Avoid these 5 Mistakes When Buying from China:
China can be a land of buying opportunity, where inexpensive labour and access to raw materials, along with favourable currency exchanges mean lower product costs. Seems like a no brainer? Well beware, as what may initially seem like a fantastic opportunity to save on your costs of goods, you may instead be sitting on a nightmare. Here are some of mistakes you can avoid if you know what to expect.
1. Ordering without asking for customer references. If they are unable to provide references, they are likely not very confident in their quality, have no sales history for the product(s) advertised or are just looking to take order deposits and not ship.
2. Paying large order deposits and assuming too much risk. Try to negotiate no deposits terms for orders whenever possible as there are many companies in China set up for the sole purpose of advertising on the B2B sites and collecting foreign company’s deposits with no intention of shipping anything out. Once your shipping company picks up your order and sends you an OBL you can feel much more comfortable in paying suppliers.
3. Selecting a supplier with limited understanding or appreciation for North American quality/service needs and sense of fairness.
4. Ordering from a supplier that does not specialize in the product line. While many suppliers in China will say that can produce basically anything, be sure that you are buying from a company that specializes in the product line advertised. This can also be verified by a reference check or a factory visit, but is sometimes evident from the website alone.
5. Placing an order with very general specifications. This allows suppliers to cheat on materials down the road and cut corners. The more detailed the specifications the better and be sure to inquire about their quality control systems.
Take the time to speak at length with your China supplier. The time and investigation spent up front may very well be what you need to ensure your purchasing experience with China is a positive one.
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