6 China Product Sourcing/Wholesale Websites Buyers Must Know About
For over two decades now, China has been the powerhouse of global Original Equipment Manufacturing (OEM). It continues to be a global manufacturing bastion even today. Not only the leading brands but also several small and medium businesses from western countries are now sourcing products from China. However, you do need to find an experienced, skilled, and reliable supplier to make your venture successful. One of the best ways to find such a supplier is the internet. You can find dozens of websites promising to help in sourcing products from China easily, quickly, and affordably. But, how do you determine which is the best website to buy from China? Clearly, there is no easy way to find the most trusted product sourcing website. Don’t worry! We are here to help you. In this post, we will discuss five of the best China product sourcing websites for buyers like you. 1. Alibaba You have probably heard of Alibaba, and its founder and chairman, Jack Ma. Alibaba is one of the biggest e-commerce giants in the world. It is also one of the most sought-after China product sourcing websites in the world. As a pioneer of online marketplaces in China, Alibaba is often considered a reliable website to start looking for Chinese suppliers. This online marketplace connects sellers or manufacturers from China to buyers from all over the globe. One of the distinct advantages of finding a supplier through Alibaba is the Trade Assurance feature. Under this feature, the website provides buyers with a guarantee of timely delivery and good-quality products. You and your supplier can decide the quality and delivery terms. If you are not satisfied with the quality of the product (if they are not as prescribed by you), you can request a refund within 30 days from the date of delivery. However, you have to place an order with a Trade Assurance Supplier and make the payment through one of the secure payment gateways available on Alibaba. These steps will make you eligible for this service. 2. DHgate Another reliable website for sourcing products from China is DHgate. It is also an online marketplace, where you can find sellers offering good-quality Chinese products at very competitive rates. However, the rates are solely decided by sellers. This marketplace also offers Buyer Protection, allowing you to request a refund. If you don’t receive your products, you can get a full refund. If you get items that aren’t as described, you can get a full or partial refund. You can see various badges for each seller on their website. These badges tell you about the quality and reliability of a seller. For example, the on-time-delivery badge means the seller has provided timely deliveries in the past. The merchandise quality badge tells you about sellers that work with a third-party inspection company and offer products that have passed strict quality tests. It is, therefore, easier to connect with a trusted and reliable sourcing company using DHgate. 3. Made-in-China Established in 1998, Made-in-China is one of the oldest third-party product sourcing websites in China. Although it doesn’t have any buyer protection plan, the website claims to have verified suppliers on their list. You can identify such suppliers by checking the verified icon located right next to the name of the supplier. The website also releases the payment to the supplier only after you (buyer) have received the products in good condition. This feature helps protect buyers from scams. Another significant benefit of this website is the direct interaction with the suppliers, both online and offline. Made-in-China can help you meet the supplier in-person or online. You can also request a business information report on a supplier. It tells you about the track record of the supplier, their corporate structure, available payment gateways, finance availability, and risk analysis, among other things. Read more: Is Made-in-China A Scam? 4. Global Sources Global Sources is an online marketplace and a product sourcing facilitator as well. The website claims to have catered to 1.5 million international buyers and 95 of the world’s top 100 retailers. Apart from the trade shows in Hongkong, Global Sources is also famous for publishing online keynote performances and factory tours by their suppliers. In other words, it is easier to get more information about a potential supplier on Global Sources. The platform also has a verified manufacturer badge that helps you identify suppliers verified by Global Sources. The website also helps you connect with suppliers that don’t have an online account, but are active participants in their offline trade shows. This widens your search range considerably. Unlike DHgate, however, you can’t directly place your order by selecting a supplier. First, you will need to talk to a supplier about contract terms, delivery mode and schedule, and payment terms, among other things. Most buyers, especially beginners, may find this process complicated and time-consuming. On this website, however, you are likely to find the most competitive rates for sourcing products from China. 5. AliExpress With AliExpress, you can directly source products from China, just like online shopping. Alibaba Group owns this website. It is, however, not a sourcing website in the conventional sense, as it focusses on small and medium-sized wholesale orders. It also offers buyer protection. You can get a refund if you don’t receive the products or they are not as described. You can expect a refund in 15 days, says the website. The website also offers the guarantee of shipment delivery within the stipulated time. For each store or supplier, you can see a variety of information, including when the store was opened, business information, and customer ratings for the following: Item as Described Shipping Speed Communication Make sure to check these before placing your order. The website supports a wide range of payment gateways, including credit cards, wire transfers, PayPal, and Western Union, among others. The quick and easy-to-use ordering process is probably the best feature of AliExpress. 6. Sup Dropshipping Sup Dropshipping sourcing and delivers amazing products to brands
