If you choose to buy from Chinese factories directly then you could increase the competitiveness of your small business or online store.
However, if you currently manufacture your own goods, you might think about purchasing raw materials, components, or packaging materials from China, which could be quite beneficial for your company.
Only relatively large corporations are able to afford to maintain a sales office that could handle imports and product sourcing from abroad.
However, thanks to technological advancements, everything is now accessible online, so there is no longer a need to travel to China, plan difficult and expensive business trips, visit Chinese manufacturers, and get in touch with suppliers.
E-commerce obviously has advantages and disadvantages since, despite its potential for speed and cost-effectiveness, it can also occasionally result in unpleasant surprises.
Finding a trustworthy Chinese factory is therefore a crucial first step in growing your company. Direct sourcing in China can be easy. However, a complete body of science is used to direct this endeavour.
The following are the few steps that you need to follow if you want to buy from Chinese factories.
1. Performing due diligence on your suppliers
It does not matter whether you have an excellent product or first-rate shipping capabilities, but it will be futile if you are dealing with a subpar supplier.
Although there are websites like Alibaba where you may find suppliers, getting a company referral or recommendation from product sourcing agent is the most reliable way to find a reliable source.
2. Decide the products that you want to import
You will be just losing your time and money by selecting the incorrect item. The first step in becoming a successful importer is selecting the ideal resale products.
3. Determine your import rights
Whether you are a corporation or an individual, you should make sure you have the authority to import products into your country before making a purchase.
4. Identify the right capacity of the factory
Our general recommendation for choosing the correct Chinese factories for size is as follows:
If your requirement is very small, then it is better to contact any trading company that may place an order on your behalf to a tier 1 factory and also (hopefully) keep proper track of production.
If your order is sufficiently large enough but not that large to attract any large factory, then work with the manufacturer directly with any tier 2 factory with approximately 250-800 workforce.
If your order is huge and significant so that companies are aggressively competing for your business, then tier 3 is advantageous for you.
5. Collect the Chinese factory list
How to find a manufacturer in China can be a tricky question, especially if you are doing it for the first time. However, if you divide your task into manageable parts and concentrate on each one individually, you will be able to buy from China with confidence and meet your expectations.
Attend the China trade fair
Attending a trade show in China is the best option if you have the funds to travel there in order to identify a reliable Chinese supplier.
Purchase goods from China via the wholesale market
It is worthwhile to go to the wholesale market available in China, where you may look through a wide range of items at extremely low cost.
Find Chinese suppliers online
Online China wholesale stores are the next-best option for small enterprises to order wholesale goods from China if they lack the funds to fly there.
Although most businesses head straight to the business-to-business directory, you may find thousands of Chinese suppliers by conducting a Google search for suppliers.
Audit the China factory
Knowing from whom you are buying is one of the most crucial aspects of purchasing from China. Make certain they are dependable and trustworthy.
6. Write effective inquiries
To guarantee you receive the information you require, you must write effective, concise, and thorough inquiry letters.
The more details you offer, the more probable it is that merchants who can fulfil your demands will contact you.
7. Negotiate confidently MOQs/price
As previously noted, in some circumstances it is appropriate to discuss a MOQ (Minimum order quantity) with the seller. If you decide to take this route, professionalism and decency are crucial.
8. Choose your supplier and request samples
Sending an email asking for samples of the goods you are interested in is necessary after you have contacted a possible source on your supplier list online or at a certain trade show.
The majority of vendors will offer you product images or catalogues without charge, however, it might be difficult to determine the quality of the goods from the images.
You should ideally get a test sample of the product to confirm its calibre. The samples could cost money, but it is hardly an expense compared to your peace of mind.
9. Negotiate payment method
Ensure that the payment terms on your order are explicit. When working with Chinese manufacturers, there is typically enough room for price negotiation, however, ensure you have a written copy of the final deal pricing.
10. Be prepared for the down payment
The majority of suppliers require a down payment, often around 30%, with the remaining balance due upon shipment. Most vendors will not even consider your order until your deposit has been transferred to their account.
This is hazardous because you won't get your money back if the supplier doesn't ship. Consider Alibaba Trade Assurance in this case.
Trade assurance is the name of a payment security service offered by Alibaba. If you don't receive the number or quality of the things you ordered, this will refund your money.
11. Place an order.
Be particular when importing products from China. Don't trust that the supplier understands your needs or that he won't cut corners to meet the agreed-upon pricing.
Orders should contain as many specifics as feasible, such as size, colour, thickness, and material. Send a chart or graphic if at all feasible to eliminate any doubt. Finally, you should do your own study and research on the best contract to sign with Chinese manufacturers.
It is time to submit an order when you have confirmed the specifics of the final agreement.
It is difficult to control the quality when the source is based abroad. You might hire a third-party inspection business to check the product quality if the order is significant.
Understand QC inspection services
The primary objective of product quality control inspection services is to spot issues and flaws before they become serious in order to ensure that consumers are getting genuine products.
Ordering from Chinese factory scams versus poor quality
It should be noted that receiving absolutely nothing at all due to a scam on a China factory purchase is very different from receiving all the materials of your order, but you are not completely satisfied with them.
Receiving inferior products undoubtedly falls under the category of "scamming," but that is a completely separate issue that has to be addressed.
The majority of the time, these subpar goods cannot pass the tight customs and are either thrown out, destroyed, or subject to additional punishment.
In such circumstances, it is tents amount to that you won't receive the items that you ordered and may feel "scammed."
13. Ready for shipment
You have a variety of shipping choices when it comes to getting your goods from China or Alibaba to your nation. Sea and air freight are common choices.
The options you select, however, could either boost your profit margins or eliminate them, depending on what size of the wholesale goods you purchase.
Shipping costs are typically lower for huge amounts of relatively heavy material when using sea freight. However, air freight will be a more appropriate decision if you purchase a lot of lightweight stuff.
Also crucial are the shipping terms that the seller offers. Ex-works (EXW), free on board (FOB), or cost insurance freight are all possible shipping methods. Choose the term that best fits you after evaluating each item.
14. Receive your goods.
Receiving your goods is the last stage in the process of buying directly from China. Remember to promptly assess the quality of the goods after getting them and provide feedback to the manufacturer. The problem with the goods must be resolved quickly if it arises.
Usually, the seller will assist you in shipping the items to your nation, but the freight will cost more.
Using a freight forwarder to help you export from China is the best course of action in this case. Request quotes from two to three freight forwarding firms, and then pick the one with the best pricing and communication.
If you have decided to buy from Chinese factories directly, one smart thing to do is hire service from a certain product sourcing agent. There are many such English-speaking agents available in China who have a wide knowledge of the Chinese market and also the business culture of that country.