Best China Sourcing company
That Drives Profit Growth
Find a China Manufacturer or Supplier – For Your Product Ideas
E-commerce is growing fast.
Online shopping is so convenient for everyone. Shoppers buy almost everything online. As a result, online sellers spring up like mushrooms!
Are you planning to put up an online store? Can you produce your product? Are you looking for a China manufacturer that can supply you with products made in China?
Read this to learn about a China supplier.
Chapter 1: What is a China manufacturer?
What is a China manufacturer?
A China manufacturer is a company or factory that produces goods or products from raw materials in bulk quantity. Then, they sell it to consumers, wholesalers, distributors, retailers, and other manufacturers to develop and reproduce another product.
China manufacturing companies can produce your products and offer you services like OEM or ODM. Their products made in china come from various industries. It can be home appliances, furniture, clothing, electronics, cosmetics, and more.
Products made in china and exports more goods than any other country. Some famous Chinese products for export are iron, steel, cement, chemicals, toys, electronics, shoes, clothing, etc.
China is the world’s largest manufacturer. It is also the biggest producer of industrial products.
Moreover, manufacturing has been the country’s largest sector since 2015. You can almost get anything in China manufacture. As a result, many companies worldwide choose it as their product China manufacturer.
What are the types of China manufacturers?
China manufacturers can be domestic or international. Domestic manufacturers refer to the local companies. On the other hand, international refers to foreign manufacturers like manufacturing in China. So any manufacturer you can think of outside your own country is an international manufacturer or supplier.
In China, a Chinese manufacturing company makes and supplies goods. They manufacture products for companies, consumers, and all types of China suppliers. They create the following products:
Why is A Reliable China Manufacturer So Important?
When you sell online, your product made in China needs to have good quality. If you sell high-quality and durable products, many buyers will choose you. This is the reason why you want a reliable China manufacturer.
It is important to partner with a Chinese manufacturing company to provide you with goods and increase your profit.
Manufacturing in China has become the choice of companies who want to cut costs in their expenses. Because of low labor costs, they search for manufacturers. However, it is not easy to find one. But once you find a reliable manufacturer, your business will benefit and grow big.
We will explain in the chapters below where you can find manufacturers and verify them.
What are the Types of China Manufacturing?
China manufacturing companies use different processes when manufacturing their products. There are methods, machines, software or programs, and labor types used to complete the production in each process. We will enumerate them and explain each one below.
1. Repetitive Manufacturing in china
The production of things in fast sequence is known as repetitive manufacturing (REM). Repetitive manufacturing produces goods that follow identical production sequences. Automated assembly procedures go together with repetitive production.
This type of production method is used in the following China manufacturing industries: Electronics, Automotive, Semiconductors, and Consumer products. These products must be tough and durable.
Because the consumer’s demand for ready-made products is consistent and predictable, these companies do repetitive manufacturing. After product creation, the assembly line will remain relatively stable, with slight adjustments.
2. Discrete Manufacturing in china
Discrete manufacturing is the process of creating and assembling unique products. Like REM, it uses production lines. But the finished products made in this process are frequently not identical.
The production arrangement needs some changes while transitioning between different product models. This is known as a changeover in manufacturing plants. Also, it comes with setup costs in the form of time, labor, and resources.
Examples of discrete manufacturing include clothing, computers, smartphones, vehicles, cables, cookware, etc. Discrete manufacturing assembles goods according to a process. It creates goods by individual units.
3. Batch Process Manufacturing in china
Batch manufacturing in china is a type of production that assembles the products in sequence. It means that raw materials pass through the production process by batch. They pause between each step as each batch passes.
Also known as batch production, it is a manufacturing method that makes goods in groups. It doesn’t produce continuously. Instead, they process a group or set of products by batch. Then, they will use the same machine to make the next batch of goods.
Manufacturers use batch production to create specific needs rather than mass production.
4. Continuous Process Manufacturing in china
Continuous manufacturing is a 24/7 method. It processes liquids, gas, and powders as raw materials. It is similar to REM, which processes goods continuously. The only difference is that it does not process solid-state raw materials.
