Finding a manufacturer involves defining your product requirements, searching directories like Alibaba or ThomasNet, vetting candidates, and ordering samples. Key steps include searching online databases, attending trade shows, checking competitors’ sourcing, and verifying credentials to ensure quality and reliability.

Steps to Find a Manufacturer:
Define Product Requirements: Create a detailed product specification sheet, including materials, dimensions, and functionality, to ensure accurate quotes.
Search Online Directories:
Global: Use Alibaba and AliExpress for international sourcing, particularly in Asia.
USA/Domestic: Utilize ThomasNet, Maker’s Row, or MFG for domestic manufacturers.
Utilize Search Engines & Referrals: Search for "manufacturers near me" or specific industry terms, and ask for referrals within professional networks.
Attend Trade Shows: Visit industry-specific trade shows to meet manufacturers in person and evaluate their products directly.
Verify and Vet Manufacturers:
Check Legitimacy: Review business licenses, certifications, and compliance with industry standards.
Request References: Ask for, and call, previous customers to verify quality and reliability.
Order Samples: Always order samples to evaluate quality before committing to a large production run.
Negotiate Terms: Request quotes from multiple manufacturers to compare pricing, minimum order quantities (MOQs), and shipping logistics.
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Alternative Sourcing Methods:
Reverse Engineer: Look at product tags/labels to find the manufacturer's name.
Use Import Data: Use tools like Import Yeti to see which factories your competitors use

How to find a manufacturer for your product idea
You've started your business and your idea is finally taking form. You thought of a great product to sell in your online store and you’re ready to get started. But how do you actually make the physical product and do it efficiently enough to make it profitable?


For many sellers, manufacturing is the key.


However, the harsh reality for small business owners is that finding the right business partner to manufacture a product can be difficult. To succeed, you must take a methodical approach and ensure that any relationship translates to high-quality—and profitable—products.



What is a manufacturer?

Before you start learning about how to find a manufacturer, it’s helpful to know exactly what they do. Simply put, a manufacturer uses a set process to make goods, usually in large quantities.


Most modern manufacturers use equipment and mechanized tools to make product development as efficient as possible. But a manufacturer can also be a single individual who creates items by hand, so long as the process is easily repeatable at scale—such as a baker creating large batches of uniform bread loaves.


By contrast, artisans are individuals who make one-of-a-kind goods, and almost always work by hand. Artisans also own the entire process of creating a product from start to finish, whereas manufacturers may make components of more complex products.


Whereas an artisan might produce different goods—say, ceramics and glassware—manufacturers typically specialize in making a single type of product, or even just one item, like a specific type of glass bead. Depending on your business model, you may opt to source items from multiple manufacturers to offer customers an ideal assortment of goods.


Learn more: Product sourcing



How to find and select the right manufacturer

Once you’ve decided whether you want to make your product nearby or abroad, it’s time to evaluate potential manufacturers. The five major steps:


Do your research

Verify quality

Request a quote

Run the numbers

Negotiate terms and sign



01. Do your research

To narrow down your choices, look for manufacturers with experience in your product category, the raw materials involved, and/or any special technology or tools needed to create your product.


There are plenty of sources to use in your search, including:


Online supplier directories: These information hubs list thousands of manufacturers, which are often vetted and reviewed for legitimacy. Some directories focus solely on domestic manufacturing, like Maker’s Row and ThomasNet. Others include a wide range of international suppliers. The largest global directory of this sort is Alibaba, which offers a searchable supplier network complete with a certification program. Other options include Indiamart and Sourcify.



find a manufacturer - alibaba homepage


Google and “reverse lookup” using NAICS codes: Of course, anything can be found with a Google search these days. But finding manufacturers may prove to be more difficult, as many factories—especially overseas—have outdated websites or pages that haven’t been translated into SEO-friendly text. You may need to scroll through multiple pages of results to find realistic options. One way to optimize your search is by using a product’s NAICS code. The North American Industry Classification System is the federal standard for business classification. Nearly every product in the U.S. has a NAICS code, and as an entrepreneur, you can use the NAICS directory to look up any product—or simply Google the NAICS code.



find a manufacturer - NAICS directory homepage


Forums and social media: If you have any connections in the field or someone in your professional network that may have some insight, don’t be afraid to approach them for recommendations. If you lack the right connections, you can initiate conversations with other professionals via Linkedin or Facebook groups. Or, check forums such as the startups subreddit or The Manufacturer Community, in addition to trade publications and events.



find a manufacturer - startups subreddit



02. Verify quality

When you’re manufacturing a new product, you’ll likely feel apprehensive about the credibility of a factory and/or the quality of the final product. This is entirely understandable, as working with a sub-par manufacturer can be very detrimental to business.


Once you’ve come up with a shortlist of suppliers, verify their credibility so that you feel confident about their reputation. Gather as much information as you can about each candidate, ask for references, and request proof of certification for meeting industry, environmental, and/or labor standards. Any red flag should disqualify the manufacturer.


