Are you looking for sourcing in China? If you do, you need to be careful and there are several things that you should know before you put your words to action. Avoiding sourcing pitfalls in China is possible and leelinesourcing.com is going to help you with that. All it takes is the knowledge of the expertise, and these 10 tips are a must read for everyone who plans to take such a step.
Make use of search engines and suppliers’ directories in China
Google search allows you to discover whether the supplier participates in the trade show or not, but you can also see contact information, their address, and the experience other distributors or retailers had with that company before. Moreover, typing “Company Name + dishonest” can reveal some interesting data too.
Business License is Important
Checking the supplier’s business license is a step you cannot skip. Look for expressions such as “manufacture” and “produce”. The supplier can also be requested to offer you the unique company registration number that it received by the government authorities.
VAT Invoice needs to be checked
The Chinese government regulated the drawback for many kinds of exporting products, which gives you the opportunity to check whether a company could offer the invoice. The export company is obliged to issue 17% VAT invoice before it gets its drawback. If the company hesitates, you might want to move on.
MOQ for Authenticity
The MOQ of a factory is usually larger than the one of a trading company and this is something to keep in mind. It will help you check the authenticity of a company and you can rest assured after this check whether this is a factory or a trading company.
Products Catalog reveals a lot
The products catalog tells the difference between a factory and a trading company. The factory produces and sells products which are similar in design and connected, whereas various products can be found in a catalog of a trading company.
Auditing Report
Auditing report reveals whether the company name is in line with that on the business license. Asking the bank’s reference letters will reveal the financial status of the company, whereas the supplier’s track record can be double-checked with its previous customers. Don’t hesitate to contact a company in question and ask for the information as well.
ISO 9001 Certification
This type of certification is a must for a factory and it tells you that you are dealing with real manufacturers. However, trading companies can obtain the ISO 9001 as well, which tells you that they are good trading companies with satisfying relationship with their factories.
Ask for a sample
Whenever you are purchasing wholesale, make sure to ask for a sample even if it has to be paid for. It is better to see and test the quality then venturing into something that will end up badly. Even if you need to pay the sample, you should insist on getting the bank account of the company. If you get it immediately, you know that you are dealing with the pros.
Visit the supplier personally
Even though it is not always, possible but visiting the supplier personally will give you the best insight into their company. Use the tips above and narrow down your choices. When you are between two minds, don’t be lazy and go to see your potential suppliers.
Sourcing agents for verification
China has a lot of product sourcing agents which you can hire to check the reality of the potential partner and Leelinesourcing is one of them. You can rest assured that sourcing agents will do their job properly and they will save you a lot of time and effort.
