Category: Shopify dropshipping

Elksourcing:Checklist to Choose a Chinese Manufacturer

In many cases, small businesses make a factory selection based on completely irrelevant factors, such as your feeling to their website, the first impression to the company profile, or the promises made by a salesperson. However, I’d suggest you make decision per a solid checklist as described in the followings.

1: Main product

What matters the most when selecting a Chinese manufacturer, is their capability, expertise and experience of manufacturing the same product you intend to purchase.

Browse Alibaba for a few minutes and you find many suppliers, often registered as manufacturers, offering products that are very different in nature. There are plenty of reliable manufacturers selling related products. That said, if you are looking specifically for watch straps, better to find a watch strap manufacturer rather than a watch manufacturer, selling straps as a side business.

2: Main export markets

A reliable Chinese manufacturer is not necessarily a manufacturer primarily exporting products to the United States and Europe. There are plenty of manufacturers focusing on markets in Asia, Africa and Middle East – or the domestic Chinese market. However, their quality level are often lower. That said, the exporting rate to developed market is a major benchmark to consider.

3: Product safety compliance

Buyers based in the United States and Europe need to ensure that their imported items are compliant with one or more product standards (such as CE, UL, FDA and LFGB). There are various types of product safety standards and regulations to keep track of.

4: Quality level

There are reliable and highly sophisticated manufacturers specializing the low market segment. Nothing wrong with that, but make sure the supplier is able and willing to manufacture products matching your quality requirements before you put money on the table.

5: Quality management system

Manufacturing is not a science. It’s not a matter of “if” there will be defective items, but how many. In order to minimize the number of defective units, the manufacturer must monitor quality before, during and after production. 

6: Price

Surprised that I didn’t put pricing as top priority? Let me explain. Pricing is important, but only when attached to a product that is compliant with applicable product safety standards, in your country. Thus, it’s a complete waste of time to negotiate prices with a manufacturer that’s unable, or unwilling, to comply with product safety standards in your country.

7: Transparency

Manufacturers that don’t allow a quality inspection or factory audit always have something to hide. In order to weed out unreliable manufacturers early in the process, I suggest that you tell them about upcoming quality inspections and sample testing as soon as possible. This tactic tends to scare away scammers and low-end factories, while saving you a ton of time and money.

8: Communication

You shouldn’t need to wait for two weeks to get your emails replied. Manufacturers that lack interest in your order are not worth your time. Some Chinese suppliers also tend to avoid answering certain questions. If they deliberately avoid answering critical questions related to compliance, manufacturing capabilities and quality – dump them and go to the next supplier.

Elksourcing:Can Quality Products be Obtained from China?

Although in many western people’s mindset, China is famous for “cheap” products, in fact, quality products can be obtained from a manufacturer in China, if the buyer can make some efforts in the process. The following are my suggestions.

1) Provide clear instructions

Clear, concise, and detailed instructions are essential for obtaining high-quality products from a manufacturer in China. The more information that you provide, the more likely the manufacturer is able to make you the product in good quality. It is important to be as clear as possible and to set your minimum standards up front. Having someone to perform quality control in China on the ground will help ensure these standards are met.

2) Explain product’s function

Explaining what the product does, so as to help the manufacturer ensure that they are making it correctly. Knowing what a product is expected to do at beginning when it is completed allows quality control to effectively do their job at the end of the process. This is one of the key places where details become most apparent.

3) Obtain a sample 

Obtaining a sample before placing an order should be common sense, but many customers cannot wait to go right into a bulk order, confident that their design will speak for itself, this is rarely the case. Your designs often require tweaks before they are good enough to be mass-produced. Ordering a sample will help ensure that the product that you receive is correct before placing an order. This will avoid wasting money and valuable time.

4) Pay attention to quality control

Quality control at various stages throughout the process is important. Whether you’re using in-house or outsourced quality control, it is recommended that you have various checkpoints throughout the process, so your product is made per specifications. A good plan for quality control allows for customers to do this with confidence.

Elksourcing:Tips about Working with Chinese Suppliers

Having your products manufactured in China can help you keeping costs down, but only if you work with the right suppliers, and with the help of a professional inspection company. Here are some tips about how to work with Chinese suppliers.

1) Have a clear quality standard

As the buyer, you need to be able to provide a supplier with the right quality standards. What may be important to you–such as the dimensions–may not be as important to other customers the supplier has. When you are able to clarify this early on, it will increase the likelihood that you will choose a supplier who can meet your criteria.

2) Learn about the supplier’s other clients

In particular, see if you can find out who the supplier’s top clients are. When you take a look at the work done for the supplier’s biggest clients, you will get an idea of their typical standard for quality.

