How do I find trustworthy cheap suppliers in China?

[Greg Kellett]

I've been importing USB drives from China for a few months now. I sell them on eBay and I make a little profit. Not much, but enough to make me want to try more products. I don't really mind what I buy and sell, but I prefer small items that are easy to post. I'm open to anything really.

The problem I have is finding good suppliers who sell their products cheap enough, that once I pay the shipping fees, import tax and eBay fees, then I can still make a reasonable profit. I use Alibaba to search for products, but I find it very frustrating that companies don't show what their prices are. After contacting them, you normally find that the price is prohibitive, or you get the feeling they aren't trustworthy.

Can anyone suggest any better alternatives to Alibaba? A better way of buying wholesale goods from abroad?

Another question I have is where does everyone else on eBay get their products from? Do they all import? Or do some use UK suppliers? How do I find UK suppliers? Do they deal with individuals or would I need to have my own company to buy off them?

Thanks in advance.

 

[TradeSmart]

You could use a sourcing agent. There is a poster on here called My Office In China who may be able to help you with exactly what you are after.

 

[Greg Kellett]

Thanks. I'll have a look. I've seen these sourcing agents on here before. Are they trustworthy?

 

[Directimport]

It is possible to buy direct from the actual manufacturers rather than buy at the inflated prices you have been paying through wholesalers.

I began importing since 1987 and I have never used a sourcing agent. One thing I have learned is that most of the popular sourcing sites, including Alibaba, have huge lists of suppliers masquerading as manufacturers, but most of them are wholesalers or traders.

Unless you buy direct you will not achieve the margins you need to cover all the costs you mention. By using safe sourcing sites where suppliers listed as manufacturers really are such, you know that you are dealing with people who don't start off their relationship with you by deceiving you.

I don't publish online those sites that I recommend because there is a lot more that new importers need to learn before they contact manufacturers.

These are a few of the things you need to know:

• What to say and what not to say in your first contact, otherwise you are unlikely to even get a response.
  
• How to get them to supply orders much smaller than the big MOQs that they quote.
  
• How to be sure you are getting the very best price.
• How to be sure of the product quality.
  
• Freight terminology and how to choose best freight methods.

There is a lot more than this, but it should be sufficient to show that if you are going to start a real business by importing products for resale you need to do it in a businesslike manner.

 

[Greg Kellett]

Thanks for your response. I did try to have a look at your website in your signature, but it looks like it's either down or doesn't work anymore.

But in a nutshell, you're not going to help me unless I buy your book?

 

[Directimport]

Thanks for your response. I did try to have a look at your website in your signature, but it looks like it's either down or doesn't work anymore.

But in a nutshell, you're not going to help me unless I buy your book?

The website address in my signature is not a live link, so you will need to cut and paste it to a search engine.

I have already provided some help for you and if you have specific questions, please post them and I will reply. I can't post the entire 83 pages of my book, and what I have written in it is important knowledge for those who want to learn safe sourcing and to avoid the problems that I have seen many newbies bring upon themselves by thinking they can learn all they need to know by reading forum posts. Hundreds of people have thought that approx £29 is cheap insurance considering what they are investing.

If you search for my posts on this forum you will find a great deal of helpful information. The number of thanks shown on my avatar is not correct. At one stage, when the system was changed, the more than 100 thanks already received just disappeared.

 

[Greg Kellett]

Fair enough, but if you have a URL in your signature which doesn't actually work, you have to admit that it doesn't exactly inspire confidence.

I have actually just started reading that 83 page document, and it's interesting so far. Hopefully I'll pick up a few things. Haven't got to the bit where I need to shell out 29 quid, but I look forward to it. Can anyone else on this forum let me know if it's money well spent?

To be honest, I came on this forum to ask some questions and was hoping to get some advice for free, given that it is a forum. I'm not that naïve that I think somebody is going to give me contact details for their suppliers, but I did hope to get a few pointers along the way.

 

[Directimport]

The URL does not have a live link because I am not allowed to put one in unless I shell out a lot of money to be a paid member thereby permitted to advertise. A lot of the "free" advice you get on forums is just intended to lead you to buy something anyway.

If you like to scroll down and read the testimonials on my website you will get a good idea of what people think of my book.

I also have no concern about any complaint to fair trading authorities claiming my testimonials are false, because I have them all on file with the sources provable.

