Three Simple Ways How To Find Factories In China

Summary

In this video, Spencer from Solo Stove shares his expertise on finding the right factory in China for your online business. With 12 years of sourcing experience and having lived in China, Spencer offers three methods: using platforms like Alibaba, attending trade shows, and engaging US-based sourcing companies. He emphasizes evaluating suppliers, building relationships, and considering US manufacturers as an alternative. The video provides practical tips for entrepreneurs looking to manufacture products successfully.

Takeaways

• 🌐 Finding the right factory in China is crucial for the success of online businesses.
• 🏭 The speaker has extensive experience, having worked for a sourcing company and lived in China for nine years.
• 🔍 Three primary methods to find factories in China are discussed: online platforms, trade shows, and US-based sourcing companies.
• 📈 Online platforms like Alibaba, Global Sources, and Made in China can connect buyers with suppliers but require careful evaluation.
• 🏷️ When using online platforms, look for suppliers with a long history, verified badges, and a focused product offering to avoid middlemen.
• 📚 Industry-specific trade shows are recommended for face-to-face interactions, which can help build relationships and assess supplier quality.
• 🤝 US-based sourcing companies can provide valuable connections and expertise but may add an extra cost layer.
• 💡 The importance of finding a factory interested in a long-term relationship is highlighted, as it can significantly impact business growth.
• 🎯 A bonus tip suggests considering US manufacturers as an alternative to Chinese factories, especially for startups with smaller order volumes.
• 🚀 The video aims to guide entrepreneurs through the process of finding a suitable factory, emphasizing patience and persistence.

Q & A

What is the importance of finding the right factory in China for online businesses?

Finding the right factory in China can make or break an online business due to the significant role manufacturing plays in product quality, cost, and supply chain reliability.

How long has the speaker been involved in sourcing products from China?

The speaker has spent 12 years working for a sourcing company and has lived in China for nine years after graduating college.

What is the speaker's name and what business did he co-found?

The speaker's name is Spencer, and he co-founded Solo Stove.

How much revenue did Solo Stove achieve in the past year according to the speaker?

Solo Stove achieved sales of over 250 million dollars in the past year.

What are the three methods the speaker suggests for finding factories in China?

The three methods suggested are: 1) using online platforms like Alibaba, 2) attending industry-specific trade shows, and 3) using a US-based sourcing company.

Why should one be cautious when a supplier on Alibaba is new to the platform?

One should be cautious with new suppliers on Alibaba because they may not have a proven track record, increasing the risk of scams or unreliable service.

What is the significance of a supplier having a 'Verified' or 'Gold Supplier' badge on Alibaba?

A 'Verified' or 'Gold Supplier' badge indicates that the supplier has paid for these statuses, showing a level of commitment and legitimacy, making the company appear more trustworthy.

Why should one avoid suppliers that offer a broad selection of different products on Alibaba?

Suppliers with a broad product range are likely trading companies rather than actual factories, which can lead to higher risks due to their role as middlemen without direct control over production.

What advantage does attending trade shows offer when searching for suppliers?

Trade shows offer the advantage of face-to-face interaction, allowing for direct communication, product sampling, and prototype discussions, which can help build relationships and assess supplier quality.

Why might a US-based sourcing company be a good option for finding a Chinese factory?

A US-based sourcing company can be beneficial as they have expertise in working with Chinese factories, potentially saving time and reducing the language and cultural barriers.

What is the bonus tip the speaker provides for those who find it difficult to start with Chinese factories?

The bonus tip is to consider finding manufacturers within the US, which might offer better communication, faster shipping, and a familiar working culture, despite potentially higher costs.

Outlines

00:00

🏭 Finding Factories in China: The Key to Online Business Success

Spencer, co-founder of Solo Stove, shares his extensive experience in sourcing products from China, having spent 12 years in the industry and living in China for nine years. He introduces viewers to his video series, which aims to guide entrepreneurs in building an online business from the ground up without selling any products. Spencer outlines three methods for finding factories in China: using online platforms like Alibaba, attending industry-specific trade shows, and engaging with US-based sourcing companies. He emphasizes the importance of evaluating suppliers on these platforms by looking at their history, trust badges, and product offerings to distinguish between genuine factories and trading companies. He also stresses the value of face-to-face interactions at trade shows for building relationships and assessing potential partners.

05:02

🔍 Deep Dive into Sourcing Strategies and Bonus Tips

In the second paragraph, Spencer elaborates on the benefits of working with US-based sourcing companies, which can facilitate communication and understanding of business needs due to shared language and cultural understanding. He advises entrepreneurs to be patient and persistent in finding a factory that is interested in a long-term relationship, drawing a parallel to the dating process. Spencer also offers a bonus tip, suggesting that starting with a factory in the US might be advantageous for small startups due to easier communication, potentially faster shipping times, and a familiar business environment. He encourages viewers to explore domestic manufacturing options and to consider the long-term benefits of a strong initial partnership, even if it comes with higher upfront costs.