3) Have sufficient order volume

Keep in mind that in China, large factories often turn down small orders. For small orders, many factories in China just go right into production, it is riskier because they will then have to addresses problems as those issues appear in the production in process. Lower-volume work may also have to be done in a more manual way, which can lead to an inconsistency in quality.

In short, make sure your order volume is big enough to avoid all of these problems, and always use the services of a China inspection company to confirm your products are what you need and expect before they land at your door or at the homes of your customers.

4) Remember that price and quality are linked

The lower the price, the smaller the margin for the supplier, and this means they have less interest in going that extra mile to produce perfect products for you. Like many other countries, in China, it’s “you get what you pay for” – if you are paying a very low price, you really can’t expect to get top quality.

Of course, as mentioned above, having product inspections done by a local company on the ground can help ensure your final products are what you need before they leave China. QC inspectors can examine your products for flaws in safety, function, and appearance, run tests to ensure they meet your standards, and confirm the packaging is correct. Even the best supplier can make mistakes, so pair your supplier with an inspection company to protect yourself from all the areas.

Elksourcing:Choose an Inspection Company or Do It Yourself?

After you place an order to a factory in China, you must be anxiously wait for the products. Besides of lead time, the most important thing is to make sure the products are made to your spec. How to insure it? You may choose an inspection company to do quality control on behalf of you, or you want to do it yourself? 

1) Choosing an Inspection Company

Choosing a China inspection company often makes sense for those who plan to have products manufactured in a factory there. Company selection should be as thorough a process as choosing a manufacturer, as you want to ensure that you will be able to communicate with the company effectively. This is the key to receiving high-quality goods from China without having to visit by yourself.

Do your homework. Choosing a company that is easy to work with to represent your interests is a big decision, and you should feel confident that the company is able to accurately represent your interests throughout the process and communicate necessary changes or adjustments to be made.

2) Confidence in the Process

Enlisting the help of a quality control company allows for a customer to have confidence that the end-product that will be delivered to them is as accurate as possible. This is one of the primary reasons to utilize a third-party company to provide oversight to the manufacturing process in China. Inspection company responsibilities include clearly communicating about and understanding a customer’s needs, clarifying information that may be unclear or too open for interpretation and providing the customer with feedback throughout the process to ensure that expectations are being clearly communicated to the manufacturer. It is also their responsibility to monitor that these expectations are being met or letting you know why they are not.

A customer should have confidence in the company that they choose to conduct the inspections on their behalf. Open communication is a significant confidence builder, and the best inspection companies are used to dealing with customers from a variety of locales. This can help bridge communication, language and cultural gaps that may otherwise interfere with the manufacturing process.

3) Cost Savings

A trip to China can cost you $3000 or so, depending on where you are traveling from. A local China inspection company is likely to cost a small fraction of that price, providing a significant savings to the customer. These savings are also often seen throughout the manufacturing process, as the inspection company can provide the customer with real-time updates on the process. This gives them an opportunity to address issues immediately, which results in fewer wasted materials and resources.

Choosing an inspection company is a wise decision if a customer does not plan to make a trip to China themselves to ensure proper product completion. It is a viable way to help ensure that the process goes smoothly and tends to be significantly more cost-effective for the customer in the long run.

Elksourcing:Skills Quality Control Specialist Should Have

As we know, for China sourcing, it is very important to check the quality of your products before shipments leaving China. From manufacturing to packaging to any other process at your supplier’s facility, having a skilled quality control specialist checking every step can benefit your business. These specialists use their knowledge and skillsets to help your company to run your sourcing business well, and you’re your time and money.

1) It All Comes Down to The Team

One of the most important things in any business is the workers themselves. Having a team that works harmoniously means things will run smoothly like a well-oiled machine. Specialists in quality control in China will check that each team member is doing exactly what they need to do for the business to deliver the best product. Finding ways to save time and help each team member work at their best will ensure a high-quality standard throughout. The company will surely have needs that should be met and ensuring everybody has the appropriate amount of responsibility and is sharing the workload will make for a cohesive team.

2) Communication and Leadership

The teamwork doesn’t just mean those working at entry-level positions. Any leadership positions at the company should also be checked to ensure they are effectively communicating with their teams. Staff members will be at the most productive when they have a manager who is inspiring and knows how to lead the team on a daily basis. Ensuring the staff has a good support system in their leadership team will help everybody work to the best of their ability. Having leaders with a positive attitude and who are willing to learn new ways to help the work output be at the highest standard will also help inspire the rest of the staff to follow suit.