How to Find a Good Chinese Manufacturer
There’s a reason why China is considered the ultimate manufacturing destination in the world. You can get virtually any product made here, and that too at a much cheaper rate compared to other countries. No wonder then, that China boasts of a huge sourcing industry! In fact, China’s trade surplus stood at around 422 billion U.S. dollars and its exports of goods totaled a record high of almost 2.5 trillion U.S. dollars in 2019. In the same year, China’s export of goods and services constituted 17.4 percent of the GDP. The bottom line is that sourcing your products from China is a highly profitable strategy. However, to succeed at it, you need a good manufacturer on your side. Here’s how you can find one. 1. Start with a Well-Planned Search You may want to use the internet to start finding a manufacturer to make your product. You can use search engines such as Google or Bing or B2B platforms. You can also try your luck at online sourcing platforms such as Alibaba, where you can connect with Chinese manufacturers. You need to be careful as the search results may include not just manufacturers, but also resellers and middlemen. It is a good idea to avoid middlemen when you have very specific technical and high-end requirements to meet. Another great way to find a reliable manufacturer is by seeking references and recommendations from your industry network. This could include your contacts in the industry who have done business in China, trade associations, and even your contacts from other companies. If your budget and schedule permit, you can also visit trade fairs in China to find manufacturers. The Canton Fair, China’s largest trade fair, is held in Guangzhou twice a year, i.e. in April and October. Further, working with a sourcing company or agent can be helpful for businesses who are looking to source from Chinese manufacturers for the first time. You will not have to worry about processes such as getting quotes from product manufacturers, drawing up payment terms, quality control inspections or shipping as the product sourcing agent will manage it all. 2. Shortlist a Few Manufacturers Once your initial search is complete, chances are that you will have a long list of product manufacturers with you. You will need to cut this list down by contacting each one and telling them about your requirements. Based on the responses you get, you can shortlist potential product manufacturers. It makes sense to prefer Chinese manufacturers who are experienced in working with clients abroad. They will be well-acquainted with the global quality standards, the fundamentals of customs requirements, international shipping logistics, and the other important factors involved in providing high-quality products. 3. Reach Out to Them After shortlisting product manufacturers, you will have to reach out to them with your initial requirements. You can do so via phone calls or emails. The latter is preferable as it will allow you to have a record of the communication. You can also use WeChat, a popular chatting app in China. Other communication tools include Skype and Zoom. When you reach out to them over a video call, ask them to show you their product samples, if possible. When you order a couple of samples, it can be easy to make quality versions and pass them off as a sample of the finished product. Hence, ask them to send you multiple samples of the final product so you can examine them physically and minimize risks. 4. Make Sure to Verify Their Credentials Verifying the credentials of the product manufacturers you shortlist before sourcing from them will help you establish that they really are a factory, and not a middleman. You will also find out whether they really do have the technical expertise and production capability to deliver on their promises. To ascertain their claims, ask to see their business licenses and certifications, factory account audit records, Value Added Tax invoices, and product samples. You can also approach the local government office under whose jurisdiction the factory falls for further verification. Knowing which Chinese region specializes in manufacturing the product you want can also be helpful. For instance, the Zhejiang province houses manufacturers of die casting and plastic molding products. So, if you meet a supplier of these products, who is located in another province, it is likely that they are a reseller and not a product manufacturer. 5. Discuss Your Terms and Conditions Before proceeding further, discuss the matter of signing a non-disclosure agreement (NDA) (specifically for overseas manufacturers) with your potential product manufacturers. After this, you can get a request for quotation (RFQ). For this, you will have to send them images of your product prototype with details such as the materials to use, the size and weight of the product, and more. Make sure to seek the same information from each product manufacturer so you can easily compare your findings. Find out their minimum order quantity (MOQ), sample prices, production prices, time to manufacture, and the payment terms. Ask about future payment terms if you were to become their regular customer. 6. Seal the Deal with a Contract Before you finalize anything, make a binding contract in writing. The manufacturing contract between you and your Chinese manufacturer should include: China NDA or NNN Agreement: A China NDA (written in Chinese and by Chinese law) protects your IP or trade secrets. The NNN agreement is an upgraded version of the NDA and stipulates non-disclosure, non-use, and non-circumvention of your Intellectual Property. Product Development Agreement: This applies if you are developing the product with your manufacturer in China. This agreement prohibits the manufacturer from claiming your Intellectual Property as their own. Manufacturing Agreement: This agreement states the intricate details of your working relationship as client and product manufacturer, leaving no room for misinterpretation or misuse by the manufacturer. It includes points such as manufacturing facility to be used, obligations and deliverables, pricing and payment terms, quality control inspection schedules and procedures, performance criteria, subcontracting,