Keywords

💡Sourcing

Sourcing refers to the process of identifying potential suppliers or manufacturers for a product or service. In the context of the video, the speaker has extensive experience in sourcing products from China, which is crucial for businesses looking to manufacture goods at scale. The video emphasizes the importance of finding reliable factories in China to ensure the success of an online business.

💡Alibaba.com

Alibaba.com is a global online marketplace that connects businesses with manufacturers and suppliers. It is mentioned in the video as a primary platform for finding factories in China. The speaker advises using Alibaba's filtering tools and looking for suppliers with a history on the platform, as well as those with trust badges like 'Verified' or 'Gold Supplier', to ensure legitimacy.

💡Gold Supplier

A 'Gold Supplier' is a term used on platforms like Alibaba to denote suppliers who have paid for a premium membership, indicating a higher level of commitment and reliability. The video suggests that looking for suppliers with this badge can be a way to filter out potentially less trustworthy suppliers when sourcing from China.

💡Chinese Trading Company

A Chinese trading company is a business that acts as a middleman, buying products from manufacturers and then selling them to other businesses. The video warns that these companies may not own or operate factories and can pose a risk due to their transient nature. The speaker advises looking for suppliers that are actual factories, which are more likely to be stable and reliable partners.

💡Trade Shows

Trade shows are industry-specific events where manufacturers and suppliers showcase their products to potential buyers. The video suggests attending trade shows as a method for finding factories in China, as it allows for face-to-face interaction and the opportunity to build relationships with suppliers. This can lead to more personalized service and a better understanding of product requirements.

💡Sourcing Company

A sourcing company is a business that specializes in finding and managing suppliers for other companies. The video mentions that using a US-based sourcing company can be beneficial due to their expertise and existing relationships with Chinese factories. However, it also points out that there is an additional cost associated with using such services.

💡Prototypes

Prototypes are preliminary models of a product used to test and refine its design before mass production. In the video, the speaker mentions the importance of being able to show prototypes to suppliers at trade shows, which can help in the development of the final product and ensure that the supplier understands the product's requirements.

💡Volume

Volume in the context of manufacturing refers to the quantity of products produced. The video explains that Chinese factories often operate on a large scale, making it difficult for small startups with low volume requirements to establish partnerships. The speaker suggests that startups may need to consider alternative manufacturing options if they cannot meet the volume expectations of Chinese factories.

💡US-Based Manufacturers

US-based manufacturers are companies within the United States that produce goods. The video offers the option of looking for manufacturers within the US as an alternative to Chinese factories, especially for small startups. This can provide benefits such as faster shipping times, a familiar working culture, and less paperwork for importing.

💡Relationship Building

Relationship building is the process of establishing and maintaining positive connections with others, which is crucial in business. The video emphasizes the importance of building relationships with suppliers, as this can lead to better service, more personalized attention, and a stronger partnership. The speaker shares personal experience of the challenges in finding the right factory partner but highlights the benefits once a good relationship is established.

Highlights

Importance of finding the right factory in China for online business success.

The speaker's extensive experience in sourcing products from China.

Three methods to find factories in China.

The use of online platforms like Alibaba for finding factories.

The challenge of sifting through numerous suppliers on online platforms.

Advice on using filtering tools and looking for trust badges on platforms.

The risk of dealing with Chinese trading companies versus actual factories.

Attending industry-specific trade shows as a method to find suppliers.

Benefits of face-to-face meetings at trade shows for building relationships.

Using US-based sourcing companies to leverage their existing relationships with Chinese factories.

The added cost and benefits of working with a sourcing company.

The importance of finding a factory interested in a long-term relationship.

Solo Stove's journey in finding the right manufacturing partner.

Bonus tip: Considering US-based manufacturers for startups.

Advantages of working with US manufacturers despite potential higher costs.

Encouragement to be patient and persistent in finding the right factory.

Summary of the methods presented for finding factories in China.

Transcripts

finding the right factory in china can

make or break your online business i

spent 12 years working for a sourcing

company sourcing products out of china

i've even lived in china for nine years

after i graduated college so i've got a

lot to share with you and in this video

i'm going to tell you the methods i use

to find factories in china so that you

can do the same

[Music]

