How to deal with Chinese suppliers and manufacturers

How to deal with Chinese suppliers and manufacturers

How to deal with Chinese suppliers and manufacturers

Trade is one of the main 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 straightforward process. It is burdened with many rules and regulations, interacting with a different culture and foreign ways of doing business. Educate yourself about how each country works to close successful deals.

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 for importing goods. But the key to a profitable business is finding the right suppliers and manufacturers while avoiding scammers.

Three groups you will encounter are manufacturers, third-party import suppliers, and sales agents. Manufacturers respond quickly to your orders. Third party suppliers and exporters can help you if you are looking for a wide range of products. They are also aware of the problems associated with imports. Export agents usually take care of the manufacturers’ documentation.

Make it a point to build relationships with the suppliers and manufacturers you work with.

Import Note

Find out how costs are calculated. Landing costs include FOB, freight charges, warehouse charges, import duties and other logistics-related costs. You will be able to get a clear picture of the cost process and deal with hidden costs by placing small orders initially.

About customs

Pay close attention to your documentation and ensure that customs compliance is met in terms of packaging. If it does not pass customs clearance, you may have to pay a higher import duty, resulting in a delay in the clearance of your goods. You will have to pay extra for storage as well.

The right way to pay

Most Chinese suppliers and manufacturers use bank transfer, payments. L/C is one of the safest options as they don’t find payment options like escrow.com feasible.

The language barrier

You may find that communication is difficult, especially when dealing with smaller manufacturers. The employees do not speak English. It will be easier to communicate with suppliers and manufacturers in the cities. Due to their discomfort in speaking English, the staff may prefer to communicate with you via emails instead of the phone.

Work culture

Many Chinese manufacturers tend to ignore any problems in their manufactured goods and probably won’t deal with them unless you insist on it. Another problem is that they prefer to close the deal quickly instead of gradually building a business relationship with you. They tend not to look to the future, only to the upcoming sale.

Still, by taking these issues into account and anticipating potential hiccups and headaches, you can plan the best way to engage in export-import relationships with Chinese suppliers and manufacturers.

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