When you are in international trade business, find a reliable supplier to get the manufacturing done for you can be really tough. The trust takes time to build. But for international goods shipment, re-selling of products become easier and lucrative when they involve Chinese products.
With the Chinese products you get the opportunity to earn more profit as you spend pennies and earn in dollars. So definitely getting the Chinese as your supplier is a choice.
The suppliers and manufacturers place vital role in rolling your business with private labelled products against the money you invest.
Chinese supplier types in the market:
In the international trading market, one come across 3 major types of Chinese suppliers. You need to have clarity on each type before you approach the perfect supplier. Knowing the type helps you find one based on your need.
1. The Manufacturers
Manufacturers are supplier companies who produce items for you to buy or get private labeled and re-sale in the market as a new product.
They are the first in the trade chain and offer exclusively low price for every good you purchase in bulk. They never sell any product by piece. It’s the volume that make their products cheap.
Manufacturers, in general, produce an item and sell them over to liquidators and wholesalers in bulk. Retailers usually don’t get direct access with these people. But you can always search for one for the best deal.
2. The Wholesalers
Wholesalers are meant to buy goods from the manufacturers in bulk. They buy items at an extreme cheap rate and sell to retailers with little profit at their part.
Manufacturers get to keep their mark up when in business with wholesalers since there is no wastage of material here. The wholesaler will order for huge volumes.
3. The Dropshippers
If you are a dropshipper you don’t buy in bulk. This business is all about buying unique individual item. This kind of business clearly indicates that the manufacturers don’t get paid upon immediate purchase. The payment is only done when the item is sold.
Of course, you don’t get the best deal with dropshipping business.
From the categorical classification of the suppliers, it is quite clear that you need to focus on locating a good and reliable manufacturer in order to get the international business started.
Even if you are into online business, e-commerce has high value for the Chinese goods. But Chinese goods have their own issues regarding their quality. You need to be cautious of what you sell online.
Read More : How to Star an Import/Export Business
Why should you look for Chinese Suppliers?
It is a well known fact that people look for Chinese suppliers for their international trade business.
But, why do they prefer to get their resources all the way from China? Well there are so many factors that add to the benefit of business when you use Chinese suppliers –
- The manufacturing cost in China is pretty low when you compare with other suppliers in the world. This is because of their developing economy.
- Chinese goods have high demand worldwide. As a seller, outsourcing from China means great profit as you buy cheap and sell at moderately high price.
- Raw materials for goods are accessible easily for smooth production.
- Labor charge is low.
- The Chinese are the pioneers of mass manufacturing.
- Every production house in China is efficiently managed and well organized.
The Chinese had been ruling the manufacturing industry for a very long time now. Thank to all the conditions favoring them throughout.
So, finding Chinese suppliers is the key to a successful international business worldwide.
Finding the best and reliable Chinese Supplier:
Noting the advantages, they have, it’s clear that you need to find Chinese suppliers if you want your business make a hit in the market. But considering the other reputation of these suppliers, its essential that you use a reliable source. How to find suppliers in China?
The below guidelines can help you locate the right supplier for you. The full aim is finding someone who provides you exceptional products meets your customers’ requirement.
1. Business planning
To initiate your search for the supplier the first thing probably is to know the business type you have in mind. Make strategic planning before you proceed with your search.
Identify the target market, recognize their demand and make list of products that will meet the customer demands.
Only when the products are decided you can start looking for suppliers who deal with those items.
2. Online search through directories for suppliers:
When you do every activity online, why not search for suppliers through safe directories like SaleHoo.
This is a website that has a directory full of supplier information after proper verification. Search here is smooth as they are already segregated according to their domains. Why the online search? Below reasons can satisfy –
- The website poses low threat of scams from the suppliers as they are already verified.
- Online search is easy as they are already categorized. So, you can just filter and chose your genre.
- This is a fast searching mode. You get supplier credentials and contacts in just one click.
All business here is legitimate. They not only segregate the suppliers but also mark them with golden stars as a sign of verification.
3. Ask Google
Yes Google. Google is a searching platform that will surely have information on several suppliers or manufacturers around the world. You can even check on their reviews ad what the customers had to say about those products.
But Google has its own cons. There are millions of suppliers and many will have different types of reviews. Its really hard to know for sure which one is truthful.
More than manufacturers, its good when you try for dropshipping and wholesalers here. They are easier to locate.
4. Visit local or international trade fairs and shows:
This process will take some hard work but probably one of the most beneficial way to achieve the goal. Trade fairs are favorable and more preferred as you get to talk to your manufacturers directly.
In trade fairs, various manufactures and wholesalers showcase the products they have and the services they provide. This is a way of promotion for them.