Examples of products that go through this process are chemicals, fertilizers, pharmaceutics, oils, paper, etc. The materials, including fluids, are continuously processed. Chemical reactions, as well as mechanical and thermal treatment, will occur during the procedure.
5. Job Shop Manufacturing in china
A job shop is a manufacturing method that produces small batches of a wide range of specialized products. Most of the goods produced in a job shop require a specific setup. There are sequences in process stages. In addition, job shops manufacture specialized parts for other companies.
Instead of an assembly line, there are production spaces such as workstations and workshops in the process. When the product passes each station, each worker may add something. Then it goes to the next step until the final product stage.
Because it is slower and generates a small number of highly personalized products, it is perfect for custom products. One example is furniture such as cabinets and drawers.
6. Small Workshop in china
Some manufacturing in China takes place in family-owned workshops. It is not a big factory, but this family business can cater to small or medium-sized companies looking for a China supplier. They can produce goods based on their client’s request in small amounts or bulk batches.
Chapter 2: Supplier vs. Manufacturer
You might be confused if a supplier is different from a China manufacturer. When sourcing products from China, you may come across companies who refer to themselves as suppliers or manufacturers. In this section, we will elaborate and explain both.
Are China Supplier and Manufacturer the same?
A China manufacturer is a company or factory that makes or produces goods or products. They sell it to companies, suppliers, and consumers. They use various tools, equipment, and procedures to create products from raw materials.
They perform any of the manufacturing methods mentioned in Chapter 1. After production, they sell them to consumers, wholesalers, distributors, retailers, or other manufacturers to make another product.
On the other hand, a China supplier can be a person or a company that can provide a buyer with any product. They can supply your store’s inventory. They are not required to make the product themselves. But, they also buy or get stocks from the China manufacturers.
Suppliers can be trading companies or importers, buying or sourcing agents. Some are wholesalers, distributors, factories, manufacturing companies, or small workshop manufacturers. They have partnerships or working relationships with factories or manufacturers of products made in China.
What are the Types of China Suppliers?
Again, a China manufacturer creates products to supply goods to suppliers. They will give you a low price if you go directly to them. Thus, it is better to transact directly with a manufacturer. A reliable manufacturer is a good choice to be your supplier.
However, NOT all suppliers are manufacturers. Some companies may refer to themselves as suppliers. There are different types of suppliers. We have defined each one below:
Trading companies buy from manufacturers. They do not manufacture the products. But they earn money by adding a markup to the actual product’s cost. They can provide goods in different product categories.
Buying Agents or China Sourcing Agents
It refers to an agency or agent who will look into and transact with the manufacturers on your behalf. Licensed agents have a network of China manufacturing companies on their list. They will source the right factory for your product requirement.
They will assist you starting from selection up to the final buying stage. Agents can also help arrange the delivery of your ordered goods. They can earn money through commissions or fees.
Wholesalers purchase a product in bulk. They will sell it in smaller units or quantities. Some companies prefer these wholesalers because they have access to warehouses in the US.
The real benefit of working with wholesalers is that lead times are shorter. Their minimum order quantities are lower too. Unfortunately, most wholesalers only sell ready-to-use available products. They cannot customize logos or packaging. They do not offer made-to-order items.
Direct access to factories is the best option for finding suppliers in China. This is true when you have a significant or huge transaction to make. Factories can give you a more competitive price because you buy directly from them. Wholesalers or traders mark up the prices.
Factory products made in China are cheap because of lower manufacturing costs. They are reliable suppliers because of their production efficiency. They are capable of producing a bulk amount of goods.
A distributor works closely with a China manufacturer to sell more products and increase visibility. Wholesalers can purchase from distributors who will resell their items. For example, a Chinese manufacturing company looks for distributors to market its goods.
Dropshipping is a company or platform where a retailer allows the supplier to distribute products directly to customers. They do not handle the inventory and shipping. The top 4 dropshipping suppliers in China are:
Dropshipping, unlike typical retailers, does not store physical inventory. Instead, they only pay for products when a buyer places an order. So, if you are looking for China product supplier that specializes in drop shipping, you can refer to the above platforms.
Chapter 3: Domestic China Suppliers
What is a domestic China supplier?
In Chapter 1, we explained that domestic China suppliers are your local manufacturers. But in this article, we will tackle the domestic suppliers in China.
