8 Questions to Ask When Sourcing from China
Sourcing from China isn’t as easy as some people think it is. It takes preparation, patience, and persistence to find the right manufacturer and produce your own high-quality goods at low prices and in large quantities. But if you know what to look for in the right supplier and put in the hard work up front, you’ll be well on your way to creating profitable products that give your company an edge over your competitors. Here are eight questions you should ask when sourcing from China so you can ensure your business remains profitable in the long run.
1) What is your MOQ?
Your MOQ, or minimum order quantity, refers to how many products you will need in order for your supplier to fulfill your order. As a general rule of thumb, suppliers will ask for a MOQ between 200 and 5,000 pieces. This is extremely important because if you want 1,000 pens but your supplier’s MOQ is 5,000 pens then you are out of luck—at least until you find another supplier. If possible, get at least two quotes from different suppliers before locking one down. You might find that some suppliers have more reasonable MOQs than others.
2) Do you have any products in my niche?
You’re not just looking for a supplier with generic capabilities, you’re looking for someone with particular expertise—specifically one that matches your own. The bottom line: Don’t worry if you don’t get a quick yes on your first go-around. Keep in touch and come back to them in about three months (or even up to six months) when they have time to get more familiar with your product and niche.
3) How will you deliver my product?
Just like you would ask a supplier in your home country, you should make sure you have a clear understanding of how your products will be delivered. For example, if you are manufacturing consumer electronics products, shipping costs can be expensive and there may be additional duties for importing into another country. So before placing your order, always make sure it is clear how much it will cost to deliver your goods and get them through customs.
4) What documents do I need when ordering?
If you are new to importing, one of your first questions will likely be about paperwork. What forms do I need when ordering? How will my shipment clear customs? Do I need an import license or certificate of origin? Knowing these answers will save you time and money. You’ll also want to determine whether or not you need special products inspections (such as those required for electronics), and how these can affect your delivery timeline. Check with your manufacturer or provider if they offer any assistance with documentation.
5) What if my order doesn’t pass your inspection?
Any reputable supplier will have a Quality Control (QC) system or IATF 16949 audit. It’s up to you, however, to make sure your order is perfect before shipping, and consider asking for pictures or video evidence of any flaws or defects that are found. Having an agreement in place that establishes what can be accepted as good enough is often part of a business relationship with Chinese suppliers.
6) Can you ship using the shipping method I want?
One of your first questions should be if they can ship using your preferred shipping method. If you’re choosing between air, sea, and ground transportation, it’s important that you understand which carrier they have access to. For example, while some companies have access to only one carrier (usually air), others are able to provide goods via multiple shipping methods.
7) What are your terms of payment?
In your search for a supplier, you’ll likely come across those who require payment upfront or only accept wire transfers. While it’s perfectly legal for suppliers to request payment up front, doing so can leave you vulnerable if something goes wrong with your order. It’s best to work with suppliers who require payment upon delivery of your goods or when you approve of their quality using quality control China . Doing so is much safer than paying on time and ensures you won’t be scammed.
8) How long does it take for an order to arrive in my country after I place it?
Manufacturers in China work under much shorter deadlines than those based in other countries. If you’re ordering a sample, it will take two weeks at most. If you are ordering larger quantities of goods, they can arrive in as little as 10 days. By and large, products shipped by air freight are delivered within one month or less; by sea freight, within three months or less. To ensure on-time delivery be sure to leave your suppliers with sufficient time between placing your order and the deadline.
Conclusion
Once you’ve been in business for a while, these questions will become second nature. Don’t feel pressured to ask all of them; depending on your project and timeline, it may be better to get fewer answers but make sure they are more detailed. It also may be worth your time—and money—to have someone fluent in Chinese translate your questions into Chinese and conduct an interview over Skype or a phone call with a translator present.