3) Problem solving

If a problem arises in the workplace, your staff should know what to do. Quality control specialists can ensure everyone has the training to work through common problems that arise in your type of industry. Having a team and leadership who have the knowledge of the industry is important, but even better is when they know how to strategically approach a problem to come up with effective solutions.

4) Working with data

You likely have a lot of data that can be analyzed to help your company grow and be the most productive. Checking that you have high-quality information that your staff can work with is the best way to use the research for your benefit. Having employees who have the skills to work with statistics, data, and research is key.

Using quality control specialists in China to benefit your business helps keep your company on the right path forward. Finding where your processes need extra help can benefit you in the long run.

Elksourcing:Background Check on Chinese Suppliers

I frequently hear the stories about importers who take high risks by not doing any quality control and end up with bad results. In my opinion, the most under-rated tool to reduce risks in China is certainly running a background check on potential suppliers.

1) Choose the right target

Do not waste time searching information about the company mentioned in the salesperson’s signature, or on the trade shows’ booth. They might actually steer you toward another company when time comes for payments.

Ask for the company name and address that will be mentioned on the invoice. Or, better yet, ask for a pro forma invoice (if both parties already have a good idea of the products & pricing) and look at the company name on that document.

2) Scare unscrupulous companies away

Tell potential suppliers that you’ll have their factory audited before any PO is issued, and later their production inspected before any shipment is authorized.

Mention it right away, from the first email. If the supplier refuses it or looks flaky, it is a red flag!

By the way, factory audits are the right tool to verify a supplier’s claims about their production capability. Most quality control firms, and some sourcing agents, can audit a factory based on a checklist that corresponds to your needs. Prices range from 200 to 500 USD for one day of work, in the main production areas.

3) Spend 5 min on Google

Open Google and search” [company name] + scam”,” [company name] + dishonest”, and a few variations. Importers who got a bad experience often try to leave a trace about it on the web.

While searching the supplier’s company name, you will likely find the profiles they created on several B2B directories. Look at the addresses and phone numbers associated with the supplier’s company. If they are not the same, or if the supplier does not respond when you give him a call, he will have some explaining to do. 

You might also see that they participated in trade shows recently. This is a good sign. A booth is an investment to get new customers. And repeated presence in the same trade show is the sign of a company that cultivates relationships with the same customers.

4) Use B2B directories

As mentioned above, the supplier has probably created profiles on several directories. And, if they have a paying account, some information on their profile might have been verified by the company behind the directory.

For example, Global Sources checks important data (depending on the amount of the contract) such as start date, number of staff in each department, factory ownership, amount of sales, brand names, and so on.

The tendency is to show more and more of these data out there, in the open. It contrasts strongly with China’s culture of opacity, and I think it is a very good thing.

However, if this method doesn’t help, you can pay for a background check and get information first-hand.

5) Background checks, together with professional advice

If you do not like DIY solution, a sourcing company that works in China can help you. If you are not familiar with Chinese business practices, they can smell inconsistencies or red flags and warn you.

If you are about to place a large order with a new supplier, I highly advise to work with a sourcing agent, both for due diligence and for drafting an OEM agreement.

Note that, in this case, the supplier knows an investigation is under way. Again, I believe importers should not be apologetic about this.

Elksourcing:Suggestions about How to Promote Your Products

We all agree, the success of your products on market can vary greatly on how you promote them. In this article, I’ll share you some suggestions, following them will enable you to achieve a competitive advantage in the market and get better placement for your products.

1. Be honest

The best way to promote your products would be to sell them the way they are! Focus on the upsides of your product or service but avoid outright bragging. Market researches show that people are less likely to go for products that just plainly state why they’re the best. Try to spice it up, but be honest about your products. This will not only make a good name for your product, but it will make people appreciate it more.

2. Hit multiple markets

The chances of your product getting more attention will be much better if you launch it in multiple markets. This is especially important if you’re launching a new campaign. Cause if this is the case, you’ll want to position your products as well as possible. You can achieve this by casting a wide net and promoting your products in as many markets as you can. Once you get a decent foothold, all that’s left is to do is to find reliable exporters and you’ll be able to do your business worldwide!

3. Word of mouth

In today’s world, we tend to forget the importance of word of mouth promotion. However, this is usually one of the safest ways of promoting your products and services. A recommendation from a satisfied customer can make your product well-known as well as build up a good reputation for your company.

4. Include your consumers

Whether it’s a service or a product you’re trying to place on the market, talking to your customers is a great idea. Apart from promoting your merchandise, you’ll also be improving it. So, make online surveys, open an email account where your clients can send what they think and try to include your consumers in special promotions.