5 Reasons Why Sourcing from China Is Your Best Option
Many small and medium-sized businesses and even some of the leading brands have understood the importance of sourcing products from China over the last few years. For example, in 2019, about 28% of the global vehicle output had been manufactured in China. Other industries have also turned to China to look for reliable Original Equipment Manufacturers. If done successfully, importing products from Chinese manufacturers can help you increase your profit margin, lower labor costs, and ensure uninterrupted supply throughout the year. Unfortunately, you can still see a lot of myths and misinformation flying around. Some say that you can’t find high-quality products made in China. The truth, however, is that sourcing from China can be your best option. Let’s see a few benefits of sourcing products from China, which will help change your mind. 1. Expansive Supplier Base One of the primary reasons why you should import from China is the expansive supplier base in the country. In fact, China boasts of one of the most diverse supplier bases in the world. From textile and apparel to electronics and consumer goods, you can find an extensive range of sourcing companies for making virtually any type of product. China has different industrial clusters comprising a large number of firms and companies located in a well-defined geographical area. For example, the Yiwu region in Zhejiang province is perhaps the largest small commodities market in the world. So, you can find a reliable sourcing company for making any type of gift articles. On the other hand, Tongxiang is the manufacturing hub for fabricated kitchenware and home utility products. If you are looking to outsource the OEM manufacturing for kitchen sink or metal tools, this geographical area is where you can find the right supplier. Similarly, you can find supplier bases for cosmetics in Guangzhou, hardware in Yongkang, and digital and electronics products in Shenzhen. Each cluster comprises various subclusters consisting of different supporting companies. These subclusters offer services like packaging, raw materials, transport, and quality control, among other things. In other words, you get a one-stop solution for all your OEM needs. 2. Lower Labor Cost One of the most lauded answers to the commonly asked question “Why is it cheaper to make stuff in China?” is the lower labor cost. Labor cost is an important factor that determines the overall production cost in the manufacturing sector. China is one of the most populous countries in the world, making it easier to find plenty of both skilled and unskilled labor locally. The abundance of local labor makes it possible for sourcing companies in China to set lower manufacturing costs. Also, various government policies also allow manufacturers to ensure stellar work standards without having to increase labor costs. Most workers also have years of training or experience in their respective niches. So, as a buyer, you don’t have to invest time and money in training, especially if you are sourcing generic products. Finding cheap, but skilled labor can also be taken care of by a product sourcing agent. In short, you don’t have to face any difficulties or invest time in looking for suitable labor. 3. Excellent Product Quality It is a common misconception that Chinese products are not durable. They are often termed as use-and-throw-quality products. However, this is far from the truth. Several small and medium businesses have already found suppliers offering high-quality products made in China. In fact, most suppliers have years of hands-on manufacturing experience and hence, know the manufacturing process inside out. They also know the best and the cheapest sources to acquire good-quality raw material and may already have the equipment required to maintain a stellar quality standard. Many leading manufacturers are also willing to invest in suitable equipment and technology. Furthermore, you can rope in a third-party quality control company to ensure the product confers to your quality standards and technical specifications. Most reputed and experienced manufacturers are aware of this. So, they are more than willing to submit to product quality inspections at various stages of the manufacturing process. 4. Better Scaling Capabilities As mentioned, the infrastructure in China is well established and robust. Most Chinese manufacturers also have years of experience and in-depth knowledge of global supply chain management. Both these factors allow them to scale-up manufacturing as and when required. For example, you can increase your sourcing products from a few thousand to more than a million in just a few days or weeks at the most. Of course, the time for scaling up will depend on the type of your product and the availability of raw materials, among other things. Furthermore, most manufacturers’ policies do not require buyers to invest heavily in Minimum Order Quantity (MOQ). You have to pay considerably lower costs for MOQ, allowing startups and small businesses to start sourcing products in small quantities. You can, however, scale up as your business grows. If you are a new company looking to establish your brand, there is no better alternative than taking advantage of manufacturing in China. 5. Direct Sourcing When it comes to outsourcing, buyers often have to deal with multiple parties, called middlemen, resulting in delays and increased sourcing costs. However, when it comes to sourcing products from China, you can directly deal with the manufacturer. The OEM sector in China is extremely competitive. As a result, most manufacturers prefer to deal with the buyers directly to eliminate the increased costs of multiple middlemen. In some cases, you have to work with only one product sourcing agent, making it easier to hit the ground running. You can easily connect with a reputable supplier or their representative agents in international trade fairs through online marketplaces, by directly visiting various traders’ markets in China, or with the help of an experienced sourcing agent. Make sure to hire a reliable and experienced manufacturer. Conclusion In an extremely competitive global market, businesses have to focus on increasing their profit margin without compromising product quality or raising production costs. That’s why a large
