Tips on how to find reliable Chinese suppliers

Tips-on-how-to-find-reliable-Chinese-suppliers

In the world of business, one can’t go wrong by trusting the wrong suppliers. When that happens, all you can do is watch the fruits of your hard-earned money go in vain. Hence, if you’re a company owner wanting to source products from China, the most important thing you should do is be aware of how to find reliable Chinese suppliers.

Concerning this, there are several helpful tips you can consider coming across with the right Chinese suppliers you can rely on.

1. Ask for references

One of the best ways to find out whether or not a certain supplier is trustworthy is to contact and talk to other companies or businesses it has worked with. Insist on acquiring a list of references and ensure to communicate with them. Remember not to do business with a supplier who cannot give at least one clear reference to your location with whom you can talk to directly.

2. Set up an independent China supplier verification

Get the service of a professional China-based firm who can do the investigation for you. The examiner will check on your potential supplier and give you whatever information he has gathered in no time. Compared to the amount you might lose if you made a mistake in your decision, this process can be very cost-efficient.

reliable Chinese suppliers

3. Request for a sample of a product documentation

To ensure that everything the factory uses is safe and legit for selling to your target market, ask for its sample of quality control checklist, lab testing file, and the likes. Should the factory reject your request, then look for other suppliers.

4. Trust your gut instinct

Should you have a hard time choosing the right supplier, relying on your gut instinct can be a wise move. If you feel that something is wrong at all, don’t go for it and look for other options instead.

5. Request for a sample of goods you want to order

Instead of assuming that their products are just what you wanted, ask for a sample first before placing an order. This way, you can verify if the product’s quality meets your personal expectations and standards. Do not compromise with encouraging words such as you’ll get better quality on your orders.

6. Make sure you agree to the terms and conditions

Before closing the deal, ensure that you have carefully read and understood the terms and conditions indicated by the company, to assure that everything is just right for you and your business.

What Is The Difference Between Revenue and Profit

What Is The Difference Between Revenue and Profit

Briefly, revenue is the total sum of all cash that an organization gets for the procurement of its services. It’s known as the income statement “top line.” Profit is the left over once all costs are subtracted from revenue. Sometimes, it’s referred as the income statement ‘bottom line’.

Revenue can most consider as the top line of profit or loss statement or income statement. Revenue is the aggregate sum of income produced by the sale of products or administrations identified with the organization’s essential operations. If the organization is a shoe retailer, the cash it makes from selling shoes before representing any costs is its revenue. If the organization additionally has pay from investments or an auxiliary organization, that wage is not considered revenue; it doesn’t originate from the offer of shoes. Extra income streams and different sorts of expenses are represented separately.

Profit, on the other hand, is the notorious main concern. This is referred to as net profit since it’s the measure of income that remaining after all expenses, operating costs, debts and additional income streams. Between top and bottom concern, the expression “profit” may develop with regards to gross profit and working profit. These are ventures while in transit to net profit. Gross profit is revenue at the expense of products sold is less. Operating or Working profit is gross profit less all other variable and fixed costs connected with working the business, for example, rent, utilities, and finance. At the point when many people refer to an organization’s profit, they are alluding to the net income or net wage leftover portion after costs or the net profit.

While profit and revenue both refer to the cash an organization makes, it is possible for an organization to create revenue, however, have a net profit loss. This happens when costs exceed income.

Importing from China in the Best Possible Way

Importing-from-China-in-the-Best-Possible-Way

There are two basic objectives of importing from another country. One is to get products for personal use, and the other one is to do business and become a seller of the imported products. Getting products for personal use has become completely effortless due to various eCommerce avenues, efficient logistics providers, and courier services like DHL and FedEx unless one is exceeding the quantity specified for personal use or asking for a product that does not come under the category of personal use. However, while importing goods for business purposes, there are several challenges one has to overcome which include compliance with the law, cost and fee factors, product damage during transit, consumption of time, loss of a business relationship, etc. Again, the experience of importing varies from country to country because of some factors ranging from geographical dimension to business environment. Here are the things you need to know while importing from China.

