When sourcing goods from China, you have to face a difficult matter: choosing the right supplier. You have to check if your potential supplier is credible and if their terms are acceptable to you. To make this task easier for you, we prepared for you a list of issues that you should ask your future business partners about. There are 10 questions for Chinese suppliers that are worth asking before starting the cooperation.
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One of the basic questions you should ask the supplier is about MOQ. MOQ is a minimal amount of goods for which the order can be realized. Due to the bulk nature of most orders, the price is a factor that changes along with the amount of ordered product. The more pieces of product you order, the better price you may get. At the same time, it means that you should first take an interest in MOQ and then the unit price, as this price will be conditioned by the order volume.
It is worth noting that strict adherence to the MOQ is, of course, a matter of the supplier’s will, and they may change the MOQ during negotiations. This carries the risk of receiving products of worse quality as dishonest suppliers may want to recompensate themselves for the smaller order with saving materials costs.
When ordering products, you should check if you are dealing with the actual manufacturer or only a so-called “trading company,” a middleman. As a rule, purchasing a product from a trading company usually means lower MOQ limits but also carries a bigger risk. It is not a direct manufacturer, so in case of faulty products, it is hard to blame the responsibility on them. Due to this, it is very sensible to verify who actually is our supplier.
Due to the fact that product samples may differ from the actual batch manufactured for you, a reasonable method to verify it is conducting quality control. Factory inspection in China may be carried out at various stages of production.
If the seller refuses to have an inspection carried out (of course, they have the right to do so), it takes away their credibility. In that case, it is better to choose another supplier.
An important matter you should mention in your negotiations with a business partner is how much you want to change the initial project, its design, and the production process. It is defined as OEM and ODM.
If you want to adjust the product to your brand, it is necessary to determine this matter at the beginning stages of negotiations with a potential supplier.
Particular regions of China are specialized in certain branches of the industry. It is worth finding out the exact address of the factory as it will make it easier for you to verify it by conducting the audit or pinpointing the factory on the industry map in China.
Incoterms are internationally standardized short terms of International Commercial Terms. You should, in advance, determine the obligations of you and your business partner. It is also good to know what mode of transportation your supplier uses. Depending on the chosen mode of transportation, the time of delivery will differ. It is worth negotiating those matters, so they align with your preferences.
It is worth asking if your business partner has any certificates or if they have conducted audits. A good practice is to ask an open question, as it will get you more information than asking only about specific certificates.
If you import to the EU, the document that you will be interested in most cases will be a Declaration of Conformity, that means that a particular product fulfills quality and health regulations and is safe, so it can be sold on the territory of the European Economic Zone. You should also remember that the received certificate should be verified to confirm its authenticity.
To minimize the risk of being scammed, it is good to ask for a copy of a Chinese business license. The document is often forged, so you should make sure to receive a scan in color of good quality and to further verify the information contained in the document (it is fully in Chinese).
You can have a chosen Chinese supplier verified in a matter of days!
To make sure what your supplier represents, you should ask about their clients, if they regularly send products abroad, if they have any references from past business partners, or ask for them to make a list of clients available to you.
Your product will probably be in transit for a long period of time. You can ask your supplier for photos of the products packaged for other clients to make sure that your order will endure the hardships of the travel.
A set of questions that you should ask your potential Chinese supplier may look like this:
Of course, throwing too many questions at a potential partner in the first e-mail or message is not recommended. You should follow the rules of Chinese business culture and establish a relationship. First, you should introduce yourself and talk a little about yourself, your company, and what you are looking for in a future business partner. The communication will be more efficient if you take your time.
So you’ve gone to Alibaba, one of the many alternatives, and found several suppliers. The next step is to send them a message introducing yourself, the product you are looking for, and your desired attributes. Be careful about which ones you message and contact 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. Also, 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?
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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 FOB product 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 the packaging?
What packaging options do you have?
Not factoring in shipping is one of the most common mistakes of first-time buyers. 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. If you do not know about the intercoms, check out our guide here. 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 is that 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 and 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. Then, keep pressing until you get firm, happy answers, or move on.
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