If you are running an Amazon business, find reliable suppliers are necessary. Because a good supplier relationship will ensure your product quality and product supply and may bring you unexpected help at the right time. And as we all know, China excels in manufacturing and delivering products. So today I will share some tips to help you find reliable Chinese suppliers.
In this article we will cover:
- Why Choose Chinese Suppliers?
- What are the Types of Chinese Suppliers?
- How to Find Suppliers in China?
- Ways to Find Suppliers in China
- How to negotiate with Chinese suppliers?
Why Choose Chinese Suppliers?
1. Low Raw Material Costs
Reducing costs and maximizing benefits is the constant goal of running a business. Low raw material costs can help bring down manufacturing costs to a considerable extent. China is an ideal choice for providing low raw material costs.
2. Low Cost Labor
In addition to low raw material costs, labor costs in China are also lower than those in Europe and America. In fact, according to statistics, manufacturing in China can help reduce costs by 30% to 80%, depending on the labor intensity of production.
3. High efficiency
Maybe you have seen many reports about China’s rapid development, and a lot of people think China’s development speed is incredible. Even some people think that the Chinese are never tired like plugged in.
When the demand is high or the requirement is urgent, the quick and aggressive turnaround time of Chinese manufacturers will surely prove valuable for your business.
4. Superior quality product
There is a misconception among the people that Chinese goods are of inferior quality. In fact, “Made in China” has recently become something of a cool thing. Because the quality is now viewed as improved to the point where the country’s leading manufacturers are sought-after for their good reputation and supply chain expertise.
5. Perfect supply chain system
Moreover, the advantages of China’s supply chain are not limited to human resources. Since China developed its supply chain much earlier than other regions, it has a more complete supply chain. A good production line requires not only low-cost workers, but also sufficient power supply, perfect logistics system, stable social order, high efficiency government efficiency, etc.
What are the Types of Chinese Suppliers?
The type of supplier you choose depends on the type of business you are running.
when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. In this way, their supplier is a dropshipper.
Some suppliers support the processing and delivery of a single product, and some require you to pay for the product in advance, and they still help you store and deliver it.
But in this case, you may not get the best price.
A wholesaler is essentially a middleman between a manufacturer and a retail establishment. Because they place large quantities of orders from manufacturers, they can often get better prices. Hence the more you buy, the better the price!
Manufacture produce the product. They can provide the product at a low price because they are the first cog in the chain of supply. At the same time, their minimum orders are often very high. You may need to buy hundreds of thousands of products at once. So cooperating with manufacturers requires sufficient funds.
4. Private Lable
A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. For sellers who want to build their own brand, finding suppliers to produce their own branded products can help you achieve long-term development. At the same time, you must invest money to create your own brand and buy in bulk from the manufacturer.
Ways to Find Suppliers in China
After you have worked hard to determine the product you want to sell, the next step is to find the supplier of this product.
1. Trade fairs
Companies and manufacturers showcase their products and services in an attempt to attract new customers in the trade fairs. It provides a great chance for suppliers and customers to communicate.
Here I will introduce the main production areas for you. Knowing which Chinese region specializes in the product you want manufacturing can help you a lot.
- 3C products, the main production area is in Huaqiang North, Shenzhen, Guangdong Province.
- For the luggage category, there are thousands of individual processing enterprises in Baigou Town, Hebei Province, forming a complete industrial chain of luggage upstream and downstream.
- Lamp categories, mainly concentrate in Zhongshan City, Guangdong Province, Yuyao City, Zhejiang Province, and Changzhou City, Jiangsu Province. Zhongshan City, Guangdong Province as the lighting capital of China, produces more than 80% of the lamps.
- Toy categories, distribute in Shenzhen, Guangdong Province, and Cangnan, Wenzhou Province.
- The pet food, mainly concentrate in Nanhe County, Hebei Province, where pet food production accounts for 60% of the country. And Cangnan County in Wenzhou, Zhejiang, is famous for knitted pet products.
- Swimwear, 20% of the world’s swimwear is produced in Xingcheng, Huludao City, Liaoning Province.
In addition to looking for inspiration at major trade fairs, if you have the opportunity, you can explore the factory in depth.
2. China sourcing websites
Alibaba, arguably the world’s largest business-to-business (B2B) portal.
AliExpress, Unlike on Alibaba.com, sellers on AliExpress can be either companies or individuals making supplier verification difficult and leading to some scams.
DHgate, the online wholesale marketplace where buyers can find competitively priced quality made in China products, usually at lower MOQs than other platforms.
China Sources, another popular website that arranges connections between businesses as well as Chinese manufacturers and suppliers.
