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Sourcing a Chinese manufacturer for your product is a daunting task. There are thousands of options to choose from, and the process can be quite time-consuming.
Fortunately, we’re going to make the process easier for you. The following tips will help you find the best Chinese manufacturer for your product, so you can start selling it as quickly as possible.
One of the best places to start your search is Alibaba.com. Alibaba allows you to find a variety of manufacturers that make similar products to the one you need to be produced, get a general idea of pricing, and see reviews from other customers.
However, the smart move is NOT to contact the manufacturer through Alibaba. Since Alibaba has done a tremendous job marketing their website and creating a convenient, trustworthy source of manufacturers – prices have risen.
Instead, get the manufacturer’s contact information and get in touch directly. You’ll be able to negotiate better terms.
While most Chinese manufacturers aren’t active on social media, you can use social media to source products. Just as LinkedIn can be a valuable resource for building all kinds of business relationships – it’s also a good place to source Chinese manufacturers.
Check out some of these groups to learn more:
Trade shows have proven time and again to be great places for sourcing products from Chinese manufacturing companies. The best part about trade shows is that you can see samples of their work in person, without having to wait for international shipping.
Every industry has countless trade shows throughout the year. Do a search to find one close to you in the near future.
Between research, comparing manufacturers, negotiating terms, and potential language barriers – sourcing products can be a tedious chore. Another option is to hire a sourcing agent to do all of that for you.
Most sourcing agents work on a commission-based pay and will even visit factories on your behalf and confirm the shipment of orders when they leave one of China’s ports.
You might prefer to put it off at first, but as your business grows, you will eventually want or need to take a trip to China. However, if you’re not opposed to international travel, it would be wise to plan your trip sooner rather than later.
Unfortunately, there are many manufacturers who don’t quite meet the quality standards they portray via phone and email. Pictures tell a story, but nothing replaces being there in person.
The most efficient way to plan a trip to China for sourcing products is to go around the time of the Canton Fair – the largest international trade show where all the best manufacturers show up.
After visiting with company reps at the trade show, you can schedule a tour of their facility on the same trip. Most people don’t take this step, which shows them you are serious and softens negotiations.
When sourcing a Chinese manufacturer, business owners often make the mistake of looking for a factory that can produce high volumes – that way they don’t have to worry about running low on stock as their business grows.
What they fail to realize is bigger doesn’t mean better. Quality standards vary drastically and the best way to ensure a smooth supply chain is dealing with experienced manufacturers. In most cases, they will be able to expand their operations as your demands from them grow.
Doing business in the East is very different than in the West. For one thing, everything is negotiable, and Chinese businesses expect you to negotiate terms.
However, confrontation is frowned upon, and aggressive behavior or insulting comments will not go over well. Chinese manufacturers are quick to end business relationships with those who are considered abusive.
One of the benefits of using EDI is that it virtually eliminates human errors in your supply chain, especially those caused by language barriers. Learn more about EDI and why it’s essential for doing business with international manufacturers.