Today, there are too many marketplaces, too many directories, too many e-commerce sites and too many products. It’s not finding a supplier that is a problem. It is partnering with a RIGHT SUPPLIER that is the main problem. It is easier to find and contact with a supplier around the continent due to the rise of internet. However, how can you really judge a person from around the globe without psychically meeting? More importantly how do you conduct a wholesale Export-Import Business with him.
- The Organization only exists in the web
- The company is fake
- They are not as capable in making the product as they boost on the website.
- You may be dealing with a Trader rather than Manufacturer.
There is always such risk Factor involved. However, by going through a checklist a percentage of the risk involved can be reduced. The main thing is to judge a supplier before the order through a lance.
- Online Availability: Yes, we know, a supplier can be an excellent manufacturer and yet has near zero web literacy. But let’s be frank, in this digital age the best of group spends heavily on internet to showcase products and receive quotations. How are you to judge what type of Products that supplier can make if don’t visit his factory.
- By Email
- By What’s app/Snap Chat/WeChat
- By Skype
- By Viewing in Website
- Can quotations be send from the Website directly?
- Are there Customer List/Testimonials?
The problem is unless a supplier maintains a website or a merchant showroom it is very difficult to verify the products shown. Also, if a supplier owns a functioning website containing Product Description, Contact Info, Company Address, MOQ, and Order Procedure etc. that indicates they mean Business. More Importantly, That means they are open to receive new orders from internet Buyers
- Enlistment in Directory: It is fairly easy to get a website build for any purpose. However, the real ones are usually get enlisted in Global Marketplaces and Business Directory. Do a search on the Home country’s local Directories or Marketplaces. Here you find the top “B2B Marketplaces of Bangladesh” Are the suppliers in? Does the information’s match?
- Response Rate: Service and quarry response separates the best from the rest. A real supplier will likely to respond to a quotation quickly with quality Contents.
- Number of days between Response and Sent
- Level of Quality and structure
- Are the information’s what you asked for?
- Does the Lead Time seems appropriate?
- Check Export Documentations: Before giving a final order, it’s better to check on some documents. However, It is better to ask for these Only in the middle stage of the deal. Because, most suppliers will not want to give away this things online before you earn their trust
“Trust Goes two way, Supplier are also concerned whether You are the Real Deal”
There are too many fake orders now a days. So, most supplier will think the buyer as a “Wanna be buyer” who will send mail, give price and never responds again. So, only ask for documents, when you are sure to give a order.
Common Documents to check are:
- Company Profile
- List of Customers
- Customer Testimonials
- Export Certificate(Optional)
- Cross-Check Terms: Double check the requirements of the supplier. The financial terms often will dictate whether the supplier can be partnered with. A good supplier will have tougher trade terms. So, always check if the Financial Terms matches will the level of quality of the Supplier.Some things you can look through:
- Are You dealing with manufacturer or trader
- Size and Business Operations of the Company
- Which Countries they usually export
- Are there any known Export Restriction among Exporters Country and Yours.
Ex: A supplier that refused to show his testimonials but asking for 80% upfront. Showing no customer list etc. Ask the customers if they are associated with any buying house. Still, around 80% of procurement in Bangladesh is done through buying house or trading Company. Ask the supplier are they open if they negotiate with the trading company. There is no one way to do this. So, you are still uncertain better back out or have a Third Party Look at it.