Jun. 24, 2024
Machinery
How to Buy Wholesale from China Directly? Importing from China is very much a cash-dependent game! The current digital age can help us experience many buy in bulk from China services without going out.
Below, we&#;ll provide you a list of the best way to buy wholesale from China. Check it out, and learn how to buy bulk from China!
How to Buy
Wholesale
from China?
1. Understand Your Role in the Process
You are an importer whenever you purchase products from foreign countries, such as China. All you need to do is give the supplier your address information, and they will do the rest. The shipment will likely come via air or ocean shipping.
Smaller packages with a lesser value will be delivered right to your door. Then you won&#;t have to pick up your packages from the nearest shipping store.
2. Find Good Products
Chinese factories make a lot of excellent products but also make a lot of bad products.
There are a lot of Chinese suppliers who sell cheap, low-quality products. You must avoid these products, especially if you&#;re going to resell them to your customers.
So you should know how to identify good and bad products according to two critical differences between China and Western countries:
China has different quality standards from the West countries.
China has different norms around intellectual property, and there are a lot of counterfeit products
Only purchase good quality products to resell to your customers. That is how your business will grow.
3. Check the Import Laws of your Country
Before you purchase an overseas product, make sure you are legally allowed to import it into your country. Some countries have import restrictions on certain types of products.
If you try to import one of these restricted items, then it might get sent back to the shipper. You may even get fined by the government too.
4. Find the Classification Number of the Product(HS CODE)
Each imported item will have its own tariff classification number that is ten digits long. The tariff classification number and the Certificate of Origin are necessary to calculate the rate of duty, which is an import fee you must pay. A calculation of the land cost must be done as well.
The Incoterms are particularly essential to focus on. Before you submit your order to the supplier, make sure the landed cost is calculated.
You can find the FOB (free on board) rate by adding together the product price, Chinese shipping charges, customs clearance fee, land transport costs, and Duty & Tax costs.
5. Locating the Chinese Supplier
If you know which products you want to buy bulk from China, the next step is to find a supplier who can fulfill your order. Make sure you understand their shipping terms, especially regarding the delivery time.
If you&#;ve found a supplier who looks good, then request a Proforma Invoice from them. It is also called a Quote Sheet. This documentation will give you specific information about your purchases, such as the weight, packed dimensions, value, and description of each product. There is the a complete guide for: how to find a Chinese wholesaler.
Here&#;s an example script that I use when reaching out to suppliers for the first time.
Hi &#;supplier name,&#;
My name is &#;your name,&#; and I&#;m a buyer for &#;store name&#;, a store in &#;your country&#; that sells &#;the products you want to carry.&#; We are interested in carrying many of the items that you have to offer.
Specifically, I would like to get pricing and availability for the following items&#;
&#;list the items&#;provide photos if you have them&#;
&#;list the items&#;provide photos if you have them&#;
If you could send us more info and your product catalogs and MOQ requirements, we would greatly appreciate it.
Thank you so much,
Once you&#;ve built contact, you can ask for samples, place orders, etc. The most relevant warning is that this process can take a while, and communicate back and forth with suppliers requires patience. For example, it takes from initial contact to get samples can easily take weeks.
6. Calculate the Total Shipping Costs
International shipments have a plethora of fees attached to them. Aside from the standard shipping costs, you also have container fees, broker fees, packaging fees, and terminal handling fees.
Add up the total cost of all these fee so that you know what to expect for your shipping expenses. You can learn the complete guide for: How to ship from China to the US
Before you arrange your shipment, you should ask for the following documents from your suppliers. These will be required to clear customs.
A Commercial Invoice &#; The declared value of your products
A Packing List &#; Size, weight, quantity&#;
A Detail Sheet &#; Outlines how the products are manufactured so customs can determine the duty classification
Bill of Lading &#; A legal document between the shipper of goods and the carrier detailing the type, quantity, and destination of the goods being carried.
Ocean shipping is a much bigger headache but totally worth it. If you are importing a large production volume, you can easily save between 5-6x compared to shipping by air.
Here is 6 ways to shipping Chinese merchandise wholesale products:
1. Air express
2. Air freight (DDP)
3. Regular post
4. Ocean expedited freight (DDP)
5. Ocean freight (FCL/LCL)
6. Train (DDP)
7. Place the Order and Implementing Quality Control Methods.
Here&#;s a breakdown of how you can place an order and implement quality control methods in China:
Placing the Order:
Finalize Contract: Ensure your contract with the supplier clearly outlines:
Product specifications and tolerances
Order quantity and delivery schedule
Inspection rights and procedures
Purchase Order: Issue a formal purchase order referencing the finalized contract.
Quality Control Methods:
Pre-Production Inspection (PPI): Send a representative or hire a third-party inspector to visit the factory and assess their Manufacturing capabilities for your product.
Production plan and materials Sample Approval: Request a production sample and have it thoroughly inspected against your specifications.
8. Track the Shipment
International shipments will not come quickly. If you&#;re on the East Coast of the United States and you order a product from China, then you probably won&#;t get the shipment for about 30 days. If you&#;re on the West Coast, then it will only take about 13 days or so.
