7 Tips to Find The Right Supplier in China


There are many international destinations to consider for all those business owners looking for a sourcing hub. However, China seems to be topping the list, especially among the Asian countries. An expansive supplier base, low production cost, superior technological capabilities, large-scale production opportunities, and sustainability make China a lucrative destination to maintain a supply chain.

China is a great sourcing destination, provided you know who you are choosing.Here are 7 tips to find the right supplier in China.

Many business owners worldwide wish to associate with China's supply chain network. The country can give you the right suppliers; however, you should know the right way to search for them. Most novice business owners may be unfamiliar with the process of identifying and working with Chinese suppliers. So, to help you understand the process better, here are a few tips to follow:

Tip 1: Determine your budget

There is no doubt that China is the largest manufacturer of almost all kinds of products under the sun. Old or new, every business owner chooses to work with the country to get the best quality products. Their desire for a higher profit margin makes them select China as their supplier base. Now, these aspirations will materialize profitably only when you have a budget that allows you to source from China.

If you have a drop-shipping business idea, we are charging an amount starting from $100, including shipping costs. Moreover, paying for customized products won't burn a hole in your pocket. All you need is $50 to set up your China supply chain, after which you can get customized products delivered to you.  

Tip 2: Know your supplier needs thoroughly

A lack of clarity can lead to choosing the wrong kind of supplier from a considerable lot in China. It is essential for you to know the availability of suppliers and categorize all the information you find. Before making a final decision, you need to choose between third-party suppliers and manufacturers or small family-owned enterprises and big corporations. 

When you properly categorize different suppliers' options in China, you will gauge what will work for you and your business. Take, for instance. You wish to import within a narrow range. In this case, working with a manufacturer in China will be better than a third-party supplier. Similarly, you should consider working with a family-owned business in China if you have a small business and are looking for dedicated assistance.

Tip 3: Look for suppliers in China

The next step is to identify the best suppliers in China. The internet can provide a wealth of information on this. Based on the kind of product you wish to import, you can get online B2B trade platforms, international online directories, and social media networks to connect with different suppliers in China. Online directories seem to be the safest medium to identify Chinese suppliers because they feature only legit parties. Moreover, these platforms make the search process a lot easier and faster as well.

You can even leverage the power of Google to find suppliers in China. Searching "[Product] + drop shipper" will give you an innumerable number of supplier names. Trade shows and wholesale markets in China are also the right places to look for suppliers. However, make sure you scan them properly before finalizing your choice. Not all of them will be able to meet your needs effectively and within your budget. It's best to have your vetting process to make the best choice of a supplier.

Alibaba and Glablesources can also help you find reliable suppliers in China quickly and conveniently. They have a massive directory of suppliers. 

Tip 4: Know how to evaluate your suppliers

As mentioned earlier, not all suppliers you find over the internet will be able to deliver value to your business. It would help to have a fixed set of criteria based on evaluating your potential suppliers in China before making a choice. Reliability is one factor, but there are other aspects to consider too. These include your supplier's business history, compliance policies, experience with export to different countries, quality control, and lead time. 

These factors play a crucial role in positioning a supplier as a good one in the market. It would help if you looked for a supplier that showcases consistent results over a considerable period. Look for suppliers that provide competitive prices to importers in your region. A supplier that conforms to compliance norms, has a punctual delivery time, and takes care of quality control will be an ideal choice for you.

Tip 5: Become familiar with negotiating terms

After you choose a supplier in China, it's time to negotiate with them. This is a tricky business, especially if you are unsure about specific terminologies used in the trade. These terminologies are called incoterms, which have a direct influence on the quotation. The most common incoterms used in the import-export business are

  • FOB- Free On Board
  • EXW - Ex Works
  • DDP- Display Duty Paid
  • CIF - Cost Insurance and Freight
  • DDU- Delivery Duty Unpaid

You should be aware that the quotation for supplying your products will differ according to the terms of the trade agreement. The liability of both you and your supplier will depend on these terms as well. Being familiar with these incoterms will help you negotiate with your supplier better and increase your chances of getting a competitive price. Getting the right Chinese supplier will depend a lot on your knowledge of these terms. A lack of understanding of these could potentially make you fall prey to entities that may take undue advantage of your situations

Tip 6: Inspect the quality of products

Another great way to work with a reliable supplier in China is to check their products' quality. Most suppliers in China boast of their superior production capabilities but fail to deliver the desired quality of goods. Working with such suppliers will be a recipe for disaster. So, you need to be aware of their quality control processes to settle on the right option.

The best way to be sure about this is to ask for a sample of the product. Request the potential supplier to ship you a few samples per your specifications and see if the quality satisfies you. You can even pay an inspection service provider for a thorough evaluation done. Your decision to work or not work with the supplier will depend on the quality inspection report.

Tip 7: Ask for referrals

Referrals are an excellent way to find business associates. Your pursuit of finding the right supplier in China can also involve asking for referrals from people already working with someone in the country. It can be your friends, family member, or peers. Asking them for suggestions can give you a list of reliable suppliers in China. 

You can even check out recommendations on Facebook, LinkedIn, and other online forums. These social media networks are a great source of trustworthy suppliers. 

The above are some of the many tips to follow while looking for a supplier in China. Finding a supplier in China that meets your business needs perfectly will require great prudence and caution on your part. Given the vast array of options available, identifying and selecting the right supplier can be a tricky affair. You should take your time and avoid hasting through the process. Critical business decisions made in a patient and calm state of mind turn out fruitful in the long-run. So, follow these tips to increase your possibility of finding the right one significantly.

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