The entrepreneur’s dilemma is usually simple: you have an idea, but you don’t know how to turn that idea into a private label, physical product.

This is one of the most challenging parts of starting a business and one of the dilemmas that keeps most people stuck only in the idea stage.

This is the same for foreign entrepreneurs. When you’re looking for products to sell, your first choice will probably turn to Made in China. How to find manufacturers in China?

Because it’s the most efficient way to do it and gives you the highest profit.

The difficulty with manufacturing products in China is that you need to figure out who you should work with and manage the production process.

What are the general considerations and steps foreign sellers follow when creating their brand, finding the right Chinese manufacturer, or managing the production process for a Chinese manufacturer or supplier?

First of all, one of the most frequent questions foreign sellers ask is: “Are you a factory?”

Second, the next question you are most concerned about is, “How much will this cost?”

Then you calculate the exact manufacturing costs from multiple sourcing sources.

When foreign sellers start manufacturing their products in China, you wonder if you’ve found the perfect factory.

Once a seller gets a quote from a Chinese factory, you may be more interested in knowing the reasons for the differences in price from one producer to another.

“Why does one factory quote $3 while another factory gives a quote of $6?”

Foreign sellers believe that the main reasons for the discrepancies in quotes from Chinese factories may be attributed to four reasons.

There is another partner factory behind the supplier.

The Chinese supplier thinks the foreigner is not sure exactly how much you should pay

The factory does not usually produce this product.

The quality of the product you produce is much lower than the standard level.

And to find out how much it costs to make a product, foreign sellers usually collect quotes from three or five factories.

Arranging logistics and getting quotes can be a month-long process, which is why many foreign sellers prefer to use Sourcify, a platform dedicated to helping foreign companies find the right factories.

Checking if a factory is legitimate is a completely different step, and foreign sellers need to take some investigative steps to confirm it.

Checking if a factory is legitimate

If foreign sellers are using Alibaba to find factories, one of your best tools may be a Google Chrome extension called FactoryConfirm.

This tool uses data analysis to check the legitimacy of a factory. When checking the legitimacy of a factory, you may want to consider the following questions.

Does your factory name include words like trade, industry or technology?

How many types of products do you produce?

What kind of business license do you have?

Ask the factory-specific questions about the production.

When communicating with factories, you ask a completely different set of questions that are also more specific.

Here are some of the questions you might like to ask the factory

1. Which companies have you worked with in the past? Where do most of these companies come from?

While many good factories will not reveal who they have worked with.

But if sellers can find out where most of the factory’s customer companies are located, you will have a good idea of the quality standards of this factory.

Because most of the factories that sell to the United States or Europe, the quality of their products will generally be higher than those that sell to Asia or Africa.

2、Can I see your business license?

Although foreigners may not be able to read Chinese, you may get someone who knows Chinese to review it.

And check the Administration for Industry and Commerce of each province in China to see if the company is registered there.

3. What is your typical minimum order quantity?

Most factories want to produce more products because large orders are what will bring you more profit.

However, if the factory trusts the foreign seller’s brand enough, you will usually be willing to start with a lower order quantity.

So the number given by the factory at the beginning may not be unchangeable.

4. How long does it take on average for your samples to be made?

Most people think it takes a few weeks to make a sample.

In fact, for simple apparel products like shirts or hats, samples can be done in less than a week.

Sample production times can vary greatly depending on the type of product being produced.

5. What is your typical payment method?

The payment method accepted by most factories is 30% before production begins and the remaining 70% before shipment.

This means that you will need to pay 100% for your product before the foreign seller receives your product.

And to better control the quality of the product before shipment, the seller may visit the factory themselves or send a quality control team.

And for large orders, a wise foreign seller will usually send a quality control team to visit before paying 70% of the balance.

After knowing what questions to ask the Chinese factory, the foreign seller also needs to learn how to manage the production process.

Ask the factory to provide samples and start production.

Foreign sellers will ask the factory to provide at least one sample of each product to be produced. Otherwise, the seller may be reluctant to start putting it into production.

Explain the product details to the factory

Generally, sellers are clear about the exact specifications of the products they want to produce, including colours, materials and logos.

When you start discussing with the factory, you will discover the richness of the product selection.

For example, let’s say a watch, the seller may want to customize the logo on the crown to the entire dial.

This can also save the factory, including the seller themselves, a lot of time and cost if the seller knows the details of the design they want.

This is because the factory also does not want to produce multiple samples. After all, the seller gets the design details themselves, which is time-consuming and costly.

Stay in active contact with the factory and try not to be behind in production.

Once the seller confirms the samples, the next step is the production process. Even if the factory doesn’t take too much time to produce the samples, the official production will take a lot of time.

To not be behind in the production process, foreign sellers need to be aware of the following two points.

1, the cooperation of the factory has its supply chain. Each part of the product produced by the seller may come from a different factory.

For example, for shoes, the laces and soles may come from different factories.

For bracelets, the raw materials and stones may come from different factories.

Most e-commerce sellers deal with assembly factories unless the seller’s brand size is in the 8-figure range.

Otherwise, it may simply not be worth the seller’s time to deal with individual factories that focus on specific parts of the product.

2. They are not the only customer of that factory, and they may not be the most important customer.

To stay ahead of the production curve means that the seller needs to stay in touch with their factory and build a relationship with it.

The seller needs to deal with a sales rep from this factory and focus on something other than production, such as the sales rep’s personal life situation.

Next, the seller typically asks the factory to send photo updates on the progress of production. The seller wants to know the factory’s timeline for producing each part.

The seller will generally stay in active contact with the factory. How to find manufacturers in China? Most sellers will probably manage production via email, but some will use specialized tools to map out the entire production process.