How do you find a foreign supplier for your online store?

Why choose a foreign supplier?

Working with a foreign supplier offers 3 advantages:

• Diversify products. You make a wider range of products available. In addition, diversifying risks reduces dependence on local suppliers.

• Reducing costs . This is particularly the case when you're importing from a country where production and labor costs are low.

• Access to exclusive products . When you import from China, for example, you are guaranteed to offer products that are not available on the local market.

The different types of foreign suppliers

There are different types of foreign suppliers.

The manufacturers

These are the companies that produce the products themselves. Working with manufacturers offers two main advantages:

• The ability to customize products

• Competitive prices for large orders

Wholesalers

Wholesalers are intermediate companies between manufacturers and retailers. Their business model is to buy products in large quantities and then sell them to retailers. resell them to retailers or distributors.

The advantages of using wholesalers include the opportunity to benefit from reduced prices for high-volume purchases.

Les plateformes de dropshipping internationales

Dropshipping is a e-commerce model which enables retailers to sell products without holding stock. In concrete terms, when a customer orders a product, the retailer buys it from the dropshipper, who must then take care of shipping to the end customer.

The main advantages of working with dropshippers are to be able to sell without managing inventory or storage.

How do I find foreign suppliers?

Visit 3 ways find foreign suppliers:

Use e-commerce platforms

Platforms like Alibaba and Global Sources to find suppliers of different nationalities, particularly Chinese .

You can also consult platforms dedicated to specific sectors.

Participate in international trade fairs

International trade fairs and exhibitions are excellent opportunities to meet international suppliers But don't forget find out in advance about the companies exhibiting at the show before you go.

This allows you to optimize your visit using the information available on the show website.

Explore professional directories

ThomasNet, Kompass or Yellow Pages are directories that work for you. help find suppliers by region and by sector.

Foreign supplier selection criteria

Here are 4 criteria you can use:

Product quality

Product quality a key criterion when it comes to selecting a supplier. In particular, you should check the company's certifications, charters, standards and labels.

Price and payment terms

The price charged by the supplier determines margin you can achieve. It is therefore one of the most important criteria to take into account. to choose a foreign supplier.

But it's not just the purchase price that counts. You must also pay attention to the costs of transport, packaging, etc.

Don't forget to check payment terms as well as any payment facilities granted.

Delivery times

Short delivery times are a an effective argument for maximizing customer satisfaction .

The latter are more and more attentive to these delivery times. before choosing to buy in an e-commerce store.

That's why you also need to pay particular attention to this when choosing your foreign supplier.

Reputation and opinions of other customers

Your supplier's reputation is bound to have repercussions on your online store's reputation. That's why it's important to check the consistency of the values conveyed by the potential supplier with your brand image.

You should also check the supplier's reputation in terms of delivery times, product quality, customer service responsiveness, etc.

Think about consult customer reviews forums or review sites to find out about the experiences of the supplier's customers.

How to evaluate a foreign supplier

Here are some additional tips to evaluate the qualities you need to make your final decision:

Request product samples

Product samples allow you to get an idea on product quality. You can then order a small quantity products initially.

Some companies also offer free samples .

Verify international certifications and quality standards

Certifications and quality standards guarantee compliance regulatory et attest to the quality of a product . They are therefore a guarantee of confidence for customers and are an effective selling point.

Calling on a supplier with certifications and quality standards is therefore a key factor in your success. a real sales asset for an online store.

Read customer reviews and testimonials

By consulting customer reviews and testimonials, you can find out about the experience of the supplier's customers.

• Does it meet delivery deadlines?

• How good is the after-sales service?

• What about the quality of the products on offer?

To find out, simply search for customer reviews on social networks, discussion forums or review sites.

Challenges with foreign suppliers

Using foreign suppliers offers certain advantages . However, a number of challenges must also be overcome:

Language and cultural barriers

On e-commerce platforms such as Alibaba or AliExpress, for example, you'll be able to dealing with Chinese suppliers . Language barriers, but also cultural ones, can therefore complicate negotiations and communication.

Differences in regulations and standards

When you use foreign suppliers, you also have to consider about the local regulations. This means you can do business legally, and avoid disappointment.

Customs and freight charges

Imagine if you had to import products from China. This means that customs and transport costs can be increase acquisition costs of the asset. In some cases, these costs can be counterbalanced by reduced labour costs .

So take the time to make calculations to anticipate your profit margin and see if the operation remains profitable.

Common mistakes to avoid with foreign suppliers

Here are 3 mistakes to avoid:

Do not check supplier reliability

Foreign or not, you need always make sure the reliability of the supplier. Check the following points in particular:

• Product quality . Your online store's reputation depends on offering products that comply with current standards. It's also a sign of customer confidence.

• Delivery times . It is important to ensure that the supplier meets its delivery commitments.

• Regulatory compliance . To avoid legal problems in the future, you should check that the products on offer comply with all applicable standards.

Based on price alone

First and foremost, when it comes to price, you also need to take hidden costs into account . A low price can hide additional real costs transport, customs or other.

As we have seen, price is not the only criterion for choosing a supplier. You also need to be attentive to product quality to the provider reliability and also to compliance regulatory.

All the more reason stay alert because companies that charge low prices are generally the least reliable in terms of product quality and regulatory compliance.

Ignore delivery terms and additional charges

You also need take into account associated costs to find out the total cost of a product. This is all the more important for products imported from abroad. Customs and transport costs should not be overlooked.

Similarly, as products come from across borders, sometimes from thousands of kilometers away, special attention must be paid to delivery terms . Precision and delivery methods are key elements customer satisfaction.

Negotiating with foreign suppliers

You only have to look at e-commerce platforms like Alibaba to see that report there's no shortage of suppliers. So you can use the competition to negotiate the best price and payment terms.

You can also use strategies such as :

• Negotiate a sliding-scale price for bulk purchases

• Return of products without reason

• Return of unsold goods

But beware of low prices, which may conceal significant hidden costs.

Use Hero to optimize the management of your foreign suppliers

Hero enables you to optimize the financial management of your foreign suppliers because :

• Hero accepts 3 methods of payment: credit card, bank transfer or direct debit. . This diversity of accepted payment methods offers real flexibility, facilitating your financial relations with your foreign supplier.

• Payment facilities for efficient cash management . Hero can make cash advances for your supplier payments. You can then reimburse Hero after 60 or 90 days, or in 3 or 4 payments.
  These payment facilities ensure the continuity of your business operations, even when your WCR is less than optimal.

• Automated functions for collecting accounting vouchers .

In short, calling on foreign suppliers offers real advantages, such as product diversification and cost reduction. However, there are also major challenges to overcome, including language barriers, customs and transport costs. Fortunately, you can turn to a reliable financial partner like Hero to provide you with offers tailored to your needs.