To thoroughly vet for quality:


In North America, check the Better Business Bureau (BBB). The BBB’s mission is to build trust between buyers and sellers in North America through an accreditation system. The organization also maintains a repository of reported scams and complaints. Using the BBB website, you can search any business and see their rating and accreditation, customer reviews, and customer complaints.



find a manufacturer - Better business bureau homepage


Run the license number: Requesting a copy of your manufacturer’s business license will give you a few vital pieces of information. For one, you’ll be able to ensure that they’re a legitimate business with proper credentials. Secondly, most business licenses include a scope of operation, i.e., a range of activities the business is legally allowed to participate in. And finally, a business license will include additional information on the manufacturer, such as a license number. You can use this info to do some more in-depth research to see if there are any code violations or other recorded infractions to be aware of.


Check references: Once you make direct contact with manufacturers, inquire about their experience with products like yours and make sure they understand your needs. Your suppliers should be able to refer you to satisfied customers; if they can’t, then you may want to think twice. References should also be relevant to your business in some way (perhaps they make a similar product or ship to the same region as you do, or their business is the same size as yours). Don’t be shy when it comes to asking questions and speak to as many people as possible to get the best idea of what the manufacturer is capable of.


Ask for product samples: Once you’ve identified reputable manufacturers whose capabilities seem to align with your needs, put them to the ultimate test: request a product sample. This will help you uncover any misunderstandings about the actual manufacturing process and gaps in your product design specifications. You’ll discover whether the factory takes liberties on design decisions or follows your instructions to a T and you’ll have something to examine in person before ordering more.



03. Request a quote

After narrowing your list to two or three contenders, it’s time to request formal price quotes. Have your manufacturer provide details like:


The minimum order quantity: You may think the price is the most critical piece of information you need. But, in fact, it’s often much more important to know the minimum order quantity. This number varies from manufacturer to manufacturer and you may find some factories’ minimum order to be too large for you.


Price per unit: This is the basis of all your manufacturing expenses, and it has a huge impact on your pricing strategy and profit margins. Inquire about prices for different order sizes as well, as many manufacturers offer discounts for large bulk batches.


Turnaround time: This concerns the time it takes to manufacture your order. Make sure to ask about the duration for different bulk sizes as well. Knowing this will help you with inventory management, especially during high selling seasons.


Payment terms: Make sure you know how and when your manufacturers expect to be paid in full. Often, you’ll only start generating income after your products have arrived. Some manufacturers will allow you to pay in increments, while others require full payment upfront.



04. Run the numbers

After all is said and done, your business needs to be able to turn a profit. The best way to ensure profitability is by crunching some numbers before choosing your manufacturer.


Make these calculations before finalizing your decision:


Compare quotes: See how manufacturers’ quotes measure up to each other. Keep in mind that a quote far below the range of others might be a red flag. Make sure that there aren’t any misunderstandings about pricing, or that a lower quote doesn't come at the cost of product quality. Payment terms and minimum quantities should additionally factor into your decision; you’re looking for the bid that’s the right number and offers the right degree of flexibility for your business.


Calculate manufacturing and shipping costs: Calculate every single cost associated with the manufacturing process, including shipping, handling, insurance and customs tax. If you’re working with designers, engineers, or regional intermediaries for overseas manufacturing, factor in their costs as well.


Determine your product’s market price: If you’ve done your homework, you probably already have an idea of what potential income your new product might generate. Now, it’s time to calculate specifics. Research the average market price of similar items, forecast your audience size, and gauge the number of units you’ll be able to sell over time.


Calculate your profit margins: Once you’ve determined your costs and your potential revenue, you can derive your potential profit margin—that is, the percentage remaining from your revenue after deducting all costs—for a unit of your product. Learn how to diagnose your eCommerce profit margins. Note: Profit margin is often used to evaluate the financial health of a business as well.



05. Negotiate terms and sign

It’s not uncommon for new entrepreneurs to struggle with negotiation. Many feel that they lack the experience and track record to make counter-offers or propose alternatives to contract terms.


But negotiating is a routine part of business relationships. Don’t be afraid to ask questions and request changes. At worst, the manufacturer will decline your suggestions. More often, they’ll respond with a counter-offer that’s an improvement on the original quote.


Once the terms are acceptable to you, it’s wise to have a lawyer review the final contract before you sign on the dotted line.



Is a manufacturer the same thing as a supplier?

No, a manufacturer is not a supplier. A supplier is a company that provides goods or services to other companies, while a manufacturer is a company that produces goods from raw materials. On top of that, manufacturers typically sell their products to wholesalers and distributors, while suppliers sell to manufacturers, wholesalers, distributors and retailers.


In some cases, a company may be both a manufacturer and a supplier. For example, a company that manufactures cars may also supply parts to other car manufacturers. However, these are two distinct roles, and it's important to understand the difference between them.



Types of suppliers

To avoid confusion, it’s further worth mentioning that not all suppliers are manufacturers, though they’re often grouped together. This is especially true when searching for overseas manufacturing. Let’s break down some of the most common terms to make sure we’re on the same page.


Factories focus solely on making products: By working directly with a factory, you can potentially get the lowest manufacturing price. However, the drawback is that it’s often harder to work with factories, especially if you’re considering overseas production, as they aren’t necessarily equipped to negotiate deals directly with independent retailers, and there may be communication and cultural barriers.


