It's no secret that many e-commerce professionals look to China manufacturers for general products. China is often a starting point for manufacturing because it generates such a high volume of products sold and globally.
Although some may think that the ubiquity of Chinese products is due to cheap labor, there is more to it than that. China has become a manufacturing powerhouse in our world due to its strong business ecosystem. This, along with competitive monetary practices and low taxes and duties, can be attributed to the reason why you see so many products that have been made in China.
China's business ecosystem of networked suppliers, parts manufacturers and distributors has evolved, making it a more efficient and affordable place to manufacture products.
Here's what you need to know when looking for a manufacturer to help you meet the needs of your e-commerce business.
Before creating a partnership with a manufacturer, you need to find one and assess whether or not it is the right manufacturer for your business needs. Knowing what to look for in a manufacturer can seem like a daunting task that begins and ends with price. Although it is tempting to jump to the lowest price, it is important to realize that sometimes we get precisely what we have paid for.
To find a manufacturer you can trust, start by using search engines and taking advantage of Chinese supplier directories like Alibaba and others. Get on the phone and talk to your network, and when the manufacturers look promising, get in touch with them (more on that later). Don't be afraid to ask for samples or references, either. If the manufacturer can be trusted, they will have no problem offering them.
Of course, look for a price that makes sense for your business, but don't let it be the sole factor in your decision. Make sure you understand the prices associated with buying the products you want at wholesale prices, any costs around export, and any hidden costs - such as when your products come from a more remote part of the country.
China is not exactly a small country and manufacturers can be found in a variety of places, with specializations ranging from region to region. For example, Shenzhen - a city on the border with Hong Kong in the southeast - has evolved to become a center for the electronics industry. It has cultivated a unique ecosystem to support the manufacturing supply chain and is now known for these products.
You'll also want to think about accessibility: the less accessible a factory is, the more expensive access to those products can be, although the price per product could be lower. That is why it is critical that you do all the calculations to determine if the price is really correct or not.
Unfortunately, scammers exist in all parts of the world and Chinese manufacturing is no exception. Chinese suppliers must register with the Chinese government authorities and obtain a unique company registration number. If a manufacturer can't (or won't) provide you with that number, go away. To verify the registration number, visit your local administrative government website or contact your local Industry Trade Office.
Tell any potential supplier that you will also have your factory audited before issuing a purchase order and that you will later want production inspected before any shipments can be authorized. Bring this up as early as possible - in the first few conversations, if possible - and if they refuse or start making excuses as to why they don't want you to do this, it's a red flag. Factory audits are a great way to verify a supplier's claims about their production capacity and to protect your investment.
Request a report from third-party authentication services like GloBIS for important information about your potential provider of legal representatives, shareholders, business scope, and financial records, to name a few.
If possible, visit the place yourself and discuss your expectations face to face.
The best way to avoid fraud and protect yourself is to do your due diligence and research before entering any transaction. Make sure you are meticulous with your verification process and you will have peace of mind knowing that you can trust your potential vendor.
As we mentioned before, one of the best ways to start your search is through your preferred search engine. Look for Chinese manufacturers who create the types of products you are looking for. Cross company names with Chinese directories and your own trusted network - referrals are always a good place to start!
If you're just starting out and / or your network can't provide references at this time, Chinese manufacturer directories provide a wealth of information and manufacturer lists for all types of products, locations, and prices.
Fortunately, many companies have already established relationships with China, which means that the resources available to find, work, and manage those supply chain relationships have grown exponentially. Here are some great starting points for you to begin your search:
When it comes to the continued success of the partnerships you create with your Chinese manufacturer (s), it is important to note that many manufacturers harbor fears not unlike yours. Remember: buyers take a nosedive promising bulk purchases, continued volume - sometimes exaggerating their need and the scope of the purchase agreement, leaving manufacturers feeling cheated.
Along the same lines of seeking transparency, be sure to offer the same transparency and honesty to your potential manufacturing partners. Clearly communicate your business needs and work with potential manufacturers to understand your true production potential. Here are some tips to make sure things keep running smoothly for you over time:
With a little research and some due diligence on your part, finding a manufacturer in China to help you achieve your business goals will be one of the most impactful processes you run in your e-commerce business.
A good manufacturer or supplier should have a good knowledge of exporting and be able to provide you with experience and real-world examples to help you make the best possible decisions. Remember, if you enter into a true partnership with your Chinese manufacturers, you will build a strong relationship that supports the growth and success of both parties.
As a electric toothbrush manufacturer, factory and supplier in China, Shenzhen Relish provides various types of electric toothbrush wholesale, dropshipping, and OEM services. At the same time, we are also a water flosser manufacturer, providing wholesale, direct sales and OEM/ODM services for water flosser. We look forward to working with you.