Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

Suppose you come up with a product idea or think you have market channels for certain products, and you want to find a supplier in China because of the low product development cost and low production cost there. If you Google the product name or concept, you will find tons of China suppliers/manufacturers. However, you still think you have not got one, because you want to find a capable and reliable one that would satisfy your specific needs and have a strong desire to do business with you. Many people get frustrated because they have been communicating with suppliers in China for months, but fail to move forward. The reason, most likely, is that they did not find the suitable one at the beginning. To successfully find a suitable China supplier, you need a strategy. This strategy will consist of awareness, knowledge and a good amount of homework. Below are some practical steps to find a suitable Chinese supplier for you.

Steps

1. Understand what you need. You need to first know what is available and have a way to categorize the information. Here are some categories to help you think about Chinese suppliers: manufacturer vs. 3rd-party supplier; Big corporation vs. small family-owned; 3rd-party supplier with in-house product development capability vs. 3rd-party supplier that just buys-in and sells-out; vertically integrated manufacturer vs. assembly-based manufacturer; etc. Properly categorizing the suppliers will help you understand what you need. For example, if you need to import products in a narrow range, you may choose a manufacturer other than a 3rd-party supplier. If you are a small business and need dedicated attention, you may want to develop a good relationship with a small family-owned business.
2. Do some preliminary Internet research to further develop your category system towards your specific needs. Create a data table to help you record the search result, so the job can be done more efficiently and effectively. The table should include columns like company name, contact information, business scale and scope, category check boxes (important), and notes.
3. Use search engines to search information related to your product name. The first 100 results would be the most relevant websites related to the product of your concern. You can also find your competitors’ information and develop a better sense of market segment and marketing channels.
4. Use popular business directory websites to obtain very structured information for Chinese suppliers. The directory websites are also excellent resource to obtain industrial knowledge.
5. Narrow down the the list of suppliers you want to work with to a manageable amount. At this stage, you may already know what your real needs are and what is available. Initiate contact with the suppliers you want to work with, and further develop relationships with them. Eventually, you will find the one. The process can be fun and a friendly experience.

Tips

• Analyzing the types of suppliers has strategic importance. It will help you to understand where you are, what kind of results to expect, and what are the things you need to take care of in the mutual cooperation. You may want to have an experienced person help you to analyze the information. In your strategy, you will also need to include the consideration of the future contracting and operation. You may seek advice from Chinese professionals who understand the Chinese mentality, culture and business practices. You may get the incorrect interpretation if you visit the supplier’s English website, or you could omit data that contains key information.
• Just because a site is ranked higher in Google search listing, this does not necessarily mean it is a more serious business. Some very good Chinese suppliers are not well-versed in having their website listed highly, while some other Internet guys can have their website listed very highly. Use your industrial judgment.
• Information comes from seemly insignificant data, for example, the email addresses may reveal useful information about Chinese suppliers. However, do not judge an address too quickly. You never know where good information can come from.
• Be aware that while the decision-maker may not speak any English, establishing good relationship (guanxi) with the top management is crucial for long-term success.
• Email is good for exchanging product specifications, catalogue and price list. To establish a deeper relationship, a phone call is 10 times better than email. A personal meeting is 100 times better than a phone call. Many people want to start a business, so you have to show you are more serious. As long as your contact person uses English, you can just go ahead and give that person a phone call. It does not matter how much you and that person can understand each other; you can always follow up with an email.
• Work with suppliers that have already exported their products to Europe or the US. Pay attention to the agent relationship. Many manufacturers may have their products exported to the US in good quantity through a third party supplier without an exclusive supply agreement. They may want to have direct channels to the US, and that might mean more business for you.
• Consider accessing the U.S. customs records for your supplier to get an independently verified list of their shipments to the U.S. This will tell you who their customers are, how loyal those customers are, as well as the volume capabilities of your factory. Import Genius offers these hard-to-find customs records at affordable rates.
• A visit to your supplier production site in China is the only reliable way to truly know its capabilities, to check that the data you have collected on the company is 100% correct, and that ISO & Quality principles are applied: Check the factory organization, its process flows, the quality of goods produced, the packaging, the workers’ training level, the overall working conditions, equipment maintenance, etc. This will give you an indication of how the company is managed. A face-to-face meeting with the supplier’s management team will also give you an idea of their experience and willingness to embark on your project. You will also be able to create a friendly relationship, which is crucial for your project!

Warnings

• If you send out inquiries you will get tons of replies from suppliers of all kinds. Some guys may continuously send you product info for years, and are able to pass through all sorts spam protection. You may not want to use your primary email account to register with these sites.
• Be careful with suppliers sub-contracting your order! When facing a backlog of deliveries, Chinese suppliers usually sub-contract them partially or in full, without taking the precaution to inform their clients! Most of the times this leads to sub-standard deliveries
• Beware of cheap electronic products sellers from China. Many online sellers of electronic products in China are fraudulent sellers. Unless you are buying in bulk and the products are shipped legally passing through custom checks, then most likely you are buying the product from retailer or wholesaler who do not have export license. This means there is no way to know whether the product is Real or Imitation unless you are an expert. Famous brands will not allow their supplier to sell below their normal selling cost, therefore the suppliers are either selling illegally or it is actually an imitation.

Article provided by wikiHow.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

If you want to import some products form China, one of the main points that you have to take into consideration is how to deal with your product freight. Even if you apply CIF terms, to avoid your lost and make maximum profit, you’d better know how to deal with shipping by yourself.