Wholesalers don’t manufacture products: They buy products in bulk from factories and resell them. Dealing with a wholesaler instead of a factory has several advantages. For starters, you’ll likely be able to deal with a domestic company, making communication much simpler and giving you legal recourse if things go wrong. They may also have local warehousing, so shipping may be faster and cheaper.
But the downsides of wholesale are also substantial. The price per unit is bound to be higher because the wholesaler takes a cut. And, most importantly, your product options are limited to a wholesaler’s pre-existing catalog. If your goal is to create a new product from scratch, wholesalers aren’t a good fit.


Trading companies are similar to wholesalers: But they typically deal in smaller quantities and a larger variety of products. This is their greatest advantage. Like wholesalers, trading companies are middlemen, which drives up your cost per unit. The biggest downside, however, is the lack of responsibility these companies carry. Often, trading companies aren’t responsible for defective products. You likely won’t know who the actual manufacturer is in this case either, reducing accountability and reliability.


Dropshippers not only offer products: They also store inventory and handle fulfillment and shipping directly to consumers. Manufacturers and wholesalers may offer dropshipping in addition to their other services, while other companies specialize in dropshipping items from a catalog of producers.


Dropshipping can be especially useful for new businesses. You can start out with fewer overhead costs and investments because you won’t need to worry about storage space. All you need is a good product idea, an online store for taking orders, and a marketing budget for promotion.



To manufacture domestically or overseas?

In the past, choosing a manufacturer typically involved a straightforward calculation of costs versus potential sales income. But increasingly, consumers expect producers and sellers to take a more principled approach.


Environmental sustainability, social justice, and labor conditions in manufacturing facilities are increasingly in the spotlight, and shoppers expect businesses to be a force for good: 83% of consumers say companies should actively shape environmental, social, and governance (ESG) best practices, according to PwC.


These factors come into play when you choose where to manufacture your products, whether in the United States or abroad. Currently, the vast majority of manufacturing occurs outside the U.S., with domestic manufacturing making up just 8% of the nation’s employment, according to McKinsey.


But the supply chain headaches and labor shortages triggered by the pandemic, as well as the mounting pressure to lead on ESG initiatives, have reshuffled priorities.


Other countries in Asia, including Vietnam and Malaysia, are cutting into China’s manufacturing lead abroad, CNBC has reported. At the same time, companies from Apple to Levi’s Dockers are “reshoring” to avoid future bottlenecks caused by war, climate change, or other unforeseen disasters; the Reshoring Initiative estimates that more than 300,000 jobs returned to the U.S. in 2022 alone.


Ultimately, the deciding factors will likely be specific to your product; your choices will be limited by which factories have the right manufacturing expertise and where you can find the raw materials you need at a cost you can afford.


When possible, though, weigh the following considerations:


Cost vs. transparency. Overseas manufacturing often comes at a much lower cost than at factories in the U.S. This is due, in part, to competition. There are simply many more factories abroad vying for your business that have learned how to maximize efficiency and produce items cheaply.

However, you might find shortcuts that are hard to justify. Among the potential trade-offs: Lower-quality materials, lower wages for factory workers, and/or sub-par environmental standards that wouldn’t make the grade in the U.S.

In order to monitor production and ensure it’s up to your standards, you may need to hire a local production manager or plan frequent site visits, both of which can add costs back to the bottom line. You may additionally want to consider committing to local environmental and sustainability initiatives to offset manufacturing impacts, which would require an additional investment.


More options vs. closer options. The large number of factories overseas means that you’ll likely find a factory that can produce what you have in mind. In the U.S., your options are limited, and you may have trouble locating a plant with the expertise or equipment to do the job. The learning curve for a domestic manufacturer could be costly  both in terms of time and money.

On the other hand, the sheer distance involved in using overseas factories can be expensive, due to costs accrued while navigating import regulations, cargo and freight fees, and additional time needed for delivery.

Cultural and language barriers can make overseas manufacturing more costly, too, if misunderstandings arise. In a worst-case scenario, crossing borders can muddy the legalities of patent ownership or responsibility for defective products.




Questions to ask yourself before you get started with manufacturing

Q. How can I best position myself as an attractive partner for manufacturers?

Approaching a manufacturer can be daunting if you’ve never done it. Some suppliers may provide generic responses or fail to respond at all.


To make sure the factory you’re contacting takes you seriously, be as professional as possible. Let them understand that you mean business. You can do this by having a professional eCommerce website already set up for them to browse through (explore eCommerce website templates to help you get started).


Keep any emails concise and direct. Describe the product you want to manufacture, including materials and dimensions. Your request should be simple and easy to understand. You’ll also want to ask for pricing for several different quantities that are relevant to your business. Avoid requesting quotes for batches that are too small to be credible, but at the same time, don’t commit to more than you can handle.



Q. What if there’s a problem in the future?

A good contract is essential for covering foreseeable problems (such as product defects or supply chain delays), plus can include a catch-all provision for working through unknown scenarios. The contract should outline who covers the direct costs of making extra products if needed, as well as the indirect costs of higher shipping fees or increased customer churn.



