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.

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.