How To Buy Direct From China: Beginners Guide 2024

STEP 1: Performing Due Diligence on Suppliers

You could have a fantastic product and world-class shipping logistics, but it won't mean anything if you're working with a low-quality supplier. You can find suppliers on platforms like Alibaba, but the easiest way to know your supplier is trustworthy is by speaking with at least 50 suppliers and measuring which supplier of the group is the most responsive and knowledgeable about the product.  

You can vet suppliers yourself, but it requires a lot of time and patience. Be sure to request samples, take note if suppliers are unwilling or unable to answer questions, and don't be afraid to restart the search process if a supplier isn't up to your standards. Below is a check list to follow when performing due diligence on manufacturers in China.

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Due Diligence Check List

• Reach out to 30-50 suppliers on Alibaba
• Assess supplier responsiveness
• Gather information on product availability
• Order samples from multiple suppliers to compare product quality
• Compare factory prices
• Compare MOQs and see what kind of flexibility they have with MOQs
• See which factory has a stronger engineering team and the capacity to expand product offering
• Request videos of each factory candidates QC process and equipment
• Provide sample feedback to factory candidates and assess how they answer product improvement questions

STEP 2: Preparing the Factory Order

After receiving samples and measuring which product is best quality, you’ll be that much closer to selecting your supplier and placing an order with the factory in China. Before you place the order with the factory, you’ll want to address any product quality improvements that need to be made during mass production. You’ll also want to finalize your branding artwork on your packaging and make sure you’re ready start production. All thats left after that is negotiating the terms of the purchase. Below is a check list to follow that will help you be prepared for placing an order.

Order Preparation Check List

• Confirm with the supplier any product quality issues that arose during the sampling process and see if any improvements can be made during mass production
• If you’re struggling to decide between suppliers because the product quality and price is the same, try doing google searches on the suppliers to find any negative reviews about them
• Ask the supplier for tiered pricing based on ordering different volumes. This allows you to understand how much money can be saved by ordering larger quantities
• Ask the supplier if you can place a deposit on a larger quantity order and pay the balance as production batches finish. This will allow you free up cashflow
• Find out from the manufacturer what the standard lead time is if the MOQ is ordered. Then ask the factory how you can achieve a lead time in half the amount of time.
• Ask the supplier for a production schedule so you can follow each phase of production
• Provide the supplier with your forecasted sales and your estimated future order dates so that you can negotiate more flexible payment terms
• Confirm with the supplier how defects will be handled on subsequent orders
• Finalize payment details with the supplier so that you’re successfully wiring the deposit to them

STEP 3: Producing the Product

​​​​After confirming all the order details with your selected supplier, you need to focus on overseeing the manufacturing of your product. Your supplier needs clear, understandable expectations for what you want out of your product, and your business should be prepared to conduct some kind of quality control. A physical presence at the factory is the only way to guarantee quality control, which is an included service Kanary provides.

If you can't physically be at the factory, ask your supplier for regular photos and videos of the production process. They should show you finished products, whether or not products are palletized and properly stored, and evidence that your manufacturing instructions are being followed. Below is a check list that will help you oversee production.

Production Management Check List

• Ask the manufacturer for updates based on the production schedule provided to you
• Ask the manufacturer for design proofs of both the packaging file and product file with logo measurements on the product
• Make sure you have bar codes on your packaging. Makes things easier for your fulfillment company
• Confirm the master carton details. Make sure you list the product name, quantity, box measurements, and weight of the box. Makes things easier for your fulfillment company
• Provide the manufacturer with shipping instructions so that they can prepare the shipment of the order well in advance
• Request pictures and videos from the manufacturer when raw materials arrive the factory
• Request videos from the factory when they perform the quality control process
• Nudge the factory to complete production earlier than the estimated finish date
• If you place a large quantity order for the first time with the factory and you don’t have physical presence in China, hire a 3rd part inspection company to perform QC on your behalf

STEP 4: Shipping, customs clearance and delivery

Even after you get a quality product manufactured, you still need to import it cost-effectively. There are many ways of shipping. You can ship the inventory to a 3PL in China. DTC brand owners in e-commerce utilize this strategy because it allows them to sell to the global markets and lets them launch products the fastest. Many of our clients that target both the US and other markets like the EU, will use a hybrid fulfillment strategy, which means they will ship inventory to both the 3PL in China and their fulfillment partner in the US.

If you ship to the US, you can ship your inventory multiple ways: DDP sea shipping for smaller shipment batches or shipping by full container loads. If you ship FCL (full container loads), you’ll need a logistics company to book the vessel and ship to the port in the US that’s closest to your 3PL. When your shipment arrives the port, you’ll need a customs broker to clear customs for you and work with a trucking company to schedule the freight from the port to your US fulfillment provider. Below is a check list to help you be more prepared for your shipments.

