How do I find the source of a product from China?

How do I find the source of a product from China?

If you are a seller looking to build a lucrative business on Amazon, China is a very attractive market. Once known as the “world’s factory,” China now produces high-quality and high-value goods.

However, before you start searching on Google for the best suppliers in China, you need to have a sound China sourcing strategy to help you avoid being scammed, find reliable suppliers and negotiate the best deals.

• Source Product-Build relationships, not just find deals
• Source Product-Research suppliers carefully
• Source Product-Don’t rush to accept the first offer
• Source Product-Avoid scams
• Source Product-Working with Chinese sourcing agents

Source Product-Build relationships, not just find deals

In China and most other Eastern countries, business transactions are conducted very differently than in the West. In China, business transactions are conducted through “Guanxi” (Guanxi).

“Guanxi” is a Chinese word meaning “relationship” or “network” which facilitates transactions and opens doors for business transactions. A person with a wealth of connections is more likely to successfully grow their business than a person with a lack of connections. The origins of this Chinese term can be traced back to Confucianism, the basic idea of which is that conducting any type of transaction, whether personal or business, is based on hierarchy and filial piety (“filial piety”).

In business transactions, it is crucial to establish personal relationships with suppliers and build respect and trust through communication channels. The success of a transaction depends on your ability to establish good personal relationships with your Chinese suppliers. The stronger the relationship, the greater your reward in terms of an ongoing successful business relationship.

For example, onestopimport China sourcing company is a reliable purchasing agency that has been inbusiness for more than 8 years, has more than 100 emplovees, and has long worked with many customers.

Source Product-Research suppliers carefully

For new Amazon sellers, sourcing products from China can be a complicated process. Finding a reliable supplier that meets your quality requirements takes thought, effort and time.

Here are some common platforms where you can find Chinese suppliers:

Alibaba

Alibaba is a great place to start because of its scale. In fact, its size has prompted many to call it the Amazon of China. Founded in 1999, Alibaba had 960 million active customers in 2019 and nearly 1.3 billion companies in the market. To start looking for suppliers, you first need to create your Alibaba account. Next, go to the Procurement Solutions page and fill in your quote request with the relevant details. These details include:

Product Keywords: Enter a few keywords related to your product to attract the attention of some suppliers. Including as many general terms as possible can help attract the attention of as many sellers as possible. On the other hand, if you have a niche and complex product, using specific keywords will help attract the attention of those who actually make the product.

• Detailed Product Description: Describe exactly the product you want, including dimensions, measurements, materials, logos and other customization requirements.
• Quantity: After product, another major factor that Chinese suppliers focus on is order quantity. The higher the order quantity, the lower the price per unit may be. If the order quantity is very low, the supplier may not be interested.
• Photos: Make sure you have high-quality photos of the products you are looking for. Take several close-up photos from different angles to clearly show the supplier what you are looking for.

Another way to find suppliers on Alibaba is to proactively search for potential suppliers. Enter a product name into the search bar and Alibaba will display dozens of results. Not all results will match the product you are looking for, and you will need to spend some time finding results that match your requirements.

Global Sources

Although Global Sources is not as large as Alibaba, its quality is much better because each supplier has gone through a more rigorous pre-qualification process than Alibaba. You can also view china sourcing company reports on the website, which provide in-depth insights into different industries.

Attend trade shows

Canton Fair: The Canton Fair is China’s largest trade fair, held twice a year, covering various industries related to physical products.

The trade show is divided into three phases:

• The first phase involves building materials, chemical products, machinery and electronic products;
• The second phase involves home decoration, gifts and consumer goods
• The third phase involves office supplies, textiles, health and advanced skin care products, shoes and medical products.

Admission is free and you can view samples brought by vendors to get an idea of the quality of the products. However, the sales representatives’ English skills are not very good and you may encounter communication problems when you want to explain your requirements and technical specifications.

Despite the size of the Canton Fair, the same suppliers attend the show every year. You can check the show’s website in advance to find out where the exhibitors you’re interested in will find.

