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  • Hey guys, in this video, I'm going to be giving you my five things that you should do before

  • working with a Chinese supplier.

  • Whether you're in the Amazon FBA game and you're getting your supplies from Alibaba.

  • Or, you were in the Drop Shipping game and you are working with Ali Express Supplies.

  • This video is for you.

  • If you don't do these five things, you can loose a lot of money.

  • You can loose a lot of money because of the fact, that you've chosen a supplier who is

  • overpriced.

  • And you're paying more for your items than you should.

  • Or you could loose money from purchasing poorly manufactured items, that make customer's ask

  • for a refund.

  • And, you can even loose money from being sued.

  • So, if you want to choose the right supplier so that, none of this happens to you.

  • Keep watching this video.

  • Tip One, check to see if your Chinese supplier has been to a trade show.

  • Not all suppliers will have been to trade shows, and that's absolutely okay.

  • In fact, most suppliers probably haven't been to one.

  • But if you can find one that has, that is a big bonus.

  • It indicates they are producing quality products.

  • If their products were poorly produced, they'd be unlikely to bother showing them off at

  • a trade show.

  • And this of course, is very important because of the fact, that you want to be purchasing

  • quality products that won't break.

  • Because, if they break you're going to have unhappy customers.

  • Plus, trade shows are also expensive to exhibit at.

  • The fact that they have enough money to attend one, indicates their company is financially

  • stable.

  • And of course, this is important because, if you find a hot selling item that has just

  • a single manufacturer, and that manufacturer goes out of business.

  • Well then, you have no items to sell.

  • Manufacturing items as cheaply as they are in China, means that those companies are working

  • off of small margins.

  • So if, they are not managed correctly, then they can risk going bankrupt.

  • So, if you're trying to choose between which supplier to work with.

  • If you see that one has been to a trade show, then that would be a legitimate factor for

  • choosing them.

  • So, how can you tell if your supplier has been to a trade show?

  • Well, if you found them using Alibaba, it's quite simple.

  • Just come to the Company Profile.

  • If they have attended any trade shows, the trade show button will appear under additional

  • information.

  • Click on it to see which one's they exhibited at.

  • For this company, we can see that they attended Hong Kong Trade Development Council in 2016,

  • 2017 and 2018.

  • Unfortunately, if you're using Ali Express, a lot of the time their original manufacturers

  • are not listing the items for sale on there themselves.

  • Take this camera lens travel mug from a company that I think you pronounce it, "Ouoh", they

  • themselves do not actually sell it on Ali Express since what they chose to do is, they

  • work with wholesalers who then, list it for sale.

  • What I would recommend that you do in cases like this, is that you check to see if the

  • original manufacturer in this case, 'Ouoh' have been to trade shows themselves.

  • To do that, find the brand of the item that you want to sell on Ali Express.

  • Then go to Alibaba and do a search for that brand and see if they've got a listing for

  • it on there.

  • If they do, open it up and visit the company profile to see if they have been to a trade

  • show.

  • As you can see, "Ouoh" have been to the Spring Canton Fair, which is the biggest trade show

  • in the world.

  • With this knowledge in hand, we know that the original manufacturer for this mug has

  • been in business for quite some time.

  • So, we know that it's not just going to disappear.

  • Now again, just because a supplier has not been to a trade show, doesn't mean that they're

  • some sort of a scam.

  • Going to trade shows is very expensive so making it a financially positive experience,

  • where you make enough sales to offset the cost of attending, can be a challenge.

  • So instead, use this information to help you choose if you are stuck between two competing

  • suppliers.

  • Tip Two, avoid pictures with models.

  • Here is a quick tip, if you were using photos for your item listing, that are the same photos

  • that the supplier has provided.

  • Avoid using ones that have models in them.

  • Why?

  • Well because, there is a reasonable chance that the supplier has illegally stolen those

  • photos from the actual model themselves, which is an infringement of copyright.

  • A model herself, posted a comment on one of my videos, talking about how this has happened

  • to her.

