China outranks every other country on manufacturing output. Virtually everything you use is likely produced in Asia’s second-largest country. Nearly 80 to 90 percent of goods sold on Amazon’s US marketplace are sourced from outside the country, with China accounting for a bulk of the products.
When you begin your journey on Amazon, if you can be considered a serious, trustworthy and long-term buyer you will have many Chinese suppliers vying for your business. There are many ways to connect with Chinese manufacturers. Even if you have strategic sourcing experience, expect that language and cultural barriers will entail you follow an informed outreach and engagement plan.
Finding Chinese manufacturers
The first step is to find a large pool of suppliers and access their business information. You have several options, including:
Your business contacts
People from your professional or social circles may know someone who has worked with Chinese suppliers. Your local Chamber of Commerce and trade associations in your industry may be able to provide relevant information or insights.
The internet
B2B marketplaces like Alibaba, Global Sources and Made in China provide Chinese suppliers’ and manufacturers’ key business information and other details available for buyers. They are the go-to choice of Amazon sellers dipping their toes in China’s market.
Note that a supplier can be classified as a manufacturer, wholesaler or dropshipper.
– A manufacturer produces goods for resale and sells them for very low prices at higher minimum order quantities (MOQs).
– A wholesaler is an intermediary that purchases goods in bulk and resells them to retailers. While you don’t have to buy in bulk, you can generally save more on larger orders.
– Drop shipping allows you to buy items one at a time at a higher price per item. The dropshipper handles inventory, packaging, shipping and may even take care of customer service and returns for retailers.
Browse suppliers’ product catalogs. Do they produce a wide range of products or a specific type of product? In the latter case, is the supplier likely to be an expert in that type of item and have experience providing quality items in that category?
Alibaba has different levels of verification for suppliers. According to Alibaba, A&V Checked suppliers are reputable (“Gold Suppliers”) who have passed the ecommerce giant’s authentication and verification inspection as well as one by a third-party verification company. All A&V Checked suppliers’ business licenses and contact persons have been verified.
The second level of verification, Onsite Check, is a check of the supplier’s premises by Alibaba to ensure that onsite operations exist at the stated location. The supplier’s legal status and other information are also cross-checked. Further assessment includes an onsite check of the supplier’s premises by independent third-party agencies.
Other than the certifications provided on Alibaba, type the supplier’s name on Google and see what comes up. You may find reviews of the supplier on independent review sites. Customers may have left comments about the supplier. Perhaps the supplier is on Glassdoor or other employer review sites. It doesn’t hurt to get a better sense of the company’s working conditions and wages from employee reviews.
Contacting the supplier
After you’ve shortlisted a few suppliers, you can reach them via email. Use your business email and include the name and URL of your website. Casting a good first impression is important to receive a reply. The supplier may be receiving several emails each day from prospective buyers. Competitors are also known to send inquiry emails to gain some information, so suppliers may screen requests thoroughly.
Suppliers will mainly look for one thing – your buying volume. Give them a rough estimate of the quantity per product you will buy per year. Be specific and truthful. The manufacturer may profile you online to determine if you’re a serious buyer, with sellers from Africa, Bangladesh, India and Pakistan facing the most scrutiny.
Be sure to state the market you’re targeting. Chinese suppliers may say that they can make the products you’re selling but the products and production quality may be adapted for the Indian or African markets. Western audiences are used to a certain level of quality, which the suppliers’ processes may not support. By being specific about your audience, so you can avoid proceeding with suppliers that aren’t a good fit for your business.
Be clear, polite and professional. Inquire about the dimensions and weight of the packaged product, how the product will be packaged, price per item, and minimum order quantity.
Once the replies are in, you can assess suppliers based on how quickly they got back to you. How well they speak English, and whether they answered your questions directly or gave evasive replies are all determining factors that can offer you insight as to their professionalism and validate their experience.
Meet and greet at trade fairs
Attend a trade fair in China to initiate contact with manufacturers. You can meet suppliers that aren’t advertising online. Meeting potential manufacturing partners in person indicates that you’re a serious buyer and builds rapport.
The oldest and largest trade fair in China is the Canton Fair, held twice a year in Guangzhou. Nearly 26,000 exhibitors participate, getting before more than 200,000 buyers. Canton Fair organizers send a letter of invitation to businesses, which is needed to obtain a visa to Mainland China for the purpose of attending the fair. Many people also visit the fair informally on a tourist visa.
Sourcing agents
Those who have no experience selling online engage sourcing agents to identify the right suppliers for their needs and navigate the complexities of procuring from China. A sourcing agent can provide guidance and assistance at every step of the process, from selecting a supplier to shipping the order. Even experienced sellers expanding their product line and exploring a China procurement strategy can benefit by teaming up with a dedicated sourcing agent.
Sourcing agents have a presence in the country where the items are produced and offices in the sellers’ countries as well. As an intermediary, they support your interests while ensuring a fair deal for manufacturers. A sourcing strategy that does not consider mutual benefits often suffers from outcomes such as poor quality, disputes and short-term relationships.
