One problem smartwatch overseas sellers face is getting a reliable China smartwatch supplier. The infinite number of suppliers in China even makes this a more accentuated problem.
There are so many Chinese smartwatch suppliers and trying to determine which to work with can be an ordeal. Without the right information, you can fall prey to crooks and inexperienced suppliers who would supply you with substandard smartwatch products. Worst still, some may even take your money and not deliver your goods to you. But, how can you avoid these?
In this ultimate guide, you’d get to know-how. You’d get to learn all the modified channels for finding Chinese suppliers and what to look out for before placing an order. Now, without further ado…
How to Identify A Reliable Smartwatch Supplier?
There’s no doubt. Scouting for a reliable smartwatch supplier can be doubly difficult. The reason for this hardship, however, in most cases, is the lack of information.
Overseas sellers often don’t have access to the necessary information. And, this makes it impossible to distinguish the strengths and weaknesses of the many smartwatch suppliers/manufacturers out there.
So, how do you identify a reliable smartwatch supplier when scouting for one? Here are a few things to look out for before you get the ball rolling.
Business Type
There are 3 major business types when it comes to smartwatch suppliers. Understanding how these suppliers operate under these business types will help you to make better decisions.
These business types are;
- Manufacturers: these are companies that specialize in the large-scale production of smartwatches alone. For them, making smartwatches from raw materials and creative ideas is the main goal.
They sell their products to domestic traders, wholesalers, etc. who then distribute them to overseas sellers and consumers. They may also sell to other manufacturers who would use their products in making other products. Original equipment manufacturers (OEM) come to the fore in a scenario like this.
When you deal directly with manufacturers, you’re sure to get more competitive prices. The minimum order quantity of these business types usually ranges from $2,000–$5,000.
However, you are open to a limited range of products with this business type. Communication and service are at the basic level as well. So, you might need a translator if you can’t speak Chinese since you’d be working directly with them.
- Vendors/Trading companies: trading companies on the other hand connect buyers with manufacturing companies. They usually do certain product types with an MOQ of about $1000.
Unlike with manufacturing companies, you have more options when you deal with them. Since they’d only be connecting you to companies you can buy from directly. You can also be guaranteed great communication and service when you deal with them.
If you’re however looking to buy a specific type of product in the market, trading companies mightn’t be the right option.
- Wholesalers: the last business type you can work with are wholesalers. Chinese suppliers that fall under this category sell smartwatches in bulk to overseas sellers.
They have different product ranges as well. As such, dealing with them when you want many options wouldn’t be a problem.
Product Line
Another factor to consider after business type is the product line. Different manufacturers, vendors, and wholesalers usually decide to focus on the product categories. The more specialized the product category, the more like a manufacturer and trading company; the more product variety, the more like a wholesaler.
If you want to deal in smartwatches, you have to work with a business type that focuses on the production/distribution of this type of watch. You’d be barking up the wrong tree if you were to deal with Bluetooth earphones/suppliers in this case.
Location
There’s something you might probably know about the Chinese industry. Its manufacturers tend to concentrate in certain locations. And, in many cases, these locations determine the quality of the product.
For the smart wearable industry, these areas are Shenzhen, Dongguan in Guangdong provinces.
If you’re buying from Shenzhen, for instance, you can rest assured that your smartwatch is quality.
Business History
You’d also want to look at the history of the business type you’re going for. A rule of thumb is the longer they’ve been in the industry, the higher the quality of their products.
Before you can do business with any business type, you’d want to be 101% certain they can handle the job well. Check their years of engagement. That is, how long they’ve been operating and doing business.
Long-term partnerships usually require a minimum of three years of engagement. So, it shouldn’t be difficult to find out how the business type you’re going for is doing through their business license, domain name, and registration time. A great plus is also the photo and video information you can find on social media platforms.
This would help a great deal in helping you pick out the shaft from the wheat.
Main Export Countries
Another interesting way to judge the quality of your suppliers’ products is the main export countries in their portfolios.
Exports to developing countries indicate the product is cost-effective while exports to Europe and the United States show the product quality is high.
South America, the Middle East, and Russia are known not to be good customs clearance countries. Exporting to these locations requires a lot of experience and support and your supplier has to have these.
Confirm They Have Certifications Your Market Requires
We’re sure you don’t want to have your products impounded at your local customs office. This doesn’t only drain you financially, it also taints your image as an honest business person.
This is why it’s more than important you confirm your Chinese supplier if they have all the required certifications.
You want to ensure you have the smoothest importation of your goods. So, confirming what the required certifications are from your local customs clearance agent or an e-commerce platform should be a walk in the park.
Factory Qualification
There’s another thing you mustn’t miss out on when checking for reliable suppliers. These are factory qualifications and standards.
