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?
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