Save the freight documents related to the shipment, such as the bill of lading, commercial invoice, and packing list. You can use this documentation to understand the customs clearance process that your shipment will go through after it arrives in your country.
Ask your customs broker to accept the shipment when it arrives at the customs facility. If there are no discrepancies with the paperwork, then your shipment should be available for pick up after customs clear it. For smaller orders, your shipment will be delivered to the address that you specified initially.
Where to Find Buying Bulk from China Supplier&#;
If you cannot travel to China, the best way to find Chinese wholesale suppliers is to use an online directory like Alibaba or GlobalSources.com.
12 Best China Websites to Buy Wholesale from China Directly:
Actually, the main Chinese wholesale websites existing now are only 6: Alibaba, AliExpress, Global Source, Lightinthebox, DHgate, Made-in-China.
You can find the best one to buy bulk items from China according to your requirement., check this post for how to find a supplier in China.
Company
Product Category
Sign Up
Business Type
Supplyia
Sourcing
Free
Product Sourcing Company
.com
General(Chinese)
Free
Cheap Chinese Product
Alibaba
General
Free
Wholesale & Dropship sites
AliExpress
General
Free
Wholesale & Dropship sites
Global Sources
General
Free
Directory
Lightinthebox
Limited category
Free
Wholesale & Dropship sites
Dhgate.com
Limited category
Free
Wholesale & Dropship sites
Madeinchina
Machinery, Electronics
Free
Directory
Chinavasion
Electronic, Gadgets
Free
Wholesale & Dropship sites
DealExtreme
Electronic, Gadgets
Free
Wholesale & Dropship sites
BangGood
Electronic
Free
Wholesale & Dropship sites
Tomtop
Electronic, Gadgets
Free
Wholesale & Dropship sites
Everbuying
Electronic
Free
Wholesale & Dropship sites
Top 7 Trade Fairs to Buy Direct from China Wholesale
Canton Fair Aside &#; Have a Good Fair to buy wholesale from China?
Absolutely!
By the way, China is a very safe country, and you can travel with confidence. The top 6 China trade fair as follow:
#1 &#; The Canton Fair.
We&#;ll start with the most basic fair.
This fair is performed twice/year. It&#;s located in one of China&#;s most popular cities, that being Guangzhou.
This is a China international trade fair for technical textiles and nonwovens, electronics, consumer goods, home décor, office supplies and shoes, and much more!
It&#;s actually quite a large market, and you can expect many quality factory products. So it&#;s not fair you should miss it!
#2 &#; Yiwu Wholesale Marketplace (or Commodities Fair).
As the name implies, this China international trade fair is located in Zhejiang, Yiwu. And like the previous, it specializes in consumer products. You can buy wholesale from China in the Yiwu market.
It&#;s organized once/year. While it isn&#;t too famous among international buyers, it&#;s one of the largest in China.
As a result, you can expect to get bargain deals there, especially if you&#;re buying supplies in bulk! Check more how to buy wholesale from the Yiwu market
#3 &#; (ECF) East China Import and Export Commodity Fair.
This is located in of China&#;s largest business cities, this being Shanghai.
It&#;s hosted one per year. This is a China international trade fair for household products and accessories, textiles, clothes, gifts, and arts.
This fair gets an extremely high turnover, and it has some of the best deals of the seven fairs.
#4 &#; Global Sources Tradeshow.
Hosted twice a year, this fair is also located in the Chinese megacity of Hong Kong.
The main items of its catalogs include fashion accessories and electronics.
This fair is similar to the Canton Fair. It doesn&#;t have language barriers, making it perfect for international visitors.
It&#;s an excellent place to find quality products. And as a startup business, it&#;s an excellent place to give yourself a name!
#5 &#; Bauma China.
Similar to ECF, this tradeshow is set in Shanghai &#; being hosted twice per year.
But unlike most trade fairs, it strays somewhat from consumer products. It focuses on the construction industry, displaying equipment and machinery, and building materials.
It also has a large international attendance. Over 200,000 people show up to this fair and from around 150 countries!
#6 &#; Beijing International Auto Show.
Located in Beijing, this is hosted twice per year.
As the name implies, this show is for cars, automobiles, and any parts or accessories that suit those products.
A variety of worldwide sellers show up at this event. So if you&#;re looking to get accessories and parts for your cars, this is the place to be!
#7 &#; A Search Engine For all Chinese trade Fairs
For that, we have a unique recommendation for you to buy wholesale from China to attend the China trade fairs. You can use the 10times to find out all the trade fairs information.
Buy Bulk from China Tips&#; Some Notes on Dealing with Chinese Wholesale Suppliers
Many Chinese fairs try to attract an international audience. However, that doesn&#;t mean that you&#;re walking into a frictionless environment.
Like many businesses events, there is a cultural and locational factor to consider.
We&#;ll mention them below (which you should keep in consideration for the next time you buy wholesale from China)!
(A) Commuting Issues.
China is the world&#;s most populated country, and its major cities are dense (especially if you&#;re taking public transport).
Those are facts to consider since you might be from a less populated region &#; where shorter distances can be traveled instantly.
In China&#;s major cities, expect traffic congestion, and more time in general to reach your targeted locations!
