Local or Overseas?
The first step is to decide where to stock up? From local or overseas suppliers? Most merchants will end up sourcing from China. Even after accounting for shipping and quality inspections the costs are so much cheaper. Yes, there are a lot of advantages and disadvantages to local and overseas, and it will ultimately come down to your personal preference and budget.
Overseas Advantages:
- Low production cost
- Wide range of products
- A large number of manufacturers
Overseas Disadvantages:
- Waiting period is longer
- Harder to find a legitimate manufacturer
- High quality of the product is not guaranteed
- Lack of legal guarantees
- Lack of payment protections
- Expensive delivery, mandatory customs
- The problem with the communication
Domestically Advantages:
- High quality and production control
- Short delivery times
- Legal guarantees
- Payment protections
Domestically Disadvantages:
- High production costs
- Fewer product options
We do not impose our choice, just keep these facts in mind when making your choice.
What should you pay attention to while choosing a supplier?
Firstly, you should find a supplier that you can have a long-term partnership with. When you start searching a supplier who can create your product, pay attention to the following criteria:
- Communication. How does your communication work? Do they ask additional questions? Do they understand everything? Or do they not ask questions and do it their own way?
- Attentive. Are they honest about failures and delays? Are they willing to have a quality control inspection done by a third party?
- Available. Are they willing to lower the price for you? Do you benefit from the product?
- Reputation. What do other sellers say about this manufacturer? Will they provide copies of their business licenses?
- Experience. Have they been in business for 2 years or longer? How many orders do they have per year?
- Versatility. What solutions can they offer if there are problems?
Where can you find a supplier?
Make a list of 10 suppliers with whom you can start your communication. The process may seem overwhelming, but there are multiple sources of information that can speed up your search.
Catalogue
The internet is a good place to start looking for. Most online catalogues allow you to browse products and get in touch with suppliers worldwide. One of these directories is Alibaba. Alibaba is the largest online wholesale manufacturing catalogues and one of the most popular one-stop shops for sellers looking to source their products from overseas. Alibaba offers several supplier verification categories to protect buyers from fraud and increase payment security, including:
- Trade Assurance
- Gold Suppliers
- Customs Data
- Great Service
Other popular online catalogues include:
The Hong Kong Trade Development Council only has China based suppliers.
Sourcify will find a supplier for you.
Sellers on AliExpress can be manufacturers or individuals.
In conclusion
Keep your profit in mind when you are looking for a supplier. Pay attention to minimum order volumes and add up production costs, including shipping and FBA fees, to determine if you can actually make a profit. You will be able to improve your financial situation by negotiating prices with your supplier.