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04 Sep 2013 09:32 AM #1
- Join Date
- Aug 2012
- United Kingdom
- 0 Times in 0 Posts
Overseas Suppliers Search - How one should find a legit overseas supplier?
25 Sep 2013 08:36 PM #2
- Join Date
- Dec 2012
- United States
- 46 Times in 32 Posts
If you want to buy direct from manufacturers rather than buy from wholesalers or other resellers, there are sourcing sites that carry out thorough investigation of manufacturers' claims including social responsibility as well as manufacturing capability.
This is in stark contrast to the great majority of popular sourcing platforms where countless suppliers who are listed as manufacturers are in reality traders.
Most of the traders quote very big Minimum Order Quantities (MOQs) because they hope to make a huge profit on the first order for the simple reason that they rarely get repeat orders.
It is quite unusual for traders in China to carry inventory. The way they operate is to advertise, using images taken from manufacturers' catalogs, then if they get your order they will contact those manufacturers and try to buy the product. They are not always successful, but if they are, you can be sure they will add a hefty margin to the manufacturer's price.
In some cases they may actually be agents for the manufacturer, but they are not paid commission. Instead they rely on marking up the price the factory has quoted them.
It is possible to place much smaller orders direct with factories regardless of their MOQs provided you use the right approach. Never tell them you are a sole trader. Never tell them you are just starting up. Never offer a business plan.Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!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
23 Feb 2016 09:06 AM #3
- Join Date
- Mar 2012
- United Kingdom
- 183 Times in 153 Posts
Welcome to Wholesale Forum
In order to get products at low wholesale prices, nowadays many small merchants and retailers are venturing into sourcing products from overseas suppliers. The primal aim of contacting overseas suppliers is cost reduction. To achieve this, the main focus have been countries where labour costs and raw material cost are cheapest. Verifying suppliers depends mostly on what kind of order size you are looking to make, your budget, what product types you are sourcing and which countries you are sourcing from.
Here are the best methods you can use to locate and verify legit overseas suppliers:
1. The Internet
There are several websites that provide free listings of overseas manufacturers. The main problem with most of those websites is that they list many sole traders claiming to be manufacturers, when in reality they are just agents for factories or trading companies, and therefore less inclined to maintain a reputation and much more agile in changing their trading name instead of opting for resolving problems that may arise in the sourcing process. You can weed out many of these intermediaries by using the standard sorting and verification methods discussed in other threads.
2. Your Business Counterparts
Another way to find overseas manufacturers or suppliers for your products is to contact businesses that sell similar products to yours. You can ask them who manufactures their products or if they are willing to partner with you to place an aggregate order with their manufacturer. This will help them and you to source at cheaper per unit cost and acquire more precise information about their overseas supplier.
3. Your Network
Everybody has a network of people. Consider reaching out to your friends and ask them if anybody knows someone overseas who manufactures or supplies the products you want to sell. A great way to reach out to your network of friends and contacts is through social media. If you use social networking platforms like Facebook, Linked In, My Space, Twitter, it should be pretty easy to let people know what you are looking for.
4. Trade Magazines and Directories
Reputable trade magazines can be one of the best sources to locate legit overseas suppliers. Also try the three largest online trade directories of verified trade suppliers to locate legit overseas sources:
They all offer thousands of verified overseas sources from the UK and the rest of the world. All three list tens of thousands of verified wholesalers, distributors, manufacturers and drop shippers.
5. Purchase a List
Purchasing a list from a company who has screened and approved certain overseas suppliers is a good way of finding reliable companies to deal with. If you trust the company, buy the list from them, it is the easiest and fastest way to get a head start.
6. Internet Forums
You can participate in several international trading forums or ask here on Wholesale Forum whether selected overseas suppliers are trustworthy.
7. Visiting Trade Shows
Trade shows can be very useful to find overseas suppliers. Trade shows give you an opportunity to meet company executives in person, check samples and verify that the supplier is a direct source.
The Internet has made locating overseas suppliers very quick, however it often isn't as easy as it may seem. Buying products from overseas suppliers has many risk factors involved, which is why it’s prudent to choose the right media to locate legitimate overseas suppliers.
Once you have found suppliers of the products you are looking for and have estimated that importing their products is a valuable strategy, next comes verifying their legitimacy. For this, do further Internet researches for the company and the person claiming to represent the company. For an instance,
i) Search the company and find its website.
ii) Look up online reviews for the company.
iii) Ask for customers testimonials and references. Check the validity of those references.
iv) Contact the company at an email address hosted under their main website's domain name, to verify that the person you are communicating with is in fact employed by the company.
v) Hold a live chat with a company representative, possibly a video conference to get a glimpse of their trading floor.
vi) Compare the supplier's product pricing with that of companies providing similar products.
vii) Be sure that your supplier understands and adheres to import-export standards: ask questions that can help you evaluate how knowledgeable the supplier is about your country's or state's product standards.
viii) You can hire an independent verification firm to verify individual suppliers.
ix) Ask the supplier to provide you with their government registration number and look it up on their country's incorporation database to verify that the supplier is in fact registered, since when they have been registered, that it has filed accounts regularly and that it is still trading.
x) For checking legitimacy of suppliers,
a) For the US: each state has its own corporations database. Most are free. Simply search NameOfState + business registry in Google to find your state's corporations database.
b) For China: ask for the supplier's incorporation document and ICP number. You will need to use a third party to verify the incorporation document at the supplier's local Chinese tax office.
c) For the UK: You can use Companies House. It provides free basic information on every limited company registered in the UK.
b) If the supplier is based in the EU, use the European Union’s taxation and customs website to check the authenticity of the supplier's VAT number. Each EU country also publishes its own corporations database, some are free some require a fee to verify each company.
c) If the supplier is in Australia, you can use ABN lookup.
For more information about overseas suppliers, see the following past discussions:
- How to find Suppliers in America & Overseas - International Foreign Wholesale Suppliers Search - Wholesale Forum
- How to reduce Business Risks - Dealing with overseas suppliers - Wholesale Forum
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