In China, domestic suppliers do not export directly. 90% of China’s overall suppliers are domestic suppliers. They are composed of local factories, manufacturers, or wholesalers. Among all suppliers, they have the best competitive prices.
However, foreign buyers cannot reach these China suppliers. Because they cannot speak or understand English, negotiation is not easy. You need a sourcing person to help you communicate. They can also locate these suppliers for you.
Another factor is that they do not have websites or use social media platforms. Apps like Facebook or Instagram are not allowed in China. Some may use platforms that are common and not restricted, like WeChat. However, not all foreign buyers are familiar with Chinese apps.
Not all domestic manufacturers operate in big factories. They can also be small-to-medium-sized job shops that work in their area. For example, small village workshops in Zheijang or Jiangsu can create low-value crafts like flying lanterns.
Domestic suppliers produce goods for local suppliers that export to other countries or international suppliers.
Advantages of Domestic Supplier:
- Offers low MOQ requirement
- Best pricing options
- Low operational cost
- Low labor cost
- Profitable products
- Organized and specialized in certain products
- Good quality and follows traditional labor standards
- Workable shipping time
- Best for small business
Disadvantages of Domestic Supplier:
- Hard to reach
- Communication problems because they do not speak English
- Intellectual property risk
- Some suppliers do not have a website and only use B2B platforms
- Import fees and duties
- Cultural differences
Where Can You Find Domestic Suppliers?
You can find domestic suppliers on wholesale websites like Alibaba, Aliexpress, DHGate, Made-in-China, or other B2B sites. But foreign buyers cannot reach them over the internet. However, you can find them when you visit specific locations in China.
Another way is through the help of a sourcing agent. They can refer and help you find reliable manufacturing in Chinese cities or local suppliers. They will choose those with a proven track record of quality products and business partnerships.
Chapter 4: International Suppliers
What is an international supplier?
In China, international suppliers can export directly to other countries. They have good English speaking skills so they can communicate with foreign companies. You can negotiate with them because they can understand English well.
There are only 10% of international suppliers in China because 90% of the industry are domestic suppliers. Moreover, they are composed of different types of suppliers. Unfortunately, out of the 10%, 90% of these international suppliers are traders, importers, distributors, or wholesalers.
International suppliers have higher pricing than local suppliers. It is because they only get their products from domestic suppliers. Ninety percent of international suppliers only buy from local suppliers to sell and export. The remaining 10% are the genuine manufacturers who produce goods that they export.
Given this ratio, it is clear that it would be tough to reach authentic manufacturers without the help of sourcing agents. You may also find most of them in B2B platforms. But you need to thoroughly verify them to be 100% sure that they are not trading companies or wholesalers.
Advantages of International Supplier
- Low cost of production compared to Western countries
- Low operational cost for companies for outsource manufacturing
- They can speak English
- Product and label customization services
- Expertise in exporting procedures
- Excellent service
Disadvantages of International Supplier
- High MOQ requirement
- High prices
- Most are traders or distributors
- High cost to check or visit the company
- High price and limited negotiable terms
- Hard to reach without the help of a sourcing agent
Where Can You Find International Suppliers?
If you want to connect and find the best international supplier, you can attend trade fairs in China. Visiting a Chinese trade show is a great way to identify manufacturers and suppliers. However, time and money are factors when you want this option.
You can also go to B2B Chinese directories like Alibaba, Global Sources, and Made in China. Always check the gold or verified suppliers. However, most of the suppliers will pretend to be manufacturers. You can verify them by checking on their business licenses (see Chapter 7).
If you need to verify companies, for example, you want to make sure your chosen suppliers are China machine manufacturers, go to China Checkup to get information.
Lastly, use the services of a sourcing agency. They are the best option to take when you want a reliable source of trustworthy manufacturers and suppliers. They can directly go to the factories to inspect and check business licenses. They offer services to help you find manufacturers.
Chapter 5: How to Find China Manufacturers of Your Product
If you are interested in China manufacturing companies, you may find locating an actual China manufacturer challenging. It is because you can come across a China supplier that will present themself as a manufacturer.