(B) Cultural Differences.
Culture impacts business. It impacts how each side negotiates and communicates its demands.
As a rule, Chinese people are less confrontational than other cultures. This is necessary to keep in mind, especially if you come from a more direct culture (like the US).
Also, Chinese individuals tend to be more polite and accommodating in conversation. This often gets to the point of pretending to understand what foreigners are saying (when the reality is the opposite).
To circumvent that, we recommend communicating through direct questions. It&#;ll help you clarify and avoid misunderstandings, especially when it&#;s time to place orders.
Writing everything down is of the essence here. And if possible, you can try to get your orders written down in Chinese!
(C) Language Barriers.
Your best bet for communication is English. Most Chinese vendors have studied (or known English) to an extent from school.
However, you might want to simplify your communication with those vendors. We recommend slow speech with shorter sentences and avoiding excess babble.
Also, typing out your needs on paper goes a long way. Most Chinese vendors can read better than they listen, so they&#;ll better fulfill your needs if it&#;s on paper.
(D) Written Contracts Aren&#;t Final.
Writing is good for overcoming language and cultural barriers. But when it comes to setting contracts in stone, the situation changes.
In China, contracts are not final. They might change tomorrow, next week, often with a set of rational excuses.
However, that doesn&#;t mean that the Chinese aren&#;t trustworthy. It simply takes time to get consistency. And on the way, you can expect slight hiccups.
Overall, drafting a contract (if it isn&#;t for a massive order) is somewhat meaningless, and it&#;s best to not overly depend on the written agreement.
(E) Be Specific &#; Avoid Assumptions.
As we&#;ve established, writing is good for communication. But we&#;d like to emphasize that point.
Include as many details as possible in your writing. Because if it isn&#;t spelled outright, then you can assume that vendors will cut corners to fulfill your orders.
For example, you might get less material in your final product. Or, certain aesthetic details might end up being omitted.
Through writing (while you&#;re not getting a final agreement), you still get full communication to ensure that what you want is what you get.
6 Tips for Bulk Buy Products from China
1. Don&#;t Always Choose the Cheapest Products.
Products that are priced too cheaply are probably bad products. If you don&#;t see a lot of other vendors selling similar products for the same price, then something must be wrong. Remember that purchasing quality products is essential, even if you have to pay a little more to get them.
2. Explain Your Specifications to The Supplier.
If you have specific requirements or specifications for the products or shipping, then you must discuss them with the supplier before anything gets shipped out. Otherwise, you might end up with products or materials that you did not want.
3. Don&#;t Act Suspicious of the Supplier Upfront
When doing business with a new supplier, try to show a level of trust and respect when you communicate with them. Don&#;t act rude or suspicious with them if they haven&#;t done anything wrong. You need to have a good relationship with your supplier so that they will treat your products well and give you high-quality customer support.
4. Verify FOB Terms.
Please verify that your supplier accepts the FOB terms associated with their closest airport or port. If so, then you will have lower shipping expenses and more control of the shipment.
5. Be Mindful of Shipping Times.
It takes a long time to ship products over the ocean from one country to another. Make sure you plan for shipping times that could take up to 30 days. In fact, it could take seven days just for the supplier to prepare the documentation, ship the product, and clear it through customs.
6. Commercial Import Regulations.
You only have to concern yourself with import regulations if you are importing products for resale or commercial purposes. If you claim a shipment is for personal use, the customs authority has the final say in determining whether that is true or not. They will look inside the packaging and evaluate the shipment. If they see a bunch of products inside the packaging, they might consider it for business purposes rather than for personal use. Then the import regulations would apply.
10 Tips for Order from China in Bulk
Here is the 10 tips importer should care about when order bulk from China.
#1: Don&#;t think that a factory, trading company, sourcing agent, manufacturer, and supplier are all the same thing.
There are a lot of terms to keep track of in this industry, and a lot of them have some overlap, but knowing what&#;s what will save you a lot of frustration.
A factory is a location where your product is built, whether by people or machines.
A trading company is a middleman. They find the supplier for you and they ship you the product, but before they ship it, they raise the price a bit to make their own profit.
A sourcing agent is similar to a trading company, but not the same. They&#;re more like a liaison. Sourcing agents might put you in direct contact with different factories, or vet multiple suppliers to find you the best price. They also usually provide factory and product inspections, and shipping and logistics opportunities.
The terms manufacturer and supplier are used very loosely. They could overlap with any of the previous three terms.
Then we have what they call manufacturers and suppliers. These are used very loosely. As a general rule of thumb, they could be any of the previous three. Often a manufacturer is synonymous with the factory, while the supplier is even broader.
#2: &#; Don&#;t evaluate the price only
With all quotations in hand, it&#;s time to select the suppliers. Although prices impact business profitability, it&#;s important to consider that the cheapest supplier isn&#;t always the right one. On the other hand, the most expensive supplier isn&#;t a guarantee of the best possible services.
Instead, it&#;s better to address issues related to quality, flexibility, and delivery experience in that particular area. This will provide a fuller idea of how the provided service will be and will prevent you from receiving something cheap, but very unsatisfactory.