ISO is a great place to start. The International Organization of Standardisation has a set number of standards that govern the production of many products. These standards were put in place to minimize errors and facilitate production.
You can as well check to confirm the factory your product comes from following ISO9001 and SCI standards. These were established to ensure great quality products are manufactured at all times.
Export License
Don’t also forget to confirm your supplier has the right to export goods out of China to your location.
You can select the right supplier with the following
1. Price
Pricing is an important factor in choosing a Chinese supplier. You don’t want to go too high. And, you don’t want to go too low as well. Just a reasonable price is okay.
You cannot just simply go for anyone who offers the lowest price you can get. He could be offering the lowest price for the following reasons;
- The products’ production materials are thinner and less standard
- The actual product size is probably faux. It is smaller than others or smaller than what you have on product specifications.
- The smartwatches are most likely overstocked. That is, they’ve been long forgotten in the manufacturer’s/supplier’s warehouse and they’d like to sell out before they start distributing the newly made products. They might even quote you a much higher price after a new production when you want to reorder in the future.
Even if you’re lucky to work directly with manufacturers, you might experience slight price differences amongst your options. It’s quite normal that there will be about a 10%–30% price difference between them for the same product in the market.
2. Sample
Samples are also a great way to know you’re walking in the light. You don’t have to spend above your means. In addition, it even helps you in making decisions more quickly.
You can ask your chosen supplier for the following:
- Samples in stock
- You can even ask them to newly develop a sample product they can exhibit to you.
Here are the fees you should have in mind when asking for a sample:
- If the product sample can be made by hand – The sample customization fee is between 100—200$
- Customized sample designs could cost thousands of dollars. This is because the manufacturer would have to mold or model the product.
3. Communication
According to Elizabeth Bourgeret, communication is the lifeline of any relationship. It’s just as important as price is to you as a buyer.
With communication, you would be able to tell if your chosen suppliers are professional enough. You can as well tell how your business deal would go with the way you communicate with your supplier.
Here are 2 signs your supplier has great communication skills.
- The supplier can easily understand what you need.
- The supplier is professional enough in his industry to provide valuable suggestions anytime.
4. Lead Time
This is also important as well. The lead time refers to the duration from order confirmation to order completion. The shorter the lead time the more efficient your supplier is.
Your supplier’s lead time affects every other thing. It affects the supply chain management, inventory management, as well as the quantity of a product your supplier can produce & deliver within a given time.
5. Shipping cost & solution
When it comes to shipping costs and solutions, you want to go for the most reasonable and most efficient.
Always go for a shipping solution that allows you to make and track your orders in real-time.
Looking for China Smartwatch Supplier Channels?
Here’s how you can find the best amongst the rest…
How to find Chinese smartwatch suppliers via the internet
Things are now easier than ever. And, we have the internet to thank for this.
Long gone are the days you have to make several calls before you can reach those abroad.
Today, however, you can easily contact people on the internet. You can practically do anything on the internet. Even something as intricate as finding a Chinese smartwatch.
You only just have to learn how it works and you’re good to go. Below are the ways you can find a reliable Chinese smartwatch supplier by yourself.
● B2B Platforms
B2B Platforms is another great place to start. These platforms are particularly suitable for dropshipping and for connecting small wholesalers to bigger businesses.
The great thing about them is that you have so many options to choose from. Alibaba and Global Sources are great examples of B2B Platforms you can use. It’s a great space for orders that value >$2000.
● B2C Platforms
Aliexpress and DHGate, on the other hand, is a B2C business. DHGate directly connects businesses to consumers and it particularly attracts different individuals from Europe and America. It’s a great space for orders that value between $100–$1000.
Even though these platforms connect buyers directly to suppliers. You can still find a few verified suppliers on the platform you can contact directly and do business with.
● Google is A Powerful Tool
There’s absolutely nothing you can’t find on Google. It’s a really easy tool to use. Google also offers you different options to choose from with more than enough information about different suppliers in China you can do business with.
It’s Google people use first before they even realize there are B2B Platforms they can buy their Smartwatches from. Alibaba that we previously mentioned gets a large percentage of its traffic from Google.
To search for suppliers on Google search using the exact keywords of what you want. For example, if you need a fitness watch supplier. You can use the search word, “customized fitness tracker in China“.
Make sure to be specific enough and you’d get just the results you’re looking for.
Here are some keywords you can use:
- Chinese smartwatch
- smartwatch wholesale china
- smartwatch china
- smartwatch company
- wholesale smartwatches
- smart bracelet made in china
- smartwatch made in china
- smart bracelet china
- company smartwatch
- smartwatch company list
- smartwatch manufacturers
- smartwatch manufacturer in china
- smartwatch distributor
- smartwatch suppliers
- best fitness band company
- Chinese fitness tracker
- smartwatch from china
● LinkedIn or Facebook
The other two online spaces you can source for good suppliers are LinkedIn and Facebook.
