How to Source from China in 2022

 

Once you want a quality product, you need to find the proper supplier, and China could be the place to serve your needs in 2022. Until now, China is still the biggest market for those customers. A reliable supplier will ensure that your products are of the highest quality and reduce customer complaints that can lead to potential losses to the business in the form of refunds or brand reputation.

 

Why find a supplier in China?

Because the Chinese economy is increasing faster and faster with well-equipped factories, costs of manufacturing are very low compared to elsewhere in the world. China is known as the “world’s factory” with 28.7 percent of the global manufacturing being done there, so it is certainly a pretty massive player.

That means that there is a great opportunity for you as a seller!  By sourcing goods what you need directly from China, you can get extremely low prices per unit and make high profits in your own country.

So, you can partner with Chinese suppliers because the Chinese had the infrastructure to produce what you want. Best of all, we can produce the most appropriate product with least cost.

The reasons behind this are quite simple:

• The production costs are lower than other countries.
• The abundant infrastructure and adequate workforce present that they can produce large orders in a short amount of time.
• Profit- Meaning you are able to make more profit if you get mass low-cost product for selling in your own country.
• There are a range of suppliers to choose from in a variety of niches and industries in China, from which you could find any product you want.
• Product lines are refined and well organized.
• The Chinese are masters when it comes to mass production
• Production lines in China are refined and organized

Simply put, the Chinese suppliers know what to do when it comes to making things!

How to find Chinese suppliers?

 

At the Canton Fair

Canton Fair (China Import and Export Fair) is one of the biggest trade fairs in the world. Held in Guangzhou twice a year (end of May and beginning of November) -there are three phases - covering electronics, consumer goods, gifts, textiles, garments, shoes and office supplies.

The fair is massive, involving participation from suppliers and manufacturers throughout Asia. You will be one among potentially thousands of importers from the United States and Europe attending the Canton Fair.

Many of the Chinese suppliers at the trade show have been showcasing their business for many years, and are familiar working with foreign clients. You’re very likely to find someone who trades or can make the product you will retail, although sourcing directly from a manufacturer is often more reliable and cost-effective. Companies bring samples, so you can review product quality and short-list potential manufacturing partners. The full supplier list can be accessed at the Canton Fair website.

In Canton Fair, Suppliers may also speak limited English, so interactions may seem manageable but are often problematic. In order to communicate smoothly, you can hire the services of a translator at the trade show for a reasonable fee and you will quickly appreciate the advantages of communicating with a translator.

Otherwise, what you should pay attention to is the visa. A China visa isn’t expensive but processing can take up to three weeks. Book your flight to Guangzhou a few weeks in advance of your trip as last-minute flight costs can put a big dent in your budget. A cheaper option is to fly to Hong Kong and take a high-speed train to Guangzhou and the travel time is approximately 50 minutes. 

 

Alibaba

Alibaba Group Holding Limited, also known as Alibaba, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Alibaba is one of the world's largest retailers and e-commerce companies. In 2020, it was also rated as the fifth-largest artificial intelligence company. It is also one of the biggest venture capital firms, and one of the biggest investment corporations in the world. The company hosts the largest B2B (Alibaba.com), C2C (Taobao), and B2C (Tmall) marketplaces in the world. It has been expanding into the media industry, with revenues rising by triple percentage points year after year. It also set the record on the 2018 edition of China's Singles' Day, the world's biggest online and offline shopping day.

Alibaba outshines other supplier directories in the sheer number of wholesalers, drop-shippers and manufacturers. The website is popular among importers looking to lower their sourcing costs and amplify margins. Alibaba is on good terms with the Chinese government and a safe platform to find products to sell online

Other supplier directories: Global Sources, Made in China, DHGate and Hong Kong Trade Development Council (HKTDC).

 

 

 

Google

A Google search of Chinese suppliers may seem like a logical first step for new Amazon sellers. Chinese suppliers have business websites and a presence on social media.

Search using specific keywords for products or location, such as “Metal product suppliers” or “Dongguan electronics products”. A Google search using key terms is also a quick way to find relevant supplier pages on directories and B2B websites.

 

How to communicate with Chinese manufacturers

 

Communicating with Chinese manufacturers and suppliers can be difficult at times. But to make it easier we have narrowed down a few tips to keep in mind:

 

Keep emails short and to the point- Try to focus on one topic to illustrate per email to avoid confusion. You had better use bullet points and short sentences where possible. Otherwise, you could reply e-mails as soon as possible in case that you forget it.

 

Use pictures or visuals where possible- This is for more complicated product drawings. For example, if the product you receive needs adjusting, creating a video or labeled picture will help clarify things, which can improve the efficiency of communicating and working.

 

Get on WeChat, Skype, What’s up- If email or phone isn’t working, you can utilize the social media apps to chat more details about product, conveniently and efficiently.

What’s more, the WeChat app makes a great difference. It offers a lot more than just an online chat system but for your purposes, this is what you will use it for. The great thing about the app is that it has a built-in translation feature. Meaning you both can talk in your native language and the app will translate your responses. Communication is made easy!

 

Keep in mind cultural differences- Expect to build a personal relationship with your manufacturer as well as a business one. Hierarchies are also important in Chinese culture. If you have an issue, try to find a solution with your contact first assuming that you need to speak to a superior. Additionally, addressing the person you are talking to by their title and last name is a sign of respect.

 

Think about the time difference- Make sure to figure out the business hours in relation to your time zone and communicate when they are available.

 

Tips for choosing a supplier in China

With a massive selection of suppliers and manufacturers to choose from, how do you narrow it down? Below are a few tips to keep in mind so you can pick the best supplier for your business.

 

Minimum order quantity (MOQ)- This is a predetermined order requirement meaning the manufacturer will only work with you if you meet this. The number depends on the manufacturer but is likely to start no lower than 50 items. They have these requirements in place to ensure that they can make a profit and it is worthwhile working with you.

 

Product Quality- It’s pretty important you receive a test product to check the quality before you begin selling it to your customers.

 

Communication- It’s important you are able to contact them quickly and they are efficient in answering your queries. Especially when things go wrong.

 

Payment options- Every manufacturer has different requirements. The most common ones you will see are PayPal, MoneyGram, T/T and Western Union.

 

Price per unit- Check that you are on the same page and ask if you get a discount for bulk purchases.

Production- It’s important to make sure your manufacturer can produce the quantity of products you need. If you are a small e-Commerce entrepreneur then perhaps you would want to work with a small or medium sized manufacturer. As your business and capacity grows you might want to find a bigger factory with larger production capacity.

 

Ask questions- A few things you may want to ask when contacting a manufacturer is how long they have been in business and their business licenses. See if they have any certifications and also their history with working with businesses from the western world.