How to buy from China factory directly: 11 Steps
Now, Buy from China factory directly to be a simple process. But there is a whole set of science to guide this work.
Put your investment in the right product. If you want to buy cheap Chinese products, you will find them. If you are looking for something with aesthetic quality, you can also find them in China.
It is also good to get the service of an agency who has the experience to look at all aspects of your import business. Next, we will talk about how to buy direct from china with 11 steps.
Before you buy from China factory directly, you must confirm two things:
1. Determine the goods you want to import.
Choosing the wrong product means you are wasting time and money. If you want to be a successful importer, the first thing you need to do is to choose the right product for resale.
2. Determine your import rights.
Before buying goods to your country, as a business or individual, you need to confirm whether you have the right to import to your country. (You can ask the local customs broker for details)
After you find the products you want to import from China, the first step is to find a list of Chinese suppliers.
11 steps to buy from China factory directly.
1. How to Find Chinese Factory:
Finding a manufacturer in China can seem like quite a daunting task, especially if you do it for the first time. But if you break up your job into piece steps and focus on each one of them at a time, you will be safely buy from China with your expectation.
Attend China trade Fair
If you have the resources to go to China, attending a trade fair is the best choice to find a reputable supplier.
Buy from China through the wholesale market.
It is worth visiting the wholesale market in China, where you can browse a large selection of products at very low prices. For example, Yiwu Market is the largest wholesale market in the world.
Find Chinese suppliers online.
For small businesses that do not have the resources to fly to China, online China wholesale websites are the next best way to order wholesale products directly from China. You can search for suppliers on Google, but most companies will go directly to the business-to-business directory, and you can find thousands of Chinese suppliers at your fingertips. The main directories are:
• Made in China
Hire a freelancer.
Hire a free lancer to help you find the Chinese factory and give you a report.
2. Audit the China Factory Manufactures
One of the most important parts of buying from China is knowing who you are buying from. You want to make sure they are reliable and trustworthy.
Checking the qualifications of gold suppliers, certified suppliers, and trade assurance suppliers is a good start on Alibaba. There are some ways to audit your Chinese suppliers .
1. Google and background check companies
2. On-site inspection:
An on-site inspection is not easy. You need to check potential suppliers as following aspects.
•Company or factory location
• Ownership status
• Supplier’s operating photos
3. Hire factory audit agent
3. Write Effective Inquiries
Now that you have collected a candidate list of suppliers, you want to be exposed to a transaction or customization requirement. You need to write effective, clear and detailed inquiry letters to ensure you get what you need.
We recommend including the following information from the product you want to source:
• Product description and specifications
• If there is a photo
• Other key points, such as safety, brand, etc.
The more information you provide, the more likely you are to attract sellers who can meet your needs. In addition, ask the right questions to help you determine if the supplier is right for you:
•Price per order quantity
• Passed FDA, CE/European or Chinese standards and other certifications
• The origin of the ship
• Shipping terms and fees
You can refer to our inquiry sample and try to include as much information as possible.
Reach out to China supplier/RFQ Template
Dear [CONTACT NAME] ,
My name is [ENTER NAME], and I am the Purchasing Manager for [COMPANY NAME].
We are an American consumer products company and we are interested in your following product(s) listed on Alibaba:
[PRODUCT NAME]: [PRODUCT LINK]
Our company is looking to add [PRODUCT NAME] to our line of products with the following requirements:
- Custom Logo & Position
- Design/ Aesthetic
- Certifications (Example: FDA Approved)
- Additional/ Other
- Type of packaging you desire (w/ photo)
- Product inserts
- Is the packaging described above included in the product price?
Considering your factory is able to supply the product as described above, please provide the information below:
Please provide the following for DHL Express Shipping to United States Zip Code XXXX:
- Total Price:
- Expected Delivery Time:
Please provide pricing for the following Qty of Units:
- Price of 1,000 units:
- Price of 3,000 units:
- Price of 5,000 units:
What is the cost to ship the following quantities to the United States by DDP air to Zipcode 90045
- Cost of 1,000 units:
- Cost of 3,000 units:
- Cost of 5,000 units:
- Number of days to produce 1,000 units:
- Number of days to produce 3,000 units:
- Number of days to produce 5,000 units:
- Please provide your Wechat ID for further correspondence.
