Sourcing Products from Overseas: A Practical Guide
Where to Find Suppliers
Online Marketplaces
- Alibaba / AliExpress — the largest directory of manufacturers, primarily based in China
- Global Sources — similar to Alibaba with a focus on verified suppliers
- IndiaMART — India's largest B2B marketplace
- ThomasNet — for US-based manufacturers
- Kompass — European supplier directory
Trade Shows
Trade fairs remain one of the best ways to meet suppliers face-to-face, inspect product quality, and build relationships. Major shows include the Canton Fair (China), MAGIC (US), and various industry-specific exhibitions worldwide.
Industry Contacts
Referrals from other importers, freight forwarders, or industry associations can lead to established, reliable suppliers.
Evaluating Potential Suppliers
Verify the Company
- Request business licences and export permits
- Check how long they've been in operation
- Ask for references from existing customers
- Look for third-party certifications (ISO, BSCI, etc.)
- Verify their factory exists (not just a trading company reselling)
Request Samples
Always order samples before committing to a large order. Pay for them — free samples often don't represent actual production quality. Compare samples from at least 2–3 suppliers.
Assess Communication
How a supplier communicates during the quoting phase often predicts how they'll handle issues later:
- Response time and clarity
- Willingness to answer detailed questions
- Transparency about capabilities and limitations
- English proficiency (or availability of a reliable contact)
Negotiation Basics
Price
- Get quotes from multiple suppliers to understand the market rate
- Don't always choose the cheapest — quality and reliability matter more
- Negotiate based on volume commitments and payment terms
- Ask about price breaks at different order quantities
Payment Terms
- New suppliers: Consider starting with a small order using secure payment (e.g., Trade Assurance, letter of credit, or escrow)
- Established relationships: You may negotiate 30% deposit / 70% before shipment, or even net payment terms
- Avoid 100% upfront payment with unknown suppliers
Minimum Order Quantities (MOQs)
Most manufacturers have MOQs. You can sometimes negotiate lower MOQs for a first order at a slightly higher per-unit price. This reduces your risk while testing the supplier.
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Quality Control
Pre-Production
- Provide detailed specifications, drawings, and reference samples
- Agree on materials, dimensions, colours, and tolerances in writing
- Request a pre-production sample for approval before mass production
During Production
- Consider hiring a third-party inspection company to check goods during production
- Common inspection points: initial production, during production (30–50% complete), and pre-shipment
Pre-Shipment Inspection
A final inspection before goods ship is your last chance to catch problems. Third-party inspection services are available globally and typically cost a few hundred dollars per visit.
Building Long-Term Relationships
The best supplier relationships are partnerships. Once you find a reliable supplier:
- Pay on time, every time
- Provide clear, consistent communication
- Give reasonable lead times
- Share sales forecasts so they can plan production
- Visit the factory if possible
A trusted supplier who prioritises your orders and maintains consistent quality is one of the most valuable assets in your import business.
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