In recent years, the question of how to find a supplier seems to have been plaguing the majority of buyers, causing many to hesitate without knowing how to proceed. The China Company Verification Report provides a supplier background check and verification service to help buyers conduct a more comprehensive company assessment and risk analysis of their suppliers prior to the transaction.The following contents will lead you into a discussion related to how to find reliable Chinese suppliers in 2022.
Types of suppliers:
Generally, we can divide them into manufacturers, wholesalers and dropshippers.
The manufacturer plays the role of the first in the supply chain to produce for resale, and choosing a manufacturer means more control over production, which in turn means better profit margins. The manufacturer offers products at fairly good prices, sometimes paired with a huge range of customisation options, while the buyer is able to follow up on quality control in a timely manner, although minimum order quantities are often high and reliability is not fully guaranteed.
Wholesalers generally favour low prices, with discounts often positively correlated with the quantity purchased. Unlike manufacturers, wholesalers often have professional foreign representatives on their side and the language barrier can be much less. Delivery times and shipping costs are particularly buyer-friendly if the warehouse is based in the USA. This also means higher purchase costs and wholesalers are more focused on standardised products rather than customised products.
The dropshippers can support the purchase of one product at a time and there are no additional costs for the buyer in arranging stock, packaging and shipping as these are left to a third party. However, delivery is quite slow and the products are not cheap, so there is no significant advantage in terms of value for money. Most importantly, the buyer’s purchase and experience is decisive in the whole process, and this is where the consignment service is weak. Communication costs money too, especially when efficient and quality customer service is not guaranteed.
There are many other categories, such as subcontractors who can be contracted through an agency, importers who buy products from overseas and are in direct contact with the manufacturer, and trading companies which are described in more detail below. Trading companies do not present too many language barriers and have good relationships with factories as well as the ability of handling different factory types. It is important to note that choosing a trading company does not give you any information about the actual factory behind it and it is not very responsible for any quality issues with the product.
Overall, it is difficult to find the absolute perfect solution when it comes to price, language, minimum order quantity, as well as shipping, delivery and after-sales service packages.
We can divide the search for suppliers into two ways: online and offline. Let’s start with offline services.
In China there are generally a number of local exhibitions of different scales that are held regularly, such as Canton Fair, Yiwu Small Commodity Fair and Shanghai Import Fair which has become quite popular recently. Canton Fair, known as China Import and Export Fair, is usually held twice a year for five days. The fair is usually held twice a year for five days. It is open and inclusive, and naturally has a wide range of products, from specialist hardware including electronic and mechanical products, to daily supplies including consumer goods. Nevertheless, the fair has a few little secrets that are not well known, such as:
- It is never known where the sales representatives come from, they may be specially hired, and the cost of hiring an interpreter is generally high, which means that there are still some barriers while communicating
- There is no such thing as a good deal, and high quality is usually directly linked to high costs
- Some sellers of brands may provide fake cards to fool buyers for privacy reasons
Therefore, it is recommended that buyers get to know the details of the show before attending, including the most basic booth layout for the exhibitors’ list, so that they can be prepared to deal with any surprises that may occur.
It should be confirmed that domestic users should not be unfamiliar with the Yiwu Commodity Fair. The fair mainly features low-priced products for sale, although the quality differs greatly. A key point, however, is that products purchased from the Fair are cheap to transport and, in the absence of special circumstances, the logistics are basically smooth all the way. The Fair’s products also support bulk shipping. And the features that make it not a good place for buyers are:
Buyers who are not clear about the quality requirements may suffer a big loss, and try not to bargain, otherwise the low quality of the product is almost a nail in the coffin
There are still counterfeit products on the market and buyers need to keep an eye out when selecting
Shanghai, as the core city of the Yangtze River Delta, a key demonstration zone for the Chinese economy, has always been inclusive as an important calling card for the city, and the annual Import Expo held in Shanghai upholds this concept well. There is a wide range of imported goods, including many from the third world, whose quality can largely pass globally renowned standards (e.g. CE), although this also means a higher purchase cost. However, as a cosmopolitan city, the fair also employs professional translators to facilitate communication, and each product is checked and gauged on its way in and out of customs.
In addition to the three exhibitions mentioned above, some local manufacturing companies are also recommended here. The more prominent ones in the electronics industry are made in Wuhan and Shenzhen. Wuhan’s fibre optics and Shenzhen’s electronic products are notoriously of high quality and within a reasonable price range.
Next discussed will be the expansion of some offline channels. The most famous one is Alibaba. The brand has a good reputation and most of the listings are provided directly by the manufacturer. Putting aside possible communication problems, the number of users and orders placed by the platform is still very significant. The platform also has an additional credit rating, which effectively avoids situations such as untimely shipping arrivals. If the product does not meet the buyer’s needs, the buyer can apply for a refund. However, because most suppliers choose Alibaba, the platform filters out suppliers who can truly guarantee the quality of their products, which is something that buyers need to consider and weigh when buying.
Other online brands include DHGate, Hong Kong Trade Development Council (HKTDC), Global Market, etc. However, a common problem with almost all online brands is that trading companies will spend money to improve their search rankings by impersonating suppliers, and this is where sourcing agents come into play, as will be discussed later.
In addition to online brands, online search engines are also an essential tool in the search for reliable suppliers. Buyers can search for keywords directly through the major search engines, as well as on well-known social media. In everyday searches, the following points need to be borne in mind:
- Those who advertise are most likely to be middlemen
- Trading companies generally have particularly prominent and unnatural business names
- Manufacturers generally mention the town in which they are located in the company name
- Trade websites are predominantly in English
Purchasing agents mainly play a complementary role as they can check the quality of the goods in real time and follow up with the manufacturer in real time about the product, then contacting and informing the buyer when everything is ready and making them a trusted player as well.
Discussed above is how to find a reliable Chinese supplier. The role of this process is decisive. Without this step, subsequent discussions on sample acquisition and specific information such as minimum order quantities and payment methods will not progress. Buyers can learn from experience through online forums and experienced veterans, and know the tools and processes needed. For further enquiries, please refer to the China Company Verification Report for more information on finding a reliable supplier.
