Ten Tips to Source your Products from China
Chinese Wholesale Tip 1: Verify your Suppliers.
This is a very important Chinese Wholesale tip. The number of manufacturers and suppliers in China is endless and the efficiency, quality and legitimacy between them vary significantly. Therefore, it is important to verify your supplier before you make a payment. Do not get impressed by a professional website and rankings on Alibaba. There is only one way to properly verify a business in China and that’s through a local government office, which will check the manufacturer’s business registration, the annual turnover and its trading history. However, this could be difficult without being fluent in Chinese and without being on-site. Furthermore, it is essential to transfer all payments to an official bank account of the registered factory or a trusted intermediary and never to individuals or unions in China.
Chinese Wholesale Tip 2: Get help from a company or contact on the ground in China.
Manufacturing in China can be difficult to setup and manage from overseas. Even professional manufacturers in China make mistakes, mostly because of communication issues. The manufacturing industry in China can be complex and where problem-solving issues come up on a daily basis. It can be a gamble and often ends in disaster if you try to manage your production from outside of China. With reliable contacts on the ground, managing production and quality control, you can control this risk.
Chinese Wholesale Tip 3: Always carry out onsite Quality Control inspections.
Never import from China without any kind of quality control, as the production standards often don’t meet western compliance. Some of the best quality products are produced in China, but on the other hand, it has some of the worst as well. Despite China’s overall rise and economical growth, there are still factories, which produce questionable quality. It is not uncommon that a Chinese manufacture copies a product and reproduces it without the exact knowledge of its use. The product might look the same, but it might not work as effectively as the original product. Once the goods are on the ship or have arrived at the destination country, there is no turning back. Importing goods without quality control is not conceivable as the risks are too high. It is therefore important to work with a contact or company on the ground in China that can carry out onsite quality control. MyShipper provides three separate quality control inspections before the goods leave the factory.
Chinese Wholesale Tip 4: Don’t get caught out on payment terms.
It is essential to understand the terms and conditions when making payments to the manufacturer. Depending on the terms, your payment may include the whole production costs including the transportation and Chinese boarder tariffs. However, it is not uncommon for the manufacturer to add on extra hidden costs. This could lead to double charging for the transportation and customs costs, which is nearly impossible to be compensated for. In order to avoid this risk you need legal knowledge, as well as know the exact location of the factory so you can estimate the transportation costs. To avoid this minefield you must hire a consulting agency to check the terms for you and to secure your payment.
Chinese Wholesale Tip 5: Get Insurance.
The statistics show that most importers do not insure their goods, which is a very risky practice. Businesses who do not consider insuring their goods risk damaging their business significantly if a container load is written off. Although rare, container ships can sink, or containers can go over board, or get lost or even catch fire. However, the most common issue is that the goods get damaged during the transit. For example, heavy goods can be loaded on top of light goods and can cause damage during shipment. At the border, damage can occur during custom inspections.
Chinese Wholesale Tip 6: Use a forwarder that has a Mixed Container Service.
A transportation company can fill up containers with products from different customers in order to increase efficiency and save transportation costs. Therefore, it is recommended to hire a suitable International forwarder when importing less than one container. Furthermore, the risk of lost packages during the loading or unloading process is minimised because international forwarding companies have a reputation and have extensive procedures to prevent loss. MyShipper has established transport links and partners so we pass on the cost savings directly to the customer.
Tip 7: Get the right price.
In general, there are two ways of getting a fair price when importing container loads from China. If you import less than one container, you have limited bargaining power, so you have to ensure that you are not paying over the average market price in China. To do so, you have to get different quotes from different manufacturers, which can differ greatly from each other. It is common for different manufacturers to have the exact same pictures in their brochures that are offering different prices. Try to get as much information from the manufacturer as possible to ensure quality and a fair price. Never go for the cheapest offer without carrying out due diligence as a seemingly good deal can turn into expensive rubbish. If you import more than one container you have more bargaining power so be sure to negotiate or deal with supplier that is working on your side. However, to get the best price you need local knowledge, product sourcing experience, knowledge of labour costs, production capacity analysis and experience with the Chinese taxation system – which all depends on the location. Only when you know the real production costs, can you negotiate the best price. At MyShipper we negotiate the best price whilst guaranteeing the very highest quality and Australian standards.
Chinese Wholesale Tip 8: Get a valid contract.
As in every business, without a contract you cannot blame the manufacturer for not fulfilling its obligations. There are some critical rules you have to follow in order to draft a proper contractual document. It is imperative that all the specifications and materials used in production are included in the contracts, even if it is seems clear cut. It is very important that you get the factory stamp on the contract because even if the contract has the signature of the manufacturer, without an official factory stamp, the contract becomes worthless in China.
Chinese Wholesale Tip 9: Sampling.
As soon as you agreed the price with a manufacturer, a sample is sent out in order to demonstrate the quality of the product. In general, these samples offer high quality and fulfil the customer’s specifications. There is always the danger that the actual products that arrive at your door don’t meet the specifications of the sample. Cheaper materials can be used and quality checks can be ignored leading to defective products. Some manufacturers even buy their samples from premium factories in order to send them to their own costumers. It is important to use confirmed sample during onsite quality control inspections to assess quality and remove defective products.
Chinese Wholesale Tip 10: Work with a China based end to end sourcing company.
Working with an end to end sourcing company on the ground in China gives you one point of contact from enquiry to delivery. Having one company take care of sourcing, sampling, manufacturing, quality control, packaging, customs clearance and door to door delivery removes the stress and headaches out of importing from China. With one point of contact and dedicated project managers that oversee the whole process Myshipper can help you get started with importing from China. Contact us today to find out more.