Thousands of eCommerce professionals depend upon products made in China, and this trend is nothing new. Since China sells a large volume of products worldwide, it is often a go-to for manufacturing. With a thriving economy and enough goods, China is a manufacturing powerhouse. There are countless tags, labels, and stickers proclaiming “Made in China” on various items.
The ubiquity of Chinese products may seem due to cheap labor in China that brings down production costs, but there are other factors at play. The vital business ecosystem in China has led to China becoming known as “the world’s factory.” Beijing has low labor costs plus a robust economic ecosystem. There is little regulatory compliance in China’s manufacturing industry. Besides its competitive currency, the industry has low taxes and duties.
The Chinese economy has developed fast in the past few decades. The country has undergone many changes due to its embrace of globalization and trade. A high-speed economic wheel started turning in China.
With its large workforce, the country is very competitive. There is plenty of labour and a vast market to sell products on. Hence, it should not come as a surprise that even the world’s most reputable brands have been shifting production to China for decades. Their production costs are lower, and their profit margins are higher. Finding Chinese manufacturers has many benefits.
It is possible to reduce the cost of manufacturing in China without reducing production volume. As a result, you will be able to raise your profit margin and have more money to invest elsewhere in your business.
You can take advantage of a proven knowledge base when you use Chinese manufacturing. You can count on these manufacturers to manufacture your type of product again with no trouble.
Having the capability to expand into new overseas markets is a massive benefit of manufacturing in China. If your products are created in China, Chinese consumers will use them.
Chinese manufacturers can produce large orders of products very fast. With so many factories, China is able to mass-produce products fast and at a low cost.
The choice of a business supplier is one of your most critical decisions. It’s essential to pick someone who will be loyal to you. If you’re looking for manufacturers in China, you’re going to need a good strategy. A strategy that combines awareness, knowledge, and a reasonable amount of research.
You can find trustworthy Chinese manufacturers using search engines and Chinese supplier lists. One of the best ways to identify Chinese manufacturers is to attend the most popular trade show in China. Moreover, you can look for the best manufacturers for your business using referrals and sourcing companies. With Leeline, one of China’s most trusted procurement companies, you can get the services you need.
Besides the product itself, you should look at the pricing. It is crucial to compare the price and quality of the product to determine whether it is fair. You should also take hidden costs when you buy products at wholesale prices. If you are determining the product’s price, you must include the sourcing fee and customs fee as well.
The location of the manufacturer is also an important factor to consider. A lot of manufacturers are located in China, so many products are made there. There are a variety of suppliers available in different regions. The specializations of each region differ from one another.
You should also consider accessibility because the less accessible a factory is, the more costly it may be to access its products. When figuring out if a price is competitive, you must crunch all your numbers.
Bringing your new products to market quickly and efficiently is possible with outsourcing manufacturing to China. The company manufactures a wide range of products at very low prices with unmatched capacity. Nevertheless, you should be very careful when selecting manufacturing. Here are some things to consider when choosing a manufacturer in China.
Get as much information as possible about the factory before making any investment. You can find out who the principal owners are by searching the Chinese government website in English. Before deciding if there will be more processing costs, figure out your manufacturing costs. It is a good idea not to bargain too much about the manufacturing process. If you do, you are likely to compromise the quality. Thus, you should pay more and get more according to your requirements.
Instead of sending employees to China, it’s better to plan a trip to begin your transaction in manufacturing in China. Ensure you have your translator or a third party who is independent of the factory. In a clean, well-organized, and well-stocked facility, be sure that this is the same factory that will be producing your product.
The manufacturer needs to provide records of employee training and certification. If a factory claims ISO compliance, demand original documentation. You can also demand that all employees know their responsibilities and follow them.
China produces raw materials of varying quality. You can track the origin of the material by finding out from what factory the material was purchased. Make sure that the company you are following is the priority for the manufacturing process. Several large companies take bulk orders, so they do not prioritize your order if you order too little for their standards. Thus, you should choose a manufacturer which will give you priority access to your order.