Beware also of those not-to-be-missed offers. If the product proves to be of quality and the provider company is a large-sized one, a price far below the market&#;s may be a sign that there is something wrong.
#3: Don&#;t try to negotiate on shipping.
There&#;s a big difference between comparing shipping prices and trying to negotiate on shipping. There are only so many suppliers who will be willing to negotiate with you on the shipping because they have to charge a minimum price.
Sometimes, they&#;ll charge you exactly what shipping costs them, and sometimes they&#;ll charge you a little extra, because they have to make money, too.
Trying to negotiate on shipping might make a supplier think you don&#;t know what you&#;re talking about, and then they&#;ll be less likely to want to continue working with you. So, don&#;t negotiate on shipping; just compare shipping prices between a few different suppliers to find the best deal.
#4: Don&#;t think that most suppliers on Alibaba are factories.
A lot of suppliers on Alibaba will tell you they&#;re factories, even if they&#;re not, and that&#;s normal. For them, it&#;s just good business. But the majority of them are probably just trading companies who have bought their products directly from factories and raised the price a bit to make a profit when reselling them.
#5: Don&#;t assume a supplier must be a factory because they call themselves a factory.
Suggested reading:YuchaiHI are exported all over the world and different industries with quality first. Our belief is to provide our customers with more and better high value-added products. Let's create a better future together.
Just because a supplier shows you pictures of a factory doesn&#;t mean they&#;re really a factory. Nowadays, you can build a website and put whatever you want on it &#; and so can suppliers.
But that doesn&#;t mean they&#;re trying to cheat you or scam you. They just know that Western brains think going directly to the factory will get them the best price. However, that isn&#;t always the case.
#6: Don&#;t think that working directly with a factory means you&#;ll be paying less.
Often, trading companies can offer you better prices than factories. Why? Because they have great relationships with factories, so factories give them better deals. If you&#;re new to working with a particular factory, it&#;s going to take time for you to earn their trust and build a good relationship with them.
Factories won&#;t start giving you better deals on products until they trust you. However, factories already have good relationships with trading companies, so trading companies get better deals. Then, those trading companies pass those deals on to you.
#
7: Don&#;t think it will only take a month to get your product sourced and shipped to Amazon&#;s warehouse.
If you&#;re building a highly customized product, it&#;s obviously going to take time to build. Expect custom products to take up to six months, easily, from the start of product research all the way to the day you ship your product to Amazon FBA. In this case, I highly recommended using a sourcing agent to help walk you through the process.
Even if you&#;re not building a brand new product, research, differentiation, production, and shipping still take time. Budget at least two to three months for sourcing and shipping your product.
#8: Don&#;t not working with a sourcing agent
Particularly when you are starting out with your Amazon selling a business, it is important to get guidance and support from the right experts. Failing to do so can expose your business to serious risks, including fraud, product quality issues, and legal risks.
A China sourcing agent is well-versed in all aspects of sourcing products from China for Amazon sellers and offers assistance throughout the process. Starting with selecting the right supplier, negotiating the best price, and shipping the order; even experienced sellers benefit by working with a reputed sourcing agent.
As the sourcing agent has an office in China, not only can they carry out a visual inspection of the manufacturer&#;s facility but they can ensure a fair deal while building a strong relationship with the local supplier.
The sourcing agent also conducts a factory audit and performs an objective assessment of the staff, equipment, processes, automation, and management structure, as well as other factors such as social responsibility or sustainable sourcing.
#9: Don&#;t assume that just because you signed a contract with a supplier that they won&#;t share your idea.
What if, a month after you launch your newest product, you see it being advertised by your supplier, and by twenty other suppliers on Alibaba? Don&#;t ever assume suppliers are going to honor your contract. Instead, find ways to de-risk yourself.
One way to stop your product from getting hijacked is to have one supplier build all the pieces of the product separately. Then, have those pieces shipped to you and assemble the product yourself. That way, your supplier doesn&#;t know what the product actually looks like. The final product is yours alone.
Another easy way to de-risk yourself is, of course, by differentiating. Add accessories and extras to your products, and they&#;ll be harder to duplicate.
#10: Don&#;t assume there is something wrong with a supplier who won&#;t drop the price until you meet a certain MOQ.
Imagine you&#;re shopping for coffee. You go to Wal-Mart and you buy a bag of coffee beans. Then, you go to Sam&#;s Club and buy a massive bucket of coffee beans. When you break the price down, the cost per bean at Sam&#;s Club will be much lower than the cost per bean at Walmart.
Why?
Because you&#;re buying a greater quantity of beans. Buying things in bulk is cheaper. The supplier wants to know the time and labor spent building your product is going to yield a big enough scale to be worthwhile. Suppliers won&#;t lower their MOQ if it isn&#;t worth their time.
Buying Bulk from China Final Words
The most important part of bulk buy products from china is the quality control. Undoubtedly, these are the continuous accumulation of experience and the understanding of price and quality.
Buy wholesale from China has a multitude of advantages. You&#;re getting mass production and at extremely affordable rates. Plus, you can get the items you want at varying degrees of quality.
Essentially, you&#;ll never encounter troubles shopping for what you want. So when heading there for a business agreement, it is best if you keep in mind a long-term perspective.