Q. Do consumers care more about how a product is made, or the price?

The short answer is the maddening “It depends.”


The expectation for companies to source products ethically is definitely growing, driven in large part by Gen Z consumers. Not only do these shoppers spend according to their beliefs; a growing body of research shows that they convince their elders to follow suit. More than seven in 10 parents say teenagers and college-aged people influence what they buy, according to Edelman.


At the same time, younger consumers who are just starting their careers are more price-sensitive than others. During the 2022 inflation surge, a Harris Poll/Morning Brew study found that 13% of Gen Z found American-made products too pricey, compared with 9% of Baby Boomers ages 57 and above. Overall, rising prices made 64% of consumers less likely to insist on American-made products, the study found.

Solving this particular conundrum will depend partly on the type of product you make and the price you want to offer it at. However, trends suggest that if you can build ethical sourcing into your business model from the start, you’ll be better positioned to earn the business of the rising generation of consumers.

How to Find a Factory to Manufacture Your Product
The right manufacturing partner helps you bring your design to life. Here's how to navigate the various factories that might create your product.

You've created a prototype, collected feedback, raised funding, and now you're ready to bring your product to market. The next step: finding the right factory to make your dream a reality.

A manufacturing partner is a business that transforms raw materials into finished products. Manufacturers sell goods to distributors, retailers, consumers, wholesalers, or other manufacturers seeking to create more complex products.

In your search for a manufacturing partner, you will have many questions to answer. This guide discusses some of the key considerations when vetting factories and suggests some places to start your hunt.

Learn the different types of manufacturing partners
Before you get started, it's important to understand that a few different types of suppliers can help bring your product to market. These include the following:

Manufacturers: This refers to the actual factory that produces your product.
Wholesalers or distributors: The middlemen who buy premade products in bulk and add their margin to the total cost.
Trading companies: These intermediaries have relationships with factories that produce a certain product category. They make money by adding a margin to the actual product costs.
Dropshippers: These companies supply products and fulfill orders of already-existing brands.
Sourcing agents: These middlemen may work with a wholesaler or trading company and perform a very similar role.
Working with each of these partners has benefits and disadvantages. For example, a trading company or sourcing agent often deals in smaller quantities and with a larger variety of products, which can be great for small businesses; however, they can be more expensive than working with factories directly.

Choose between a domestic or overseas factory
Next, you need to decide whether you want your product manufactured in the United States or overseas. While domestic factories tend to offer high-quality products, adhere to U.S. labor laws, and may be relatively easy to communicate with, they may also charge higher rates and offer fewer options. Further, not only are there fewer U.S. factories, but those that exist may be equipped to make a more limited number of products.

Factories overseas may have lower manufacturing costs and offer many more options to choose from. They may take effort to vet, and you must be careful with your intellectual property if you're sending your prototype overseas.

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If cost is your biggest concern, there's a good chance you will need to outsource your manufacturing to an overseas partner. There are a few directories and strategies that can help you find the right factory.

[Read more: American Made? How to Market Your Made in the USA Products]


You can also research domestic factories (as well as those in Mexico and Canada) using their North American Industry Classification System (NAICS) code.
Do your research
Whether you work with a domestic or international factory, there are a number of ways to find the best match for your needs. Start with online manufacturing directories such as OpenMill, ThomasNet, Maker's Row, MFG, Kompass, and Oberlo to help you filter and find available manufacturers. Once you've created a shortlist of possible options, solicit referrals from others in your business vertical.

"Getting referrals from fellow business owners via social media and forums can be a great starting point and a way to get feedback on suppliers you've been evaluating," Liz Bertorelli, an entrepreneur in residence with Shopify told Martha Stewart.

You can also research domestic factories (as well as those in Mexico and Canada) using their North American Industry Classification System (NAICS) code. Ask to see a business license from overseas factories because reputable manufacturing companies should be able to show proof of legal incorporation. Research overseas factories on Google, social media, and other forums to make sure they're reputable.

Ask questions
To do your due diligence, create questions to ask the factories that you've added to your list. A few questions to ask before signing a contract could include the following:

What is your minimum order quantity?
What is your sample pricing?
What is your production pricing?
What is your turnaround time?
What are your payment terms?
Do you subcontract work to other factories, or is all production done in-house?
These questions should give you a good start to understanding whether or not a particular factory is well-equipped to handle your request.

How to calculate your gross margins
One of the biggest factors in selecting the right manufacturing partner is understanding how the agreement impacts your bottom line.

The gross margin is the amount of money you have left after paying the direct costs of producing the goods sold. Production costs vary from manufacturer to manufacturer. It's important to understand exactly what the associated costs will be to estimate your gross margin. Without a healthy gross margin, your business will not grow.

With each partner, assess the trade-off between cost and quality. Some manufacturers may quote you a very low cost of goods sold. However, the resulting product quality may not meet your customer's standards. It could be worth paying a higher unit price if you believe the quality is markedly higher.

Ask for product samples to get a sense of the manufacturer's quality standards. Control samples help you not only to make sure that your partner is equipped to meet your needs but also to hold them accountable.

