We often say that you can’t truly know if a supplier is reliable until you work with them. However, you can gauge their reliability during the initial communication and filter out those who seem unreliable from the start.
Dealing with suppliers is like interviewing potential employees; it’s not just casual talk, but purposeful questioning to assess their abilities. I’ve put together 11 questions you can ask suppliers and I’ll explain why to ask these questions and what you can learn from their answers.
- Inquire about product details thoroughly
- Copyright concerns in supplier products?
- Is there any necessary product certification?
- Request supplier quotes for various incoterms
- Will suppliers refund the sample fee on full order?
- Ask about Amazon FBA box dimension requirements
- How long is product manufacturing lead time?
- How do suppliers handle quality inspections?
- What are the shipping charges?
- Is a more favorable payment term available?
- What payment options do you accept?
Inquire about product details thoroughly
Try asking suppliers detailed questions about the product. Qualified suppliers know their products very well, discuss details thoroughly, think of points you might miss, and offer cost-saving solutions. They might even recommend the best-selling products in your local market.
Whereas, an inexperienced supplier may not be able to answer your questions in detail, especially if your product is complex and specialized. And they communicate poorly, only answering what you ask, making the process time-consuming and frustrating.
Also, you can tell if a supplier values your order by how detailed and effective their solutions are, how quickly they respond, and whether they clearly understand your needs.
Copyright concerns in supplier products?
Your supplier might be providing the same product to various buyers, leading to many people selling identical products under different brands — this is quite common.
It’s best to clarify with your factory or supplier whether the product is their own creation, imitated from others, or an improved version based on existing products. Their original creations won’t run into infringement issues, but for products that are imitated or modified, it’s crucial to conduct a patent search to check if they’ve avoided the original design.
Is there any necessary product certification?
Many products require specific certificates for customs clearance or selling, especially for certain sensitive items.
Taking imported toys as an example, if you want to ship them to the United States, you need to have standard tests such as ASTM F963, CPSIA, etc. If your target market is in the European Union, then you need to have EN 71 with CE marking, etc.
If your supplier can not provide these certifications, then you need to hire a customs broker and freight forwarder to help you, which will increase your costs. So I suggest you work with vendors who can provide test reports.
Request supplier quotes for various incoterms
It’s totally fine for you to ask suppliers about different quotes because their meanings are different. For instance, FOB prices include costs up to loading on the vessel, while EXW prices only cover the product cost, as it is transferred at the supplier’s premises.
By obtaining multiple quotes, clients can choose the most suitable trade terms based on their specific needs, enabling better cost control, logistics planning, and risk management.
Will suppliers refund the sample fee on full order?
Generally, suppliers will agree to refund sample fees if a full order is finally placed, especially in today’s tough economic climate where they aim to retain business.
However, if not asked upfront, sellers might claim ignorance and not refund the fee, especially for samples involving higher costs like mold-making fees. Therefore, it’s important to confirm with the supplier beforehand about sample fee refunds to save costs effectively.
Ask about Amazon FBA box dimension requirements
Each country’s Amazon FBA service has different box dimension specifications. For instance, in the United States, boxes must not exceed 25 inches in their longest dimension and weigh more than 50 pounds. In Australia, the total length, width, and height combined should not exceed 118.11 inches, with a maximum weight of 48.5 pounds.
Asking suppliers about these details helps assess their expertise and saves you time on independent research. It can also help prevent future issues with mismatched box sizes, ensuring smoother logistics and compliance.
How long is product manufacturing lead time?
You need to fully consider the production lead time and determine if there is any possibility of delays, to avoid receiving goods too late and affecting your business. Especially when you want to import trending products or create a new product.
Many suppliers handle multiple orders at once, so they are very busy and can’t focus only on your order. Sometimes, your order might take up to three months to produce. If you need the goods urgently, you can look for other suppliers with a shorter lead time. Maybe their production capacity is bigger, or their production schedule is not very full yet.
How do suppliers handle quality inspections?
You can inquire about their quality control processes, including the inspection sampling rate and defect rate. Also, find out how compensation is handled if the defect rate exceeds the agreed amount.
In China, third-party QC services are provided by inspection companies or sourcing agencies. You can ask your suppliers about the costs associated with these services in advance.
What are the shipping charges?
Shipping cost is a significant part of the total costs besides product price. You can ask several suppliers for shipping quotations and compare them to know a reasonable range.
Some suppliers may use low-priced products to attract you, but charge more for shipping to make profits. Another case is that your supplier has little experience in shipping goods to your country, and he gets a higher quote from the freight forwarder, which will also increase your cost.
Is a more favorable payment term available?
The most common payment term is to pay the supplier a 30% deposit in advance, and the remaining 70% after the goods are loaded.
If your order is small and you are doing business with this supplier for the first time, there is no room for negotiation. But if you cooperate with this supplier several times, you can negotiate to get a more favorable payment term.
Buyers with orders as large as $50,000 often pay for orders in another way, like O/A 60 days, which is often used for long-distance shipping. It may take 30 days or more to ship. In this case, you would be able to use this cash for financial turnover.
What payment options do you accept?
Suppliers on Chinese wholesale websites provide various payment methods, commonly including telegraphic transfer, online bank payment, PayPal, etc, which are widely recognized internationally.
If your payment methods are less common internationally, such as bill of exchange, it’s wise to discuss this with the supplier in advance to avoid potential additional costs during settlement.
Who can ensure 100% safe supplier audits for you?
The above summarizes eleven basic questions to help you initially evaluate suppliers. However, to truly assess their reliability, you may need to work with them firsthand. Start with a small order to see if the supplier can accommodate your needs during the collaboration.
If you’re a startup navigating the supplier search with limited experience, consider JingSouring.
We can help with supplier audits, including assessing the facility, staff, machinery, and production lines to ensure they can handle your project. Moreover, we can assist with quality inspection processes.
You can also use our suppliers, who have worked with us long-term and can meet your needs well. Especially for customized products, they offer efficient and cost-effective sourcing solutions.
