For global business owners, the main goal is to increase revenue while reducing costs. The current global business environment is constantly influenced by changing customer needs and is more susceptible to disruption. Both tasks seem extremely challenging.
In addition to low production costs, China has a variety of options, so it remains an attractive option for retailers.
- Easy access to materials
- cheap labor cost
- Beyond mass production
- Organizing production lines.
In short, the Chinese will do things! You just need the ideal China Home Storage Factory.
Importing products made in China is a daunting task, but not impossible. There are countless manufacturing plants in China capable of offering different quality standards. Finding the best China Home Storage Factory is critical to building a successful business, not only for new businesses but also for established companies. Quality and reliability are top priorities for businesses working with overseas suppliers.
Choosing a China Home Storage Factory is not as simple as shopping online. A solid understanding of supply chain processes as well as in-depth research is required to support your decision to partner with suppliers.
Understand the needs of your chosen China Home Storage Factory
There are two types of suppliers in China – factories and trading companies.
Factories focus on specific products because they have very different machines and equipment.
For example, metal forgery requires expensive machinery, while textile mills require sewing machines. The skills to manufacture stainless steel products are different from textile production. The factory is specialized, so the product variety is small and the MOQ is high [Minimum Order Quantity]. Prices are lower, and by working with a factory instead of a trading company, you have more control over your product manufacturing.
Trading companies do not manufacture products, but a source from factories. They are somewhat similar to wholesalers or distributors. The advantage is that you can get a wide range of products with low MOQ. They help find China Home Storage Factors that are often difficult to find, especially if you belong to a chemical or pharmaceutical niche. Trading companies charge higher prices than factories and you have less control over the actual production process.
The type of China Home Storage Factory you choose will depend on the type of products you need to outsource from China. Ask if the potential China Home Storage Factory is a trading company or a factory. If they are factories, then you need to further research their manufacturing skills, specialization, experience, product certification, etc.
It’s great to work with the factory if your order is in bulk. Also, to achieve the lowest price, you can communicate directly, especially when you need to customize products in China. For small products or a variety of goods in different categories, it is wise to work with a local trading company.
Use search engines and online directories
Use search engines and online Chinese supplier directories to build listings. It reduces the sense of scarcity when you contact and negotiate with potential manufacturers. At first, you will feel that every manufacturer is your only hope. Therefore, build a lengthy list of suppliers for direct communication.
Google is often the primary source for finding information. However, when you enter a Chinese supplier, the search bot provides millions of results. You don’t know if the source is reliable. You need to critically scrutinize everyone.
Check the Chinese wholesale website. Read their return and delay policy and make sure they have their contact details posted on the website. Googling for scams from a specific provider. It is possible that someone had a bad experience and left a mark on the internet.
You can find China Home Storage Factorys in several B2B directories. It includes Alibaba, Global Sources, etc. Check reviews, ask questions, and get references, but be careful as members try to sell themselves. Look for established suppliers or suppliers with 2 to 3 years of experience.
Alibaba provides verification services, making it easy to trust. On Google, you can see information about China Home Storage Factory’s participation in recent trade shows. Repeated attendance at trade shows a supplier’s commitment to nurturing customer relationships.
Visit a trade show
You can meet face-to-face with potential Chinese suppliers and learn about their products, company values, quality control measures and production capabilities. Direct interaction allows us to see the capabilities of potential suppliers up close. Two popular trade fairs or exhibitions held in China are the East China Fair and the Canton Fair. The latter is the largest and is held twice a year. It attracts a large number of participants and attendees to display a large number of merchandise. The former is a large regional trade fair, held annually. Most transactions are done on-site and are popular for having the highest turnover.
Make a call
Scammers do not provide real registration details on the internet to avoid being tracked by law enforcement agencies. They provide false business names, addresses, and phone numbers, or can push buyers to contact only by cell phone.
Remember, if the provider doesn’t have a landline, that’s a red flag.
Mobile phones can be purchased without restrictions. Therefore, scammers only use mobile phones and not landlines. See what a landline phone in China looks like. The first two digits are the country code, and the last two digits are the area code. Use the area code to see the location. Call the supplier’s landline and ask for their business license and registration number.
Check business license
A unique business registration number issued by the Chinese government. If your China Home Storage Factory cannot provide a business license, it is risky to work with them. If you have obtained a registration number, please contact the local industry and commerce bureau or the local administrative government website for verification.
Request a referral
It is important to verify that the China Home Storage Factory has the production capacity, certifications, communication and technical skills required to meet your lead time, quality and quantity expectations. To determine if you can recover any losses from a contract dispute, you should verify the supplier’s financial statements
This is the best way to ask previous customers about the reliability and quality of a potential supplier. Request references and contact them.
Request factory audit
Ask for a factory audit before the first email or encounter placing an order. If the supplier makes excuses or refuses, that’s a red flag. Factory audits can verify a supplier’s production capacity and quality compliance. You can have a professional or quality control provider conduct a factory audit.
Order product samples
When you buy a product made in China, please ask for a sample. Even if you have to pay for the initial sample…get it. It allows for a sample feel and you can check its quality and workmanship to determine if it is what you want. For initial samples, payment is insisted on going to the supplier’s business bank account [not a personal bank account. If they are unable to provide their business bank account details then this is a red flag.
You can even get samples of products picked by Chinese sourcing companies from the address provided and pay in cash. If they allow it, then it’s a legitimate factory because the crooks will refuse or make excuses.
Payment method is important
Common payment methods in China are Western Union, MoneyGram and T/T. Good suppliers even accept PayPal. Be careful when using untraceable wire transfers with unknown providers as there is a high risk of fraud.
Visit the factory in person
In order to verify the China Home Storage Factory, visiting the factory in person is the best solution. You can easily discuss products, quality standards, prices, procedures, delay and return policies, estimated delivery times, etc. face to face. A visit helps understand the process and, in the future, gives you an idea of what the manufacturer is dealing with. Factory reviews even ensure that practices and procedures meet required standards.
You can’t visit every potential China Home Storage Factory, but use the steps above to narrow down your options before catching a flight to China for a factory tour. Communication is important, but never indulge in choosing a China Home Storage Factory who speaks fluent English. You both need to use translation software to earn points. It is best to prioritize quality standard compliance and order quantity.
Outsourcing to Purchasing Agents
Purchasing agents act as middlemen between buyers and suppliers. If you are a busy or new business owner, using the best Chinese sourcing agent is a great solution. The agency has a dedicated team that connects multinational companies with Chinese suppliers. The main services they provide include –
- Find and verify suitable China Home Storage Factory in China.
- They are savvy negotiators and have a good network of suppliers. You can get competitive prices without depreciating quality.
- Conduct factory audits, production tracking, and China inspections.
- They ensure that the production process is carried out according to the contract.
- They even handle complex shipping and delivery arrangements.
Although a reliable online purchasing agent can do some of the heavy lifting, such as identifying and verifying China Home Storage Factorys. However, you still need to be directly involved in the purchase transaction.
The best solution for buyers to source Chinese-made products from suppliers is to do their research before signing an agreement. Even if they work with Chinese sourcing agencies, meticulousness in the verification process is critical.