"You can reference the control sample to indicate the products you received are not what was previously agreed upon," wrote Shopify.

How to find a manufacturer

Starting a business or growing your existing business can be an exciting prospect, especially when you're interested in creating your own products. But if you don't have the manufacturing capabilities to do it yourself, you may need to find a manufacturer to manage the production for you.

Choosing a manufacturer is going to be one of the most important decisions you make in this new venture. The manufacturer you choose and the quality/quantity of their production will help you determine the cost of your product, as well as the quality and reliability you want to offer to your customers.

In this guide, we’ll cover how to find a manufacturer that will best fit your business, how to secure a manufacturing contract, and common mistakes to avoid during this process.

Start the ecommerce website you need with designs you’ll love.

Is it best for you to work with a manufacturer or a supplier?
Before we start looking for a manufacturer, we should discuss the difference between a manufacturer and a supplier. Many new ecommerce business owners confuse the terms, which can lead to mistakes and unexpected costs when sourcing your products.

A manufacturer is a company that produces your products from raw materials or components. They produce or assemble it and package it up to ship to your chosen destination, like a warehouse or retail outlet. They can produce durable goods, like cars, appliances, and electronics, or even food products for grocery stores or restaurants. Manufacturers can either create products under their own name or work with businesses to make white-label products.

That means if you want to build a custom product with your own branding but lack the capabilities or machinery, you need to work with a contract manufacturer who will build your product for you.

A supplier is the broader term for any company that provides products to another business. This can include manufacturers, wholesalers, and distributors. Some suppliers manufacture products while others buy them from manufacturers (wholesalers) or sell them on behalf of manufacturers (distributors). A supplier is technically not different from a manufacturer, wholesaler, or distributor; it's the blanket term for all of them.

A wholesaler is someone who buys large quantities of finished products at a lower price from manufacturers and then resells them to retailers at a higher price. They don't make the products, they're just the middlemen.

A distributor is like a wholesaler, but they are either employed by or in a contract relationship with the manufacturer. They market and sell the product on behalf of the manufacturer to different dealers or retailers. The dealer/retailer orders products from the distributor who buys it from the manufacturer — the dealer/retailer never contacts the manufacturer directly.

Bottom line: If you want to build your own brand and sell unique products with your own customization, work with a manufacturer. But if you're just starting out and you want to see if there will be interest in your products, buy from a wholesaler or work with a supplier in the interim.

If you find that people are interested, and you can buy — and move — the manufacturer's required minimums, then it's time to find a manufacturer who can fulfill your demand.

Related: Is buying wholesale right for you?

Steps to find a manufacturer
So, how do you actually find a manufacturer? Finding the right one takes time and research. Don't just do a quick Google search and settle for the first one you find. You need to take a few steps before you even start searching for your manufacturer.

1. Put together your product specifications
You need to figure out your new product's specifications and requirements. If you're not a product designer, then make sure you work with one during the product development process. You can either contract with a freelance designer or you can hire one full-time for your company. (Or maybe you are one already.)

The details of your product should include:

Materials: What materials will the product be built with? Are there going to be problems getting them? (That's the manufacturer's issue, but material shortages will affect your product, too.)
Design and features: What are the unique details, colors, and branding? What special things does it need to be able to do?
Dimensions: What is the size, shape, and weight of the product? This will ultimately affect your shipping price.
Packaging: How will your product be packed and shipped? Don't skimp on packaging if you have a fragile or breakable product.
Quality standards: What is the level of quality you expect? What do you hope to offer your customers? How long will your product last at the level of quality you want?
You'll also want to consider whether your product will require special molds, custom components, or specific certifications. The more details you can come up with, the easier it will be to find the right manufacturing partner. Many manufacturers will ask for a product spec sheet before they give you a quote, so you need to have this information before you start looking for a manufacturer.

Hopefully, your manufacturer will also have a product designer or engineer on staff to help you with the process, as it will help to have at least a second set of eyes on your design.

2. Where to find manufacturers you can trust
Finding a reliable manufacturer is going to take a lot more than just Googling "[product] manufacturer" and copy-pasting that list.

The easiest way is to use an online directory like Alibaba, Maker's Row, or ThomasNet, which is the oldest of the three, having been around since 1898. They will have information about each manufacturer, their capabilities, certifications, and even past clients.

You can also attend different manufacturers' trade shows in the U.S., China, Mexico, or any other country where you want to manufacture your products. (Keep in mind that with the threat of new political tariffs, you'll need to take those costs into account in your total cost of production, depending on where your manufacturer is located.)

Don't forget to network with other ecommerce entrepreneurs via online industry forums, Facebook groups, LinkedIn groups, or even social media hashtags. You can even ask for referrals from people you trust as a way to avoid unreliable manufacturers.

And be sure to Google certain phrases to see if your prospective manufacturers are reliable or shady. Google phrases (don't use quotes) like "[manufacturer] lawsuit," "[manufacturer] ripoff," or "[manufacturer] scam" to see if a prospective manufacturer is being discussed or associated with those terms.