These two platforms are even known to be the 2 commonest to find customers. It’s not only free, but you also get to connect directly with these suppliers with ease.
All you just have to do is type in a keyword in the search box of these platforms. The rest, as they say, is easy.
There’s one thing you must however know about these 2 spaces. It is the fact that people tend to crowd them which means there’s more competition. Because of this density, finding the right supplier can be a hard nut to crack.
This doesn’t however mean you won’t find reliable suppliers on these platforms. You’d only just have to dedicate more of your time to checking and confirming.
How to Find Smartwatch Suppliers by Visiting China?
1. Attend Exhibitions & Trade Shows
Exhibitions are great places you can scout for good smartwatch suppliers in China. The great thing about going to exhibitions is that you get to do a thorough examination of these products and how they work.
These exhibitions also open you up to a wider network. You get to meet other people in the business and connect with them on a personal level. These people can connect you with their suppliers and even offer advice whenever you need them.
Smartwatch industry exhibitions suggest visiting Global sources Mobile Electronics and HKTDC HK Electronics Fair.
2. Visit Wholesale Markets
You can as well go to wholesale markets. These markets are set up specially to connect overseas sellers to wholesalers. This means cheaper prices and more options.
For example, the price of electronic products in Shenzhen Huaqiang North wholesale market is 10% cheaper than it is in other places.
3. Visit Industrial Clusters
We already talked about factories heavily located in some areas in China that they are in other places. Shenzhen is one of those places. This province has formed a high-tech industrial cluster led by the electronic information industry.
Shenzhen remains the best city for export-worthy electronic products. However, with changes in Shenzhen’s policies and rising rents, many factories have chosen to relocate their factories to cities around Shenzhen, such as Dongguan and Guangzhou.
Therefore, the main gathering places of electronic products in China are the three cities of Shenzhen, Guangzhou, and Dongguan.
6 Things to Confirm Before Ordering from Your Chosen Chinese Suppliers
You’ve identified who you’d work with by evaluating different suppliers. So, what next? It is necessary to cross-check the presence of some important parameters. This should be before you make payments.
These parameters are very important. You must pay close attention before your complete your agreement with your supplier.
The following are six things to confirm before placing your order with Chinese Suppliers;
1. Proforma Invoice
Also called PI, it is a preliminary bill. It describes all the information regarding products and their corresponding prices. Since most suppliers won’t provide a contract, the PI typically serves as a sales contract.
In the absence of a sales contract between you and your supplier, you can make do with a proforma invoice. Just ensure you include everything that’ll guarantee you receive your products in time.
Ensure that your PI contains accurate descriptions. Like: product price, quantity, size, weight, color, the materials from which they are produced, and the type of packaging.
Apart from the product description, the PI should also contain the bank information of the supplier. As well as the terms of payment and the appropriate date of the price received. This is because the rate of currency exchange between USD and CNY keeps fluctuating.
If after checking your PI your deposit payment was received, your supplier then begins production. The lead time commences on the day your deposit is received.
On completion of production and packaging, the supplier then creates a Commercial Invoice, CI. It is the PI’s final version.
The supplier ships your product after the cost has been confirmed. The balance is paid according to the amount the invoice bears.
Ensure that the amount on the invoice corresponds with the actual amount you paid. This is because it’d be used for custom purposes.
2. Non-Disclosure Agreement (NDA)
If you have created new products with unique designs that possess intellectual property, what should you do? It’s pertinent that you confirm if there’s a Non Disclosure Agreement you can sign. This should be before finalizing the orders you placed. The reason is; NDA binds your supplier. He is restrained from manufacturing more than you requested. Which will result in him selling the excess products to others.
Without NDA in place, most suppliers might leak your product or business information.
However, most Chinese suppliers won’t provide an NDA for you to sign. You’d have to prepare one yourself and clearly state what you wouldn’t want the supplier to share with others. Examples are the design or price.
You can also state that your designs shouldn’t be used to market other products. If they do, they’ll compensate you for the breach of the agreement.
The NDA is very effective in ensuring that your designs are not leaked. However, the moment your product is launched to the public, it is vulnerable to people. It becomes exposed to the possibility of being copied. This is beyond the boundaries of the NDA.
Registering patents in the country you want to sell your products is thus the most effective way to protect your intellectual property.
3. Lead Time and Delivery Time
The time it takes from when you place the order to when the products are ready to ship is the lead time. As stated before, it takes effect from when a deposit has been made. The production schedule can be temporarily changed. Therefore you must confirm with the supplier before placing your order.
