MO D U L E 26

Source from the region that specializes in the

product
Notes on sourcing ▶▶ See the handout with map of regions and products
▶▶ If the factory is not in the area that manufactures
out of China that product, this is a red flag
Trading company vs. factory
◊◊ This does not always matter; sometimes factories don’t
speak English and a trading company is necessary
▶▶ Non-English speaking factories tend to only work
through trading companies
◊◊ Working with trading companies doesn’t mean a bad

Module 26
price
◊◊ If a trading company has a wide variety of product
categories, items might be marked up. Investigate this
▶▶ On the contrary, if a trading company only has
a couple of factories and has a specific product
specialization, this is a good sign.
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SOURCING SUGGESTIONS
Alibaba: the most popular sourcing site PLMA.com
◊◊ For large quantity orders. (Private Label Manufacturers Association)
◊◊ Dozens of suppliers and their products ▶▶ Annual tradeshow in Chicago.
▶▶ List of vendors/manufacturers on website - good
available here.
◊◊ Aliexpress: Sister site for smaller quantities if you can’t make it.
▶▶ Cater to private label sellers.
(generally higher price per unit).
▶▶ Ordering small quantities is not recommended,
ASD show in Las Vegas’ convention center
not even for “testing” products.
▶▶ Held 2x/year.
▶▶ You should be ok with launching a product with
▶▶ “Source Direct” area where you can speak
large quantities if you’ve done your homework.
directly to manufacturers.
▶▶ Exception: if the product is totally new that
nobody is selling.
Chinese trade shows (previously mentioned)
GlobalSources.com ▶▶ Yi Wu market.
▶▶ Canton Fair.
▶▶ Higher level factories.
▶▶ Other trade shows in Hong Kong.
▶▶ Not as complete as Alibaba.
▶▶ Not just Chinese factories - other sources from
Specialized trade shows
places like the US and India.
▶▶ Beauty and cosmetics: CosmoProf in Las Vegas.
en.52.WMB.com ▶▶ Pet stuff: PetExpo in Orlando, FL and Superzoo
in Las Vegas.
▶▶ Suppliers AND purchasers from 30+ countries.

For US manufacturers:
▶▶ Thomas Directory.
▶▶ MOQs tend to be higher.

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MODULE 26
Sourcing agents
A note on topicals and
edible products
◊◊ If your product is anything that
will be placed on the skin
(such as lotion or makeup)
or eaten (such as health
supplements, food and drink),
it is recommended to source
Reverse engineer your competition
in the US or Western Europe,
and NOT in Asia; customers will
feel much more comfortable
buying your product.
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F R E E D O M TI C K ET
◊◊ These are people/companies that specialize in
finding you your products.
◊◊ Tell the sourcing agent what kind of product you
want (be as specific as you want) and they will find
multiple sources, vet the samples, and negotiate
the best price for quality.
◊◊ Fee charged for services, as flat fee OR
percentage of your total order with the supplier.
◊◊ This is an excellent option despite the fee, as
most manufacturers aren’t actually on Alibaba for
several reasons:
▶▶ Manufacturers must pay to be on Alibaba.
▶▶ Factories often don’t speak English, or have few
staff that can.
▶▶ Factories are making money perfectly fine
without being on Alibaba or at trade shows.
◊◊ Excellent opportunity to find products your
competition doesn’t know about.
◊◊ SourceFrom.Asia
◊◊ Sites for searching bills of lading (BOLs):
▶▶ Importdata.com.
▶▶ Importgenius.com.
▶▶ Panjiva.com.
◊◊ For a fee, use the sites to reverse search your
competitors’ store names if in the US.
▶▶ Find their BOLs to see what they’re importing,
then order a sample off of Amazon (for a random
instead of factory-groomed sample).
▶▶ Or search a specific product - find factories
bringing in that specific product (anyone
importing, whether private label sellers or big
box stores).
▶▶ Find the suppliers and contact them.
▶▶ Good info for finding out who competitors
are using.
4
 F R E E D O M TI C K ET

ABOUT PRODUCT SAMPLES

(WHETHER FROM CHINA OR ELSEWHERE)
Request samples from several factories - 3-5
recommended
◊◊ This gives you a good idea of quality for price
◊◊ Could negotiate prices when comparing to others
◊◊ Sample you receive will be the best version they
can offer (of course)
▶▶ Ordering off of Amazon from the same supplier
gives you a more accurate random sample
If using sourcing agent, they’ll collect all of
the samples from different factories and send
them to you all together (rather than one by
one)
Sourcing agents are useful for speaking the
language and understanding the culture of
the factory

Ask for business licenses

◊◊ Make sure item quality stays the same if you nego- ◊◊ You
Negotiate price
can determine if the company is a factory or
a trading company by the license
tiate the price down; specify traits you want and
check for any changes/corners cut
◊◊ You can also request an inspection company to do
a factory inspection if you want to verify they are
legitimate
Check their certifications
▶▶ Costs around $300 to $500
▶▶ See links for recommendations
You will be charged for shipping, even if you
get a free sample ◊◊ Check for export license (factory should have it)

◊◊ Negotiate: if you order with them, ask them to de-

duct the sample’s cost (shipping and sample price)
off of your first order you place with the factory

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MODULE 26

COMMON QUESTIONS
TO ASK THE FACTORY
WHEN VETTING THEM
(Note: If they don’t reply within 48 hours
of initial contact, it’s recommended you
eliminate them from your considerations,
as this is likely indicative of their
promptness of communication)

◊◊ How large is your factory? How many workers?

◊◊ What is your unit production capacity?
◊◊ How much business do you do in (specific regions/
countries)?
▶▶ If they mainly manufacture for Asia, standards
may be lower than manufacturing for the US/
Western Europe.
◊◊ Who are your biggest customers?
▶▶ You can ask this at trade fairs and then Other things to note
research them.
▶▶ If large retailers/big box stores are among
◊◊ Search for their name online to see if they
are legitimate.
them, this is a good sign since large retailers tend ◊◊ Check them on SupplierBlacklist.com
◊◊
to have high standards and strict rules.
Have you had any social or technical audits?
◊◊ After you’ve ordered from the same supplier a few
◊◊ What products do you specialize in?
times, ask what their up and coming products are
▶▶ You could find items not publicly
▶▶ If fewer products or a specific product
announced yet.
category, they are probably highly skilled in them ▶▶ Get better pricing!
▶▶ If several products/categories, they are likely
lower quality.
◊◊ If possible, visit the factory and meet with them

◊◊ What is the largest product you make?

in person.

◊◊ What in-house testing do you conduct? ◊◊

▶▶ Example: do they inflate airbags? Heat up
items? Use cooking apparatus in cooking?
▶▶ This will strengthen your relationship greatly.
Some manufacturing cities have display areas
where you can view samples on display and also
have them bring requested samples to you.

◊◊
▶▶ 3rd party companies for testing do exist.
Are you a trading company or are you a
◊◊ When discussing the product you have in mind,
provide them with images of examples you’ve
manufacturer?

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