So you’ve gone to Alibaba, one of the many alternatives, and found several suppliers. The next step is sending them a message introducing yourself, the product you are looking for, and your desired attributes. Be careful about which ones you are messaging and contacting factories as much as possible, not resellers. If you’re unsure, message them to gauge their response and get a feel for how your message is worded.
If you don’t know what to ask, here is a basic Alibaba supplier template you can use:
Subject: “I’m interested in [Product Name]” or “RFQ for [Product Name].”
Hello [Potential supplier] (Note: use their given name if you have it),
I’m (your name) the procurement manager for [company name], and I’m interested in receiving a quote for [product name]
If you manufacture [product name], please email me more information to [your email]
In your response, include:
Pictures of the product and a photo of [product detail] (note: the detail can be anything; make sure it forces them to use pictures taken for you and not found elsewhere)
The Minimum Order Quantity
The price at the MOQ and [some other amount] (Note: I find that getting two prices for different quantities lets you know their flexibility on a price and helps in negotiations later on)
[the price to make any changes or customization that you want] (be specific on this part, but you can skip it if you want a product as-is)
What is the shipping cost of sending a sample?
What are the shipping terms?
The Closest port (note the port should be close to where they claim they are located if you’re dealing with a factory. If it’s too far, be cautious)
Thanks. I look forward to hearing back from you!
[your name]
Procurement manager
[Company name]
Note: the salesperson answering these emails sees the same email templates all the time, so take time to personalize it and make it yours. This will help it stand out from the crowd. Another thing is that English is almost certainly not the first language of the person you are talking to. So, be sure to use clear and straightforward language while making sure you are getting your point across.
When first talking to a supplier, I try to keep the questions list short so I do not overwhelm them, but immediately after the first responses, I will have a second list of questions prepared to ask. The questions often vary based on the potential suppliers’ answers, and some relate specifically to the product.
What are the payment terms?
What payment options do you accept?
See our guide about paying a Chinese supplier: https://www.cosmosourcing.com/blog/what-is-the-best-way-to-pay-a-chinese-supplier
Do you have a Bill of Materials?
What are the shipping methods and cost terms?
Can I get a quote for the product to be FOB as well?
What is the production lead time?
What are your sample terms?
Do you have a catalog?
This one is good to see if there is a factory or a sourcing agent.
How many years of experience do you have?
Can you add our logo to the product and/or the packaging?
What packaging options do you have?
Not factoring in shipping is one of the first-time buyers’ most common mistakes. Most people think that shipping is easy, but it’s not. The most common mistake is not knowing the intercom terms and forgetting to negotiate which terms to use. Check out our guide here if you do not know about the intercoms. The questions below are an excellent first step to get you started.
What are the shipping terms?
See our guide for shipping.
Can I get a quote for the item in both EXW and FOB?
Can you do DDP, and if so, can I get a quote?
Which port will this ship out of? Or What is the closest port?
What is the weight of the package?
What is the dimension of the package?
How many units per package?
Will you have individual unit packages and then package them in a master package?
The note usually, if your item comes packaged, they can bundle several packages into a large box.
Are you familiar with FBA fulfillment and preparing the packages so an Amazon Fulfillment center can receive them?
Every product is different, so it’s impossible to come up with a list of your exact product, but there are many things you need to know about it from a supplier. Before you source, you need to know the attributes of the product you want. This can be the material it’s made of, the color, the production method, how it’s packaged, and more. So spend a little time brainstorming what you want and what questions you need to ask to get the product the way you want. It would help if you revised this questionnaire multiple times throughout the sourcing process, as the more you talk to the supplier, the more you learn and figure out or the more you want to know.
Now that you’ve gotten an initial response from your supplier, you need to sort the ones you think are worth following up with. Before and during the negotiation phase, you should talk to half a dozen suppliers or more, depending on the product. While questions can vary depending on the product, here are a few to ask to use as a reference.
Do you understand what FBA is and what the packaging requirements are?
Have you ever exported to the USA (Or wherever you’re shipping to)? If so, how often?
Do you have the proper certification to ship to the USA?
Do you have SINOSURE or other trade insurance?
If I place an entire order, how quickly can you ship it?
What payment terms do you require for a new customer?
Can you refund my sample fee if I place an entire order?
What is the best-selling product made in your factory?
There are two things to note when you get your responses. First, the Chinese often say yes, regardless of whether they can. Second, they often give vague answers. So when you get a simple ‘yes,’ make sure you follow up to explain and get a feel for how knowledgeable they are. Chinese culture is very hesitant to say ‘No’ to save face, so you’ll almost always get “yes” or “we’ll try” or something similar as a response. “We’ll try” doesn’t necessarily mean they can’t, but they may make an effort without guarantees.