When time is against you and you cannot afford any delay with delivery, what should you do? You must ensure to not just tell your supplier by word of mouth. Ensure that it is included in your PI. This is because breach clauses are necessary. They state the amount you’d be compensated with if they fail to comply with the agreed lead time.
On the other hand, the delivery time is the length of time it takes for goods that have been purchased to arrive at the destination.
4. Required Quality and Solution for Defective Products
Most times, having a couple of defective products is unavoidable. And that’s fine. Provided that the defect rate is controlled under a reasonable and acceptable level.
For smartwatch products, a rate of 2%-5% is appropriate. Before placing an order, you should confirm the acceptable rate for different defect types with your supplier.
If you are faced with a situation where the defect rate is higher than it should be, you have three options. You can either ask that the whole batch of products be reproduced and inspected. Or you get people to select the flawed items and request that they be replaced. Lastly, you can just go ahead and ask for compensation.
Note that your preferred choice of compensation and defect solution should be agreed upon with your supplier before you place your order.
5. Payment Methods
USD payment is most preferred by Chinese suppliers due to its stability. PayPal, Western Union, Wire transfer, and letters of credit are the methods commonly used to send USD to China.
PayPal is an effective way to guarantee the security of transactions. However, note that it costs a fee of about 5%. 5% is on the high side if the order is above $5,000. The PayPal payment method is not readily accepted by most Chinese suppliers. They fear that they’ll be scammed.
PayPal requires tracking methods to monitor when the product is delivered.
The Western Union is best for sending money less than $5,000. Especially when you can’t wire transfer directly to China through your bank account.
Wire transfer payment method is also called T/T or bank transfer. To use this method, you need to either visit your bank or visit their website to make payment arrangements. It takes 1 to 7 working days for the payment to arrive. As it depends on the country and the bank from where it is sent.
The transfer fee ranges from $20 to $50 for each payment, no matter the amount that is sent.
Using the Letter of Credit method of payment, you don’t need to pay the supplier upfront. Your bank guarantees the supplier will receive his payment once the cargo has been shipped, or once it arrives at the destination port.
It is however not a suitable option for newbies in the import-export business.
6. Payment Term
A great payment term can contribute immensely to the growth of your business. It helps a lot with cash flow. Import-export business requires monetary investment. Continuous cash flow is therefore necessary.
Buyers need to negotiate better payment terms with their suppliers. There are four main payment terms. They include:
- 30% Deposit, 70% Balance Before Exporting.
Most Chinese suppliers work with payment terms like 30% deposit and 70% balance. The deposit is to be made before production, the balance before the cargo leaves China. It usually takes a month for manufacturing to be completed. Sea freight takes about 30 to 40 days from China to the U.S. That means you’ll pay a lot of money one or two months in advance before you get to sell any product.
- 30% Deposit, 70% Balance Against the Bill of Landing.
This is the most common practice and it entails making a 30% deposit before production and then making the 70% balance against the bill of landing. Meaning that you don’t have to pay the balance until the cargo arrives at the destination port in your country. On paying the balance, the supplier will send you the bill of lading. You’d then take it to the customs to pick up your goods.
- No Deposit, Whole Balance Against Bill of Landing
This method entails paying nothing until your order arrives. If you have a very good relationship with your supplier, then you don’t even have to pay any deposit before production commences. You’d just need to pay the whole amount against the Bill of Landing when your order arrives.
- O/A Payment
In case you’ve been wondering if there’s any payment term that provides you the option of making payment after you receive products, here you go. The O/A payment, which is commonly used by many big overseas sellers, provides you with that option. You can make payment up to 15 or even 30 days after receiving your order.
You may wonder, how can suppliers be sure that the buyer will make payments after receiving products?
Here is how it works for most O/A payments. The suppliers buy export insurance for each order via insurance companies like Sinosure. If the buyer defaults in his payment or if he was bankrupted, the supplier will get compensated. About 80%-90% of the value of the order will be paid to the supplier. The buyer will then have bad credit.
Before suppliers agree to go by the O/A payment, the insurance company inspects the buyer’s business background. After which he issues the buyer a certain amount of credit. This will guarantee that the supplier gets paid. Provided that the order amount is less than the credit.
However, not all Chinese suppliers accept this payment term. It depends on the suppliers, product categories, and value.
Conclusion
In this guide, you have learned all the modified channels for finding Chinese smartwatch suppliers and what to look out for before placing an order.
Now, finding the most reliable smartwatch supplier to work with wouldn’t be a problem. Importing your smartwatches and selling them to your customers would also be a cinch for you now that you’ve read this article. So spread the news by sharing this article with other overseas sellers you know. You could save many lives in the industry by doing this.