You should negotiate, inspect, and ship in a manner that guarantees that you make loyal connections, even if things go awry the first time. Also, you could always hire an agent to help you with the communication and tracking of the orders you place.
The previous guide should&#;ve provided insight on how to buy wholesale from China. But if you need product sourcing company and have any more questions for how to buy things in bulk from China, then simply contact us!
Now, it&#;s time for you to leave a comment about your experience when you buy wholesale from China.
Buy Wholesale from China FAQ
Is it legal to buy from China and resell?
It is legal if the products are authentic and not counterfeit. But if you operate an online store, you have a duty to make sure that your sell products are legitimate.
How do I buy wholesale directly from the manufacturer?
Contact brand manufacturers. Generally, brand manufacturers only sell directly to large businesses. But, you can still ask who you can buy from as a small business. The manufacturer can give you the names of distributors or small wholesalers.
How can I buy shoes wholesale from China?
The simplest way to get into Chinese shoe wholesalers is through online China wholesale websites like AliExpress and Alibaba. These stores are trendy and have a convenient shopping experience. Both of these stores&#; shoes are available at a decently low price.
Do I need a permit to import from China?
There is no general import permit or license for importing products from China. However, you might need a permit to import from a federal agency certain goods from China. Different federal agencies supervise different imported products, and terms can vary.
How can I translate Chinese to English?
Right-click to translate into English on google chrome. You can learn more for how to buy on.
Now I assume you have decided to source products from overseas by yourself. One of the key points I want to convey from a client perspective is that you need to follow a process.
You can&#;t just browse a website, send a few emails, reply and see where it takes you to go.
If you are looking for a written checklist that you can adjust and follow, you can find an example here. It involves procurement, development, production, and transportation.
But let&#;s first look at the sourcing process in more detail. It consists of 3 steps:
Identify potential suppliers;
Screen these suppliers and verify the final candidates.
Do quality control
How to Find Overseas Suppliers?
Here&#;s an English rewrite of your article with improved readability and conciseness:
5 Keys to Unlocking Global Growth: Finding International Distributors
Tired of domestic boundaries? Craving wider horizons? This guide reveals five proven strategies to discover your ideal international distribution partners.
1. Trade Shows: Face-to-Face Fortune
Immerse yourself in a global marketplace at specialized trade shows. Imagine mingling with distributors from every corner of the earth, exploring potential partnerships in real-time. Research relevant events, prepare a captivating presentation, and schedule meetings &#; your next big deal might be just a handshake away.
2. Government Resources: Your Global Ally
Don&#;t navigate the international jungle alone. Leverage the U.S. government&#;s extensive resources, from market research to financial assistance. Programs like the Commerce Department&#;s Gold Key Service connect you with pre-vetted distributors, while the Export-Import Bank offers financial tools to fuel your export adventure.
3. Trade Associations: Industry Insider Network
Tap into the knowledge and connections of your industry&#;s trade associations. These specialized organizations are treasure troves of industry-specific events, directories, and, most importantly, potential distributors. Join key associations, actively participate, and watch your global distribution network flourish.
4. Online Marketplaces: Digital Distribution Hubs
Embrace the power of online marketplaces like Alibaba.com or Amazon Global. These platforms host vibrant ecosystems of distributors, manufacturers, and service providers, opening doors to a world of international expansion. Research leading marketplaces by region and industry, compare costs and features, and unlock a universe of new partners.
5. Existing Trade Networks: Hidden Gems in Your Circle
Don&#;t underestimate the power of your existing professional network. Suppliers, customers, industry contacts, even personal connections &#; these relationships can be gold mines for distributor referrals. Reach out, ask for recommendations, and actively engage with your network. You might be surprised how close your next international partner could be.
How to Source Products from Overseas?
Here, let&#;s focus on the 6 steps for how to find overseas suppliers:
1. Draw the ideal supplier profile
Before find a overseas supplier, ask yourself a few questions:
Do you source new suppliers with powerful engineering capabilities (developing new products)?
Do you need them to have multiple designs to choose from?
Do you wish them to focus on low cost? Or high quality?
How the capacity should they be? This is a very important criterion, and the reasons are described below.
You&#;ll come across factories that fall into these three classes, which vary widely in performance and price:
3 Levels of Manufacturers
Here&#;s my general advice on the topic of vendor sizing:
If your order is very small, you may need to work with a trading company that will place your order in a tier 1 factory and (hopefully) keep a close eye on production.
If your order is large enough to work directly with the manufacturer but not large enough to interest a large factory, choose level 2 (approximately 250-800 workers).
Tier 3 is good for you if your order is considered large and you find that big companies are aggressively vying for your business.
2. Go to an Online B2B Directory and/or Trade Show
If you have the opportunity to attend a trade show related to your product category (Hong Kong Sourcing Fair, Canton Fair, etc.), go for it! Ask a few open questions, the goal here is to eliminate any suppliers that don&#;t fit your ideal profile.
If you can&#;t attend a trade show in person, you&#;ll need to use a B2B directory. They function like the Yellow Pages (vendors who pay more to make their products more prominent). For the most part, little effort is made to avoid listing bad apples.