HKDC, this site offers an extensive directory of suppliers in China with over one million listings and offers other services like business matching.
Smart China Sourcing, lists 80 sourcing experts and is ISO9000 certified.
Made-in-China, a leading B2B portal that offers access to sourcing experts and claims quality products and companies.
Global Sources, has helped more than 1.4 million international buyers in more than 240 countries to source from overseas.
China Suppliers, Exclusive Government Authorized B2B E-Marketplace in China.
DIYTrade, A clean and easy to use website, DIYTrade features over 5 million products across a wide range of industries from underwear to ball bearings.
ECVV, A bridge-builder that empowers merchants to easily connect and do business. Recommended by the Shenzhen Government and American International Business Council.
EC21, One of the leading global b2b marketplaces, Korea-based EC21 is very popular with Chinese manufacturers looking for international buyers.
Yiwugo, the official website of the world’s largest small commodity wholesale market.
Banggood, a B2C platform operated from Mainland China, Hong Kong together with overseas warehouses to help global buyers.
LightInTheBox, offers products in the core categories of apparel, small accessories/gadgets, and home & garden.
3. Online supplier directories
There are some websites that have listed the suppliers, you can find a lot of suppliers in their lists. These websites will investigate suppliers and then list the high-quality suppliers.
Captain BI is trying its best to build the supplier database, provide you the most valuable suppliers list. In this way, you can find your reliable supplier easily, saving money, time, and energy for you.
How to verify Chinese suppliers?
1. Research company
Firstly, when you find a supplier, you can check the company size, address, and customers’ feedbacks. Moreover, you can check more details of the company:
- Business license
- Company or factory location (shown in the previous section)
- Ownership status
- Photos of the supplier’s operations
- Contact information
- Certifications from subsidiaries, partners, or contractors
2. Order product samples
You can judge the supplier’s service level by ordering product samples. Some suppliers will package the products in a complete and exquisite way, and even send a list of other products from the factory in the sample.
And some suppliers, the samples sent are indeed tattered, and some are even defective. Such suppliers should stay away from them as soon as possible.
3. Know the ability to deliverproducts
the delivery ability of the supplier is related to the stability of the supply chain and the safety of the listing. It is a relatively important part. when your business scale reaches a certain level, such as making a market exclusive product or other privately modeled products, the delivery ability of the supplier may be a very important consideration.
4. Detect the ability to modify products
When choosing a supplier, try to choose some suppliers with the ability to change models and private models.
Otherwise, it will greatly waste time and energy when your scale reaches a certain level. At that time, the supplier’s ability can not keep up with your development, then you have to look for other suitable suppliers.
5. Know the warranty agreement
If you don’t have a large business, it is difficult for you to inspect the product quality in the factory. In this way, you can find an authoritative agency to help you complete this inspection.
Some suppliers now your inspection agency, they will never do anything to deceive you.
6. Refer to multiple suppliers
The comparison of multiple suppliers can avoid single information and misunderstandings to the greatest extent. In addition, you can also learn more about industry trends and patterns.
At the same time, once there is a problem with the supply of existing suppliers, you can connect alternative factories as soon as possible to reduce losses.
Hence it is best to ask for samples from 5-10 suppliers for observation. After a comprehensive inspection of product quality, service level, and delivery guarantee, decide which product to choose.
How to negotiate with Chinese suppliers?
1. Face-to-face communication with suppliers
Let’s imagine, if you are a supplier, are you willing to give the product to a seller who has only typed and chatted on the Internet? Or will you give it to the person who you have already met face to face?
Even if you can’t get to the supplier, it is vital to use the software to conduct a video conference with the supplier. In this way, the other party can see you and leave an impression.
2. Realistic goals and expectations
When discussing requirements with suppliers, make sure to establish realistic goals and expectations. Usually, you only have one chance to prove your value and highlight your strengths.
Of course, if the supplier asks you to do something beyond your ability, learn to say “no”. After all, once you get used to saying “yes”, you may become a habitual “commitment failure” in the mind of the supplier.
The same is true when negotiating prices. Everyone is operating a business to make money. If the price proposed by the supplier has affected your profit margin, you can directly give reasons to refuse. Pay attention to stay calm during the process, show your professionalism, and keep calm.
3. keep polite
Any relationship is based on mutual trust and respect.
When working with suppliers, clarifying the roles and responsibilities of both parties, trusting and respecting each other. In this way, it will enable you to better establish long-term partnerships with suppliers through communication.
Finding a reliable Chinese supplier for your brand is not an easy task. However only after find your supplier you can continue your business. Before formally cooperating with suppliers, check and verify each potential supplier to ensure that the business will not suffer losses and can proceed smoothly.
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