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Home»BUSINESS»How to Find an Overseas Manufacturer
Overseas Manufacturer
BUSINESS

How to Find an Overseas Manufacturer

By Tomer JackAugust 6, 2021Updated:August 6, 2021No Comments4 Mins Read
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You have invented a great product to sell. The initial tests are successful, and now you need to manufacture your product. However, depending on the type of product and the costs involved, you may find that no local manufacturer is interested in producing it. If that is the case, you need to start thinking globally. 

Assume you require machining services in order to build your product. In that case, CNC machining China-based solutions are the most popular choices for businesses looking to outsource their machining needs. It is simply a matter of common trade knowledge since few other countries can match China for cost and efficiency when it comes to CNC machining. 

But regardless of the industry and product type, finding a trustworthy manufacturer overseas is not a simple task, even when you know where to look for it. Here are a few pointers to help you start your search for manufacturers that work globally.

manufacturers that work globally

#1 Know what you need for your product

Before you start searching for product manufacturers, your item should be already designed or in the ideal scenario; you should even have a prototype. In any case, you need a fully-formed idea of your product that includes its materials, dimensions, and functionality. Approaching manufacturers without a well-thought-out design or even a tested prototype could lead to manufacturing flawed products and eventually losing money.

#2 Understand your business 

Aside from knowing your product, you should also know your business before going out and looking for manufacturers. That said, you need to be highly conscious of your company’s budget, gross margins, and overall business strategy. Without having a clear idea of your current funding and how much you can spend, it is easy to slip when getting your products made.

From a strategic perspective, knowing the basic eCommerce dynamic will help your growth. That is why you should be mindful of this basic formula: Profitability = (Sale Price – Unit Costs) – Cost of Acquisition.

#3 Do your homework 

One of the most vital things an entrepreneur should do when scouting manufacturers overseas is research by utilizing Google, Alibaba, or free online supplier directories. Then, learn the differences between wholesalers, trading companies, or factories. Ultimately, use social networks to get the word out. Join Facebook groups and other eCommerce business online communities to scout out manufacturers that have great reviews. Even though this process may take some time, it will ultimately save you more money and time in the long run. The more information you get, the better-informed decisions you will be able to make. 

Do your homework

#4 Be active in building a network

As with any matter in doing business, great connections can provide incredible value to your business. The same goes for finding international manufacturers. That said, do not be afraid to ask connections in your professional networks if they have any recommendations or if they know someone who might. In addition, talk to other entrepreneurs who already have experience outsourcing work overseas or reach out to a diverse range of people with this experience, such as consultants or lawyers. 

#5 Know which questions to ask potential manufacturers

Once you detect a few manufacturers on your radar, do not book the next flight to go and visit them. First, make a list of all the essential questions you want to ask and get a minimum of three quotes to compare options. The questions you should consider asking should be in this direction:

  • What companies have you previously worked with? 
  • Can my company review your business license? 
  • Can you accommodate custom orders?
  • Do you have a minimum order quantity (MOQ)? 
  • What is your average turnaround time?
  • Do you charge for samples? 
  • What is your standard production pricing? 
  • What is the price per unit?
  • What are shipping costs?
  • Are there setup fees involved?
  • What are your terms of payment?
  • Are you sustainable and ethical? 

Conclusion

Finding overseas manufacturers is more than just a simple process of finding someone to produce your product. It would be best if you kept in mind that, above all, you are looking for a partner you can trust. 

To grow your business, you need a stable partner manufacturer that will take care of your product as much as you do. That said, it is easy to get frustrated when you hit dead ends in your manufacturer’s quest. Yet, in most cases, it just requires a little more patience. So, follow our tips and be perseverant. We bet you will find the perfect partner for your new venture in no time. 

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