Online Overseas Directories
3. Incentivize Potential Identifying New suppliers to Respond to You
Most suppliers receive too many inquiries and only choose which inquiries they are interested in. Here are some tips to get their attention.
The first message should be simple and short, less than 8 lines if possible (including the product description), with a very clear call to action (&#;If you want more information about our needs, please get back to me&#;) .
If you have a product spec sheet, share it with them and get their feedback. You should expect them to ask you more questions about manufacturing, such as material specifications, or if they don&#;t accept your tolerances, etc. If they say &#;it&#;s okay,&#; that&#;s not always a good sign!
Then&#;follow up on their questions quickly and complete your screening process within 8 days. After that, your inquiry will become cold in their eyes.
If possible, make a call to them (most of them have Skype accounts). Show that you are serious and that you invest the time to get to know them.
A Big Mistake to Watch Out for
Some potential new suppliers will offer much lower prices than average. How can that be?
Some suppliers want to start developing products with you, and they&#;ll know strategies for raising prices along the way (usually after the deposit wire for the first order).
Some other cheap suppliers simply don&#;t know what the cost is. They never make this product even if you find it in their showroom. After you send them a purchase order, they&#;ll want to know where and how to make it. It&#;s also a bad sign.
So, How to do it? You may see several very similar offers from different suppliers: this is the &#;market price.&#;
Eliminate any &#;outliers&#; that make the price 20% above or below the average. (If you are interested in buying above market price for above average quality, please keep the highest offer).
End of Sourcing New Suppliers
Ideally, you have compiled all the information in an Excel spreadsheet with data and comments. (If you don&#;t have time, please contact me, and I will put you in touch with someone who can help.)
The next step is to screen out the most potential suppliers and dig deeper to verify the last one or two.
4. Request Product Samples
Before you buy anything from an overseas supplier, insist on receiving a product sample(2-10 will be best). The main reason for requesting product samples is to ensure that you review the quality of your products. You don&#;t want to work with a supplier that is of low quality.
Another reason to request product samples is to be able to show the actual product to potential customers. Taking the time to properly prepare for success will ensure a better outcome. Be sure to request product samples before you finalize any agreement.
5. Finalize the Agreement
You are now ready to finalize an agreement with your overseas supplier. Make sure you have everything in writing, as problems often arise when there is a language barrier. Some of the key points of an agreement between an overseas supplier and a importer include:
Below are the common overseas inspection services:
Type
Ideal Production Quantity
Typical Timing
Production Risk Mitigation
Typical Duration
Inspection During Production(DPI)
Generally for orders>$5,000
After he 1th products comes of the production line
Catches problems as early as possible
1 whole day, to be repeated as necessary
Final Random Inspection(FRI)
Any quantity
After entire production order is complete 80% packed
Catches problems before shipment & final payment
At least 1 wholesale day
Packing & Loading Supervision(PLS)
At least 1 Container load
As products are being loaded into shipping container
Catches quantity, packing, load issues(not product issues)
2 or 3 containers per day
Full Inspection
Any quantity
After all goods finished
Catches all defective products
charge by per piece
Factory Audit
First time cooperation
6. Hire a Freight Forwarder
Different logistics methods can make a vast difference both in transit time and freight charges. Therefore we always need to determine which shipping method will be the most cost-effective one. The forwarder can keep close touch with your supplier, and keep you informed of everything. When trouble happens, your local partner will solve that asap:
Pick up
Collect goods
Arrange shipping
Customs clear
The Pros and Cons of Working With Overseas Manufacturers
Source products from overseas is an obvious choice when deciding where to manufacture your product. You are considering overseas manufacturers because you want to produce a quality product quickly and at a reasonable price.
But can source products from overseas work? Sometimes &#; but it&#;s more challenging than you might think. The advantages of overseas sourcing are well documented, but there are some drawbacks.
You need to understand the options available to U.S. companies and what to look for. What experts will you call on to find the best manufacturer, and once selected, can they even act as your representative? Finding a partner in China is the most common option, but what about other options from Vietnam and India to more recent alternatives such as Mexico and South America?
Top 5 Advantages of Using an Overseas Production
Many business owners or product development teams will immediately choose to do business with an overseas manufacturer. When you look at the top five reasons entrepreneurs, small businesses, e-commerce sellers and product-focused companies choose overseas partners, it&#;s easy to see why.
1. Lower Labor Costs
The United States has some of the highest labor costs in the world, which makes foreign countries attractive. In China, labor wages can be a third to a quarter of the cost. In Mexico, it can be one-eighth, and in Vietnam and Thailand, it is less than one-tenth. Depending on how much labor is required to produce your product, these lower costs can significantly impact production expenses, lowering your selling price or increasing your profit margin.
2. Large number of manufacturers
Many countries overseas have large clusters of manufacturers, giving product developers various options. This is especially true of China, which accounted for 28.7% of global manufacturing output in before the pandemic. When researching options in China, you&#;ll get a sense of the breadth and depth of companies, from suppliers to factories to wholesalers, that can help you build your product. Other Asian countries and Mexico are increasing the number and variety of manufacturing facilities, giving you more options.