My book does not provide contact details. You have to search for suppliers in the product areas that interest you. I teach you how to do that safely, and where to find them.

 

[Greg Kellett]

OK, but I'm not talking about whether you have a live link, what I am saying is that your website is down. Try it yourself. It redirects me to a Bing search page.

 

[MOIC]

Hi Greg

Buying directly from China is your best bet.

I would always advise using an agent (especially initially) for the following reasons:

1 - They will source, verify and guarantee the suppliers.

2 - All Proforma details are checked and confirmed.

3 - Payments are safe.

4 - A physical inspection is made of the shipment, including product, packaging, instruction sheets..

5 - All export documents, Bills of Lading and certificates are checked and verified.

6 - Cheapest rates for Shipping from China.

7 - After sales service.

If your quantities are viable, then it's worth your while.

I am from the UK and have our head office in Guangzhou, China.

Please feel free to email me directly at: [email protected] if you need any futher assistance.

Regards

Ron

 

[GraemeL]

Hello Greg,

I import a lot and always use an 'agent'. Too much risk not to. Importing is a balance of risk and reward. Of course if you can afford the risk because you are ordering small values then its different. There is just no way I would attempt to negotiate with or carry out QC checks on my suppliers, even though I have personally visited them in China a lot over the last 20 years. I love China and its people, but the differences in business culture are huge. Just because someone speaks English (Americans, Australians and Chinese included) does not mean we understand each other.

Incidentally, the cost to become a full member is about the same as just one book.

G

 

[Directimport]

OK, but I'm not talking about whether you have a live link, what I am saying is that your website is down. Try it yourself. It redirects me to a Bing search page.

Hi Greg,

Thanks for alerting me to the problem. The site is live again.

Regarding your request for free information, I am drafting a post setting out a step by step guide to product sourcing and importing. It will be posted as a new thread within a day or two, so you might like to keep an eye out for it.

Walter

 

[Greg Kellett]

Hi Graeme,

Thanks for your reply. I have taken your advice and got in touch with a sourcing agent, so am just waiting to see what they come back with.

So what advantages are there to becoming a full member?

@Directimport No problem mate.

 

[japancool]

The URL does not have a live link because I am not allowed to put one in unless I shell out a lot of money to be a paid member thereby permitted to advertise.

It's not that much money - £40 a year.

 

[Deleted member 184921]

Is Alibaba relevant?

 

[waskas]

not all salesmen are relevant. Better to deal with suppliers who has at least 4-5 years expierence at Alibaba.

 

[Directimport]

not all salesmen are relevant. Better to deal with suppliers who has at least 4-5 years expierence at Alibaba.

On another thread you said 2-3 years.

As I pointed out on that thread, that is no proof of reliability, trustworthiness, or service.

 

[waskas]

2-3 years I think is minimum. I used to read about Alibaba in Russian forums. Most users there states that new suppliers 1-2 years might trick you. It's not usual but it might happen. Also you can to ask company's certificate and as much information as possible

 

[nzt48]

I'm going to go against the grain here and say you don't need to use a sourcing agent. It's very easy to get an idea of whether a supplier is legit or not through Alibaba. Simply mark "gold supplier" before going through your search results. Find those that are established. Check all their product listings to see if they look professional, check their company page on Alibaba, if it has a video this is a good sign, always order a sample, Google the factory name, research them, discus the order and all small details with them thoroughly before sending any money. I've even requested proof of orders from other customers before which they have supplied. So far in all the times i've not used an agent, everything has gone smoothly with all my suppliers (touch wood) ironically the only time i've ever been severely messed around was when i used a sourcing agent (whom i'd build up a lot of trust with already and vice versa) it was a total nightmare. I don't think i'd ever use an agent again. But whatever you decide to do: do NOT make any hasty decisions. Do you research, check their background, ask for testimonials/reference, and just be careful.

 

[Greg Kellett]

Some interesting responses. I think it's a good point made that some sourcing agents are not actually sourcing agents. Some of the ones I have spoken seem to be working on behalf of certain companies - maybe they are those companies. Very difficult to know who to trust. What I would say is that others seem genuine, even if they do not always find you the products and prices you are looking for.

 

[RoseWong]

I've been importing USB drives from China for a few months now. I sell them on eBay and I make a little profit. Not much, but enough to make me want to try more products. I don't really mind what I buy and sell, but I prefer small items that are easy to post. I'm open to anything really.

