Part 7: Importing from China

Importing from China - Choosing the right supplier.

Buying anywhere is a risk and buying in China is often a bigger risk than the average purchase. 

You need to know how to check out your perspective suppliers professionally. Here we will discuss why we sometimes ignore making a company background check in China. We will also tell you the important things you need to check out.

Sourcing suppliers in China? 

How do you decide a supplier is reputable enough to hand your hard earned cash over to? It is really important to make complete company background checks in China. If you only make decisions off a feeling you get from emailing or skype chatting with a sales person, then you are taking risks, unacceptable risks, and you could be putting your business in harm's way.

We really need to stop for a moment and think about what we are doing. Why not make a company background check in China? It is very easy to get caught up in conversing with a supplier who has a great price and possibly a great opportunity for us on the face of it. Price is only one of many factors that make up a purchase from a manufacturer in China. Price is often an important element, but that importance can pale into insignificance when other pieces of the puzzle are ignored.  

Don't skip any important steps

The pieces I refer to here are definitely under the surface and not so obvious like price, lead time, packaging, and certification.

Buyers need to check out the bona fides of potential suppliers from a technical and legal perspective.

1. Would you know if a company was about to go bust?

2. Who actually owns the company?

3. What is the turnover of the company and % exported?

4. Are they legally registered to export X/Y products?

5. Are there any legal or government disputes involving this company?

Knowledge is power

It makes sense that the more informed we are, then the less unknown risk we are engaging. If a supplier suddenly went out of business or was unable to produce an order after we paid a deposit, it would be a disaster. Are you well enough informed when it comes to company background checks in China?

Finally don't miss out on FOUND CHINA's Exclusive Premium Members Package. This will unlock the keys to everything you need when it comes to importing from China professionally and securely.

Comments

Odim David

I will definitely check out the owner of the company and the company's legality as to exporting my product. Thanks for the article. Keep informing us about how to import from China.

Kevin Jonson

How do you go about finding out if a company is about to go bust? This takes a lot of insider information.

Dominador Geronimo

Choosing the right supplier is such a headache. It's hard to trust especially your hard earn money. Thanks for this info.

Mia Batoy

Thank you for providing things to consider importing from China.This blog has been very informative.

Grace Wanj

This is very true, importing from anywhere is a risk, due to lack of face to face interaction. As you have started as important as price is, it's not everything, it's part of a puzzle. Having a complete background picture of the company you're buying from can save you a lot. This will save you from being one of the many people who have been defrauded while trying to import from abroad. Being informed will help you navigate the market better. Thanks for sharing.

Ami Lo

This is a great read especially to business owners who are planning to outsource their production or are seeking legit suppliers in China. While it is known that China offers very competitive prices when it comes to labor or cost of production, it is still good to have the leverage when it comes to finding the right source. Thanks for this! Will keep all these in mind.

Joseph Richards

you always need to take alook at your buyer. i like to make sure they have high rating from alot of other companies/individuals. some awesome tips tho about seeing their turnover % and if they're even legal.

Alex Summers

Playing with customs is no joke. I am glad I read this for me to have an idea what to expect from China. I have not gone there yet though.

Jim Corr

How do we check if a company is legally registered to export a product? What institution do we check with?

Myles Dizon

I tried to search about this "FOUND CHINA's Exclusive Premium Members Package" but I can't find it. Hope I can have the link because I'm really looking for a right supplier for my business.

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