Deciding between domestic versus overseas manufacturing
Your most important decision will be to work with a domestic or overseas manufacturer. Of course, "domestic" and "overseas" depends entirely on where you live, so we could even distinguish between domestic, offshore, and nearshore.

Assuming you're based in the U.S., or at least North America, then domestic/nearshore is anything based in North America, since technically Canada and Mexico are not over seas. For that matter, neither are Guatemala or El Salvador, although those products are shipped via ocean freight, not truck or train.

Other popular manufacturing countries include China, India, Vietnam, Thailand, and Brazil.

For domestic manufacturers (U.S., Canada, possibly Mexico), you'll get the following:

Higher quality standards, better oversight, and fair wages for their workers.
Faster shipping times and fewer customs issues.*
Easier communication, (almost) no language barriers.
Higher production costs because of higher wages.
For overseas/offshore manufacturers (China, India, Vietnam, Brazil, possibly Mexico):

Lower production costs (because of much lower wages). That leads to better profit margins.
A wider variety of manufacturing specialties.
Longer lead times and shipping delays.
A possibility of IP theft and copying
Possible language barriers and cultural differences.
You may have other considerations, too, like whether your product needs to be "Made in USA" for branding purposes, or if you’d prefer being a global business instead. The price will be higher, but shipping will be minimal, and you will have legal protections for your intellectual property.

If price is your biggest concern and you need to keep costs as low as possible, then overseas/offshore manufacturing is going to be your best choice.

3. Creating your shortlist of potential manufacturers
After you've created your original list of possible manufacturers, it's time to whittle them down to a manageable few — the list of the best possible candidates. Clearly, not all of them are going to be a good fit for your business, so focus on the companies that meet your quality and reliability standards, as well as your costs for both production and shipping.

Look for manufacturers that specialize in your product category. While there will be some that say they can produce anything, companies that make heavy equipment will probably not be the best fit for electronics. Check for industry certifications, client reviews and testimonials, and product samples.

If possible, visit the factory or request a video tour to see their production process and quality control measures.

4. Reaching out to manufacturers
So what do you ask for when you're trying to find a manufacturer who can handle your product specs, lead time, and quality requirements? You need to provide detailed information about your product, the estimated order quantity, and expectations.

In your business email to potential manufacturers, be sure to ask them about:

Pricing.
MOQs and bulk order discounts.
Lead times for both production and shipping.
Shipping costs and insurance.
Sample availability and costs.
Quality control measures and certifications.
Don't forget to ask for product samples before you commit to a large order. Testing samples will let you evaluate the product quality, packaging, and potential improvements.

From your shortlist, compare the pricing, quality, communication, and reliability. If none of those choices seem perfect — and that will be difficult to find — place a small test order before you commit to a long-term partnership.

As part of your discussion, you'll also want to negotiate things like:

Volume discounts.
Payment terms (e.g., 50% upfront, 50% after production with net 30-day terms).
Flexibility of MOQs.
Also, make absolutely sure that warranty or refund policies are included in the contract.

5. Finalizing the manufacturer you want to work with
Once you've received responses and product samples from potential manufacturers, take time to thoroughly evaluate each one. Compare factors like quality, pricing, production capabilities, and responsiveness. If no manufacturer seems like a perfect fit, it may be worth starting with one that meets most of your needs, even if at lower volumes, while still looking for other options.

When you've selected a manufacturer, it's time to create a written contract that outlines all agreed-upon details, including product specifications, projected order volumes, delivery timelines, and recourse for quality issues.

Some additional tips for getting off to a good start include: starting with a small test production run to build trust and minimize risks, using a third-party inspection service to validate production capabilities and quality control measures, and maintaining frequent communication to proactively address any issues. Consider paying a percentage upfront and the remainder upon receipt to incentivize on-time delivery.

Building a relationship with a manufacturer takes time and due diligence. But taking the proper steps early can set your partnership up for success. Moving forward with clear expectations, quality assurance measures, and a spirit of trust and cooperation will provide a solid foundation. Adjust timelines and processes if needed, but remain committed to finding a win-win relationship with a manufacturer that enables your business to thrive.

6. Scaling production and building a long-term relationship
Your company's reputation and brand are dependent on the work your manufacturer does, so you want to make sure you have a strong relationship with them.

That means communicating consistently and regularly. You need to become best friends with the production manager or whoever is handling your account. It also means that you should summarize any phone conversations you have. Better yet, record them and keep transcripts, then send a summary of those conversations with the key takeaways via email to CYA (cover your assets).

Do regular quality spot checks on every new shipment. If you asked for certain specs or qualities of raw materials, have your own quality control people do those checks to make sure the right materials are being used.

A few years ago, I had a client in the luggage business whose products were made overseas. They knew their manufacturer would swap out the thicker materials they required with thinner, less expensive materials because they had done it in the past. That's why, when they received a new shipment every month, they grabbed two or three bags off the container, tore them apart, and measured everything about those bags. They said once a year or so, the manufacturer would try to change things up and use inferior materials.

When that happened, they closed the container back up, refused the shipment, and sent it back to the manufacturer. Needless to say, the overseas manufacturer wasn't happy about it, but they also knew they had been caught.