ATTENTION: Please DO NOT RESPOND to this message on Alibaba. Please respond through our WeChat (@wechatusername), Skype (skypeid), or email (email address).
We plan to select a supplier and complete our initial purchase within the next 3 weeks. We are currently communicating with two other factories. After our initial order we will have repeat orders and hope to have a long-term partnership with increased order quantities.
We are looking forward to your response,
[FULL NAME], Purchasing Manager
4. Negotiate Confidently MOQs/Price
As we mentioned, it is appropriate to negotiate a minimum order quantity with the seller in some cases. If this is the way you want to go, then politeness and professionalism are very important.
For example, if the MOQ is set to 5000, it is inappropriate to request an ultra-low order quantity of 200 at the wholesale price. If you think this number is appropriate, you can set the target between 3000 and 4000 because this number is closer to the seller’s minimum order quantity.
If the price of each item is $10, don’t bid $2. Otherwise, the seller will think you are a serious buyer. A quote of $7 or $8 may be more reasonable, especially if you are ordering 1,000 pieces.
Remember, the seller may not accept your first offer, so there may be some back and forth. You need to make sure that the price you set is meaningful for your business.
5. Choose a Supplier and Request Samples.
Once you have contacted a potential supplier on your supplier list online or at a trade show, you need to send an email requesting samples of your interested goods first. Most suppliers will send you photos or catalogs of products for free, but it isn’t easy to judge the quality of the products from the photos.
Ideally, you will receive a test sample of the product to verify its quality. You may have to pay for the samples, but this is usually a small investment for peace of mind.
6. Negotiate Payment Method.
Make sure that your order has clear payment terms. There is usually room for price negotiation when dealing with Chinese manufacturers, but make sure you have a written record of the final deal price.
7. Get Ready for the Down Payment.
Most suppliers expect you to pay some money first, usually about 30%, and the balance is paid when the goods are shipped. Most suppliers will not look at your order until your deposit is paid to their account. This is risky: if the supplier does not ship, you will not get your money back.
Here, you can consider Alibaba trade assurance:
Alibaba provides a payment protection service called “trade assurance”. This guarantees your money if you do not get the quantity or quality of the goods you ordered.
8. Place an Order.
The rule of thumb for importing goods from China is: be specific. Don’t assume that the supplier knows what you want, and don’t assume that he will not take shortcuts in order to reach an agreed price. Include as many details as possible in your order-size, color, thickness, material, etc. If possible, send a chart or image so that there is no room for doubt.
Once you have confirmed the details of the final agreement, it is time to place an order.
Exact Buy from China Supplier Agreement Template
China PURCHASE ORDER AGREEMENT
[your company name], known as “First Party”, agrees to enter into this Purchasing Contract with [supplier company name], known as “Second Party”.
This agreement is based on the following provisions:
The Second Party agrees to produce the following goods:
- [X product name]. A Total of X sets.
- Each set should include [insert specifications if applicable]. [X product name] will be provided by First Party
- [insert additional detailed specifications here if applicable].
- Each bag should have an UPC code affixed to the outside. UPC codes will be provided by First Party and printed and attached by Second Party. If the bag has a 12.7cm opening or larger (measured when flat) they should have a suffocation warning, either printed on the bag itself, or attached as a label
- X sets per case
- Total of X cases
The Second Party agrees to the costs of US$X (US$X/set * Y sets)
If production time for [product name] exceeds the agreed upon production time (X days after payment is confirmed) – the First Party requires advanced notification of at least 3 days in order to respond appropriately. If production time is delayed by more than 3 days without agreed upon conditions, the First Party reserves the right to enforce a 5% discount on the order for every 3 days that production is delayed.