The problem I have is finding good suppliers who sell their products cheap enough, that once I pay the shipping fees, import tax and eBay fees, then I can still make a reasonable profit. I use Alibaba to search for products, but I find it very frustrating that companies don't show what their prices are. After contacting them, you normally find that the price is prohibitive, or you get the feeling they aren't trustworthy.

Can anyone suggest any better alternatives to Alibaba? A better way of buying wholesale goods from abroad?

Another question I have is where does everyone else on eBay get their products from? Do they all import? Or do some use UK suppliers? How do I find UK suppliers? Do they deal with individuals or would I need to have my own company to buy off them?



Hi I have been helping cilents source products and export goods for more than 2 years .So I am very experienced and get to know many factories or wholesalers and have been working with them for a long time .Thus I get better prices from them .Please contact me if interested,thanks

Thanks in advance.

 

[Greg Kellett]

Quick update on my experiences with sourcing agents:

I've been in contact with quite a few of them. Most of them have contacted me directly on here. I've given them a list of the products I would like, at the prices I would like. So far, only 1 or 2 of them have come back to me with products with reasonable prices. The rest of them don't seem to be able to find very good prices.

I was wondering if any UK business owners on here can recommend their own sourcing agent?

 

[Directimport]

Quick update on my experiences with sourcing agents:

I've been in contact with quite a few of them. Most of them have contacted me directly on here. I've given them a list of the products I would like, at the prices I would like. So far, only 1 or 2 of them have come back to me with products with reasonable prices. The rest of them don't seem to be able to find very good prices.

I was wondering if any UK business owners on here can recommend their own sourcing agent?

I suggest you have another look at the post by nzt48 . Like him, I never used a sourcing agent when running my importing business, (22 years) but unlike him I would never source through Alibaba.

The Gold Supplier badge adds nothing to the ordinary verification system used by Alibaba which simply proves that the business actually exists.

nzt48 refers to Googling the factory name, but it is highly possible that the businesses you find on Alibaba don't have a factory at all because most of those listed as manufacturers are not. The result is that you will pay more because you will be buying from a wholesaler or trader.

 

[Import Expert]

Hi Greg,

I would say from dealing with many importers of various sizes that for things like USB's I would certainly use a sourcing/QC agent. However this obviously depends on order quantities as to whether this will be worthwhile cost wise. You are essentially paying for peace of mind.

Also I would be very careful looking for 'Cheap Suppliers' as you mention in your thread title. I realise this is simply a common term to use but when sourcing goods, especially from China, this is one of the most common mistakes that new importers make.

If you ask for a cheap product, you will get just that. Almost every product that you buy from China will have its quality affected by price. In addition, if the supplier is not making much money, why should they do that bit extra for you? You also have the potential risk of scammers targeting you because they know they can offer you the cheapest price, because they will be providing you with rubbish (if they provide you with anything).

Anyway, good luck. You might want to take a look at my import blog or a few other snippets of information that may be of use in future - http://thewoodlandgroup.wordpress.com/

kind regards,
Darren.

 

[Directimport]

Greg,

I agree with Darren about inadvisability of looking for 'Cheap Suppliers'. I suggest that if you want quality products that you can be confident about putting on the market, your early communications with suppliers should state that you are looking for good quality.

 

[Sheng]

The majority of sellers on Alibaba will claim that they are manufacturers, but they aren't. I have lived in China long enough to know that all the factories have replaceable name plates at the front desk, so that the seller bringing in customers can pretend that the factory is own by them.

But at the end of the day...who cares? As long as you find the product that you are looking for it doesn't matter whether it is through a real manufacturer, wannabe manufacturer or an agent.

Look for a manufacturer if you want are planning to source large quantity or if you want something custom made. If that's not the case, then go for an agent/trading company.

I agree with many members who posted that filtering agents on Alibaba based on years active is a good start to find reliable suppliers.

 

[Chinavasion]

There is a reason wholesalers exist and you have to find out for yourself whether you want to deal with the factory directly or go through wholesalers.

If you buy things from wholesalers, you probably end up paying about 10-25% more than when dealing with factories. But if you work with a proper wholesaler, it will help you with:

1. Sourcing from the right factory
2. Communication with factory
3. Quality control of goods before they are shipped
4. Get a better price for logistics services.
5. Possibly provide a warranty (not always).

So the question is whether the extra money paid is worth it. As a rule of thumb, usually if your required quantity is below or close to the Minimum Quantity Required, working through reliable wholesalers is better.