  • As I've explained before on this channel, most Chinese suppliers don't mind breaking

  • copyright laws because of the fact that, it's really easy to get away with that in China.

  • But of course, it is not so easy to get with that in the west.

  • Now usually, the original copyright holder doesn't immediately sue.

  • But, they can do that, it is within their rights.

  • They don't have to send a take down notice first.

  • But, something that does happen regularly, is that the original copyright holder will

  • contact say, Amazon if you're using their picture on there.

  • And they will get them to take that listing down.

  • Or, if you're doing Ali Express Drop Shipping and you are advertising your product on Facebook.

  • They will contact Facebook and get that ad taken down, which is very bad for your ad

  • account.

  • Now not all photos that suppliers are using, that have models in them, are stolen.

  • But because of the fact, that you just don't know, it's risky to use them.

  • So what I recommend is that, if you want to use photos that have a model in them.

  • Get a sample product for yourself.

  • And then, you can take your own photos with it instead.

  • Tip Three, check to see if you are working with a manufacturer, a trade company, or a

  • wholesaler.

  • When you're working with Chinese suppliers, you're going to run into three main types.

  • You're going to find manufacturers, trade companies, and wholesalers.

  • Now this may sound boring and jar gony, but it is really good to know what these terms

  • means.

  • A manufacturer is exactly that.

  • They are the company that originally created the item in their factory.

  • Working with them usually means that you get the lowest price.

  • A trade company is a middle man, who is working as an agent between you and a manufacturer.

  • As a result, they often do have higher prices because of the fact that, they need to make

  • a profit themselves.

  • Now, you may think that you should just avoid trade companies all together.

  • But that's not necessarily true.

  • Sometimes, it is better to be working with a trade company rather than, the original

  • manufacturer.

  • And sometimes, due to the improved communication you can actually, negotiate lower prices than

  • if you had gone directly to the manufacturer.

  • And finally, a wholesaler is another form of a "middle man".

  • What they will do is, they will purchase items in bulk and then, they will send them out

  • to you and I.

  • On Alibaba, you're usually going to be running into either, manufacturers or trade companies.

  • You can find out if the company is a manufacturer or a trade company by going to their company

  • profile.

  • Under Business Type, it will tell you if a company is a manufacturer, trade company,

  • or as in this case here, both.

  • Yes.

  • This company is both a manufacturer and a trade company.

  • What that means is, they do manufacture their own products.

  • But, they act as a middle man for some other types of products that they don't produce

  • as well.

  • For example, the main item that they manufacture in their factories is this camera lens travel

  • mug.

  • You can tell because, on their Alibaba item listing for it, the brand is listed as the

  • factory's, "Ouoh" brand.

  • Whereas, this pretty cool coffee cup holder does not have their brand and so, most likely,

  • they are selling it as a trade company.

  • Now on Ali Express, you will often find either, manufacturers or wholesalers.

  • And a really good way to figure out if a company is most likely either, a manufacturer or wholesaler,

  • is to see if they are selling more than one type of brand.

  • For example, this store here Transhome, which has been featured on our channel numerous

  • times before.

  • Is clearly the original manufacturing store.

  • Not only is it named 'Transhome Official Store' but they only sell Transhome branded items

  • in it.

  • On the other hand, this store here, Mr And Mrs Store, is clearly a wholesaler.

  • As they have a non-branded store name and they stock items made by multiple brands.

  • For example, they are selling several kitchen items manufactured by 'Ouoh'.

  • And they're selling multiple dog related items manufactured by 'Doglemi'.

  • And they are selling several different lighters produced by 'LCFun'.

  • And again, neither is better than the other.

  • Oftentimes, manufacturer's will have the lowest prices.

  • But on the other hand, wholesalers will often have a wide selection of items.

  • There are pros and cons.

  • Tip Four, recapping agreements is crucial.

  • Now there are several advantages for working with Chinese suppliers.

  • One of them being, their incredible low prices.