5 Tips for Sourcing Products from China Successfully
The Chinese economy has been prospering. The nation has witnessed increased growth because of low manufacturing costs relative to the other parts of the world. This reality has opened up several opportunities for global sellers. By sourcing products from China, you can get them at extremely low prices. You can then sell them in your own country at higher prices, thereby earning profits. This, however, is easier said than done. For success, you will need to find the right product suppliers in China. This is where sourcing products can get tricky mainly because there may be a huge difference in the way things are done in your country and in China. It is not easy to understand a completely difficult language and negotiate an investment of thousands of dollars in inventory with someone you’ve just met online. The Chinese business culture may also be different from yours. With the right guidance, however, you can find ways around this and successfully source high-quality products from China. In this post, we will discuss a few tips or best practices for sourcing products from China without a hiccup. 1. Do Your Own Research Before you can start sourcing products from a reliable Chinese supplier, you will have to begin the process by contacting them online. However, you need to be careful as the internet is full of fraudsters who can try to trick you into thinking that they are a legitimate Chinese supplier. This is why you need to do adequate due diligence. You can begin your search for a supplier with online Chinese business directories. Alibaba is a renowned name and so is Global Sources. You can usually find high-volume, mass-market products and suppliers here. However, if you’re looking for niche or customized products, you may have to look elsewhere. With the help of these directories, you can find suppliers in China who can deliver quality goods at the promised time and price. Make contact with a few suppliers. You may want to check out their business website and verify their authenticity. The website should not be just a one-page brochure-like free hosting platform. It should look professional with ample information on all their offerings. Don’t fall for the accreditations or “trust badges” you see as they can be easily purchased or copied from elsewhere. Perform a Google search of the supplier’s name and see what you find. You want to look for the latest news and online reviews associated with the supplier’s firm. You can also check out their LinkedIn profile and other social media accounts that are permitted in China. A popular supplier who works with global clientele will certainly have a verified profile. You can connect with a few suppliers you are interested in working with through online communication platforms such as Skype or Zoom. WeChat is a Chinese app that is popular among the people here. Talk business and ask them to show your products through the webcam, if possible. The way they conduct themselves and their tone will give you an idea of whether or not you should trust the supplier. If they ask for huge amounts of money upfront or are unable to answer your queries to your satisfaction, avoid dealing further with them. It would be best to talk to another supplier. 2. Learn as Much You Can about Your Supplier Once you have shortlisted a few suppliers for sourcing products from China, verifying their credentials is the next step. You may find some basic information about them online. Apart from that, you should know if they are indeed a manufacturer and not a middleman, and if they have the technical expertise, product manufacturing abilities, processes, and resources to live up to their claims of quality and delivery. You can verify this in several ways. Ask the supplier for their audited accounts, check out their Value Added Tax invoice, and seek product samples. You can also verify the supplier’s name, location, and the nearest local government office. This office will likely have the supplier’s registration records, which you use to ascertain the details provided by them to you. Remember, doing business in China isn’t easy, but doesn’t have to be complex either. 3. Consider the Cost Carefully As mentioned, one of the main benefits of sourcing products from China is low-cost manufacturing. In fact, these costs remain low despite the add-on charges for shipping and duties. However, when sourcing products from China, you should know that all manufacturers have a floor price, i.e. the minimum cost for manufacturing the product. You need to bear this in mind when negotiating with potential suppliers. This means that if you have done your homework about the product and the costs of raw material and market, you will know what the price actually is. It is best not to choose suppliers who quote a price less than that. Also, large-scale orders may lead to further lowering of costs. Either way, know that if suppliers go below the floor price, it will affect the product in other ways. The quality of the raw material may be compromised or the workers’ wages may be reduced or their work condition could suffer. It can also mean that the supplier bypasses the critical quality control process. This can be disastrous and affect your reputation as well as create legal trouble. Quality control inspections are non-negotiable as they help prevent costly mistakes and ensure that the quality of the product is up to your standards. 4. Stay on Top of Communication A lot of clients tend to forget that when sourcing products from China, language may prove to be a barrier to communication. While the more established suppliers do have English-speaking customer support, a lot of the problems between clients and suppliers are rooted in misunderstandings in the communication process. Often, things that may have been said by the client might not have been understood correctly by the supplier and vice versa. Of course, none of this is done deliberately, but if clients