Nevertheless, researching and verifying can help you identify and find China manufacturers and suppliers. Here are some resources for you:
You can find almost anything on Google. But note that not all information is updated. One important thing when searching in google is using some specific keywords. Using different sets of keywords will display a list of popular manufacturers.
For example, when you want to search for manufacturers in Shenzhen, you can use “Shenzhen manufacturing” or “Shenzhen manufacturers.” Google will display companies who paid for ads at the top list.
You can check the first few pages from the search results to check possible options. You can also see a list like the one below:
2. Online Manufacturer Directories
Some companies will pay ads to be listed in a directory. It aims to attract customers. You can find a China supplier list or China manufacturer list in directories or platforms that have been operating for substantial years, such as the following:
- Global Sources
- Global Market
- Made in China
These directories are only one of those resources to find a manufacturer online. So you have to be cautious when making your choices. For example, many companies can tag themselves as “made in China manufacturer.” But the truth is, they are only suppliers.
If you are interested in making b2b trade made in China, select authentic manufacturers. This China factory wholesale should be your priority. You can gain more benefits from them than choosing traders.
It is not easy to find referrals when your network is limited. Referrals can come from peers or sourcing agents that can provide leads of China manufacturing products. Getting referrals may cost money and effort, but it’s worth it.
You can rest assured you’re dealing with a reliable source of manufacturing in China. A paid online website for leads or a licensed agent can provide you with a China manufacturing companies list based on your preferred industry.
4. Industry Trade Association
If you are a member of a small business association in your area, you can refer to your association’s sources for qualified manufacturers. For example, Small Business Development Centers can assist you with your business needs with product production.
They can show you a list of exhibitors that they have gathered from trade shows. Or, they can give an inventory of licensed manufacturers that do US exports with proven track records.
Joining forums and groups on any social media platform is helpful. You will get recommendations from members. You can see ratings, reviews, and red flags about manufacturers in China. For example, you can search groups on Facebook to find potential suppliers and manufacturers.
Always take extra caution by checking and verifying the company of your choice. In the next chapter, we will help you distinguish an actual manufacturer or if they are just a supplier.
Chapter 6: How to Distinguish Whether a Supplier is a Real Factory
The main reason for choosing a direct factory over other suppliers when choosing products made in China is its LOW price. They can also customize the packaging and label. But how do you know you are dealing with the genuine factory?
Here are things you need to check:
1. Verify the business license.
Request a photo of the license. You can use Google Translate to convert the words into English. If the license states “manufacturer”, then it is valid.
When a company is hesitant to show its license, it may not be a genuine manufacturer or factory.
2. Request the business address and make an appointment to visit.
True factories would welcome client visits. They could show their operation or production area if it is your company’s requirement.
A supplier or a trading company does not have a production area. So you will hear plenty of excuses.
3. Probing techniques
Asking technical questions about their machines or equipment will help assess whether they are real factories. If they give precise answers, they are most likely true factories.
If you still need additional proof, request a call. Speak with the key people to answer your technical questions. If you don’t speak Chinese, you can hire a Chinese speaker to help you communicate.
Where Do You Find a Chinese Manufacturer or Supplier?
The previous chapter showed different places or sources to find a China manufacturer or supplier. For this part, we will discuss the different manufacturing regions in China where you can find manufacturers. This is for you to know China manufacturing companies per location.
The table below shows the top cities to find thousands of China manufacturers and suppliers for every product category.
|Shanghai||communication equipment, automobiles, electronics, steel products, petrochemicals, and biomedicine|
|Shenzhen||computer and technology manufacturing, electronics, and telecommunications|
|Hongkong||textile, clothing, jewelry|
|Ningbo||textiles and garments, electric appliances to iron, steel, and biological medicine|
|Guangzhou,Guangdong, Zhejiang, and Jiangsu||textile, shoes, toys, cosmetics, apparel, and consumer products, arts and crafts, sporting goods, home decors, etc|
|Qingdao||galvanized steel Coil, aluminum coil, steel wire, China Stone, aluminum profile, steel door, PVC Door, aluminum window|
|Tianjin||aerospace and aviation, mobile phones, automobiles, and alternative energy products|
When choosing a China manufacturer or supplier, you can use the geographical locations. It helps you compare quotes with your potential leads. Since products in China from different industries are based on a specified area, you can direct your search to the place where a factory is situated.
