Picking the Best Supplier:
While looking for the best supplier, you are recommended to look at “Alibaba” as the first step. As one might be aware, this is the largest online marketplace in the Far East and is known to contain the information about a majority of suppliers in it. However, all of them need not be top quality suppliers. Here, you have an option to send a “Request for Proposal” to a number of suppliers. But, you cannot expect a quality reply from all of them. It’s no matter when it comes to a business!
Another place where you can find the information of potential suppliers is the “Global Sources”. Although this marketplace is found to be carrying a less number of suppliers, the quality of them is found to be somewhat better. It’s to be agreed that there are some other marketplaces too. But, we could see that most of the suppliers are registered with either or both of these two. So, you need not go and check additional options.
While these are the best options on the internet, you can get information about the suppliers by attending some trade shows. In China, the “Canton Fair” is known to be the largest trade fair and is held twice in a year. In addition, there are some industry-specific trade shows taking place in the US and Europe, where you can meet Chinese sellers directly and build Guan Xi or a business relationship.
Coming to Terms with your Supplier:
The negotiation plays an important role in every business. Before coming to the final price, you must be able to have good rounds of discussion with your supplier on the price. Remember, you will get only what you pay for. In this, lots of other factors are coming into play like the efficiency of the product, terms of payment, time of delivery, and your relationship with the supplier.
In this, don’t forget the fact that each and every supplier would have a price floor below which they can’t go. So, if you are planning to press them to go below those prices, you may end on the negative side. This could end up in the supplier using low-cost materials, low-quality in manufacturing, shoddier packaging, and other things. Therefore, remember that the primary objective to build a long-term relationship.
Also, remember that if you are ready to pay a slightly higher price in the first instance for the manufacturing, on your upcoming orders you could get a slight discount on the prices based on volume. One other thing with the Chinese suppliers is that coming to terms with them will be a never-ending process. It’s a common thing and even anticipated within Chinese culture and businesses.
So, how to start your negotiation process? In order to start, first find a reasonable price up front through e-mail, Skype, or telephone. The price you negotiate this way with your first order is just a starting point. Then, ask the supplier for the target price keeping in mind about the long-term relationship. If you have a significant negotiation to put forward in the spirit of Guang Xi and to build a long-term business relationship, try to do it face to face.
A great place to do the talks will be the factory in China or an international trade show. In these places, you are more likely to speak with the factory owner or someone from the executive management team. This would make all your problems and challenges easy to solve because here you are speaking with the decision-makers and not sales executives.
Monitoring the Quality:
To be successful in the Amazon business, quality control in the production is really important. Problems might occur due to various reasons, but you can save yourself from the disaster if you are able to get the agreement in writing format. In this, mention almost all the possible information like supplies, measurements, packaging, quality, and others. This would be helpful in case of a problem with product or supplier at any time and would enable you to get a suitable credit or refund on future orders.
Moreover, quality control is important in the manufacturing processes because errors can occur at any time within the process. If any problem emerges, it will be much cheaper, as well as easier to find out the problem at the earliest, ideally before the product has been manufactured.