China is the central hub of the manufacturing industry. Their quality standards are achieved through state-of-the-art facilities that are under constant improvement. A growing number of companies are outsourcing their manufacturing divisions to Chinese suppliers. Majority of mobile phone screens are manufactured by Chinese suppliers.
The biggest advantage of working with a Chinese supplier is that it’s extremely cost effective, this makes your margins better so that you’ll end up making a considerable more money on the sale of each product. China also offers larger-than-life multi-story hubs where you can get spare parts, finished products and more.
This makes China an attractive for people that deal in the business of repairing and selling refurbished products. The parts are usually OEM made and perform equally if not better to the part being replaced. You would also benefit from larger orders as it will considerably cut down your overall shipping costs. (Related Article: How To Choose Your China Supplier And Sourcing Agent)
1. Check business license
With the advent of technological advances, it has never been easier to look up information about companies. This can easily be done on a global scale so a simple Google search can give you a lot of useful information about the Chinese company. Certain websites also offer company rating and customer reviews, which makes it even easier to make a well-informed decision.
2. Use Search Engines
You can simply perform a search on Google or Bing to look up details about a company. Type the name of the company followed by the word “scam”. A demo search query would look like this “ABC industries scam”.
You can even use different terms to do a more comprehensive background check. Other than the word “scam”, you can also use cheat, fraud, rating, reviews, address to get a better idea. This was not possible a few decades ago. Now you can use the power of the internet to use all the available resources for your business.
3. Make a Call
Once you have collected information about the company. Now is a good time to make the call. Chinese suppliers usually hire an English-speaking employee for their phone lines. So be assured that you are more likely to be speaking to a person in your native language.
One more way to test the authenticity of a company is by making multiple calls. This would require 2-3 people. Each call takes a different approach of enquiry. The information collected from these calls will include company details, their business process, charges and more. Now all you have to do is compile the information and look for discrepancy.
4. Ask for Previous Customer’s Record
You can easily ask the company one the phone for information about their previous customers. Though they won’t provide you with all the details as a lot of these things are confidential in nature. They can also provide valuable information about their achievements. Their production and supply capacity. This will help you develop a better business strategy. You can plan out how many units you would need on a per week or monthly basis for running your business without falling short on supplies.
You can also ask for a finished sample. In most instances, the company would happily send you a sample free or charge. Though some companies would ask you to pay the unit price of the sample or at least the shifting costs specially if the buyer is located overseas. This is a safe bet and it’s better to have an idea of the quality of their work by paying a small price. The is a cost of business that will save you a lot of money over time. You won’t face any unwelcome surprises when you receive a finished shipment of products.
You would still be able to get an idea of the type of companies that do business with them. One advantage of this process is that you might get to know new business ideas. In this case, the Chinese supplier is already doing business in that area. So their existing technology and experience will help you start your own business at a substantially lower cost point.
5. Do Safe Payments
As money is increasingly being exchanged digitally, there is no shortage of payment options. Make sure you choose a trusted partner to handle your payments.
The process is similar to the one found during eBay purchases. The customer pays the money to a third party, who then safe holds the amount until the transaction is completed. Once both the buyer and seller verify that the goods has been sent and received. The payment is released to the seller. Make sure you have proof of payments as in case something goes wrong, having proof can help you in settling a dispute, in any.
6. Request for a Factory Audit
It is essential that you personally visit the Chinese suppliers. Having physically inspected the production capabilities and conditions of your potential Chinese supplier will save you from dummy companies. There are some Chinese suppliers that pose as a dummy company with a false address to scam money. So though you might feel that paying a hefty sum for a flight to China, it will protect you from scams.
The benefits of working with a Chinese supplier are many. If you do your research and take the time to look around for the options that are available, you are n your way to making a highly successful business.
If you have any more questions about Chinese supplier, please do get in touch so we can assist you in getting the right information.
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