Business

What Amazon Sellers Can Do When Products from China Are Not as Expected

Niclas Bengtson
Niclas Bengtson
4 min read

Amazon sellers in the west have remained loyal to Chinese factories on the basis of consistent quality at low costs. That said, no two Chinese manufacturers are the same.

Generally, a factory that specializes in a single product category is easily able to meet performance standards expected in western countries. Their staff has a well-rounded understanding of the product, and a singular focus increases the likelihood of receiving top quality products. Partnering with a Chinese factory that has experience manufacturing your product can go a long way in avoiding quality-related disputes.

Price, years in business, and recommendations from a trusted business contact; these are all convincing reasons that may propel you to choose a factory that makes a broad range of products. Make sure you do your due diligence and take a closer look at quality indicators before entering into an agreement.

In this post, we look at what to keep in mind when reviewing a Chinese factory and how to deal with quality-related disputes.

Audits are necessary

A factory’s quality control process may look great on paper but your final product may disappoint you. Another factory may not appear to have the quality control processes you were anticipating but manages to meet or exceed your product expectations. How do you tell the two businesses apart when checking for quality?

Make inquiries about the manufacturer, determine its reputation in your product category.Don’t trust that everything is fine. Just because the factory has an in-process quality control officer there is always a chance your specifications can be lost in translation.Instead you should engage a China sourcing agent to identify a reliable manufacturer and conduct quality inspections at all stages of production.Conduct a factory audit yourself or arrange for an inspection by a respected third-party agency.

Chinese factories are open to requests for inspections and audits. Any factory that acts evasively in this regard is best to be avoided.

Quality is directly proportional to cost

Chinese manufacturers run on thin margins. To offset costs of production, they set higher minimum order quantities (MOQs), such as 1,000 pieces, for common goods. You will find that MOQs are smaller for complex or expensive items. Not only do manufacturers have to contend with fluctuations in raw material prices, they will need to manage disruptions in their supply chain or at their factory. If they can’t it will be reflected in increased production costs.

To remain operational and profitable, producers must set a price floor for the item they make. This is the minimum price at which the product can be made at an acceptable quality. During your research phase, you will come to understand the average price for manufacturing your product. When you reach out to suppliers you will receive similar quotes from many. This should help in confirming the actual costs of making your product.

Beating down the quoted price almost always results in a drop in product quality. You may feel that you won at the negotiating table but you lose overall if there are no takers for your poorly-made goods.

Manufactured product does not match the sample

The ‘golden sample’ is commonly used to secure a purchase order from a potential customer. It is likely that the very first trial product you test with the manufacturer satisfies your quality requirements, or you may be offered to request a few modifications to the sample to bring it perfectly in line with what you want- so you make a purchase commitment.

The problem starts when your products don’t look or feel, or aren’t packaged like the sample. Perhaps every batch suffers deficiencies, maybe a few random items you checked failed the test. Could you have avoided the situation?

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