Shipment Preparation Check List

• Collect shipment measurements and weights from the manufacturer. That will allow you to get quotes from different logistics companies
• Send shipment details to logistics companies to get quotes on air freight, sea freight DDP, and standard sea freight
• Compare both pricing and transit times with the shipping quotations
• Work with the logistics companies on applying for cargo insurance
• Make sure after the manufacturer completes production, they provide you with a commercial invoice and packing list
• Follow up with your logistics company during the shipment on a weekly basis to get delivery updates
• Make sure to give delivery updates to your 3PL in the US so that they can be prepared to receive the shipment
• Confirm with your 3PL all goods are accounted for. If anything is missing in the shipment, check with the logistics company and contact your factory that you have items missing

High Output in Less Time (Scalability)

Costs can delay scaling, but long timeframes can put a damper on exciting growth. The manufacturing industry in China is well-developed and equipped to help a variety of different businesses quickly and easily scale. Factories in China tend to be more flexible with MOQs and offer consistent lead times compared with factories in the Southeast Asia.

Many e-commerce brand owners think because of the new Trump tariffs, they can quickly switch manufacturing to Southeast Asia, however, factories in that region tend to have higher MOQs and longer production lead times because a lot of the raw materials still need to come from China. On top of that, the infrastructure is less developed and the remote areas where the factories are located sometimes have power outage issues. Buying from factories in China gives you the most flexibility when it comes to MOQs and having consistent lead times.

Product Customization

Your business won't be pigeon-holed into a limited product selection. Manufacturers in China are often experienced with customizing existing products to fit your specific needs, and certain factories can help develop unique product prototypes. Kanary has a deep understanding of what factories specialize in specific product customizations, making it easy to find the perfect match. If you are working with factories in China directly, its important that your manufacturer has a strong engineering team in order for them to come up with solutions to improve your product quality.

Contact us to discuss your requirements of china footwear manufacturers. Our experienced sales team can help you identify the options that best suit your needs.

Fulfillment is Advanced

China is the most advanced when it comes to fulfillment for e-commerce businesses. Shipping rates from China are more competitive than if you kept your inventory in the US and had to ship online orders to Europe. The shipping transit times are faster from China too. If you manufacture products in China, you can send your inventory to a fulfillment provider in China and immediately start selling. China fulfillment gives you the most opportunity to sell in different country markets while also launching new products very quickly.

Not Understanding Cultural Differences (Communication)

Language and culture barriers present challenges to e-commerce businesses looking to source products from China. Not sharing a common language will make negotiations difficult and can cause problems with communicating product specifications or customizations.

Its very common for suppliers to have difficulty explaining problems that occur during production, such as defect issues or production delays. Don’t get too angry with your suppliers or else they’ll be less interested in helping you. Just keep asking questions in different ways to make sure they understand you and you’re getting to the bottom of things. Kanary has a team of bilingual experts to ensure that negotiations are precise and that product needs are delivered clearly.

Choosing Products Based on the Lowest Price

Businesses will face the temptation to seek the factory that offers the lowest price, but this is often a huge mistake. China manufacturers offering the lowest price often lack professionalism and cut corners on product quality. On some occasions, factories offering the lowest price may be located in a region that dramatically increases shipping costs, which will wash away any savings without adding any benefits.

When we assess factory options for e-commerce brand owners or dropshippers we work with, we request samples from as many credible suppliers as possible. After we narrow down options based on product quality, we then assess the factories responsiveness, product knowledge, production lead times, and finally price. Factory responsiveness and product knowledge are significantly more important than selecting a supplier based on price.

Starting An Order Before Receiving Samples

Even if you find a reliable manufacturer, starting mass production before seeing samples is a common, and costly, mistake. Your product could have design flaws or problems, and your manufacturer may make mistakes in following your parameters. The sampling process offers proof that your design works and that the factory understands your specifications. It's always best to order samples from multiple manufacturers in case one of the suppliers sends you a poor quality sample.

Kanary knows how to expedite the sampling process to make sure the factory is ready for mass production without wasting unnecessary time with communication issues or shipping delays around your samples.

Slow Responses To Your Supplier

Most e-commerce DTC brand owners think they can just pay their China supplier and stop paying attention to production so that they can solely focus on marketing and scaling. However on many occasions, especially when manufacturing skincare or supplements, the supplier has a lot of details to confirm. If you’re slow to respond to them, it will delay production. In some cases, the factory may pause production and work on producing another clients order, which would create significantly longer delays. Always be in communication with your manufacturer in China and make sure you’re putting the ball in their court.

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