3. Large capacity
One of the most significant advantages of overseas manufacturing is capacity. Overseas manufacturers can scale up quickly and produce large volumes of products in a relatively short period. Depending on the volume of your orders, you can save money through volume discounts and reduced raw material costs. Just make sure you know and can support their minimum order quantities.
4. Proximity to raw material and component suppliers
U.S. factories are often far from the source of raw materials or components for their products, which can significantly increase time-to-market and costs. Overseas contract manufacturers usually have established supply chains and relatively sophisticated access to various raw materials.
If you choose a &#;Made in USA&#; product, you may face delays if your product requires raw materials or imported components. The pandemic shows how supply chain disruptions can cripple product manufacturing, especially if raw materials or parts must be exported from the country of origin and imported into the United States.
5. Large pools of skilled talent
The availability of skilled foreign manufacturing workers often exceeds that of the U.S. At the beginning of , there were 859,000 job openings in U.S. manufacturing. While COVID-19 has created labor shortages in other countries, they are not as severe as in the United States. Countries like Vietnam, Indonesia, and Thailand are taking cues from their neighbors like Taiwan, China, and South Korea. They are actively training people in rural areas to become skilled manufacturing workers.
Top 5 Disadvantages of Overseas Production
Even with all the benefits, there are challenges to source product from overseas manufacturers. Here are five issues every product development team should be aware of before sourcing products from overseas.
1. Higher shipping costs and longer lead times
Once products have passed through your offshore facility, you must get them to your market. A large number of manufacturers pushes up demand and freight costs in the region. In addition to paying the shipper, you must pay duties and other fees. These costs often offset the financial advantages of overseas manufacturing.
Unless you want to do business in Mexico, being away from your manufacturing source presents some challenges. It takes time to ship goods from overseas back to the U.S. to meet domestic demand. Pandemics highlight how easily extended supply chains can break down. When considering delays and transit times, you must also consider national holidays. For example, the Lunar New Year affects several Asian countries, and complete factory shutdowns can last a month or more.
2. Lack of oversight
You can only attend a few face-to-face meetings with overseas production to negotiate terms, resolve issues, and oversee quality control. Without being present, building relationships is more challenging, especially in countries where face-to-face interaction is highly valued. Regular travel is often cost-prohibitive and can deplete savings from working overseas.
One way to overcome this challenge is to work with a product development partner or specialist who can assign local representatives to your account. Whichever facility you choose, they are your eyes and ears, providing local supply chain management and performing the quality control tasks you would perform if you were on-site.
3. Language and cultural barriers
You may find language and cultural barriers when working with overseas manufacturers. This can present challenges when negotiating contracts and pricing, understanding workflows and ethics, and respecting cultural differences.
4. Customer service issues
Think about what happens when there is a problem or a failure to meet your quality standards. What if your customers or retailers wait and are ultimately disappointed? If a customer complains about delays or quality issues, you are responsible. When working with an overseas manufacturer, you manage your customer service. Consumers don&#;t care if the problem is a manufacturing issue or not. They see your brand, and you need to fix it.
5. Safety Hazards
Worker and environmental safety should always be an issue. Only some countries/region values employee safety or environmental standards at the same level. Finding manufacturing partners known for following good labor practices, implementing safety programs and protecting the environment should all be part of your review process.
You can save time by working with a partner who has established relationships with pre-screened facilities. They will be able to guide you to the most reputable companies to save you time and the potential hassle of working with manufacturers that pose more risk than they should.
10 Tips for Sourcing Products from Overseas
When working with overseas suppliers, you can&#;t expect them to think the same way you do. Western thinking and Eastern thinking are very different, and you can&#;t force Western thinking onto your suppliers.
It&#;s easy to get frustrated by mis-communication. To help you be prepared, here&#;s a list of the top 10 mistakes sellers make when source products from overseas
#1: Don&#;t thinking that a factory, trading company, sourcing agent, manufacturer, and supplier are all the same thing.
There are a lot of terms to keep track of in this industry, and a lot of them have some overlap, but knowing what&#;s what will save you a lot of frustration.
A factory is the location where your product is built, whether by people or machines.
A trading company is a middleman. They find the supplier for you and they ship you the product, but before they ship it, they raise the price a bit to make their own profit.
A sourcing agent is similar to a trading company, but not the same. They&#;re more like a liaison. Sourcing agents might put you in direct contact with different factories, or vet multiple suppliers to find you the best price. They also usually provide factory and product inspections, and shipping and logistics opportunities.
The terms manufacturer and supplier are used very loosely. They could overlap with any of the previous three terms.
Then we have what they call manufacturers and suppliers. These are used very loosely. As a general rule of thumb, they could be any of the previous three. Often a manufacturer is synonymous with the factory, while the supplier is even more broad.
#2: &#; Don&#;t evaluating the price only
With all quotations in hand, it&#;s time to select the suppliers. Although prices impact business profitability, it&#;s important to consider that the cheapest supplier isn&#;t always the right one. On the other hand, the most expensive supplier isn&#;t a guarantee of the best possible services.
Instead, it&#;s better to address issues related to quality, flexibility and delivery experience in that particular area. This will provide a fuller idea of how the provided service will be, and will prevent you from receiving something cheap, but very unsatisfactory.
