Thread: Purchasing OEM/ODM Orders From China

I am revolted by the problems people have when purchasing orders from China. So here are a few tips to avoid them.

Know the products that you want to buy!

- What are the parts, grades, and raw materials at a minimum?
- How is the product manufactured?
- What's the total cost of labor, tooling, and energy?
- What kind of packaging/packing do you want?
- What are the logistics and total customs costs?

Knowing all of this will help you to calculate what you would like to pay for it. Then you'll know the standards of the product and adjust to any critical quality problems that you think you'll have.

Create a plan:

- What do you want to achieve in terms of buying?
- What are your annual purchase schedules?
- What are your bankable payment terms?

In essence, be sure you know precisely what you would like to do before getting in touch with the factory. The biggest problem buyers have is they don't want to take the time to develop a plan or they're not educated about the buying process.

Research all of the suppliers.

Make a list of possible suppliers and ask them these questions before any other.

- Will you be able to fax your business license to me?
- Can I send someone over to inspect your manufacturing plant?
- Can I have the sales quotes signed and stamped with your factory seal?

It's probably best to contract a professional buying agency or agent that's incorporated in China. You must realize that they'll want up to 10% of the product price + any expenses. You're not going to get good service for free! Be wary of inspection and sourcing companies that offer 100USD for the day or by the man hour. They're not going to give you dependable service. If they don't know your products, how can they scrutinize them? How do you even know if the examiner is professionally certified? A good company knows how to prevent and solve issues after they've been detected. The bottom line is that great service costs! Be patient when developing your plan with a company as it's going to take time to adjust to your specific standards. Ask them for their license and see if they'll provide transparent services. A transparent service is defined as, for example, you signing off on every single purchase contract before officially signing with the factory. All purchase contracts should state payment terms, services provided and dispute resolutions methods at a minimum. Remember you are signing contracts with the buying company and not the factory. This company will be responsible for obtaining the goods for you and you'll need PLENTY of transparency and honest cooperation from them.

Most professional buying offices specialize in production contracts, testing reports, and actual product testing before you even buy it. Make sure they are reliable, have their own lawyer, and Chinese legal representative.

Before you take any legal possession of the products, verify that they are what you exactly want. This will require at least one trip to China. A professional buying agent will save you the time and money if you're not prepared to travel to the manufacturer. In general, talk with the buying agent to make certain you are adequately prepared before finalising your samples, drawings, and plans.

I hope this helps If you have any questions let me know or reply to this thread. I'm out.

Great post! Keep up the good work.