How to deal with Chinese suppliers and manufacturers
Trade is one of the pillars of the world economy. If you are an importer doing business with Chinese suppliers and manufacturers, you probably find that trading is often not a straightforward process. It is loaded with many rules and regulations, interacting with a different culture and foreign ways of doing business. Learn about the way each country works to do successful business.
Types of Chinese suppliers and manufacturers
Products made in China are usually cheap, which means you can enjoy a higher profit margin. This makes China a popular destination from which to import products. But the key to a lucrative business is finding the right suppliers and manufacturers and avoiding scammers.
The three groups you will encounter are manufacturers, third-party import providers, and commercial agents. Manufacturers respond quickly to your requests. External exporters and import providers can help you if you are looking for a wide range of products. They are also familiar with import-related problems. Export agents often handle documentation for manufacturers.
Make sure you establish relationships with the vendors and manufacturers you work with.
A note on imports
Understand how costs are calculated. Landing costs include FOB, freight, warehouse fees, import duties, and other logistics-related expenses. You’ll be able to get a clear picture of the cost process and deal with hidden costs by initially placing small orders.
Concerning Customs
Pay particular attention to your documentation and ensure compliance with customs regulations regarding packaging. If you do not pass customs clearance, you may have to pay a higher import duty, which will cause a delay in the clearance of your goods. You will also have to pay more for storage.
The correct way to pay
Most Chinese suppliers and manufacturers use bank transfers, payments. The letter of credit is one of the safest options, since they do not find feasible payment options like escrow.com.
The language barrier
You may find communication difficult, especially when it comes to smaller manufacturers. Employees are not fluent in English. It will be easier to communicate with suppliers and manufacturers in cities. Due to your discomfort speaking English, staff may prefer to communicate with you by email rather than by phone.
Work culture
Many Chinese manufacturers tend to overlook any problem in the products produced and will probably not address it unless you insist on it. Another problem is that they prefer to close the deal quickly rather than gradually build a business relationship with you. They tend not to look to the future, but only to the sale in question.
However, by taking these issues into account and anticipating potential setbacks and headaches, you can plan how best to enter into an export and import relationship with Chinese suppliers and manufacturers.