  • And when I tell people about what I do, I get a lot of comments from people that say

  • things like.

  • "Oh!

  • The Chinese, they just produce cheap, trashy items."

  • And that is just not true.

  • And I personally think that, that's a really unfair stereotype.

  • I mean, yes you will find factories in China that produce low quality items but, the same

  • goes for the west.

  • I have a friend who is an incredible artist and she was going to a comic convention and

  • she had a booth.

  • She wanted to produce a bunch of pens so that, she could sell them to her fans.

  • For the longest time, she had been working with a factory in England.

  • And the pens that she was producing were not very high quality and they were extremely

  • expensive.

  • And so, I asked her.

  • "Have you looked into using a factory in China?"

  • And she said, that she had.

  • And that, if she used them she'd be paying a fraction of the price.

  • But, she was afraid too, because she did not trust the quality of the pens that they would

  • produce.

  • With a bit of encouragement from me, she did try the factory in China, and guess what?

  • Not only did she save hundreds of dollars, but the pens that they produced were higher

  • in quality.

  • So, 'no' "local manufacturers" aren't just better because they "aren't Chinese".

  • But, there is one big advantage to working with local manufacturers and suppliers.

  • And that is the language barrier.

  • So, when you're working with Chinese suppliers, I recommend that you ask very specific questions.

  • For example, let's say that you're private labeling on Amazon and you want to purchase

  • a bulk load of items from your Chinese supplier.

  • But you want to know what you're shipping costs will be.

  • Ask very specific questions.

  • Never assume that they will figure out to give you this information on their own.

  • Ask them things like.

  • "What are the dimensions of each carton?

  • How much do they weigh?

  • How many units fit inside a box?"

  • If you don't ask specific questions and instead, ask something like.

  • "What are the dimensions and the weight of each box?

  • I want to figure out what the shipping cost per item" ... Almost always they are going

  • to answer with a literal answer.

  • They'll tell you the weight of the box.

  • They'll tell you the dimensions of it, but they won't think to tell you how many units

  • fit inside each one.

  • Even though, you need that information to figure it out.

  • A lot of suppliers will not think to give it to you because, of the language barrier.

  • So, whether you are negotiating an agreement with a supplier that you found on Alibaba,

  • or a Drop Shipper that you found on Ali Express.

  • Get them to recap each specific part of your agreement in writing.

  • So that, you can make sure that everyone has the exact same expectations.

  • Tip Five, prioritize products that have multiple manufacturers.

  • Perhaps, you want to manufacture and private label your first item for Amazon and you've

  • found two items that both look excellent.

  • Or maybe, you're Drop Shipping an item from Ali Express, and you've found two items that

  • you would like to run a Facebook ad for, and you're trying to decide between the two of

  • them because, you're on a limited budget.

  • My advice here would be to see, which item has multiple, reliable suppliers and to prioritize

  • that item.

  • Why?

  • Because, as I mentioned earlier in this video, Chinese suppliers and manufacturers, are often

  • working off of small margins.

  • That means that if they are financially mismanaged, then there is a very good chance that they

  • will go out of business.

  • And if they go out of business then, you're kind of going out of business too.

  • In China, manufacturers copy each other all the time because, there's basically no legal

  • repercussions for this.

  • This is a great example of that.

  • On Alibaba, you can see that there are multiple manufacturers that are producing their own

  • version of a camera lens travel mug.

  • That means that if you were private labeling this item for Amazon.

  • If your main manufacturer went out business, you know that you could find another one.

  • And on Ali Express, we can see that there are multiple sellers that are selling their

  • own brand of it, as well.

  • This means then, that if you were Drop Shipping this item in your own Shopify store, and then

  • your main supplier went away.

  • You know that you could find another one, so that you could keep selling this mug and

  • keep making money.

  • So, I hope you guys learnt something from this video.

  • If you did, then I know that you would love our other videos that are about selling online.

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  • training course called the "The Drop Ship Club", it teaches you how to create a profitable

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