Introduction
When you’re done with the product specification sheet, you would have a couple of suppliers in your list. Then the problem would be assessing these suppliers and select out one or two feasible ones for final cooperation. Therefore, this whole part is about how to research and assess suppliers.
Sourcing supplier step-by-step guide
| Steps | ¿Cómo? |
|---|---|
| 1.Collect supplier resources | Want to import from China, you should find the right supplier, check the guide below how to locate a supplier. |
| 2.Send RFQ to suppliers | This step is to send a request email with RFQ to your suppliers. |
| 3.Supplier assessment & Fraud prevention | Tell you how to find a suitable supplier and how to keep away from fraud. |
1. Collect supplier resources
There are two main ways to find suppliers: online and offline. You can choose one or combine both based on your budget and actual needs.
Finding a feasible supplier can be a headache. You are searching for a good supplier, and they are searching for good buyers. Bridging the gap quickly and accurately is a hard-earned tactic. Below are the must-have skills and platforms most seasoned buyers use. (Of course, you can always ask our MySourcify online advisors, and they will give you immediate, verified options!)
| Method | Formas | examples |
|---|---|---|
| Online | 1. Online Domestic Directions 2. Online Overseas Directions 3. Local Library 4. Search Engine | 1. thomasnet.com (US) europages.com (EU) kompass.com (Global) 2. Alibaba.com Globalesources.com Aliexpress.com 3. scottsinfo.com (US) 4. Google.com Baidu.com(Chinese Only) |
| Offline | 1. International Exhibitions 2. Chinese Exhibitions 3. Visit China Wholesale Market | 1. International Toy Fair Nuremberg / Frankfurt Exhibition / Chicago International Household Goods Exposition and so on 2. Canton Fair / Yiwu Commodities Fair / Shenzhen Machinery Exhibition and so on 3.Yiwu Futian Market (The main commodity) Guangzhou Leather Wholesale Market (The main luggage) Chenghai Toy Wholesale Market |
| Suitable for small retail buyers | Online B2C Marketplace | www.ebay.com www.aliexpress.com www.dhgate.com www.amazon.com www.lightinthebox.com |
Tip: The methods above are for your reference. If your budget allows, we highly suggest coming to China to attend exhibitions. Compared to some suppliers on Alibaba who might rely heavily on Google Translate, the representatives at trade shows are usually much more professional.
2. Send RFQ to Suppliers
At this point, we need the previously prepared RFQ file. Draft an email and attach the RFQ as well. To avoid unnecessary time-costing, please notice to stress out all information you need from suppliers in the email at one time.
a. Send RFQ to suppliers
We’ve come to the hardest step. Chinese suppliers get bombarded with email requests all the time from flaky buyers, so it’s common for them not to reply to every single email. High-quality inquiries are always given top priority. Here is how to make yours stand out:
- Make an International Call: If possible, go ahead and call your Chinese suppliers. State who you are, what you need, and ask about basic details like MOQ, payment terms, and lead time. Trust me, Chinese suppliers do not often receive direct international calls—this instantly makes you stand out and marks your inquiry as a top priority.
- Don’t Ask “How Much?” Randomly: Take a few minutes to plan your email. A well-written RFQ pays off twice as fast.
- Keep Following Up: Chinese suppliers work under severe stress and tight schedules. Collecting data for a complete quotation sheet takes time. If they miss something, politely remind them and ensure they are fully informed.
- Do Your Own Research: While waiting for replies, figure out the prevailing market prices and minimum quantities yourself. Use this data to your advantage when negotiating.
b. Template of inquiry mail
The biggest question you’re going to have is “how much?” but before you hastily send the supplier your request for quotation (many times referred to as a RFQ), take a few minutes to plan out what you want to say and the questions you need to ask. Planning your email will increase your chances that you will receive a response and the correct information.
Here is an example of an email I might send out:
Hi Sir/Madam,
My name is [your name] and I am from [your company name].
Here we are contacting you in order to approach more potential suppliers. But we have several questions as follows:
1.What’s your MOQ?
2.Could you provide test samples?
3.What’re your payment methods?
Attached is the RFQ File, containing all product specification data. Please fill in the file and return back to us. We are looking forward your reply within 3 working days.
Thank you,
[your name]
Procurement Manager of [Company]
Website:
Phone:
Skype/wechat:
Just as we said that first impression is really important, that golden rule applies to the trade area too. Suppliers receive lots of inquiries daily, and they will make a priority to reply those promising customers first
3. Supplier Assessment & Fraud Prevention
China’s business environment and credit systems have improved massively over the last ten years. However, you still need to be careful to avoid the “Everything-is-possible” trap. Finding a reliable supplier isn’t easy. Sometimes, even “Gold Suppliers” on platforms turn out to be dishonest. Let’s look at how to properly evaluate a supplier.
a. Review the RFQ Carefully
When analyzing quotations, do not just keep your eyes on the price.
| Important points | Review |
|---|---|
| Product Specification | Don’t keep your eyes on the price only while you are analyzing quotations, but compare other including parameters instead. Thus, when you receive quotations, you should consider them in an in depth and overall way. |
| Trade terms | Professional suppliers, in particular, will clearly specify their Trade Terms, Validation Period, etc., but other suppliers will omit that directly. |
| Required documents | Suppliers may not give you full sets of licenses and documents, you need to confirm the price includes certificates fees or not. |
b. Verify License
The massive improvement of Chinese business environment and credit system are attributed to the launching reform of new “Five-in-one” Business License. That means, there is no separate Business License, Certificate of Organization Code, Tax Registration Certificate, Social Insurance Registration Certificate, or Auditing Registration either in China. Those five licenses are integrated into one brand-new business license. Benefited from the modern Internet technology, each business license owns its individual two-dimensional bar code. We can scan the bar-code to check its authenticity easily. The new license example is here for your reference.
