How do you Choose a Product Manufacturer? And is Mexico the new China?
Okay, let’s get honest about how nerve wracking it can be to land on a new supplier or product manufacturer. There’s so much at risk – arguably the biggest decision you will make for your company.
I remember my first time sourcing a product from Alibaba. I researched for months before finally landing on a product manufacturer and it still felt like closing my eyes and jumping when I made the first payment. The first few orders went well but this supplier did eventually rip me off. Turns out, they weren’t who I thought they were at all. So, let’s tackle the million-dollar question: “How do you choose the right manufacturer?”
We all know China has been the big name in global supply for the past 20+ years, but there’s another major producer that’s finally turning heads – and that’s Mexico. All along, Mexico has been the second largest supplier of goods to the US, and the number one trading partner. This is because with Mexico, trade goes both ways (they buy from us, and we buy from them). With China, trade goes mostly one way (we buy from them, they don’t buy from us).
Why the next product manufacturer you choose, could (should?) be in Mexico.
Sourcing from Mexico vs China.
Location, Location, Location.
If you’re based in North America, having your manufacturer close to home is like living in the city versus living in the mountains and driving 45 minutes to get groceries. Easier logistics, faster shipping, and honestly, a lot less headache.
Deliveries from anywhere in Mexico to just about anywhere in the US take 5 – 10 days. That’s way faster than the 4 – 7 weeks it takes to ship goods from Asia.
Trade deals and tariffs.
Heard of USMCA? If not, all you really need to know is that you won’t be paying those 25% China tariffs when you import your products from Mexico. Under the US, Mexico, Canada trade deal, you won’t find tariffs or duties for most products you import. There are some requirements like where the raw materials come from. Because of course, they don’t want things being shipped from China to Mexico, and then into the US just to avoid the tariff.
Time zones. The benefit you didn’t know you needed!
Have you ever sat staring at your screen at 11pm waiting for a reply from your Chinese supplier while your eyelids get heavier and start drifting to sleep? Or just me? You ask a question then by the time they reply, you’re asleep. You see it in the morning and reply back, but now they’re asleep. Before you know it, a conversation that should have taken 5 minutes takes 5 days.
Imagine chatting it up with your manufacturer during regular business hours and not thinking about work at 11pm. Yea, that’s a point on the board for Mexico. Some people also feel like communication is a little easier since there’s a bit more language and cultural familiarity between Mexico and the US.
Quality, period.
When you ask me “How do you choose the right manufacturer?”, quality is king. You can get the fastest and cheapest products in the world but if they’re defective, it’s actually going to cost you time, money, and reputation. Mexico has been producing top quality products for decades for some of the largest brands in the US including Mattel, Nike, Patagonia, Levis, Steve Madden, Avon, Walmart, Home Depot, Ralph Lauren, Adidas, Target, and more. And now that so much business is flooding into Mexico, they’re having a chance to expand their capabilities and capacity to meet the demand of buyers. They’re getting bigger and better every day!
Now, about those Sourcing Platforms…
Alibaba and others charge a huge subscription fees (thousands of dollars each year) to people who want to sell on their site. So if you’re willing to pay, they welcome you to play. But where does their business model leave you, the buyer? Sourcing Platforms like Alibaba are dangerously tricky landscapes to navigate, with low quality suppliers, scammers, and great factories all mixed together. Who can tell them apart? Not me. Most often, you don’t know until it’s too late because they’ve become VERY good at fooling you. Alibaba helps them out by allowing anyone (even a guy with a laptop) to become a verified factory and post pictures of factories they don’t own. All you have to do is pay for the higher subscription tier. In fact, every experienced importer knows that the majority of the sellers on Alibaba are just small trading companies.
This is why Zipfox was created – to provide a safer and easier way to sourcing products. Zipfox provides a trustworthy network of carefully hand-picked and vetted manufacturers, primarily in Mexico. Think of it like your friend who always knows the best spots to eat in town. I actually love that friend.
On Zipfox, payment protection is automatically included on every order so if the product manufacturer / supplier you hire does a bad job, you have a reliable and fair way to dispute the issue and get your money back.
So, next time you think about how to choose the right product manufacturer, understand that things have changed. It’s no longer about sketchy transactions and long lead times from China on sites like Alibaba. It’s about safe transactions with verified manufacturers and fast delivery from Mexico, on sites like Zipfox. We’ve always loved the culture, food, and people of Mexico. Now we can also benefit from their manufacturing capabilities and enjoy doing business together.
Happy sourcing!
