All the steps you need to take if you want to produce in China
In this guide, we show you the steps you need to take to make wholesale, custom-made products in China that you can then sell in Europe or Italy. In fact, this process is made up of several very important steps.
For example, let’s say you’ve already found a supplier. To start the production cycle, you’ll need to sign a sales contract with him. In particular, this agreement will give you the right to:
establish the design, quality, and functions of the product to avoid any misunderstandings that could lead to problems with quality and to make sure the supplier does everything you want him to do.
Make the first stages of production go more smoothly by making a plan or structure to follow.
Don’t forget to include all of the product specifications and details in the contract you will sign. This will protect you in your relationship with the manufacturer, who will have to make your products according to your specifications and won’t be able to do things on their own.
If you don’t want to have to talk about the terms of the sales agreement every time you buy something, we suggest you put in the contract:
What do you mean by “defective product”? List the possible flaws. How many flaws are okay? What are the payment and compensation terms? What is the minimum order quantity? What are the safety and technical rules that must be followed?
graphic files and labels; tests to see if the rules are being followed; the method of shipping.
the type of packaging needed for export and the production plan, which includes the first order and any orders that come after it.
the bank’s name and address;
a clause that will protect you if delivery is late
After the negotiations are done, the contract must be signed by the company’s legal representative, who is listed on the business license, and stamped with the company’s stamp. Even if you are offered a digital copy of the contract, we recommend that you ask for the original on paper.
Produce in China after signing the agreement
Before starting production, the supplier may ask you to pay a deposit. To avoid the risk of fraud, we suggest you pay only the amount written in black and white to the current account listed in the agreement. If you don’t want your bank to send your payment back, make sure your bank information is correct. So, it will be a good idea to carefully check:
The name: Chinese companies are longer than the space available to make the transfer, but you can’t shorten it. If it keeps going in the message box;
The bank will turn down the transfer if the address is not correct. The current account must include the swift code and address of the bank. The currency is usually in dollars.
Send proof of payment as soon as the payment has been made to make sure the bank has logged the transaction. Check to see if the supplier has received the deposit within two to three business days. If he hasn’t, tell him that production will begin as soon as he gets the money and that you expect the goods to be ready for inspection by the date that was agreed upon in the contract.
Manufacture mass-produced goods in China
Even though the process of making goods is different for each type of product, we can generalize the steps and times as follows:
between 10 and 20 days to buy parts and materials from subcontractors; between 10 and 15 days to work on company parts and materials; between 5 and 8 days to put the pieces together; and between 1 and 2 days to pack everything up.
Even if you’ve been sent a prototype, you can ask the supplier to make a certain number of samples first. If everything looks good, you can give the supplier the go-ahead to make a lot of them. This could slow down production, but it could also keep problems with the quality of the products from happening. You can also ask for regular updates on how the production is going, and when the batch is almost done, your quality control officer can check it out.
Wholesale Customized Products: the quality control phase
Quality control is used to make sure that the products meet the required specifications, are safe, and are labeled correctly according to the rules. Tests are done to make sure that the products meet the requirements listed in the sales agreement.
If you can’t go to China yourself, you can hire a Chinese company to do this check for you based on a clear and precise checklist that you give to them. We suggest that you get in touch with the company a few weeks before the products are finished to confirm the price and the address where the samples should be sent. You will also need to tell the agent who will do the check to get samples from the factory and send them to the company that needs to do the tests. The person in charge of quality control must take samples that you specify. Then, get in touch with the company that did the tests to make sure the products meet the standards.
Most people who decide to make wholesale custom products in China send an inspector when some of the parts are already packed and the products are mostly put together. The check is done according to a set of rules, and you should get the results in 24 hours. They will include:
the report with the results of the tests, including measurements and conclusions based on the result that was asked for; videos and photos that show what was done, what problems were found, and how the tests were done.
You will also get samples from the batch from which the tests for compliance were done: After you get the material, you will need to get the final cost from the company that did the tests.
You can now decide whether or not to approve the batch of products.
Producing in China: what happens after the balance is paid
Once you pay, you can’t get your money back, so don’t pay until you’ve seen if the products need to be changed. Almost all suppliers wait to ship the goods until they get paid, but you may have agreed to something different in the contract.
The shipment is handled in accordance with the sales agreement’s Incoterms, which state:
Ex Works (EXW): You must send a freight forwarder to the supplier’s factory to pick up the goods and bring them to the port of embarkation in China. You also need to think about getting the goods through customs;
Free on Board (FOB): The supplier brings the goods to the port of embarkation and takes care of customs, but you have to figure out how to get them from the port of loading to the port of destination.
Cost, insurance, and transportation to the destination port (CIF) are all included in the free on board, but port taxes and transportation costs to the country of arrival are not.
Delivery to the terminal (DAT): Everything in the CIF, plus port taxes, but not internal transport;
Delivery to the place of destination (DAP) includes everything in the DAT plus transport to your warehouse.
Obviously, the supplier or shipper will have to give you all the transport documents, such as a commercial invoice, bill of lading, and packing slip.
How to manufacture Wholesale Customized Products in China without problems
If you’ve read this far, you know that making things in China is a complicated and risky process. If you don’t keep track of every step and detail, you could end up with goods that can’t be sold and lose money.
We can help you with:
Finding vendors with good reputations and licenses;
quality assurance checks before shipping;
Sending large packages to Amazon’s store, warehouse, or Amazon Logistics;
Setting up the making of custom packaging, and a lot more!