| Documents | Verify method |
|---|---|
| Company license | The new FIVE-IN-ONE license have an individual two-dimensional bar code, you can scan it and check it out easily, or you can check with this two site: http://gsxt.zjaic.gov.cn/, http://www.tianyancha.com/, but its only in Chinese version. |
| Product test report | The certificate contains the issuing company’s info, you can check with them. |
| Quality Control System Authentication | On the certificate contains the issuing company’s info, you can check with them. |
c. Supplier selection and evaluation
How to find the best suitable supplier? It’s not an easy task. But we will list some important parameters for your reference, and by comparing those parameters, you can find your ideal supplier.
| Data | Supplier A | Supplier B | Supplier C |
|---|---|---|---|
| Company name | Zhongshan City AOJIESI kitchenware co. Ltd | YIWU City MATENG e business co. Ltd | Ningbo YOUJIAJIN import & export company |
| Company Address | No.50, Industrial park of Caitang Town, Chaozhou City, Guangdong | No.309, Xuefeng Road, Chuangye square, Yiwu city, Zhejiang | Room 402, Hanfa Mansion, SHUNCHANG Street, Ningbo City, Zhejiang |
| Registered date | 2002-03-01 | 2007-08-08 | 2015-06-01 |
Tips
1. You can often distinguish a manufacturer from a wholesaler by the name. Words like “Import and export” or “E-business” usually indicate a trading company.
2. A company’s address is highly revealing. Factories are usually concentrated in industrial zones. Trading companies are located downtown; their addresses often end with Mansion, Square, or Plaza.
3. The registered date is crucial: a fraudster won’t last long in business.
| Data | Supplier A | Supplier B | Supplier C |
|---|---|---|---|
| Registered fund | 10,000,000RMB | 1,000,000RMB | 100,000RMB |
| Product Certification | CE, Rohs | CE | N/A |
| Quality Management System | ISO90001 | N/A | N/A |
| 3rd party audit | WALMART | N/A | N/A |
Tips
1. Registration fund is not a matter of importance right now in China, because the new registration system doesn’t require applicants to deposit funds into an assigned fixed account. It’s just a registration system, not involving any registration funds.
2. Meanwhile, obtaining those certificates like CE or Rohs is also pretty easy. However, QMS, another prominent quality management system in China, plays an important role for big companies to consistently meet customer requirements and enhance their satisfaction. Only those middle or large scaled companies would think about applying for the QMS certificate.
3. Especially those who are capable of handling with the third-party audit are really professional factories. Though that sounds pretty good, small orders are impossible to cut in their tight pipeline, because they are enough busy with their Walmart orders.
| Data | Supplier A | Supplier B | Supplier C |
|---|---|---|---|
| Trade terms | Fob Guangzhou | EXW | Fob Ningbo |
| Payment terms | TT, LC, OA | TT only | TT, LC |
Tips
A professional and mature supplier is generally able to accept a wider variety of international trade terms and payment methods.
d. Fraud Case Study
After getting through the steps above, you might think you’ve finally found a truly reliable supplier. But from our past experience, the answer is often “probably not.”
The following case study is from one of our customers’ real experiences. We are sharing it here so this never happens to you:
e. How to Prevent Fraud
Even if you check their business license and sign a contract, it doesn’t guarantee absolute safety. (Even massive global companies like Hanjin have gone bankrupt unexpectedly). However, you can significantly decrease your risks by following these rules:
- Be Careful with Payments: Try not to pay the full amount upfront. If possible, negotiate for L/C or OA. Small, unreliable suppliers are usually incapable of accepting these payment methods.
- Use a Local Sourcing Agent: Let your agent (like MySourcify) sign the sales contract directly with the local suppliers. Under Chinese law, a local company can easily and cheaply sue another local party if something goes wrong.
- Hire a Third-Party Inspector: Ask a third party to visit the factory and check your goods in person before you remit the final payment. It usually only costs around $200 USD, but it secures your funds to the maximum extent. You can also have them supervise the container loading process. Use small money to protect yourself from big issues!
- Cast a Wide Net: Try your best to contact 5-8 suppliers initially. Not everyone will reply, and many won’t meet your expectations. Make sure you have at least 3 viable suppliers who are willing to provide samples before making a final decision.
Hope you find this article helpful for your importing business. Let us know if we have further to improve! Please leave your sweet suggestions on comments. Thanks for helping us to get better!
5 respuestas
The tips to prevent from help me learn a lot and give me some experience.thx
My name is Humphrey Chibuike from Nigeria, I’m into whole sales and retail sales of different kinds of mobile phones and phones accessories like LCD, batteries etc.
I want to go into importation of the products mentioned above, from China but don’t know much on importation, especially, the risk involved (scam).
But with the ur video and teaching, I have leant a lot. Thanks.
thank you, our agent will contact you soon
I have various suppliers around China – i wish to consolidate the orders so i only import one shipment into the UK
thank you our agent will contact now