If you want to build relationships, the best way is to attend trade shows and meet suppliers face-to-face. Here are some of the most important trade fairs in China:

Yiwu Market

Yiwu Market is mainly for resellers and trading companies, not manufacturers. Located in Zhejiang, Yiwu Market is open year-round and has 40,000 stores. If you want to buy shoes, watches, accessories and bags at low prices, consider this market. Most of the products here are targeted at African and Indian buyers and do not meet U.S. and European safety or quality standards.

Source Product-Don’t rush to accept the first offer

For Amazon sellers sourcing products from China, negotiation is the most critical step. Negotiations are not just limited to price, but also deal terms, quality, terms and the type of commercial relationship you have with your supplier.

When negotiating price, remember that your supplier, like you, has set a price floor that will never be lowered. Rather than sticking to price negotiations, it’s better to work on other details. Explore whether suppliers can offer lower prices as order quantities increase. Suppliers may give you a discount if payment is made in advance.

If you place multiple orders, ask the supplier if you can agree on a lower price. Rather than focusing solely on price point, you may get a better deal by fully evaluating other aspects of the negotiation. However, being too fixated on price point can have negative consequences elsewhere, such as suppliers potentially using inferior packaging materials or cheaper raw materials.

Before negotiating with a supplier, make sure you understand the price of your product in the market. When you do your research, you will usually find out what the current market prices are. Talk to different factories, even if you’ve already found a supplier you think is good. You can use the quote provided by one of the factories to negotiate with the other factories.

Source Product-Avoid scams

One of the most critical aspects of sourcing products from China as an Amazon seller is knowing how to recognize scams and avoid being scammed.

Here are some ways to help you avoid being scammed:

• Google Search Providers: A good, legitimate company will usually have an online presence. Make sure there are no warnings about them in online forums.
• Be wary of prices that are too low: Remember the adage “If something looks too good, it’s probably not true.” When it comes to sourcing from China, suppliers offering very low prices is a red flag. If a supplier gives you a quote that is significantly cheaper than all other quotes on the market and exactly matches what you asked for, you should be suspicious of the supplier’s authenticity.
• Check the supplier’s email address: The supplier’s email address can give you clues about their authenticity. QQ email addresses are widely used in China and are as reliable as gmail or yahoo.com email addresses. Also check if the supplier has an email address that corresponds to the company name.
• Ask detailed questions: A reliable manufacturer will usually be able to answer all your questions about processes, quality standards, and timing.
• View pictures: A genuine supplier can usually provide detailed pictures of their factory and products if you ask for them. They should also be able to provide pictures quickly and accommodate your requests for specific product details or up-close photos of equipment.
• Get samples: Any legitimate supplier should be able to send you samples.
• Evaluate Sales History: It is recommended to ask suppliers to which customers they have sold specific products to and ask one of those customers to provide a recommendation.
• Request a factory tour: While it is difficult to visit a factory in person, you can work with a reputable and experienced china sourcing company to conduct inspections on your behalf.

Source Product-Working with Chinese sourcing agents

Sourcing products from China brings challenges to your Amazon selling business that go beyond finding suppliers and negotiating on Alibaba or other platforms. From unexpected price increases to shipping issues, from communication breakdowns to poor product quality, there are many things that can go wrong during a transaction.

Appropriate Chinese sourcing agents can inspect the production site at their offices in China. By communicating in Mandarin or a specific local dialect, sourcing agents can ensure suppliers fully understand product specifications and technical details. sourcing agents can also create backup plans when things go wrong at the last minute and the supplier is unable to deliver. Sourcing Allies is a team of professional Chinese sourcing agents that have been helping Western customers manufacture and source products from low-cost regions since 2006.

Conclusion

Sourcing products from China can take time to learn. Once you know how to do this, you can simply follow the steps above to be in a better position to source products in China for success.

There are many risks involved in sourcing goods from China, from poor quality goods to fraudulent practices to difficulties in contract enforcement, there are many things that can go wrong. Of course, these risks are not limited to China, but since China is still a developing country, the potential for these risks is much greater than that of developed countries. However, the huge cost reduction potential may make the risk worth it, provided you do your research and proceed with caution.

We are ONESTOPIMPORT, a leading sourcing company based in China, dedicated to helping business owners import and wholesale products from China. If you need help importing from China, don’t hesitate to CONTACT US.