If you find some attractive work with some manufacturer, go and have a talk.
Isn’t it a great opportunity to check the goods from different manufacturers before you invest on one? Here actually you get to ask them any question you have in mind regarding the functioning of goods, the quality, approximate price. The manufacturer will give you the answers.
When you have interactions like this you basically get know –
- The values these companies share
- The products each company prepare
- The company’s production capacity. You can decide the volume to order in one go.
- The procedures followed by them for controlling and maintaining quality of the products.
When you converse, you make an idea on their capability to meet your requirement. This is otherwise a bit difficult with online knowledge.
China hosts two major trade fairs every year
- The Canton Fair : happening twice in one year in Guangzhou
- The East China Fair : happening once in a year in Shanghai
These trade fairs are the grounds where you find the desired Chinese supplier for your business.
International trips to find out Chinese suppliers can take a toll on your pocket. To make the work easier you might want to locate a trustable broker to act as your representative in the Chinese trade fairs.
There are many brokers who visit these trade fairs every year to identify suppliers for many businessmen. Locating these people may not be that difficult. This can be done locally.
If all of these are not working out, wait for international trade fairs to happen in your country and city. You can still get your hand on the Chinese manufactures.
5. The online trading sites and Chinese trade sites:
Other than checking up the directories and the Google there are many trade specific websites online, specially for the Chinese marketplaces.
Etradeasia.com, the largest online site for trading offers millions of products for their huge number of members. You can easily get to the source of manufacturers and suppliers over here. They cater to a wise range of supplier niche. Search in your genre and you will come across several manufacturer options to satisfy your need.
If you are new in the trade then you are likely to face some difficulty in Alibaba as it is listed with manufacturers mostly, not by suppliers. Being direct manufacturers, majority lack website and have English knowledge. So, you can face language barrier. Another issue here is a mandatory wire payment method.
Whereas, AliExpress, a sister concern of Alibaba works more like a retailer for smaller business companies. They provide you with Chinese products at great price. This is a wholesale platform offering great deal.
If you want a B2B e-commerce portal, then Made-in-China.com is of the leading website for you.
6. Visit the marketplaces and manufacturers of Hong Kong, Taiwan and China
You always don’t need to visit only during trade fairs. Hong Kong, Taiwan and China have great international trading markets that gives good access to lesser known manufacturers and suppliers in the market.
Hong Kong trade Development Council is one such place that hosts numerous companies dealing in manufacturing and trade. You can get wide product range to choose from here.
In fact, similar trading hubs are good for automobile parts, electronic goods, accessories like textile, jewelry and of course, the kids’ section – toys.
As you connect directly with suppliers here, you are free to mail them your requirement. But before you connect, make sure you have checked their product samples or at least have some reference.
7. Outsourcing from an Agency:
Outsourcing from middle agencies really work out if you are new in the trade and don’t have enough idea on how it functions.
This is definitely a gamble to locate an ideal partner to help you locate an ideal partner.
While you are opting for broker and agencies, check their credentials in the market.
Some agencies with reputation of arranging for good Chinese suppliers are –
- 80/20 sourcing
- Easy Imex
There are many more in the list who have good reputation.
Such outsourcing agents can offer the below services –
- Locating product source
- Locating good suppliers
- Purchasing products
- Deal negotiation with suppliers
- Quality check of the products
- Arranging audits to the supplier factories
Having a broker in between is helpful at times. You get all your job covered by one agency. The workload is reduced to a great extent.
Verifying the credibility of Chinese Suppliers:
You have done your research and have found out all the experienced suppliers in China. Are they reputable and trustable enough? Can’t be 100% positive just by finding someone over internet or in trade fair or through brokers.
Verifying facts and credentials is very important here. How can you do a background check for the suppliers?
- Of course, Google is the first place where people search about a manufacturing company. You can check customer feedbacks and reviews.
- There are agents who can get the background check done for you.
- If your supplier has website, go online and do the check. You can check if the company ahs a valid trading license, the location of their warehouses and factories, the status of ownership, all certificates related to partnership, subsidiaries and contracts, etc.
- Take a trusting step forward and order for samples from the chosen supplier and do the quality check.
- If there is a customer support team, have a word and ask questions
- If you are aware of any other company who has taken services from the particular supplier then you can take a feedback, there.
Trading with Chinese suppliers:
For smooth business operations, logistic support and most importantly, great price, you need to get in touch with Chinese Suppliers. Its known fact that the Chinese products are leading the market. Then don’t wait, look for a reputable one. There are several steps you can take to get the job done. Just don’t forget to check their products, credentials and reviews before you place an order.