On average, Amazon sellers make $1,000 to $25,000 a month. Profit margins are quite high, from 10% to over 20%. China is the source of products for more than 70% of sellers on the ecommerce marketplace. There's no denying how lucrative it is to sell on Amazon and to increase profit margins by sourcing from China's low-cost factories.
When it comes to global sourcing from China, finding the right supplier is critical to success. However, navigating the complex landscape of Chinese manufacturing can be a daunting task, especially for those who are new to the industry.
Fortunately, there are proven strategies for finding reliable suppliers in China that can help ensure your product sourcing journey is smooth and successful.
Behind a successful Amazon business lies a reliable China supplier. So, how to contact suppliers to help your Amazon business take off and be profitable?
How to find suppliers in China?
China suppliers serve buyers throughout the world. Their labor-intensive operations make them uniquely capable to take on more clients without any impact on product. Many, if not all, are on B2B communication networks and ecosystems. So, there are several ways to contact Chinese suppliers, as explained below.
1. Determine what you need
The first step to find suppliers in China is to determine exactly what you need. This includes identifying the specific product you want to source, the materials you need to create it, and any unique features or specifications that are required.
Once you have a clear idea of what you are looking for, you can start searching for suppliers that specialize in producing similar products or materials.
2. Online resources
One effective way to find factories in China is through online directories and sourcing platforms. These platforms can help you access a vast network of manufacturers and suppliers in China, giving you the ability to quickly and easily search for potential partners based on your specific needs.
You may already be aware of Alibaba. It is the world's largest supplier directory, is well-known and much admired globally. Alibaba is pretty much the default place for buyers looking to make private label products for it covers various product categories, and offers payment to China suppliers, product sourcing and supplier audit services.
You could begin your search for and contact suppliers in China on Alibaba. If you want to buy products in small quantity, keep in mind that most of suppliers have a minimum order quantity (MOQ). Also, shipping is expensive and not all suppliers are who they claim to be.
Coming to supplier reliability, it is better to look only at 'verified' suppliers whose company profile, production capabilities and process controls have been verified by third-party agencies appointed by Alibaba. This way, the risk of falling prey to scamsters is low.
3. Trade shows and exhibitions
Another key strategy for finding suppliers in China is to attend trade shows and exhibitions. These events offer a unique opportunity to meet with potential partners. By meeting with Chinese suppliers, you can see their products and production processes in action and build relationships with key stakeholders.
Trade shows and exhibitions can be particularly beneficial for companies that are looking to source products in large volumes or those that require complex manufacturing processes.
4. Referrals
In addition to online directories and trade shows, another effective way to search suppliers in China is through referrals and word-of-mouth. This approach involves leveraging your existing network of contacts, such as industry associations, suppliers, and other business partners, to identify potential suppliers.
Referrals can be a powerful tool for finding reliable and trustworthy suppliers, as they come from trusted sources who have first-hand experience working with these partners.
How to evaluation Chinese suppliers?
When conduct supplier evaluation in China, there are several key factors to consider. One of the most important is their experience and expertise in producing the specific product you need.
It is also important to consider their production capacity, lead times, and quality control processes to ensure they can meet your specific requirements.
Another key factor to consider when finding suppliers in China is their location. While there are suppliers located throughout China, some regions are known for producing certain types of products or materials. For example, Guangdong Province is known for producing electronics, while Zhejiang Province is known for producing hardware and machinery. By finding suppliers that is in a region that specializes in producing your product, you can often benefit from lower costs, faster lead times, and higher quality products.
In addition to these factors, it is also important to consider the supplier’s certifications and compliance with relevant industry standards. This can include certifications for quality management systems, environmental management systems, and social responsibility standards.
By working with a supplier that is certified and compliant with relevant standards, you can help ensure that your products meet regulatory requirements and are produced in an ethical and sustainable manner.
Once you have identified a potential supplier in China, it is important to conduct thorough due diligence before entering into any agreements or contracts. This can include visiting the supplier’s facilities, conducting quality inspections in China, and reviewing their financial stability and reputation. By taking these steps, you can help minimize the risk of working with an unreliable or untrustworthy partner and ensure that your product sourcing journey is a successful one.
How to develop relationships with suppliers in China?
In addition to the strategic sourcing process, it is also important to develop strong relationships with your suppliers in China. This can help facilitate effective communication, collaboration, and problem-solving, which are critical to success in the global supply chain.
Some ways to build strong relationships with your suppliers in China include visiting their facilities, communicating regularly and clearly, and providing feedback and suggestions for improvement.
Communicating over long distances can be difficult. Things may get lost in translation and misunderstandings can occur. It can spoil your relationship with the supplier and demotivate you early in your business journey. A visit to the factories and workshops that will be used to make your products can be extremely helpful in solving this problem.
A tour of the factory will help you understand the processes and offer visual cues that make it easier to discuss any issue that may come up later. Of course, you should review the facility, practices, and procedures to determine if they meet your expectations.
The visit is also an opportunity to speak with an engineer or the factory manager who can understand your requirements, help you finalize a design or look at your sample. If you place an order with the supplier, then this individual can be the point person you communicate with in the future.
Finally, it is important to stay up to date with the latest trends and developments in the Chinese manufacturing industry. This can help you identify new opportunities for sourcing products and materials, as well as potential challenges and risks that may arise.
By staying informed and adapting your strategies as needed, you can help ensure that your product sourcing journey in China is a successful and sustainable one.
Ultimately, by finding the right suppliers in China and developing strong relationships with them, you can help ensure that your product sourcing journey is a smooth and successful one.
With these strategies and best practices in mind, you can navigate the complexities of the Chinese manufacturing industry and access the high-quality products and materials that can help your business thrive.
Best practices of contacting suppliers in China.
Several questions may run through your mind when you think of how to get in contact with suppliers. For example, if a supplier you contacted on Alibaba gets back within 24 hours, how do you take the conversation forward - via the website or another channel? Are Chinese suppliers as easy-going as the American suppliers you know?
After your initial contact with a supplier and their response, continue further conversations on WeChat, China's most popular business communication app. Download WeChat and sign up for an ID. Ask your supplier for their WeChat ID and add them as a friend. Many suppliers will take the conversation from email or a supplier directory to WeChat, so familiarize yourself with the app and install it on your phone.
As for the friendliness and attitude of Chinese suppliers, it is worth recognizing certain aspects of the country's culture. Chinese businesses take an active interest in building personal relationships with their business partners. So, the element of relationship-building by knowing and respecting one another on a personal level feature prominently.
It isn't something you need to worry early on. Treating your counterpart with respect, as the Chinese view it, should help you get off on the right foot. For example, the norm in the West is to address everyone by their first name, without distinguishing between peers, superiors, and those at a level lower to you. B2B communications in China gravitate more towards the use of the individual's title and last name.
When it comes to negotiating with suppliers in China, virtually all expect it and how they respond depends on the effectiveness of your arguments. So long as they're reasonable or counter the supplier with data, you should not face difficulties in finding the price, MOQ or terms you want.
Another best practice is to make a detailed QC checklist for use by factory staff and QC inspectors. It will go a long way in preventing quality issues arising from miscommunications around product requirements.
Conclusion
Finding suppliers in China can be a challenging but rewarding process. By following these proven strategies for finding reliable suppliers in China, you can increase your chances of success and minimize the risks of working with unreliable partners.
Whether you are a seasoned importer or a new entrepreneur, these strategies can help you navigate the complex landscape of Chinese manufacturing and build strong and sustainable relationships with your partners in this important region.
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