thanks for watching this episode of step

by step my in-depth video series where i

share all i know about building a

business online from scratch my name is

spencer and i co-founded solo stove we

started in a garage with 15 000 bucks

and over the past year or so solo stove

has had sales of over 250 million

dollars don't worry i have nothing to

sell you i make these videos purely to

help other entrepreneurs start selling

online so if that's you hit that

subscribe button let's get to it

i'm going to walk you through three ways

to find factories in china i'll also

touch on tips to help you evaluate them

so you know whether or not they're a

good fit for your company then at the

end of the video i'm going to give you a

bonus tip that most people aren't

thinking about so be sure to watch to

the end the first and most accessible

way to find a factory in china is to

start on alibaba.com or other online

platforms like global sources or made in

china these platforms they help connect

factories and suppliers in china to

buyers from all over the world the

tricky part with them is that there are

so many listed suppliers that it's hard

to sift through all of them and know

whether or not you found a good one or

if you're gonna get scammed so use their

filtering tools and look for suppliers

that have been on the platform for a

number of years the more the better and

if you find a supplier that's new to the

platform i'd say be careful also look

for other trust badges that the platform

gives out like the verified badge and

the gold supplier this usually means

that the supplier is paying to be on the

platform which does show some level of

commitment and to me makes the company

more legit also pay attention to the

product offering a supplier shows if

it's a broad selection of all sorts of

different products they're probably a

chinese trading company and not a

factory chinese trading companies buy

from factories and are the middlemen

they don't own or run a factory they

usually operate with like a really small

team and can pop up and close down with

relative ease so there can be more risk

if you end up dealing with a trading

company when looking for suppliers on

alibaba or any other similar online

platform you want to find a supplier

that only sells one type of product

because a real factory is limited by

their machinery and they can usually

only make a narrow scope of products it

may be that they can only do plastic

injection molding or steel work or

aluminum extrusions or faucets or toilet

seats so look out for this cue if they

show online a bunch of different

products be careful in general online

platforms are good but you have to know

what you're looking for the ease of use

makes shady scammers all the more

attracted to these platforms so be super

careful the next method i like to use is

to attend industry-specific trade shows

prior to covid it was easy to hop over

to china and walk a trade show or two in

just a few days at these trade shows you

can find suppliers who have spent a lot

of money to be in front of quality

buyers and when both sides spend money

to find each other it usually weeds out

those that aren't serious trade shows

are great because you can meet face to

face and talk about your product

together you can touch and feel samples

and show them your prototypes and what's

best about face-to-face is that you can

build a relationship with a supplier and

this can make a ton of difference so

look up industry trade shows that are

related to your market and when it's

convenient to travel find cheap flights

and spend some time at these shows also

remember that there are a lot of trade

shows domestically as well a lot of

chinese factories and suppliers will

make the trip and attend so if you're

not adventurous and you want to stay in

country find the trade shows within the

united states and when you can't travel

to any shows or you just don't want to

you can always spend time on the trade

show websites this is a great place to

look up all the exhibitors from current

and past shows these lists are usually

free and easy to download spend time

looking up each supplier and see if you

can't find one that meets your needs

knowing that they were there at the show

you can assume that they're a pretty

decent lead i found lots of good

suppliers this way including one that

made products for rei and a handful of

other top tier outdoor gear brands okay

the third way to find a factory in china

is to use a us-based sourcing company

these companies are middlemen but

they're skilled at working with chinese

factories they might already have

existing relationships with factories so

piggybacking off their experience and

relationships can be really good the

downside is that they need to make money

too so there's an extra layer of cost

added on when you use a sourcing company

but they exist for a reason and they are

often worth the added cost the benefit

to you is that you can work with someone

who speaks your language natively and

who can understand your needs and

possibly even your customers needs by

finding a sourcing company within the

u.s you can cut down the need to work

two time zones and eventually spend less

time sourcing and dealing with factories

in china and spend more time on the

other aspects of your business to find a

us-based sourcing company just search on

google for companies in your area meet

up with them and start talking with them

understand the process and the financial

commitment required to get started talk

with a few of them and compare and

before you know it you'll be talking the

talk and could quickly have some great

options to get your product made finding

the right factory in china to make your

products is very much like dating they

need to be attracted to you and you to

them and if they're not interested in

the relationship it doesn't matter how

bad you want them to make your product

it just won't happen understand that

factories in china are complex and you

won't understand all the customer

relationships they have so don't be

surprised if they're not interested in

your business just move on and keep

looking finding a factory that wants to

develop a relationship with you can be

amazing when we started solo stove it

took forever to find the right partner

we actually shelved the idea to start

solo stove for a year because it was so

hard to find the right partner who

wanted to take a risk on a small startup

but when we found the right partner it

was amazing and things took off fast

just be patient and persistent and

you'll find a great factory in china

okay here's the bonus tip i promised you

china is full of great factories but

i've always said that starting in china

can be hard especially for small

startups because factories they run off

of volume and if you don't have large

volumes it can be difficult to start in

china on the other hand i believe there

are great opportunities within the us to

find manufacturers and since you're able

to communicate well with them i believe

finding a factory in the u.s is a great

option it may cost more but if that's

what it takes to get up and running i

say it's worth exploring you can always

find ways to reduce costs later so if

you're looking for an alternative to a

factory in china look within the us and

see what you can find who knows the

perfect partner might be right here at

home if they are you'll benefit from

faster shipping times a familiar working

culture and less paperwork when it comes

to importing so there you have it find a

factory in china by searching online

through alibaba and other platforms

visit trade shows or just download the

exhibitor list from their websites or

search for us-based sourcing companies

who can help you find a factory in china

these are the ways i find factories in

china it's really that simple if you

have any questions about finding

factories in china leave a comment down

below i'll be sure to answer it and if

this video was helpful help me out by

hitting the like button and remember to

subscribe and if you're looking for more

videos on how to start your own

e-commerce business from scratch here's

a link up in the card to my other

step-by-step videos until next time good

luck work hard and i'll see you in the

next video

[Music]

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