It’s perfectly fine for you to press them on vague answers to get more specific details. However, while it isn’t uncommon for them to give vague answers if they don’t know, there is also a fair chance they may not understand your question due to poor English. If you believe it’s the latter, rephrase the question simply. Then, keep pressing until you get firm, happy answers, or move on.
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Manufacturing your own product can seem like a daunting task if you’ve never done it before. Luckily, plenty of other entrepreneurs have gone this route before, and you can benefit through the wisdom they gleaned from their successes and their mistakes. This guide on how to manufacture a product in China will help you with everything from finding and validating your product idea to getting samples made to finally launching your product or service on the Chinese market – not just in China, but anywhere in the world!
Know what you product is and be specific
The first thing you need to do is know what your product is. If you're making something for the first time, it might be easier to go through the process with a simpler item. Once you've come up with an idea, you'll have to make sure it will be profitable. To do that, try listing out all of your expenses and then list all of your potential sources of income from your product. You'll want this list so that when you decide where and how to produce your product, you'll know how much profit it will make and if it's worth doing.
You'll also want an estimate on how many units of the product you would need in order for it to be profitable.
When looking for a manufacturer, be specific about your demand and use simple and plain language. You should also research every aspect of these companies by asking questions as follow. How long has your company been in business? or What is the average turnaround time? The more research you do, the better off you'll be when trying to find success.
Also, prepare an NDA for those who you will have disclosed your product details to so your product secret will be compromised.
Narrow it down to 1 supplier
Picking the right supplier is an important decision that can have long lasting effects on your company. The main thing to look at is quality, cost and their reputation with other customers. One strategic step involved with manufacturing a product in China includes narrowing down your search criteria to one qualified supplier.
The key things you need to know when selecting a potential supplier are where they make it (location), how much it costs (price), if they provide after sale services (service) and if they deliver high quality products on time (quality). It’s also important to think about whether or not they offer after sale services as this could be very beneficial for your business later down the line.
Always ask for a sample of their previous projects. Ask them to send photos of the factories and warehouses so you can see where your product will be made. If possible, send someone you trust over there on your behalf, given the very restrictive access to China at this point, so you can get a better idea of what will happen during production. There are many factors to consider when deciding which supplier is best suited for your project; however, this list should help narrow down which suppliers may fit best with your needs and timeline.
Your research should also make reference to their past experience. Google them to see what will come up or just reach out to their past customers if possible. You want to ensure that their previous work has been successful in meeting deadlines and has a high rate of customer satisfaction. Having all these details before signing any contracts is imperative because it can save you from the headache of having no recourse if something goes wrong.
Negotiate prices and make your own MOQ
It is important to first establish your minimum order quantity before you start negotiating. If you're going for something way too small for an order, maybe below 300 units, it's possible that the factory won't even be interested in your order.
The second step is to find out how much the factory would charge for each unit of your chosen MOQ (in USD). Once you have that price, calculate how much it would cost per unit if you ordered more than MOQ. This way, if you need to increase production later on because of higher demand for your product, you'll know exactly how many units of each part are needed.
Finally, negotiate with the factory and make sure both parties are happy with their deal before finalizing things. After all, this is a partnership so treat it as such! But there's nothing wrong with requesting discounts or offers from the factory as well. They might offer volume discounts if you buy enough pieces, which will save you money but still maintain your desired stock.
Product Development & Prototyping
Many manufacturers in China have their own product development team with designers and engineers that are fully capable of developing a marketable product. Working with them will allow you to tap into their expertise as well as access all sorts of machinery, raw materials and manufacturing resources.
If you don’t have your own team, it’s important that you choose a supplier with proven experience and expertise in manufacturing your specific product. Their design team should be highly skilled and capable of creating something that works well, is easy to assemble and is not only visually appealing but also easily distinguishable from other products on the market.
Always make sure the prototype is good enough for you before you proceed to mass production. Meanwhile, you need to check in with your manufacturer about their IP registration of your product. This is utmost important to protect your interest. The registration should be had with not only IP offices, but also with the Chinese customs.
Quality control while you wait
Quality control is important for any manufacturing process and should be taken into consideration throughout production. If you are manufacturing the product yourself or working with someone who manufactures products, then quality control should be discussed from the very beginning. You will need to have standards set for what is an acceptable defect rate, identify defective units, and get it back on track as quickly as possible.
After mass production, quality control is still not off the hook. The way it is packaged and shipped can make great impacts to the quality. Packaging and shipping engineers should work with your standards by designing packaging methods that do not allow for breakage during transport.
And don't forget about logistics! Logistics specialists should work closely with manufacturers to ensure that all shipments arrive on time and without damage.
But after all, a right partner in manufacturing can relieve you from all the headaches that you might encounter. C2W has over 17 years of experience in manufacturing solutions with services covering every step of the way. Please feel free to contact us for a hassle-free manufacturing process.