You should identify the main person you will contact at the factory. It is better to select a manufacturer who can update you on the process and quality check. You should hire a dependable agent in China who can assist in this process.
A growing number of companies are turning to China for their product sourcing needs. China offers Amazon sellers and entrepreneurs many business opportunities. Yet, the risk associated with China sourcing is the same as that associated with many businesses today. The challenge most sellers face is balancing the risks of China sourcing. Using a structured approach to sourcing China can help you avoid common mistakes. Here is some information that can help you avoid common pitfalls:
Are you having difficulty communicating with Chinese suppliers? There is only minimal communication between overseas buyers and Chinese suppliers. This results in a colossal loss of quality and severe financial losses for both parties. These tips should help you communicate effectively with your supplier. You can minimize misunderstandings and delays.
The growth of Alibaba.com and Globalsources.com has essentially made contract manufacturing possible for any enterprise over the last few years. Thus, many business owners with no manufacturing expertise enter fields where they are unfamiliar. There are many times when product specifications are vague and open-ended.
It is not good to provide inspiration documents to manufacturing companies. Clients often request specifications, design drawings, label files, and material bills of materials. The terms are universal to the manufacturing industry. To ensure clear and concise communication, make sure you express yourself clearly and concisely. Your documents should be short, standardized, and bullet-pointed.
You have to manage the process as a buyer, no matter how big or small your business is. For quality control, you need to provide specific instructions on everything. It can be anything from how to write a sales contract to what should be included in a quotation. Project management is your responsibility from start to finish, and your push daily will make the needle move forward.
You shouldn’t expect to get a response to your email. It is because Chinese sales representatives do not use email like their customer’s, which is usually an e-commerce company. Besides meetings with buyers, they attend trade shows and monitor production. Further, Chinese mail servers fail to deliver emails from abroad very often. As a result, half of your emails may never make it to your suppliers’ inboxes. You can communicate with your suppliers through Wechat and phone calls every day. Wechat is a popular chat application in China. If you use WeChat, you can communicate with your supplier at any time of the day. Additionally, the app allows you to make calls. If you need to send large files, you can use WeTransfer or other file-transfer services.
Every manufacturing process is complex, no matter where you are. A prediction cannot be made because it’s not an exact science. Delays are inevitable, and raw materials prices fluctuate constantly. The situation is simply less predictable than in developed countries. Buyers must be patient and tolerate delays, price increases, and other difficult circumstances.
A major holiday is celebrated during late January and early February, which is the Chinese New Year. The holiday causes factories to close for the day as workers go home to celebrate with their families. Your supply chain may be affected adversely by the Chinese New Year, resulting in delays and losses of thousands of dollars. Aside from the CNY, there are several other holidays in China every year. If your Chinese supplier anticipates any delays, it’s best to stay in contact with them.
The price of products you resell or your online store’s price is essential considerations. You may be able to negotiate your initial quotation with your supplier, so don’t be scared to inquire about a discount. The best way to determine to price for your products is to gather quotes from many factories. You can establish a baseline price to do it. Identifying the level of quality and quantity of your products will help you determine the price range.
It is a best practice to do your research before you start negotiating to share data with suppliers.
If you’ve heard anyone say that it’s a bad idea to set a target price too early, you’re probably right. Customers might have to pay 20% more for the initial price of $1.00. Suppliers won’t give their best price upon the first contact. If you don’t find out what their best prices are, you could be losing a lot of money. You should always ask for three price breaks based on quantity to get an idea of the price range.
Your voice and appearance will determine how people perceive you. Though it sounds tragic, the truth remains. You may not be able to negotiate or get the best price if the factory identifies that you are a small company. If you want to overcome this, tell your boss you are in charge of sourcing, finding suppliers, and communicating. The majority of big companies today began as small companies and represented themselves this way to land their big deals at some point. The hustle is part and parcel of life. Ensure suppliers believe that you are working with people who are knowledgeable about your product. You can find the best rates this way.
