Whilst dealing with Chinese suppliers are able to save you heaps of money, it is able to also make you lose some. In the event you do not pick the right supplier, the consequences can really be damaging:
You are able to get overcharged by a supplier, and lose out on the actual profits you need to be making.
You can purchase poorly manufactured items, and will not even know till an unhappy customer returns it back, and leaves a slimy review.
You might get sued. Most likely the worst one out of them all. The sad thing is, it’s really easy to expose yourself to this situation, without even knowing it.
While it is true that a single supplier could make or perhaps break the business of yours in a single day, you will find many awesome ones to work with. Best of all? Finding them is not that difficult.
I will teach you how to do:
Tip #1: Check if they are at trade shows
If a Chinese supplier which has attended a trade show, know these 2 things:
One) They’ve high quality products to share.
Two) They paid a large amount of cash to go – so it indicates they are in good financial standing.
Think about it: in case their product was poorly produced, they would likely not bother showing them at a trade show – let alone be scared to!
When selling online, a high quality product will always resonate with the customer of yours and grow the business of yours. Clients are not afraid to express how they think about a product, so a great deal of reviews that are good are able to act as a platform of social proof for some other visitors who would like to purchase from the store of yours.
How can you tell whether a supplier has attended a trade show?
In case you click on a company’s profile on AliExpress, under “Trade Shows”, you will see whether they have exhibited at any trade shows or perhaps not.
Proof that a supplier has attended a trade show is also an easy deal breaker when having a tough time picking a supplier to the office with.
Nevertheless, with several of the products on AliExpress, the first manufacturer is not really selling it themselves – the wholesaler is actually. In occurrences this way, you would need to check the manufacturer’s profile to see whether they have attended some trade shows, not the wholesaler’s.
Tip #2: stay away from pictures with models
Take a look at this comment I received from a model:
Nara here’s a model. And also like a lot of other models out there, she has illegally been used as images for supplier’s product photos – an infringement of copyright.
Sadly in China, things this way are really easy to get way with, that is a huge reason why manufacturers are pretty laid when it comes to this particular problem.
Chances are actually that neither you nor I live in China – and so do not have it easy when it concerns law. While the copyrighter may not immediately sue you for using the images of theirs, they can. It is within the rights of theirs.
In case you are Private Labelling, having your listing taken down by Amazon happens very regularly. The same principle happens if you are Dropshipping. Facebook is able to get your ad down – or perhaps perhaps worst – close the ENTIRE account of yours.
Safeguard yourself by focusing on using images with no models, particularly as a novice. And if using a model in your photos is absolutely necessary…BE THE MODEL! Or else you are able to simply hire someone to model in the picture for you.
(This way, you will not have any angry models on your back.)
Tip #3: Check in case you are working with a manufacturer, wholesaler or trade company
When working with suppliers online, these’re 3 primary types of suppliers you will run into.
Do you know what each of them are actually?
Manufacturers: These’re individuals who originally create the product from scratch. Working with them can get you probably the lowest price, since there is no middle male involved.
Trade Company: This’s the middle male that works as an agent between you and the manufacturer. As a result, they’ve higher prices than the supplier since they have to make profit too.
Wholesaler: This’s another form of middleman. The distinction between them and trade companies is actually they purchase the things in bulk from the maker, and then sell it at a mark up price to yield a good profit for themselves also.
On Alibaba, you are generally going to be running into manufacturers or perhaps trade companies. To find out, go to their company’s profile, then under business type, it will tell you what type of supplier they’re.
Another really cool and way that is simple to distinguish a wholesaler from a manufacturer is actually seeing in case they sell more than a single brand type.
A simple example of this would be Transhome, a store featured a number of times on this channel. You are able to see from the website of theirs that these guys are clearly manufacturers, since they are just selling one brand.
On the other hand, Mrs and Mr store over here’s clearly a wholesaler, as they’ve a non branded store name and they sell items made by several brands.
Tip #4: Recapping agreements is actually essential
There are actually a number of good things about working with suppliers in China. And naturally, one of them is their extremely low prices.
But when I tell the friends of mine this, they generally see it from the wrong end of the stick.
“Oh, the Chinese, they simply produce cheap, trashy items!”
This’s not true, and in fact, this’s a really an unfair stereotype.
Indeed, while there are actually some low quality suppliers in China, the same is actually for the west, or perhaps some other country with suppliers.
I’ve a friend who is an incredible artist, and every year produces a lot of pens to sell at the booth of her at this comic convention. For an extremely long time, she would been manufacturing these pens from England, but they were not quite the quality she would wanted. For probably the longest time, she felt like she was overpaying for the pens of her.
With a bit of encouragement, I told her about working with suppliers in China instead. She felt a bit sceptical about the whole thing when I first launched it, but she gave it a try.
To this day, not only did she save a lot of money by working with Chinese suppliers, but the pens she now produces are higher in quality. Moral of the story: local manufacturers are not better – just because’ they’re not Chinese’.
Local manufacturers do have one advantage though. And that is the language barrier.
When working with Chinese suppliers, whether that is for Amazon FBA or perhaps Dropshipping, there are a variety of specific requirements you are likely to need:
The price per unit
Size/dimensions of each carton And a very dangerous way of thinking is usually to assume your supplier will somehow tell you all of this.
When discussing with a supplier, it is super important to ask very specific questions.
For instance, in case you are private labelling on Amazon and want to purchase a bulk load of items from the supplier of yours and even want to know what the shipping costs of yours will be, ask very specific questions like:
What exactly are the dimensions of each carton?
Exactly how much do they weigh?
Just how many units fit inside a box?
In order to go a step further, get the supplier of yours to recap the agreements of yours in writing. By doing this, there’s full clarity and everyone has the same expectations.