Consistent quality checks, a strong working relationship, and clear communication were key to avoiding quality issues in this case. While my client eventually moved to a new manufacturer, these factors can also be key to helping your business successfully scale up with a manufacturer that you work well with.

Here are some steps to take when maintaining your relationship with your manufacturer and creating sustainable business growth:

Monitor production efficiency and costs. Keep a close eye on delays and inefficiencies, as they can disrupt your supply chain and damage your reputation with your customers.
Evaluate shipping costs and timelines every year. Shipping costs and tariffs will eat into your profits, so review shipping methods, timelines, and costs to stay competitive.
Communicate frequently and regularly. Address concerns as they come up, not during quarterly or annual reviews.
Stay flexible and plan for growth and change. As your business grows, have regular discussions with your manufacturer for streamlining production or expanding your product lines and order quantities. Look into discontinuing products that are not selling.
Avoid these mistakes when you’re getting started with a manufacturer search
You'll have a tough time trying to create a positive relationship with your manufacturer if you make these mistakes. They'll be hard to recover from and could even ruin your company's financial health.

Choosing the cheapest manufacturer over the quality manufacturers.
Not requesting samples before placing your first order.
Failing to research each manufacturer’s reputation.
Ignoring communication issues or long response times.
Not having a written contract that outlines your expectations and requirements.
Related: How to sell online

Bottom line
Finding the right manufacturer takes time, research, and patience. It's not a matter of Googling to find a couple names and signing a contract. You need to establish your product specs, compare domestic versus international options, and negotiate for the right terms. If you can do this, you'll build a strong foundation for your company and the products you sell, becoming a competitive brand in your chosen market.

Tips for finding a manufacturer for your product
Inventing and producing a product – from conception to completion – is a long, but exciting and rewarding process. One of the trickiest parts of this process is finding a manufacturer to produce your product. This process might take a lot of time, patience and research. Luckily, our interconnected online world makes it relatively easy to research manufacturers and find information. You could also hire an agent or someone with expertise in assessing manufacturing operations. If you’re running a start-up, or if you’re an established business, this professional assistance can be incredibly useful.

Before looking for a manufacturer, take time to research and think about your product development needs. Your research will help answer the critical questions that manufacturers are bound to ask about your product.

Here are some things to consider to guide you in selecting a manufacturer, and how to look for one that can make your idea a fully-functional product.

Finding your manufacturer
One of the first things to think about is whether you want a domestic or international manufacturer.

While it may be cheaper to source your products overseas, it’s worth remembering that there’s more to your decision than the upfront investment and cost per unit – you should also keep in mind landed costs and delivery lead times. Consider that both domestic and international manufacturing have their own pros and cons.

Advantages of using domestic manufacturers
– Shipping is faster and cheaper. Depending on the scenario, your landed cost (i.e. total product cost upon delivery) is cheaper when sourced domestically.

– There are more payment choices and you’re less likely to incur costly fees because of conversion and international bank charges.

– Since it’s easier to travel within your own country, it’s easier to meet with the manufacturer and verify the product quality in person. This is especially important when you need to conduct product changes/updates.

– Easier to get legal recourse in case of conflicts.

Disadvantages of using domestic manufacturers
– Manufacturing and labor costs could be higher.

– It might be difficult to find a manufacturer to reach scale production since many domestic manufacturers are not tooled for high volume productions – shouldn’t be a problem for most entrepreneurs, however.

Advantages of using overseas manufacturers
– The costs could be lower depending on the location and size of the manufacturer.

– You can choose from a large range of manufacturers of varying quality.

Disadvantages of using overseas manufacturers
– There’s a higher chance of intellectual property theft, especially for innovative products.

– Depending on your language proficiency and that of your manufacturer, there could be communication problems.

– It’s less easy to verify manufacturer or product quality.

– Shipping times and costs are substantially higher as compared to domestic manufacturers.

– You’ll have to deal with customs which could include costly taxes.



Searching online for your manufacturer
Some ways to find manufacturers involve visiting prospective factories or using referrals. You might also consider finding a manufacturer online. Check out Inventaprint.com, a hardware product development platform which connects Inventors and businesses to a vetted network of top manufacturers to bring ideas to life. You may also find it helpful to acquaint yourself with Google’s search shortcuts to improve the quality of your searches and the subsequent results.

For best results, narrow your search down to a handful of potential manufacturers. That way, if their quotes are too expensive or if they aren’t able to produce your product, you can try another.

Requesting a quote
Once you’ve found a suitable manufacturer, how do you approach them?

Before sending a request for quotation (RFQ), there are a few questions you need to ask. Do this and you’re likely to get an informative response and an accurate quotation.

Here are a few important questions to consider before approaching a manufacturer:

– What is your minimum order quantity (MOQ)? This question will help you ensure that the manufacturer’s MOQ is manageable and affordable. MOQs tend to vary wildly depending on the product and the manufacturer so it’s a good idea to be clear from the start.

– What is your sample pricing? You’ll likely want samples to inspect before making a full order. Sample pricing varies depending on the product and manufacturer. Manufacturers who receive many requests may charge full retail pricing while others may offer discounted or even free samples.

