China Imports for Dummies - Finding a Supplier

[yuemax]

i want to import some electronics/networking equipment from china. especially from huawei and zte. is there a way to buy from them directly ? thus cutting out the middleman.

Yes, it is possible, but with corporations of that size, they may have high MOQ's and difficult payment terms...

It would also require you to develop a "face-to-face" relationship with them. Unfortunately, with their industry, there are a lot of sharks so, building "guanxi" is critical for cooperation, price and terms.

ZTE offices are just up the road from my office, and they have a number of manufacturing locations.

What products are you looking to import? What volumes?

Cheers,
Max

[kahoel117]

@yuemax

thx for your reply. i see what you mean by dealing directly with them. MOQ's is usually in the thousands too.
mostly 3g modems (unlocked) and some other networking equipment. volumes would be small as we're just starting out. currently we using alibaba as a platform to buy certain stuff, and the rest locally. which is so far a good experience, though expensive just for delivery.

[yuemax]

If you are looking at smaller shipments, you might also consider coming out here and going to the electronics market in Shenzhen. You should be able to get a reasonable MOQ, and also be able to arrange shipment from China side, which is generally cheaper than if you arrange it from SA side. In Shenzhen, there is are a few markets, the biggest being HuaQiangBei. There are a few in Hong Kong as well, but they are not as flexible in terms of price, and quality. If you do come out, I can arrange a translator/negotiator for a decent price.

Cheers,
Max

[yuemax]

...Just another thought...

If this is going to be a fairly long-term project, I would really recommend a trip out. Dealing via Alibaba is risky, rather invest in a few days here in China, meet and build up a bit of a relationship. Much safer...

[kahoel117]

thanks max. going there to "shop" would be best , and knowing people there who knows how the local business works will be great.
will definitely consider it ...

[J9 :)]

Hi Max,

Thanks for the info you've posted - goes a long way to helping us newbies!

You mention that it's risky to deal with suppliers on Alibaba but where else is one meant to source a supplier? Also, if I filter the suppliers to only those with Gold Supplier ratings, does that not mean the supplier is at least credible?

As you can tell, I'm REALLY new at this but I'm looking to start an on-line girly shoe store here in good ol' SA, since there's really nothing of any interest in the boring run-of-the-mill shops here.

What do you suggest is the best way to go about this?


Thanks so much,
J9

[kahoel117]

finally... someone else who uses alibaba aswell ! i had the same questions . though the forums at alibaba answers alot of them.
it is abit difficult to see which company is credible. sometimes the gold rating is bought !
currently using only alibaba (aliexpress) . luckily they have the escrow function on their payments, so your money is protected if your not satisfied.
all the best for your business.

[yuemax]

Hi J9 & Kahoel117,

The primary reason for my caution with Alibaba/Global Sources etc, is that there is minimal interaction between the supplier and you - indeed "gold ratings" are easily bought.

I think what it boils down to is the volume of products + your risk.

If the volume + risk + profit margin warrants it, I would suggest you make a trip out to China to visit your suppliers, and your supplier's factories. Shortlist 5, make a trip out to China. Most likely all can be located within Guangdong province - in fact, most in the surrounds of Shenzhen and GuangZhou. In that way, you can get good samples, and get a feeling for the true nature of the supplier. Also, on a side note, you will find China to be a fascinating place to visit!

For payments, yes, the escrow function is good - for bigger volumes, go L/C, with condition of passed inspection report.

Hope that helps.

Cheers,
Max

[kahoel117]

@yuemax - its too bad i'm only buying small quantities of goods at present. but will eventually grow bigger and take the trip to china.

@J9 - so you have been buying from alibaba for a while then ?

[kahoel117]

thanks for the website. dont think its better than alibaba/aliexpress. dhgate is also nice since it gives buyer protection just like aliexpress.
but like yuemax said , you dont have direct dealings with the suppliers.