Many times, if you have a good price, the supplier will ask for an excessive minimum order quantity (MOQ). To balance this, you can request a test order of a smaller quantity. It may mean sacrificing a little on price to do this. Despite this, you can continually expand if the product sells well. Show them that you are the perfect buyer. A good partner is also very important to manufacturers. Moreover, suppliers prefer making business relationships with the people with whom they are able to speak.
When you have done everything possible to negotiate with a supplier, when they can’t reach an agreement, you should tell them to change suppliers. You need to be direct with them so that they can provide better prices or understand your commitment. Due to this, the supplier wouldn’t budge on anything we asked for or offer better pricing if they knew we relied on them for a particular product.
Etradeasia is one of the world’s largest trade and online marketplaces, with more than 880,000 suppliers. Nearly 1.4 million products are listed on Etradeasia. eTradeAsia.com facilitates trade between buyers, wholesalers, and retailers in Asia.
Buying from these suppliers and manufacturers is a great idea. Using ‘clothing’ suppliers as a search term resulted in 1003 matches. Whatever your niche is, this website is bound to have manufacturers who can help. Compared with major online marketplaces, it is a less-known option and may thus offer untapped potential.
Lightinthebox, a leading Chinese e-commerce site, has recently launched an international online business. The company competes in various markets, including the Asian market and markets outside of Asia. As a result, they are now in a dominant position. In order to encourage sales, LightInTheBox periodically offers promotions or discounts.
There are several listings with the contact information of suppliers. If you have questions about manufacturing, you can directly contact them. Globally, this website is trusted and popular, with more than 6 million Facebook likes.
Alizexpress is owned by Alibaba and currently boasts over 79 million customers worldwide. The site has over 100 million items available. Since 2010, Aliexpress has grown into a leading manufacturer of production parts and finished goods. As a reliable supplier to brands worldwide, Aliexpress offers hundreds of products at low prices. It has a five-star rating based on the reviews on its site.
If you contact the sellers directly, you can still order wholesale products at very low prices from the B2C retailer. Further, it offers a dropshipping center that makes it easy for dropshippers to start their own business online.
Global Sources has been manufacturing goods, such as luggage, electronics, and household goods, for almost 50 years. With a reach of nearly 1.5 million, Global Sources is a major presence at trade shows all around the globe. The company’s data and analytics are used to target its 1.5 million global customers. Simm, the Southern Chinese platform in Shenzhen, is one of Global Sources’ biggest shareholders.
The Hong Kong Trade Development Council operates this website to assist Hong Kong companies in establishing relationships with buyers worldwide. Nowadays, Hong Kong does not manufacture much. Manufacturers from Hong Kong operate in mainland China. They are offering good opportunities to source products.
The Made in China platform, founded in 1998. There is also an extensive range of personal protective equipment. The company has three stars on Trustpilot for its reviews. Its website is available in 11 languages.
Buyers and sellers can also download Made In China’s app on local devices for convenience. Several Made In China’s products are popular with hotel-related businesses. This includes furniture and equipment for the hotel industry. It is the third biggest B2B sourcing company in Asia.
Chinese manufacturers are increasingly using social networks to interact with overseas buyers. You might find an appropriate manufacturer by searching for “product keyword + manufacturer”. A better alternative is to join relevant Facebook groups and ask a question there. Nowadays, Facebook has groups for almost everything.
If you search “Product Keyword + China,” you’ll get many results, most of which are supplier directories or resellers. China has a large number of manufacturers and suppliers without websites. There is a possibility they don’t do much advertising, so it will be challenging to find them. Before you reach out to a manufacturer, you should make sure you have done all your research on the company.
It is challenging to manufacture goods in China. The challenges of communication between suppliers and buyers are particularly challenging in manufacturing. The ability to communicate with suppliers isn’t difficult to achieve. Perhaps, if you feel more ambitious, you should visit your supplier. When you improve communication within your manufacturers, you almost always get better results. Depending on your business, you should only be focusing on relevant channels.
It is a good option to get help from China’s most reputable outsourcing company. With more than ten years of experience, Leeline is among the best sourcing companies in the world. Besides Amazon FBA services, Leeline also provides quality control services in China for buyers.