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    1. Mrs. Whiskers is offline

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      #1

      How To Deal With Chinese Suppliers And Manufacturers

      Trade is one of the essentials of the world economy. If you are an importer doing business with Chinese suppliers and manufacturers, you probably realize that trade is not often a straightforward process. It is saddled with many rules and regulations, interacting with a different culture and foreign ways of carrying out business. Educate yourself on the way each country works to make successful deals.

      Types Of Chinese Suppliers And Manufacturers

      The products manufactured in China are usually cheap, which means you get to 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 while side-stepping the swindlers out there.

      Three groups you will encounter are manufacturers, third-party import suppliers and trade agents. Manufacturers are quick to respond to your orders. Third-party import suppliers and exporters can assist you if you are looking for a broad range of products. They are also familiar with import-related issues. Export agents usually take care of the documentation for manufacturers.

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

      A Note On Imports

      Understand how costs are calculated. The landing costs include FOB, freight charges, warehouse fees, import duty and other expenses concerning logistics. You will be able to get a clear picture of the cost process and to deal with hidden costs by initially placing small orders.

      Concerning Customs

      Pay special attention to your documentation and ensure that customs compliance is met regarding packaging. If it fails 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 the storage as well.

      The Right Way To Pay

      Most Chinese suppliers and manufacturers use wire transfer, TT and Western Union payments. Letter of credit is one of the safest options, since they don’t find payment options like escrow.com feasible.

      The Language Barrier

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

      Work Culture

      Many Chinese manufacturers tend to overlook any issues in the produced goods and probably won’t address it unless you insist on it. Another issue is that they prefer to seal the deal quickly instead of gradually building a business relationship with you. They tend to not look into the future, but only at the sale at hand.

      Yet, by taking these issues into consideration and anticipating potential hiccups and headaches, you can plan the best way to engage in an export-import relationship with Chinese suppliers and manufacturers.
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    2. Thank you for this post:

      deanclark (26 Mar 2013), hilogogifts (13 Mar 2014)

    3. Ar Rahman is offline

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      Rated this thread:

      #2
      Very helpful
      Over 130,000 Verified Wholesalers + The Cheapest Goods + Free Website!

    4. experience is offline

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      #3

      Quote:

      Originally Posted by Mrs. Whiskers View Post
      Three groups you will encounter are manufacturers, third-party import suppliers and trade agents.

      The Right Way To Pay
      Most Chinese suppliers and manufacturers use wire transfer, TT and Western Union payments. Letter of credit is one of the safest options, since they donít find payment options like escrow.com feasible. .
      I want to respond to 2 points in this otherwise very helpful post. Mrs Whiskers obviously knows how things work in importing from China and correctly says that manufacturers will respond quickly to your orders. There are other reasons why I have only ever dealt with manufacturers, not the least of which is that I get the best price that way. If I had a quality complaint the manufacturer dealt with it, but wholesalers and third-party suppliers may well not have sufficient influence to get the same response. This is particularly so if the orders are small.

      Secondly, never pay by Western Union. If a supplier requires payment by that method you should immediately go elsewhere. It is too risky.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

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      Trade89 (18 Feb 2014)

    6. floraliu is offline

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      #4
      Really makes sense...

      As a person who works in a Chinese factory since 2 years, I think that now Chinese manufacturers really hope to establish a long term business with importers. But most of them failed due to different reasons, like communication barrier, quality problems, production capability etc. They don't know how to solve problems when these issues occur between the manufacturer and customers.

      Now exporters in big cities in China, like Shenzhen, Guangzhou, Shanghai, Yiwu etc., they are familiar with import and export, and can communicate more easily and with an open mind.

      For payment terms, Western Union is really unsafe. But some manufacturers prefer WU for small orders or sample orders because it's more convenient. But do check the authentication of the company whenever they require you to pay by Western Union.

    7. Thank you for this post:

      alice1106 (09 May 2013)

    8. experience is offline

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      #5
      Thanks Floraliu,

      You are quite right that things have changed, and many Chinese manufacturers have learned how Westerners like to do business and they try very hard to please.

      These days they are likely to assign one staff member with reasonable English skills to always deal with the same customer. Customers need to help by taking care to avoid English jargon words specific to their industry, and to use plain language.

      For example do not expect someone whose first language is not English to understand a word such as "lustre", when the simple word "shine" will do.

      I would still never use Western Union, but Foraliu's suggestion is helpful. If you can be absolutely certain that you are dealing with a genuine supplier, it might be OK to use W.U. for a small amount.

      New importers may need some guidance on how to ensure they are in fact dealing with a genuine manufacturer.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

    9. Dipper is offline

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      #6

      Quote:

      never pay by Western Union.
      I think you have to be very careful when you make definite statements like that.

      Everybody has different reasons for doing things, has different levels of tolerence for risk or has different circumstances.

      People do not get scammed because they use WU as a payment method. They get scammed because they are dealing with a conman.

      I use WU quite a lot and have even increased my usage of it as a payment method over recent years, simply because it is cheap and it is quick compared to a TT. It saves me a lot of money over a year and I have never lost a cent because of using it.

      On occasion I may have to pay for a sample, a small deposit, or a small order for a good client and that is the best option.

      Granted, I would not use it for large orders but that is as much about the exchange rate as anything. And if it was the only method offered by a supplier I would reject them.

      But it is only one component to consider when determining whether your supplier is legitimate or not.

      Together with all the other checks that can be done, looking at the overall picture may indicate it is ok to proceed. There are plenty of other checks that can be done before even reaching the payment method.

    10. experience is offline

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      #7
      Thanks for your comments Dipper.

      There are certainly times when using Western Union may be appropriate, as I said in my most recent post:
      "If you can be absolutely certain that you are dealing with a genuine supplier, it might be OK to use W.U. for a small amount."

      I think we are in agreement there.

      I also agree that once you are sure of the supplier you are dealing with, WU can be the cheapest method for making small payments. Of course if the supplier offers payment via PayPal, that is a good way to make small payments.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

    11. experience is offline

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      #8

      Quote:

      Originally Posted by Dipper View Post
      I think you have to be very careful when you make definite statements like that. .
      The statement Dipper has quoted is from an early post in this thread.

      In my latest post in this thread, 21 Jan 2013, I made a statement which I believe puts us in agreement: "If you can be absolutely certain that you are dealing with a genuine supplier, it might be OK to use W.U. for a small amount."

      My warning in the earlier post from which Dipper has quoted was in the context of Mrs Whiskers obviously addressing new importers making initial contact with suppliers. In those circumstances Dipper's advice about checks being necessary before reaching the payment stage is exactly right, and I would also urge importers to do careful checking of suppliers.

      If a new importer is dealing with a supplier who offers PayPal as a payment option, that is something which is cost free to the buyer and relatively risk free. I have found some quite large manufacturers who now use PayPal. One that I dealt with for over 19 years and now has more than 8,000 employees began offering PayPal about 5 years ago.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

    12. kamaxirav is offline

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      #9
      Amazing information with systematic format and it is useful.

    13. deanclark is offline

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      #10
      Nice discussion thread. China has captured most areas of the Indian market. Mostly, China items have no warranty, no guarantee, all is down to the luck of the customer...

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