Using the famous Chinese B2B platforms like Alibaba or AliExpress, and other trade portals like Etradeasia.com, Lightinthebox, and Hong Kong Trade Development Council have thousands of verified suppliers, but not all of them are manufacturers.
You cannot rely on “gold ratings” or “verified supplier” badges that you can see from the profile of China manufacturing companies listed on these platforms. Most of the companies will say that they are manufacturers, but the truth is, they could be a trader, wholesalers, distributors, or buying agents.
What are the Factors to Consider When Choosing a China Manufacturer?
Before you decide on your product manufacturing in Chinese companies, you must consider factors to ensure you’ll get a profit. Let’s see the following considerations:
1. Should you outsource?
Outsourcing comes with advantages and disadvantages. If you decide on outsourcing your products, you must do your research well. Also, check the benefits of it. International outsourcing is not always smooth. You can encounter obstacles if you have zero knowledge about them.
On the other hand, outsourcing your products can save you time and relevant costs or expenses. If you want to try sourcing products from China, assess and analyze to mitigate risks.
2. How should you look for a genuine China manufacturer?
When sourcing products from China, you will encounter different types of suppliers. You will find it hard to look for a legit manufacturer. Are you researching yourself, or do you like to hire a sourcing agent? Can you negotiate with the manufacturer?
When you hire a sourcing agency, you will access their China manufacturing companies’ list of networks. They can help you go through a list of factories and verify if they are a China supplier or China manufacturer to avoid transacting with unlicensed companies.
3. Check your competitors
Are you selling a unique product or the same products as your competitors? You need to assess how much you’ll price the product when you sell it. How much profit do you want to get? You need to check on these questions and strategize how to price an existing product.
Advantages and Disadvantages of Finding a China Supplier
When you want to source products made in China, you can benefit from its advantages. Some manufacturers will give you favorable terms. Once you find trustworthy factory manufacturing in China, you can establish trust and build a partnership to grow your business.
1. Lower production costs imply higher profits.
2. Quick product production and restocking
3. It caters to small, medium, and large-sized companies.
4. Opportunities for growth and expansion
5. Product availability and manufacturing capabilities
6. Shorter lead times and increased efficiency
1. Intellectual property is owned by the manufacturer.
2. Order Mode of Quantity Requirement
3. Expensive shipping or customs fees
4. Quality control is not consistent unless you hire a third party to audit.
5. It is hard to find an authentic manufacturer or factory
While it is true that China manufacturing products can be a solution to your business, there are still some disadvantages you may encounter. However, the good thing is, everything is workable. As long as you find a reputable sourcing manager, they can help you with every transaction.
Chapter 7: Tips When Choosing a China Supplier
We have a few more guidelines to share on selecting manufacturers or wholesale distributors of China suppliers. Not all manufacturers can be 100% accessible. However, even if you have chosen some verified suppliers, here are things you need to be aware of:
1. Conduct extensive research
Going through the internet and just getting through a random China manufacturing products list is insufficient. When researching, get as much information as you can about a company. Look for the companies they work with, the customers they had in the past, and reviews of their services.
2. Before finalizing a deal, verify the supplier.
Before you close a deal, think about it many times. Do not decide right away. Unless someone referred that supplier to you, it is better to do thorough checks. Doing this will help you prevent from dealing with low-quality suppliers.
You might be so impressed with the supplier’s portfolio right away when you inquire from them. You may also believe them immediately on their too-good-to-be-true offers. Verifying also means you check what inclusions are part of the deal.
If your supplier is not a direct manufacturer, check the licenses of your wholesaler or distributor. Doing so will protect you from fraudulent transactions or poor-quality products. If you are using B2B platforms, choose verified companies.
3. Ensure that the terms and payment structures are correct.
Put everything into writing. You and the manufacturer must sign a contract with all the agreed terms. The standard agreement states a 30% deposit, and the remaining is due after production completion.
As for the payment structure, use platforms that allow you to raise a dispute if fraud happens. Paypal is an option for this.
The China manufacturer can help arrange the shipment of your products. Think again if you think the logistics part is unclear and the fees are high. It is better to put it with a freight forwarder.