5. Build up hype

If you’re launching a new product, a great way to promote it is to let people know it’s coming. This way you can get everyone interested before your products even come out. To do this, you can visit trade shows, organize promotions and offer pre order packages. Of course, the approach you choose should depend on the product you’re trying to promote. Be very careful, as this approach may backfire if your product is exclusive or prestigious. If this is the case, you’ll want to promote your products in specific circles and target your market carefully.

6. Optimize your approach

In many cases, you can even find a specialized software made specifically for your market or trade. All you need to do then is choose the marketing program you want and adapt it to your promoting needs. Additionally, these programs can help you not only promote your products, but also get organized. There are so many different software options today that you can even get different software solutions for moving companies. So, just look around for the perfect combination and you’ll definitely find what you need.

7. Tactics

Apart from the long-term strategies we talked about above, there are certain things you can do to get faster results when promoting your products.

1). Social media – nowadays, this type of marketing has become essential for any kind of product placement. The way you decide to conduct it should fit your product and will only be limited by your creativity.

2). Online promotion – apart from social media, there are a lot of other ways to promote your products online, and you should choose the ones that fit what you need the best.

3). Work with an influencer – getting a famous person to use your product can be an incredible boost.

Limited edition – if your product allows this, it’s a good idea to make a limited edition of it with some special additions. It’s a good idea to introduce a “customers’ choice” version of your product which will change according to your customers’ preferences.

4). Flash mobs – and other forms of guerilla marketing are also an excellent way to put your services out there. Just make sure that they’re appropriate for your merchandise.

5). Direct mail – do market research and find those who are the most likely to use your product or service. Send them info about what you’re offering and let them know you’re at their service.

Finally, the best way to promote your products is to use the techniques and tactics that suit you and your business the best. So, don’t opt for promoting solutions just because they’re modern or high end. Instead, choose the ones which are the best option for you. This will vary from person to person and from product to product. So, make sure you research the market and know what your product needs. Hopefully, we’ve given you some interesting ideas which will help you find the best ways to promote your product in particular.

Elksourcing:Tips about Sourcing from China

For many businessmen, especially for small businesses and first-timers, sourcing from China can be a daunting task, as they might not have the resources to establish full-scale overseas operations as the way big businesses do. 

Here are some tips that can help businesses like yours get an idea about the various options available out there in the market, and zero-in on the right supplier to meet your sourcing needs.

1). Check out various product manufacturers  

Use various sourcing tools to get an overview of the options available in the market.

An internet search on sites like Global Sources, Alibaba, etc. can generate great sourcing leads on reliable suppliers.

Sourcing magazines & trade shows are also vast sources of information on wholesale distributors, manufacturers and suppliers of products. While social media cannot be used in isolation to identify suppliers or for product sourcing, it can be very useful to get feedback on particular suppliers.

2). Short-list suppliers

Visiting a company personally is the best solution for verifying its authenticity, of course.

When that’s not logistically possible, turn to professional sourcing companies that do a series of verification checks on companies listed on their site.

Such reputed sourcing companies provide reliable and verified lists of manufacturing companies – accessing these gives small businesses the advantage of finding the right source and being able to make their sourcing decisions confidently.

Choose the right supplier to suit your business needs – by keywords, by product category, and by region. You can also verify supplier credentials by appointing an external sourcing agency in China for due diligence and quality audit.

3). Negotiate with suppliers

Once you have pinpointed the supplier you wish to deal with, then comes the need to negotiate a mutually-beneficial deal with the supplier. This would involve negotiating the price, payment terms, delivery schedule and contingency plans for unforeseen situations.

At this point, you could also make inquiries about drop-ship product services as these may be drop-ship suppliers as well.

Alternatively, there are local third-party sourcing agents who can represent your firm in all negotiations, easing the process for you. This ensures that there is no miscommunication due to language or cultural differences, and it also reduces the risk of unscrupulous suppliers taking you for a ride!

Common issues like shipping, taxes, customs, etc. should all be clearly spelled out at this stage to avoid later disputes.

4). Establish a long-term personal relationship

Even in business, establishing a long-term personal relationship is very important to the Chinese; hence it should be to you too, to ensure that your sourcing is smooth & hassle-free over the long term.

The cultural, language and business expectations of the East and the West are vastly different and you need to respect these differences in order to maintain a healthy long-term relationship with your supplier.

While factory visits and product QC are key, building ‘Guanxi’ (a relationship) with your Chinese supplier takes personal time & commitment. But it will definitely be worth your while!