Steps

1. Decide whether you want to find a forwarder in your country or find a local forwarder in China.
2. .Obviously, finding a forwarder in your country is much easier, but the service charge in developed countries is much higher than in China.
3. .The lower labor cost, lower exchange rate and other factors make Chinese forwarders’ service charge much cheaper.
4. There are a lot of Chinese freight forwarders, but only a part of them are large, reliable and are able to offer high quality service.
5. Post a topic on an international business website.
6. You will definetly receive a lot of inquiries.
7. Carefully evaluate those forwarders.
8. Get in touch with the forwarders you have chosen.

Tips

• Generally speaking, the service charge of Chinese forwarders are much cheaper. So you don’t need to pay much attention to it.
• However, you should carefully evaluate the forwarder’s credit, reliablity, and ability.

Warnings

• Don’t assume the products freight of Chinese line as a matter of course. There are some special factors that are very different form other lines, such as ORC, SPS, THC,political rules etc.
• Believe that freight forwarders are professional, who know more than you about product freight.

Article provided by wikiHow.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.
If you’re starting a retail business and looking for products to sell, you’ll need to find reliable wholesale suppliers. Sourcing wholesale products can be challenging, and there are certainly lots of pitfalls that business owners need to look out for. This serves as a guide with some helpful tips for finding the right wholesale product sources for your business.

Steps

1. Decide what you’re going to sell. There are many ways to go about this. You want to choose products that are going to sell well, but that the market isn’t completely flooded with. In that case, you would need to be ultra-competitive in order to get sales. Perhaps you make your own items to sell (like handmade jewelry or crafts), or you want to sell fashion accessories or clothing. To determine what kind of items are selling well, you’ll need to look at trends. If you’re opening up a physical store in your area, you’ll need to do some research into local trends. If online selling is your game, then your potential for sales will increase exponentially. You can use one or more of the many online tools available to check out selling trends. eBay Seller Tools, for instance, are very robust and easy to use and allow you see product trends over a period time.
2. Choose your supplier type. Depending on what kind of business you’re starting (online vs. brick and mortar), you’ll need to decide on the type of wholesale supplier you want to use. Here are the types to consider:
   • Manufacturers: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.
   • Distributors: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order.
   • Liquidators: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good.
   • Importers: If you plan to sell specialty products from another country, you’ll likely have to go through an importer to get them.
   • Drop Shippers: If you have an online business, drop shipping is one of the best ways to supply products for your business without worrying about manufacturing processes or warehousing costs. Drop shippers are basically distributors in that they buy from manufacturers or other distributors, but they will ship orders directly to your customers for you, as orders are placed.
3. Where to look. The most common place to look is online. You can use general search engines like Google and Yahoo, or you can use wholesale-specific search engines, like goWholesale, Top Ten Wholesale, or Wholesale Central. There are also trade lead sites like Alibaba and Global Sources, which allow you find suppliers all over the world. However you can also check print publications (such as The Closeout News and Retailers Forum), print directories and attend trade shows (such as China Sourcing Fairsand Cantonfair where vendors get together to showcase and demonstrate their products).
4. Do your research. This cannot be stressed enough. There are many scams, fakes and just plain bad businesses to watch out for. There are a ton of resources available for free, so use them! The first place you can check is the supplier’s website. Check out all of their policies (returns, damages, backorders), and make sure they have their contact information and physical address posted on their site (not just a contact form – this is a big red flag). Your best source of information is the supplier themselves – call or email them and ask questions about their products, policies, and terms. You may even be able to ask them for customer references. Don’t forget to use online forums—they are a great place to get references and ask questions, but beware of members who are simply trying to self promote. You can also check your suppliers out through the Better Business Bureau, Hoover’s Online, and even the FBI.
5. Contact the vendor and place your order. Many vendors have online payment systems set up, but beware of suppliers who aren’t giving you true wholesale pricing. Real wholesale suppliers normally deal with businesses only (not the general public) and require tax IDs to do business. While requirements vary from state to state, here is a list of things that may be necessary for you to have before beginning to buy and sell products:
   • Local Business License: Typically, the city or county where you are operating your business will require that you have a local business license. Just call or visit your city hall to find out what the requirement is in your jurisdiction.
   • State Business License: Unless you are selling products such as alcohol or cigarettes, you probably won’t be required to have this license. You can find out your state’s requirements by simply calling your local government offices.
   • Sales Tax License:If you live in a state that collects sales tax, you will most likely need this license. Having it will allow you to legally charge sales tax to customers purchasing your items. By calling your State Franchise Tax Board you can find out how to get this license.
   • Federal License:This license really only applies to a very small portion of businesses that are selling products or services that are highly regulated by government agencies (i.e., if you are selling firearms or offering investment advice). If you think your business falls into that category, you can call your state government offices for more information. However, if your business is required to have this type of license, it may be best to hire an attorney to make sure you are complying with every law and have all the necessary licenses, permits and documentation.
   • Seller’s Permit (also referred to as a reseller’s permit or sales tax permit):This permit is typically required for businesses that are purchasing wholesale products for resale. Usually your State Franchise Tax Board is the agency that grants this permit. You can also set up payment terms and arrange credit with your suppliers, so make sure to ask them what kind of options they can offer you.
6. Develop and maintain a positive relationship with the wholesale supplier if all goes well so far. You can have more than one supplier, especially if you sell a wide range of products. This can be beneficial, because you’ll have more product options, possibly better prices, and lower risk in case something happens with one or more of your other suppliers.

Tips

• Find good suppliers. We found a free on line wholesale magazine called Retailers Forum that has great articles and wholesale merchandise suppliers. We found it at www.RetailersForum.com and have used it to buy for our store.

Article provided by wikiHow.