How to deal with Chinese suppliers and manufacturers
Trade is one of the essential elements of the world economy. If you are an importer doing business with Chinese suppliers and manufacturers, you probably realize that trading is often not a smooth process. It is loaded with many rules and regulations, interacting with a different culture and foreign ways of doing business. Learn about how each country works to do business successfully.
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 goods. But the key to a lucrative business is finding the right suppliers and manufacturers and avoiding scammers.
The three groups you will find are manufacturers, third-party import providers, and trading agents. Manufacturers respond quickly to your requests. Third party import suppliers and exporters can help you if you are looking for a wide range of products. They are also familiar with import related issues. Export agents usually take care of documentation for manufacturers.
Be sure to build relationships with the vendors and manufacturers you work with.
A note on imports
Understand how costs are calculated. Landing costs include FOB, freight charges, 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.
Customs
Pay special attention to your documentation and ensure that customs packaging requirements are met. If you don’t pass the customs clearance, you may need to pay a higher import duty, which will cause a delay in the clearance of your goods. You will have to pay extra for storage too.
The correct way to pay
Most Chinese suppliers and manufacturers use bank transfers, payments. Letter of credit is one of the safest options as payment options like escrow.com are not feasible.
The language barrier
You may find communication tricky, especially when dealing with smaller manufacturers. The employees are not fluent in English. It will be easier to communicate with suppliers and manufacturers in the cities. Due to your discomfort speaking English, the 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 they produce and probably won’t address it unless you insist on it. Another problem is that they prefer to seal the deal quickly instead of gradually building a business relationship with you. They tend not to look to the future, but only to the sale in question.
However, by keeping these issues in mind and anticipating potential setbacks and headaches, you can plan how best to engage in an export-import relationship with Chinese suppliers and manufacturers.