When doing foreign trade SOHO, choosing the right supplier is already half the battle

In SOHO foreign trade business, a high-quality supplier is often more crucial than the client. A factory that offers competitive prices, stable product quality, and timely deliveries can greatly enhance business efficiency and reduce unnecessary trouble. Therefore, finding and maintaining a reliable supplier relationship is essential. So, how should you screen and evaluate new suppliers in the early stages?


 
Sourcing Suppliers Based on Client Needs
 
The standards for selecting a supplier should closely align with the client's needs or brand positioning. Suppliers that meet your client's requirements are the most suitable. Here are some key reference points for selecting a high-quality supplier:
 
1. Patience and Reliability
For large brand clients, quality and reputation are critical. These clients usually require various certifications and tests when reviewing new suppliers, and sometimes even factory inspections are necessary. At this point, the patience and reputation of your supplier become extremely important.
 
2. Factory Size and Stability
The chosen factory must have stable product quality, output, and delivery times. Frequently changing suppliers may lead to instability in product quality and delivery, which in turn affects the customer experience.
 
Foreign trade is not a one-off deal; most of our SOHO business comes from repeat customers. Therefore, choosing a factory with a stable production line and workforce ensures better product quality.
 
3. BSCI Certification
For clients focused on branding, BSCI certification is indispensable. A factory with this certification is more likely to gain client trust.
 
4. Payment Method Support
Brand clients often have fixed payment practices, such as OA, DA, DP, etc. Some payment methods, like OA 60 days (payment 60 days after production and shipment), may be difficult for small factories with limited funds to accept. Clients are unlikely to change their payment terms for your order, so choosing a supplier that can accommodate the client's payment methods is particularly important.
 
How to Choose Suppliers
 
Once you have selected suppliers that meet the above conditions, conduct the following background checks on these suppliers:
 
1. Understand the Factory's Main Market
Different markets have different product quality requirements. For example, even if a supplier for a lower-end market is large in scale, their product quality may not meet the standards of high-end clients. If your clients are mainly from European and American markets, choosing a supplier that caters to these regions is more appropriate. Additionally, you can check the factory's website for the brands they collaborate with to understand their customer base and help determine if they meet your requirements.
 
2. Investigate the Factory's Reputation
A factory's future prospects largely depend on the owner's mindset and vision. These factors directly impact product service quality and the factory's level of cooperation. You can gather information about the factory's reputation from people around you. Even negative reviews can give you a fuller picture of the factory's principles and bottom line, helping you make more informed decisions.
 
3. Evaluate the Factory's Business Sources
Understanding the factory's main business sources can help you gauge how much importance the factory owner places on your order and whether you can keep up with the factory's growth in future cooperation. You need the factory's cooperation, but at the same time, you need to provide corresponding value to the factory. This relationship ensures long-term collaboration.
 
Once you've found the right supplier/factory, you also need to learn how to interact with them and maintain your relationship. The market is vast, and there's no shortage of customers. A supplier willing to cooperate with you and fully support you is the greatest asset for any foreign trade company or SOHO.