4. Get a China sourcing agent.
A licensed China sourcing agency can help you find a China product supplier or a Made in China manufacturer. The assigned agent will look for authentic manufacturers. They are companies with a business license.
Sourcing agents can help you with your transactions. They can direct you to licensed factories in China.
5. Look for companies that are responsive and have a track record of success.
If a factory or supplier responds accordingly, you can be confident that communication will not be a struggle. Check if their website information is updated and have a social media presence. If a sales representative will assist you, document all conversations via email and get their Whatsapp number.
It is crucial to have a contact person or an agent that can liaise between you and the supplier.
6. Engage in fair bargaining.
A win-win strategy can get you to the proper manufacturer. That includes fair negotiation. Even if you want to get the lowest price possible, make sure you do not compromise quality.
You can share your gathered data with potential suppliers so you can negotiate with them. You can also ask for prices based on their quantity bracket. It will help you know how to go about their MOQ when placing your orders.
7. Survive your business while making a profit.
After you find suppliers in China, your next goal is to ensure you get a profit. You must earn profit from your sales. Make sure your ROI is achievable. Even if your profit is small, a reliable manufacturer will help you in your business.
8. Compare quotes
When comparing quotes from potential suppliers, do not just base your decision on the price. You also consider other factors such as lead time, shipping costs, return policies, and product quality.
9. Ask for a sample
Requesting a product sample can help you decide if you want to do business with your manufacturer or supplier. A manufacturer can offer a free or a paid product sample. Seeing the product personally is the best way to do a quality audit of the product.
Some legit manufacturers will not hesitate to give you a product sample. But if a supplier is not willing to give one even if you pay for it, think twice.
10. Establish relationship
Working closely with your supplier can nourish and build a good relationship. Make sure your production schedule is in sync with theirs. You can discuss how the quantity or timing of orders/contracts can lower total costs.
Consider what extra items or services your manufacturing in Chinese might be able to offer. You can establish sales strategies and schedules when you collaborate with your suppliers.
Chapter 8: Checklist on Manufacturer’s Quotation
Lastly, below is a checklist you need to ask your China manufacturer or supplier for their quotation. For example, when you get in touch with a China plastic manufacturer because you wish to order in bulk, you can include the following questions in your inquiry:
1. Can you customize it?
Can they customize packaging or labels? Or if you have some ideas that you want to execute on the product, are they willing to do it for you? You have to be specific with your custom output request. Let them know the details of your customization request.
2. What is your lead time for orders?
Knowing the lead time allows you to plan and set expectations for when to receive your orders. You may need to consider the timing too. If you order on peak seasons, China manufacturing products are prone to delay and long-time deadlines.
3. What are the shipping costs and fees?
If the China manufacturer or supplier gives you a quote that includes free shipping, then the price has been pre-calculated based on their consolidated shipping costs and fees to get it to your location.
It also depends on the courier method to use- is it by sea, air, or combination with inland delivery?
If your location is a common location where they mostly deliver or an FBA store warehouse, they already have a fixed price for shipping or an estimate for the fees. Ask for a breakdown of these fees if possible. You can review it if you need to consult a third party to make a shipment for you.
4. What is your MOQ?
The Mode of Quantity depends on every manufacturer. For factories and manufacturers, the requirements are high compared to wholesalers or suppliers that can give you a lower MOQ. You can get discounts with bulk sale orders based on their quantity tiers.
5. What is your return policy?
If the China manufacturer or supplier gives you faulty products, this will incur losses. There should be a return policy or an agreement. If the products you received are damaged, broken, or low-quality, you need replacement.
6. What are your payment terms?
Ask for the payment option for your orders. What is the percentage of the payment and the schedule?
Payment varies for every China manufacturer. Often, they will require a deposit before making your orders.
If you made a deposit, the manufacturer should go with the orders and follow the agreed production timeline. After production and goods are ready for shipment, payment completion should follow.
7. Can you supply continuously?
A good partnership with the manufacturer or supplier can guaranty a continuous supply of goods. However, some terms and conditions apply. Your suppliers will work harder for you if you make your business vital to them.
Manufacturers or suppliers may offer hefty discounts and continuous supply if you agree to purchase or work only with them.