel will be better to evaluate the suppliers in person, thus you are considerably ensuring your purchase and the quality of the units.
If the purchase is successful then you will know where to source products in China if you need the product again otherwise hiring a third party will be the best solution as an EJET Sourcing company we will care about everything on your behalf.
Always when it comes to finding suppliers from China, you need a good way strategy that consists of awareness and knowledge, that what you learned with us, where to find suppliers, how to verify them, the best way to negotiate and make a contract with them.