If you just started a new business and you are looking for a supplier from China, the small factory is the best to consider as they provide low prices and MOQ. However, you have to make sure that the China small factory you want to source from is legitimate and they produce the goods that you require at a good quality. This is because of the rising number of scams and factories producing low-quality goods. Below are some points you should know if work with a China small factory.
The evaluation of a small factory can be done through the following 4 ways
Many customers search for information on the Internet, but they are often cheated. Because of the information that the website provides, you must not believe completely.
When you work with a small factory, you have to evaluate it.
1. Checking their information on the website
The easiest way to find out how legitimate a factory is to go through their website. Check their return policies, how they deal with damages, their contact information and if they have provided a physical address.
All these factors should be put into play because most scam factories provide fake information such as a fake physical address. You can confirm if the address provided is real or fake by checking on Google maps or asking a third party to visit the site to verify the address. Because many small scale factories in China only have a few people, it is not at all as said on the Internet.
Also, search the factory’s name with keywords such as “scam” or “best”. Factories will always leave a trail of their reputation on the internet. This will help you sort between fake and legitimate factories.
2. On-site Visiting
Paying China small factory a personal visit is the best way to verify that your supplier is legit.
This also helps you to have a face to face conversation on the products you want from the factory, price negotiations, quality verification and how the deliveries will be carried out.
3. The testing report of Evaluation/ factory audit
Inspection of a potential supplier factory can be carried out by auditing firms at a fee. Before you send an auditing firm, inform your supplier that you want their products and production process inspection.
If a factory starts acting fishy and evasive to the idea of an audit, it’s probably because the factory doesn’t exist and they are just a fraud. Once a factory inspection is carried out, the hired firm will give you their report, and you’ll decide whether to carry on business with the supplier or to cut ties.
4. Look for references
To prove that a company provides are legitimate and that they provide quality goods, ask them for their current or previous customers who can second their claim.
The types of China Small Factory
There are two main types of small factory in China: Home-based workshops/factories and Well organized small scale factories.
When you work with small factory in China, you will definitely encounter them. Knowing them in advance will make you more clear about how to choose
1. Home-based workshops/factories
Home-based workshops are workshops used to produce low-value products which are usually provided as orders for bigger companies or directly for clients. These workshops help reduce manufacturing costs and time taken to deliver large orders for bigger companies.
For example, a home-based workshop that specializes in making custom bookmarks was hired to make hundreds of bookmarks in 3 days by a Shantou based trading company. This provided work for the small factory owners and cut costs for the trading companies that hired them. It also made sure that the company hit the 3-day deadline.
2. Well organized small scale factories
Small-scale factories are usually specializing in one or more products. They have a well-structured factory where the manufacturing and assembly of goods take place.
These types of small factory are very good for small businesses as they offer competitive prices compared to bigger companies.
The advantages of small factory
Small factory plays a significant role in the market. They are an essential part of a small or new business. So what are their advantages?
1. Lower MOQ
They provide a small or new business with a small number of goods as they require. Compared to bigger companies, small factory offers their customers a lower MOQ for the products they need.
2. Lower unit price
They also offer a lower price per unit compared to larger companies. This makes it easier for new businesses to kick off with cheap and quality products. The lower price is mainly because of the low production cost per unit compared to bigger companies.
3. Higher flexibility
The small factory is highly flexible in terms of price, MOQ and the products they make. They can even offer to customize your order, although at a slightly higher price. They are also flexible in terms of MOQ as they have room for negotiations for smaller MOQ’s.
4. Higher efficiency
They are higher efficiency in terms of processing and shipping your order. This is because they don’t have a complicated system starting from manufacturing to filling. They have simple, efficient operations.
You should pay attention to payment security
When choosing a supplier, always make sure the type of payment method they offer assures the safety of your funds. Many importers have lost their funds to fake suppliers or have paid only to receive low-quality products.
When you work with China small factory, please choose a payment method that will allow the supplier access to the funds only when you receive your goods and inspect them. These payment options include Escrow service which has gained popularity in China. If Escrow they not totally accept, you can choose 30% deposit and 70% balance payment once you confirmed the bulk products. That will be more safety.
With the development of e-commerce, many foreign sellers have sprung up to purchase in China. In order to get a lower MOQ, they choose to cooperate with small factories. While providing convenience, there are also unsafe factors.
The factory of small desk square flees very easily roll money, final goods also cannot take money also cannot return. In this case, I suggest that the foreign sellerS would better find a Chinese agent to help evaluate the factory and inspect the goods, and arrange the transportation, so as to ensure the smooth procurement in China. Compare with several China sourcing agent, runsourcing has very low price threshold, MOQ 25$ that you can hire a professional team.
The previous article for your reference, hope can help you. Of course, if you have any questions please leave a comment to us.