How to Buy from China Factory Directly: 11 Steps
How to buy from China factories directly? Generally, it comes down to ensuring a differentiated and defensible offer. So, Finding a reliable Chinese factory is a key step in successfully developing your business. Ordering from China can to be a simple process. But there is a whole set of science to guide this work.
Before You Buy from China Factory Directly, Must Confirm 3 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.
3. Identify the Right Factory Capacity You Want.
Here’s my general advice on the topic of buying from right Chinese factories sizing:
- If your order is very small, you may need to work with a trading company that will place your order in a tier 1 factory and (hopefully) keep a close eye on production.
- If your order is large enough to work directly with the manufacturer but not large enough to interest a large factory, choose level 2 (approximately 250-800 workers).
- Tier 3 is good for you if your order is considered large and you find that big companies are aggressively vying for your business
How to Buy from China Factories Directly?
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. Next, are the 11 steps for buying directly from China factories.
1. Collect Chinese Factory List:
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 Chinese suppliers.
- 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:
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. You also can audit your Chinese suppliers.
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.
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.
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. At last, you need conduct your own research by how to sign the right contract with the Chinese manufactures.
Once you have confirmed the details of the final agreement, it is time to place an order.
9. Product Quality Control.
When the supplier is located overseas, it isn’t easy to control the quality. If it is a large order, you can hire a third-party inspection company to inspect the product quality. For about US$200, you can get a quality assurance check before the product leaves the factory.
Understand Quality Control Inspection Services
The main task of Product quality control inspection services is to identify problems and defects early to provide authentic products to consumers.
The following are the general types of inspection services are most buyers choose when they buy from China factory directly to avoid scams.
|Choose Best Suppliers||Catch Problems Early||Verify Quality Before Shipment|
|Factory Audit||Sample Test||Pre-Production Inspection||During Production Inspection||Pre-Shipment Inspection||Container Loading Inspection|
|% of Finished Production|
Ordering from Chinese Factory Scams vs. Bad Quality:
It should be mentioned that getting scammed on buying from China factories and receiving absolutely nothing that you paid for is a completely different case from receiving all your order components but not being fully satisfied with them.
Although receiving poorer quality products definitely fall under the category of “scamming,” that is an entirely different problem that needs to be dealt with.
In most cases, these substandard products cannot pass the strict customs and end up being either discarded, destroyed, or charged an extra fine.
In such cases, it’s possible that you might not receive the products you order and may be under the impression of being “scammed.”
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 incoterms 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 and good communication.
11. Receive Your Goods.
The last step in the buying directly from China 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.
3 Tips for Becoming an Exciting but Possible Potential Professional Customer
Here, I will share with you some tips on how to get the Chinese factory’s attention and let you be a possible potential customer.
1. Don’t Exaggerate Your Business Too Much
Don’t say “you should do business with me because I can buy one million pieces” unless you can really buy one million pieces.
Believe me, quality Chinese factory receive countless inquiries every day. They have enough experience to immediately judge your real capacity and purpose.
Maintain a transparent way of communication, which is good for each other. As long as the suppliers gradually recognize your growth, they will also be willing to maintain good long-term cooperation with you.
2. Tell Suppliers Who You Are
Introduce yourself, preferably as short as one minute, not too complicated, just to explain who you are. A brief introduction will undoubtedly make you more professional.
You might say: “We have been in business for 20 years. We have established relationships with major retailers. We are always developing new ones. We are looking for a long-term manufacturing partner who can develop together.” You must explain clearly in advance. , So that when you finally ask them “what is your price”, they want your business, and they will offer have a good price for you.
3. Don’t Always Pursue Low Prices Blindly.
What you are looking for is a reasonable price that meets your quality requirements. On China wholesale market, you can always find the lowest priced products. However, these products will undoubtedly only increase annoyance and waste your money.
Buy from China Factories Direct Conclusion.
Should you buy products from China factory directly or your local wholesalers? It depends on whether you have a specific item you want to import or just looking for opportunities.
Alibaba is legit and 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.
It is also good to get the service of an product sourcing agent, who has the experience to look at all aspects of your import business.