Placing orders

The orders can either be placed online or on meeting the vendors in person. You can find a sourcing agency to cut down the risks, Fenam Sourcing is a leader in this field. The latter, though not always feasible, should be done by the first-time importers. Physically visiting the vendor’s warehouse has its advantage. The Chinese people trust ‘human beings’ more than ‘organizations.’ Moreover, one can be assured of the authenticity of products by personally observing the way the vendor operates. Once a positive relationship is established, one can manage even with a phone call. Placing orders online is as good as making a long-distance phone call concerning saving time. However, it is more cost efficient and offers a visual appeal apart from the descriptions. To place orders, one has to be ready with the funds to make a partial payment up to 50% of the total billed amount.

Getting a Chinese Visa

If one intends to visit the vendor’s site physically, one must possess the Chinese trade and commerce visa known as the M Visa. The merchants’ visa for moving around in China can be obtained by furnishing necessary documents such as passport, photographs, supplier’s invitation, etc. The Visa normally arrives within a few weeks of the application. The application form can be downloaded from the embassy’s website.

Importing from China

Getting customs clearance

Once the goods arrive, one has to get the customs clearance. This should be free of any hassle if all the required documents are ready. The required documents include original invoices, detailed list of items, legal bonds, and papers, credentials related to the origin and other relevant data. Once the total value of the items has been calculated, the import duties are finalized by the officials. After the payment of import duties, one is allowed to take possession of the consignment. It is wise to hire a customs broker who has expertise in dealing with this process. The next thing is to let a previously-contacted freight forwarder to transport the goods from the port to the said destination. In a case of online orders, the logistics part is taken care of by the vendor’s agents.

Checking for flaws in the consignment

The first thing one has to do after unpacking the items is to check for flaws regarding quality and resistance during transit. In case there has been any damage during transit, the suppliers have to be informed about the same, so that they are more careful next time. In the case of total damage, compensation may also be demanded.

Complying with the Law

One of the basic rules of importing is to know whether one has the right to import a specific product. One has to go through the rule books to know which products can be imported and which cannot. It is better not to be trapped in the red tape by violating the import code. Apart from learning about the Chinese law, it is also necessary to know what the natural law has to say on specific products. Knowledge of the export code of one’s country is, therefore, equally important. One should avoid wastage of money regarding penalty or fine.

Reducing Time Consumption

In business, time is money. There is less point in receiving the products when a festive season is over. One can ensure the timely shipment and delivery at the door by choosing the suppliers and logistics providers who are the nearest to the source vendors. Apart from reducing the cost, it significantly reduces the total time consumed in the process. Ocean freight is more time consuming than an air consignment. When one is in a hurry to receive products, it is better to spend a little more on shipment and go for air freight.

Managing the Cost

One has to do research on tariff rates before deciding on the products. Separate excise duty is levied on each category of products. One also has to keep the shipping cost in mind. Purchasing products in huge quantity can reduce the shipping cost drastically, but not all products can be purchased in huge quantities. Therefore, one should go for those products that can be purchased in bulk. To keep the overall cost low, one can invite quotes from various suppliers and choose the most competitive one.

Strengthening Business Relationship

In import business, it is important to establish a good rapport with the vendors and the suppliers. Losing business contacts can be costly. In order not to spoil one’s relationship, one should make payments in time, make oneself available for the delivery and not frequently cancel orders. Going to the same suppliers, again and again, helps one strengthen the relationship as well as get benefit regarding special discounts.

Being alert

Although businesses thrive on mutual trust, one has to find out those associates that are trustworthy. While importing products in huge volume, one cannot take chances with the credentials of the suppliers. By all means, one should go for the likely ones instead of those who charge less but are unrecognized. Any online associate has to be validated before the transaction. One should go for trusted online vendors like AliBaba instead of hundreds of fraudulent sites that offer only picture galleries. Any supplier that AliBaba rates as Premium have absolute credibility.

Overcoming language barriers

Unless one is well-versed in Mandarin, one may need a translator, especially if one intends to place orders after meeting in person and interacting with the respective vendors. The English-speaking population among Chinese businessmen is so modest that one may have a hard time following various conversations, remarks and descriptions. This problem is not much there in the case of online transactions.