Supplier Selection & Verification
Thanks to online directories like Alibaba and Global Sources, it is pretty easy to come up with a long list of potential suppliers. But it is not so easy to take this long list and narrow it down to the best one single supplier in all of China for your particular needs. Also, keep in…Read More
Would your sourcing project get past Mark Cuban’s feasibility audit?
How do you know if your sourcing project is a good fit for China? Last month, I posted an article “Starting a Business in China: How and Where to Start” and in that article it gives information on how you familiarized the business law in China and the relevant operating requirements when starting a business…Read More
What is a bait and switch strategy in the China Sourcing context?
The bait and switch strategy does happen, whether you’re dealing with the trading company or sometimes even with the manufacturer themselves. You need to be explicit “We visit this factory; I want the production take place here at the location we visit.” When we post about contracts as a next blog series soon, I’ll…Read More
Red Flag Alert: A Product Portfolio that makes Jeff Bezos jealous!
Look at the product portfolio on the supplier’s website landing page. They’ve got a snowmobile, Segway, jet skis, bicycles, motorcycles, and even more variety when you look deeper. Come on! Not even Mitsubishi, Sony, General Electric, Philips, and Ericson combined have this type of product portfolio. So something is very fishy here. Most likely, it’s…Read More
Be explicit that there eventually may be a production location audit
When speaking about a production location audit, it is assumed that the building and facilities, management staff, factory workers, production, warehouse and storage, quality, and product development are all covered on gathering good information. In China, factory audits are not a legal requirement but is required if you really want to manage the risks. Why…Read More
Why do the scam artists target small scale foreign buyers?
Let’s talk about why the scam artists target the small scale foreign buyers. It’s pretty simple. They’re easy to find. There’re so many buyers online: eBay power sellers, people that have a small eBay store, or some online store back home and they buy ten units of this, 20 units of that. There’re so many…Read More
Factory ownership papers reduce the middlemen risk and fear!
Red Flag Assessment Don’t be afraid to ask for ownership papers for the factory. If the factory has some excuse about why they can’t share with you who owns the factory or a business license, that’s a big red flag. They’re obviously trying to hide something. Example (ownership papers): It may be awkward to go…Read More
Truth about sourcing famous brands in China, not all Apples are equal
The truth about famous international brands. If it’s fashion or electronics, please realize two things. Various major brands including apple manufacture their goods in China as it is cheaper there. This may lead the buyer to think that one can get products at a cheaper rate from China but it is not true. China suppliers that…Read More
Straight to the Source! Are you talking with the factory owner?
How can you tell if you are talking with the factory owner? You want to go straight to the source to find out about the production of your products. You might ask him … “How many of your employees are from Hunan province? How many from Sichuan? How many from Guangdong?” The trading companies that…Read More
Focus on those factories that can clearly show production experience
How do you know if a supplier has production experience? Focus on those factories that can clearly show production experience with your particular product or the production method. When you ask “Show me some samples”, and it takes that factory weeks or months to get you some samples, it probably means that they don’t…Read More
PPE Part 1: The dangers of buying PPE from “your guy’s” “China guy”
Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Introduction to our series on buying PPE from China during the Covid-19 pandemic. A growing number of buyers are…Read More
VAT Leak in China Manufacturing: Planning for Value Added Tax Rebate
In an earlier post on the Chinese Value Added Tax (VAT) system we raised the subject of a “VAT Leak” and talked about the need to pay close attention to the VAT rebate, especially when consolidating freight from multiple suppliers in China. Here is an excerpt: Why is it important to understand the VAT…Read More
Coronavirus & VAT in 2020: “In times like these…” Mark Twain answers
“In times like these, it is important to remember there have always been times like these”. – Mark Twain China Sourcing, Coronavirus & Value Added Tax (VAT) in 2020 In this blog post, we will answer the following questions: Why is it important to understand the VAT system in China if you source made-in-China products?…Read More
China’s Value Added Tax System: How to navigate VAT and negotiate a price when sourcing
China’s Value Added Tax (VAT): How to navigate the system and negotiate with suppliers like a pro Buying in China? Complexities of the Value Added Tax System China’s Value Added Tax (VAT) and VAT Rebate system is complex and very confusing. But if you are buying from China, understanding the basics of how the system…Read More