The moment your quantity is about double the MOQ, you have to start thinking about dealing with factories yourself. In that case, it's gonna be worthwhile to visit factories yourself, hire a local quality control company, and connect with logistics service providers.

 

[Chinavasion]

Hi Henry, we are also based in Shenzhen. Do you have an engineering/electronics related degree? Perhaps you want to work for the sourcing team of Chinavasion

 

[Luazon]

I suggest there are some trustworthy suppliers which you can find on Alibaba. However they should have a Gold status and be able to answer all your questions.

 

[Directimport]

I suggest there are some trustworthy suppliers which you can find on Alibaba. However they should have a Gold status and be able to answer all your questions.

Gold status simply means that the business exists (that is what Verified status proves), and that they have bought a gold status badge to make you think they are more reliable and trustworthy than ordinary verified suppliers.

 

[PeJaM]

Hi Greg,
I am UK expat in HK and will try to help you if you want me to. No fees, just happy to help. I do a lot of sourcing, have a lot of contacts.

Best regards

Peter J Mason

 

[GraemeL]

Hi Greg,
I am UK expat in HK and will try to help you if you want me to. No fees, just happy to help. I do a lot of sourcing, have a lot of contacts.

Best regards

Peter J Mason

Good to hear from you on this forum Peter!

G

 

[MOIC]

Sourcing a product is one thing.

Sourcing a product at a price point that isn't realistic, is another thing altogether.

it simply doesn't exist.

As the OP has found out with his own experience, you go for the cheapest quote, you will have problems.

If it seems to good to be true, it probably is.

 

[LinkBright Media]

Do good sourcing agents specialise in particular niches or will a good sourcing agent be able to source anything? Just curious!

 

[MOIC]

Do good sourcing agents specialise in particular niches or will a good sourcing agent be able to source anything? Just curious!

Both is the short answer.

 

[GraemeL]

Do good sourcing agents specialise in particular niches or will a good sourcing agent be able to source anything? Just curious!

It depends on what you want. If you want 1,000 cheap pens than its not hard for any Agent to deal with your enquiry. If you want 10,000 28 inch computer screens then you need to be selective, as I am sure you would!

Many Agents will claim to be able to source anything and they probably can - but what would you be expecting of them aside from finding a factory?

For many products, the best Agents will have their own niche. It would be one of my requirements of an Agent to know about the product I was asking them to find for me and to be in 'easy' travelling distance. If you want them to visit the factory to validate it and then be involved in QC, location matters.

We sell office seating and any Agent can easily find a chair factory. However few appreciate and understand the features of a chair to the extent they can discuss technicalities with me and the factory. Even fewer are geographically located close to the region where most chair factories are located.

Hence the team I use in China are appropriate for my business, but I never recommend them to others in different businesses.

 

[StripedSparrow]

Out of interest, how do sourcing agents set fees? I imagine it's either a fixed cost or based on an MOQ. Either way, I get the impression that you already have to have a high degree of certainty about being able to shift the product (i.e. it's not a service to engage when you're looking to test the market or your ideas).

What happens if/when an agent is unable to find a product that you're happy with? For example, say you're looking for high-quality widgets (I was surprised to see someone mention that you have to specify that you want 'quality' products!). What happens if you reject all the sources and samples that come back? Does the agent still demand payment for their services?

 

[GraemeL]

Out of interest, how do sourcing agents set fees? I imagine it's either a fixed cost or based on an MOQ.

Very dependent on what you want them to do for you.
Do you want them to:-
Find factories (How many?)
Visit factories
QA the factory
Seek prices
Negotiate prices
Prepare a contract
Prepare QC checklist
QC while in production
QC before despatch
Deal with payments
Present while container loads
Order sizes
Order frequencies
Factory location
etc

I have missed out a lot, but have quickly written this list to highlight the piece of string answer to your question.

Most important think is to be honest from the start. If you want an agent to help you get samples, just say so.

 

[shinsei.nguyen]

Why don't you guys think about suppliers from Vietnam? I can assure that the quality of "made in Vietnam" products are always good.

 

[Directimport]

Why don't you guys think about suppliers from Vietnam? I can assure that the quality of "made in Vietnam" products are always good.

In my experience, the products my organization purchased from Vietnam were of good quality and provided good value. This is one reason that I recommend to people that they consider buying from countries other than China.