If there are any flaws discovered during production that do not meet the agreed upon specifications, the Second Party agrees to discount products, fix flaws, or replace the units. The course of action if flaws arise is to be determined at the sole discretions of the First Party. The First Party will make every effort to find an agreeable solution to maintain a quality relationship with the Second Party and expects the same in good faith.
The First Party reserves the right to a 3rd party inspection.
The Second Party agrees to an internal Inspection required by the First Party. The points of Inspection required are:
- Pictures of products as they are being manufactured
- Picture of products being assembled in packages with [additional items if applicable]
- Picture of the first case loaded with units – with box lid open and a picture from each side
- Picture of the full shipment with all cases
As agreed upon previously, it is expected that the Second Party delivers the items to:
[full address provided by Amazon]
The Second Party agrees to provide the First Party with tracking information as soon as it becomes available. The Second Party agrees to cover all fees and duties associated with the shipment. The items are being shipped door-to-door, X cases via air freight with Delivered Duty Paid (DDP). The prices shall not exceed the following
- X cases, air freight via [postal service] (x-x days) – US$X
The Second Party also agrees to print case labeling in accordance with the list below:
- [product name]
- Case Quantity: X
- Made in China
- Gross Weight: X kg
- Box Dimensions: Xcm x Xcm x Xcm
Note: Information above is an estimate and shall be updated by Second Party after confirming accurate weight and dimensions.
By doing business with the First Party, the Second Party agrees to keep any and all information related to their business relationship confidential from other potential customers. The Second Party is not allowed to use any artwork, design, or images from work done with the First Party to market similar products to other potential customers. This included use on Alibaba.com, private conversations through email, Skype, or other messaging applications, Globalsourcing.com, Amazon.com, and any other method of communication. The Second Party agrees not to disclose any agreed upon pricing related to our agreement with other potential customers in any form.
30% of the total amount for the production of the sets, along with 30% of shipping fees will be paid via Alibaba Trade Assurance before production (subtotal of US$X). The remaining 70% balance (subtotal of US$X) will be paid via Alibaba Trade Assurance after production is finished, making a grand total of US$X. The First Party will also cover any payment processing fees. Sample costs and shipping fees will be paid by First Party separately before production via Alibaba Trade Assurance.
This agreement is entered into on [date] by [your company name] and [supplier company name]
[contact name], [position] [your name], Lead Purchasing Manager,
[company name] // Signature [your company name] // Signature
Date: _________________ Date: _________________
9 Product Quality Control.
When the supplier is located overseas, it isn’t easy to control quality. If it is a large order, you can hire a third-party inspection company to inspect the product quality. For about US$300, you can get a quality assurance check before the product leaves the factory (payment is paid from your bank account).
10. Ready for Shipment.
There are multiple shipping options that you can use to ship your products from China/Alibaba to your country. Standard options include sea and air freight. But depending on the size of the wholesale goods you buy, the options you choose may increase your profit margins or wipe out your profits. For large volumes of relatively heavy cargo, shipping is usually cheaper with sea freight. However, if you buy a lot of lightweight cargo, air freight will make more sense.
The shipping inconterms provided by the supplier are also important. Shipment can be ex-works (EXW), free on board (FOB), or cost insurance freight (CIF). Evaluate each item and find the term that suits you best.
Usually, the supplier can help you deliver the goods to your country, but the freight is more expensive.
The best advice here is to hire a freight forwarder to help you ship from China. Try to quote from 2-3 freight forwarding companies, and then choose a company with a reasonable price.
11. receive your goods.
The last step in the buying process is to receive your merchandise. After receiving the goods, remember to check the quality of the goods in time and give feedback to the manufacturer. If there is a problem with the goods, it must be solved in time.
Buy from China Conclusion
Buy products from China factory. It depends on whether you have a specific item you want to import or just looking for opportunities. Alibaba is the best way to check out companies, but be careful as many have a good site but not much behind them. Make sure they are a manufacturing company and check their range of goods. If it is fairly narrow that’s good because it means you aren’t just dealing with an agent. If you only want to buy a few things, you can go to AliExpress.
Most bulk orders buy from China factories can be CIF that you just arrange customs and freight at your end.