How to Make Your Stuff in China (opens in new tab)

1. Sourcing: Alibaba.com is best, Global Sources is a near shadow copy but also good

2. Money transfer: For small amounts I'd recommend Western Union.

3. Chosing a supplier.

======================

Ooh this step is tough.

I liked this article because Adam has pounded the pavement in Shenzhen. This is more than I've done, as the flight would blow out the costs before the market was proven (it is now).

One thing you'll notice is that almost all devices on Alibaba are duplicated by about 5 manufaturers. Some of these are re-stockers, not the actual manufacturers. I haven't worked out a foolproof method of checking who the leaf-node manufacturer really is, but do try.

.

4. Interacting

Be professional. Normally there are contact details on the Alibaba page. Use this to initially get in contact. Whoever is listed will probably not be the person who responds, so scan your spam folder carefully for the next few weeks.

Remember that you may be small fry to them until you place a large order

.

5. Shipping

Most things are FOB (Free on Board) which basically means you pay the shipping. Your Shenzhen company contact should be able to provide you with a quote for Fed-Exing a sample. They will arrange the shipment, you just have to pay.

Initial orders can often just be declared as a sample for customs purposes.

.

6. Costs

Volume counts. It reduces the shipping and unit cost, often in big steps. Shipping too has discontinuities on volume with shipping becoming much cheaper if its worth placing on a ship.

For projecting future costs as the supplier how their price list varies with volume, and how the shipping varies too. They'll quote you.

Plug these all in a spreadsheet and work out the unit cost.

.

7. Legal

Do not forget Import Duty and Sales Tax. These vary per country (I'm in UK, but I've also done this in Oz).

But you need to find out how your goods are classified on an Import Duty scale. This tends to be that goods manufactured in your own country have an import duty on similar goods. In my case I'm importing discreet LED displays, which the UK does not make, so I don't pay Import Duty. If I was importing Plasma TVs, it would have a duty.

Check your country's Import Duty website for your classification. Often there is a fine line between entries, where it could be one or could also be another. This is a judgement call which number you choose. The immigration department may disagree with you and you may have to wrangle with them.

This happened to me in Australia, but after some in-person dignified pleading (yes there is such a thing), the Import official accepted my classification. This miraculously had lower Duty than what he'd initially decreed.

.

=================

.

I hope this helps, good luck!

Visit manufacturers in the US (or other developed countries) to study how they do it. Then, go to China and evaluate the factories yourself. You have to see the factory.

If you don't, many times you won't discover that the "manufacturer" you're working with is nothing more than a trading company, taking a cut.

They won't take you as seriously if you don't show up.

You should make follow-up visits afterward to monitor QC. Have rigorous QC methods and standards, and agree to them beforehand.

Also, consider countries such as South Korea, which are more sophisticated manufacturers than China currently but still offer significant cost savings. It depends on the complexity of your product but it may make sense. Labor is much more expensive in Korea though compared to China.

I can answer any other specific questions people have.

Typically we buy electronics, custom PCB, and custom plastic assemblies. That is the bread and butter, with other components as needed.

Ask away for the next 20 minutes. It is 2:40am here, and I will probably go to bed around 3:00am. I will be able to answer as many other questions as are asked, but probably not until Tuesday evening.

Throwaway account because I would prefer to keep my identities separate, mainly because our customers don't want it known that they don't design and manufacture their own products.

Oh yeah, I wouldn't do it the way the author suggested. Maybe I was lucky when I started out and had ways to get contacts in China, but I would definitely try that before just heading over with a half-drawn model.

I personally think that make the mold is the most important part, so if anything that is the part I would not want to give up control on.

What you say echoes my understanding of creating a product 'in China'. Often there are loads of steps where it makes sense to use local talent instead.

This means a lot of the rhetoric of 'jobs going overseas' can be empty.

I think in future that local firms will have a chinese manufacturing partner and list this fact to clients as a 'we save you money this way'. Local expertise with approved baseline manufacturing cost.