5 Things to Keep in Mind When Importing from China
For many companies across the globe, whether small or big, China is the preferred third-party manufacturing destination. From hairpins to electronics, as a buyer, you can import practically anything from China. In fact, this country is perhaps the largest manufacturing economy and exporter of goods in the world. In 2019, China had a manufacturing output of $3,896.35 billion, making up for 27.17% of its GDP. However, importing goods from China is easier said than done, especially if you are doing it for the first time. As a first-time buyer, you may find the process daunting and complicated at times. But, armed with the right information and knowledge, you should be able to successfully import goods from China. Here are five tips that’ll help you to start buying goods from China without any hassle. 1. Know the Specific Rules and Regulations One of the first things you will need to do is to learn as much as possible about the relevant rules and regulations. Different products may have to undergo specific tests, require special permissions for export from China, import in your country, and international regulations, among others. For example, if you are importing the goods into the European Union, depending on the type of product, you may have to adhere to stricter quality controls and regulations. Cosmetic products, for instance, may have to undergo various quality tests before they are allowed to be imported in your country. This also means that you will need to find a manufacturer capable of adhering to the given product quality standards and has the required qualifications. Make sure to do in-depth research on the product you want to import from China, starting with your country’s customs department. 2. Make Sure the Product Isn’t on Prohibited List While some products may be perfectly legal in China, importing them to your country might be illegal. As a buyer or an importer, you are solely responsible for bringing the product into your country. As a result, if you import a product that is on the prohibited products list, you and your business will have to face serious legal consequences. So, make sure the product you intend to import from China is not on your country’s prohibited goods list. Also, importing goods that do not meet the regulations or quality and hygiene standards can also have impending legal consequences. You may have to pay huge fines or the authorities may even pull the plug on your business permanently. Be sure to take all these factors into account before you start importing. 3. Always Work with Reliable Suppliers As the quality and adherence to your country’s and international regulations are extremely crucial when buying goods from China, you must work with a reliable supplier. Usually, most buyers want to work with the cheapest supplier they can find. However, cheaper costs often result in poor quality products. In some cases, a bad supplier may even provide you with false quality certifications. As a result, customs may hold your goods or even restrict them from getting into the country forever. The financial loss and added logistical costs, in this case, could bankrupt your business. To avoid this, you need to look for a reliable and experienced supplier in your niche. One way to ensure that is to hire a competent and experienced sourcing agent, especially if you are importing goods from China for the first time. Alternatively, you can shortlist a few suppliers yourself and check them out thoroughly before zeroing in on a final name. 4. Ensure to Write a Watertight Contract Once you have finalized a supplier, you will need to focus on creating and signing a watertight contract. The sales contract should have all product specifications. Make sure not to leave anything out, not even a seemingly trivial detail. Remember, if it is not in the contract, you can’t ask the supplier to deliver it. Layout your payment terms and conditions very carefully and in detail. In most cases, buyers have to pay 20%-30% of the total order cost as a down payment and the remainder after the products have passed the quality tests and shipped. Depending on your order size and the type of product, however, you can change these payment terms. Along with product specifications, you also need to mention the quality control and testing standards in detail. Make sure to mention all design details including color, appearance, size and shape, structure, and raw materials, among others. The more details, the better. You can also rope in a reliable and experienced third-party product inspection company for on-site testing. The fourth important element of your sales contract is the delivery schedule and shipping (or packaging) details. You should spell out packaging details carefully, especially if your product requires specialized packaging. Also, create a delivery schedule based on the time required to approve samples, quality inspections, on-site and in-lab testing, and shipping. 5. Consider the General Rate Increase (GRI) The primary benefit of importing goods from China is the lower manufacturing cost. However, whatever profit you made in manufacturing could be lost if you have to pay a higher cost for shipping the products. That’s why you have to consider the General Rate Increase or GRI. GRI is the average increase in the base freight tariffs across different international trade routes. It is usually based on the change in demand and supply. GRI affects all businesses, whether you are an exporter or importer. Your shipping costs may as much as double due to GRI. The best possible way to lower your shipping costs is to take the potential GRI into account and plan your shipments accordingly. For example, you can set your cargo collection date before the next GRI is announced. You can also compare the shipping costs of different carriers to get the best deal. Conclusion As you can see, importing goods from China can be a daunting task, especially for a first-time buyer. Hopefully, with thorough research on export-import rules, a water-tight contract, suitable GRI