Beware also of those not-to-be-missed offers. If the product proves to be of quality and the provider company is a large-sized one, a price far below the market&#;s may be a sign that there is something wrong.
#3: Don&#;t trying to negotiate on shipping.
There&#;s a big difference between comparing shipping prices and trying to negotiate on shipping. There&#;s only so much suppliers will be willing to negotiate with you on shipping, because they have to charge a minimum price. Sometimes, they&#;ll charge you exactly what shipping costs them, and sometimes they&#;ll charge you a little extra, because they have to make money, too.
Trying to negotiate on shipping might make a supplier think you don&#;t know what you&#;re talking about, and then they&#;ll be less likely to want to continue working with you. So, don&#;t negotiate on shipping; just compare shipping prices between a few different suppliers to find the best deal.
#4: Don&#;t thinking that most suppliers on Alibaba are factories.
A lot of suppliers on Alibaba will tell you they&#;re factories, even if they&#;re not, and that&#;s normal. For them, it&#;s just good business. But the majority of them are probably just trading companies who have bought their products directly from factories and raised the price a bit to make a profit when reselling them.
#5: Don&#;t assuming a supplier must be a factory because they call themselves a factory.
Just because a supplier shows you pictures of a factory doesn&#;t mean they&#;re really a factory. Nowadays, you can build a website and put whatever you want on it &#; and so can suppliers. But that doesn&#;t mean they&#;re trying to cheat you or scam you. They just know that Western brains think going directly to the factory will get them the best price. However, that isn&#;t always the case.
#6: Don&#;t thinking that working directly with a factory means you&#;ll be paying less.
Often, trading companies can offer you better prices than factories. Why? Because they have great relationships with factories, so factories give them better deals. If you&#;re new to working with a particular factory, it&#;s going to take time for you to earn their trust and build a good relationship with them. Factories won&#;t start giving you better deals on products until they trust you. However, factories already have good relationships with trading companies, so trading companies get better deals. Then, those trading companies pass those deals on to you.
#7: Don&#;t thinking it will only take a month to get your product sourced and shipped to Amazon&#;s warehouse.
If you&#;re building a highly customized product, it&#;s obviously going to take time to build. Expect custom products to take up to six months, easily, from the start of product research all the way to the day you ship your product to Amazon FBA. In this case, I highly recommended using a sourcing agent to help walk you through the process.
Even if you&#;re not building a brand new product, research, differentiation, production, and shipping still take time. Budget at least two to three months for sourcing and shipping your product.
#8: Do working with a sourcing agent
Particularly when you are starting out with your Amazon selling business, it is important to get the guidance and support from the right experts. Failing to do so can expose your business to serious risks, including fraud, product quality issues, and legal risks.
A China sourcing agent is well-versed in all aspects of sourcing products from China for Amazon sellers and offers assistance throughout the process. Starting with selecting the right supplier, negotiating the best price, and shipping the order; even experienced sellers benefit by working with a reputed sourcing agent.
As the sourcing agent has an office in China, not only can they carry out a visual inspection of the manufacturer&#;s facility but they can ensure a fair deal while building a strong relationship with the local supplier.
The sourcing agent also conducts a factory audit and performs an objective assessment of the staff, equipment, processes, automation and management structure, as well as other factors such as social responsibility or sustainable sourcing.
#9: Don&#;t assuming that just because you signed a contract with a supplier that they won&#;t share your idea.
What if, a month after you launch your newest product, you see it being advertised by your supplier, and by twenty other suppliers on Alibaba? Don&#;t ever assume suppliers are going to honor your contract. Instead, find ways to de-risk yourself.
One way to stop your product from getting hijacked is to have one supplier build all the pieces of the product separately. Then, have those pieces shipped to you and assemble the product yourself. That way, your supplier doesn&#;t know what the product actually looks like. The final product is yours alone.
Another easy way to de-risk yourself is, of course, by differentiating. Add accessories and extras to your products, and they&#;ll be harder to duplicate.
#10: Don&#;t assuming there is something wrong with a supplier who won&#;t drop the price until you meet a certain MOQ.
Imagine you&#;re shopping for coffee. You go to Wal-Mart and you buy a bag of coffee beans. Then, you go to Sam&#;s Club and buy a massive bucket of coffee beans. When you break the price down, the cost per bean at Sam&#;s Club will be much lower than the cost per bean at Wal-Mart.
Why?
Because you&#;re buying a greater quantity of beans. Buying things in bulk is cheaper. The supplier wants to know the time and labor spent building your product is going to yield a big enough sale to be worthwhile. Suppliers won&#;t lower their MOQ if it isn&#;t worth their time.
Overseas Production Conclusion
These are a few of the most common mistakes sellers make when source products from overseas. It&#;s important to learn how to work effectively and efficiently with suppliers, so you can get your products up and selling as quickly and easily as possible.
Thanks to globalization and the internet, there are seemingly limitless opportunities for sourcing products from overseas. By following these simple steps, your importing experience will grow and you will eventually be on the road to find overseas suppliers.
Contact us to discuss your requirements of Best Bucket Manufacturers in China. Our experienced sales team can help you identify the options that best suit your needs.
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