7 Ways to Find a Reliable Supplier in China

Any Amazon seller will tell you that the risk of finding dishonest Chinese suppliers or getting stuck with a poor-quality shipment is high. Whether you delve into an online B2B marketplace, an online supplier directory or visit a tradeshow or wholesale market, you’ll need to watch out for the few bad apples. In this post, we discuss your sourcing options and recommend the best way to find a dependable supplier for long term relations.

China’s largest import/export convention is held twice a year and covers virtually every industry that makes physical products. It is so huge that it runs in three phases:

Phase 1: Electronics, machinery, building materials and chemical products

Phase 2: Consumer goods, home décor and gifts

Phase 3: Textiles, recreational products, office supplies, shoes, medical devices and health products

You can attend for free but once you’re in, be prepared for what’s in store. Here’s a teaser:

     - The sales representatives can speak basic business English. Some are hired for the fair and may not work for the company. You’ll learn about MOQs and some product details only.

     - You can hire an interpreter at the fair at 400-500 RMB or $60-$75 per day. Service charges are higher for minority languages.

     - Suppliers bring samples so you can see and touch the product to get an idea of quality.

     - Low prices and not-so-great quality go hand in hand. Unless you’re willing to pay more than the advertised price, you won’t see the quality you want.

     - After you speak to suppliers, they will ask for your business card to follow-up with you after the fair. Some Amazon sellers are hesitant to give their business cards to every vendor they meet out of a fear of their details being sold to other vendors. For etiquette’s sake, they may pass out fake cards to give to everyone except the suppliers they’re interested in.

 The Canton Fair is HUGE. Find the list of exhibitors and their booth location on the trade show’s website in advance to save time and energy. The same suppliers participate each year, so novelty is missing. Don’t expect to see innovation either – the companies with a newer design or function may show prototypes and only be looking for distributors rather than OEM or private label manufacturing.

 Disclaimer: Yiwu wholesalers are trading companies, not manufacturers.

 The Yiwu Market in Zhejiang is open all year round. It has 40,000 shops and should be on your radar ONLY IF you want to source bags, shoes, textiles, watches and accessories at low prices. This is because the marketplace is heavily tilted towards buyers in India, Africa and the Middle East, and therefore their products don’t reflect the regulations and safety standards in the EU or USA. If you want toys, cosmetics or medical devices, you should look elsewhere.

 Here, prices can go as low as you want but quality will go up or down accordingly. If your target market is highly segmented and you’re selling on multiple channels or distributing to other sellers, Yiwu Market can be an option. Some sellers use Yiwu as a complementary supplier for their existing suppliers when their stores are empty and need filler products.

 Yiwu wholesalers work with factories in Zhejiang and Jiangsu. An advantage is that you can buy products off-the-shelf on the spot or have them shipped to your location in bulk.

 If the goods you want aren’t ready for sale, make sure you’re clear about your quality requirements so that your supplier can place the order with a matching factory. Bickering on price will only result in the factory using cheaper materials which results in adjusting quality downwards.

 You can hire a purchase manager to simplify sourcing. Yiwu agent services typically include picking you up from your hotel and driving you around the market to meet wholesalers, negotiating price and order terms, and coordinating procurement, including collecting different orders in one shipment. Agents are not responsible for reviewing quality control at factories.

 You will bump into fake products at the market. Any famous brand you see at a Yiwu shop is likely a knock-off. Not to knock on Yiwu but it should have a place in your sourcing strategy only for equivalent products at low prices.