– What is your production pricing? You will need to know how much your products will cost. You might also want to ask for pricing for several quantities to ascertain whether they do discounted pricing at higher quantity levels.

– What is your turnaround time? How long will it take before your product lands up in your hands?

– What are your payment terms? Many manufacturers will require new businesses to pay for the full order upfront. You may want to also ask if they provide payment terms on future orders.

If you contact an international manufacturer, note that they may be using translating programs to translate your email as well as their reply. It helps to keep your emails short, clear, well-formatted and free of spelling errors. This will not only help the manufacturer but it will ultimately provide you with better responses. Also, it’s best to number your questions, so that they can easily reply to each number, keeping the questions and communication clean and organized.

Important note – Make sure to do your due diligence on manufacturers prior to making contact. You do not want your idea to end up like the many stolen ideas in the hardware space. You’ve put in a lot of time, money, and effort into your idea. Do not let it go to waste!

Negotiating a minimum order quantity (MOQ)
It’s not uncommon for a manufacturer to require a commitment to purchase a specified number of units for your first order depending on the product. This is known as a minimum order quantity or MOQ. Thankfully, MOQs are often negotiable.

Before you begin negotiating, first understand why the supplier has imposed a minimum. Is it because there is a lot of work upfront? Is it because they prefer to work with larger buyers? Understanding the reasons behind the minimum will help you better understand their position and allow you to negotiate and propose to best counter offer.

When you have a better understanding of your manufacturer’s position, you can offer a lower order quantity. Compromises can include giving the supplier a deposit for a larger order, but just producing small amounts at a time or paying a higher price per unit.

Getting your product manufactured
Now that you have selected the manufacturers to work with, it’s time to start production and see who can make your product at a fair price.

– Have the factory and/or your contact sign a nondisclosure agreement. An NDA can’t guarantee that your product will be completely protected from plagiarism, but it offers you a degree of legal protection. If your intellectual property is stolen, an NDA will help you seek legal recourse.

– Send your detailed product drawings. You should have it by now.

– Ask for a cost quote. Get separate quotes for volumes in excess of and lower than your target volume. This will help you anticipate costs in case of spikes/slumps in sales. Once you have quotes, it’s time to head to the negotiation table and hammer out a deal.

– Finally, place the order. You will have to pay a portion of the balance due before the manufacturer will begin production. Depending on the turnaround time, you might receive your finished product within weeks.

Finding a manufacturer that’s reliable, skilled, and communicative is essential to your product’s success. After all, your idea can be brilliant – but if it’s not produced properly, it won’t be usable. While finding a manufacturer can be a difficult process, it’s worth taking your time and researching the best manufacturer to make product idea a reality.

10 Steps to Finding a Manufacturer for your Product
1. Build a list of potential manufacturers
Compile a list of potential manufacturers by conducting thorough research and utilizing online resources like Google and industry-specific directories. Seek out manufacturers aligned with your product requirements, such as those specializing in sustainable materials and production processes, to ensure compatibility with your vision. Additionally, leverage your network to gather recommendations and insights from industry professionals.

For instance, if you’re developing a new line of eco-friendly kitchenware, search for manufacturers specializing in sustainable materials and production processes.

2. Define Your Product Requirements
Clarify your product specifications, including materials, dimensions, and production quantities. Provide detailed briefs or reference materials to ensure alignment with your expectations. The more detail and information you have about your product requirements, the more efficient the manufacturing process will be.
If you’re designing a high-performance electric bicycle accessory, specify the desired materials, dimensions, and compatibility requirements to streamline the manufacturing process.

3. Assess Manufacturer Capability and Capacity
Evaluate each manufacturer’s capabilities and capacity to determine their suitability for your project. Inquire about their experience, production processes, and quality control measures.

Will the manufacturer do a low-volume production run so you can test the product quality and process? Do you have to invest significant capital in tooling and setup before production? Weigh the risks carefully. For complex products having a manufacturing partner with existing relationships can get you up and running faster and cheaper.
For instance, if you’re developing a custom-designed portable fan, ensure the manufacturer has the necessary expertise and equipment to handle complex electronic assemblies and testing procedures.

4. Request Manufacturer Quotes and Proposals
Reach out to shortlisted manufacturers to request quotes and proposals. Seek clarity on pricing, lead times, and minimum order quantities. Compare the offerings of different manufacturers to identify the best value proposition for your project.
Consider factors such as cost, quality, and flexibility when evaluating proposals. What assurances are in place that you will receive a quality product? Are there minimum production volume requirements?

For example, if you’re launching a new line of premium leather accessories for smart watches, request quotes from manufacturers specializing in high-quality leather craftsmanship. Do not go to manufacturers without significant leather experience.

5. Conduct Due Diligence on Suppliers
Perform thorough due diligence on potential manufacturers, verifying their credentials, certifications, and track record. Check for any red flags such as past disputes or negative reviews. Look for references and testimonials from previous clients to gauge their reputation and reliability.

A reputable manufacturer with a proven track record is more likely to deliver quality results and adhere to deadlines. If you cannot find any information confirming the quality and trustworthiness of a manufacturer, reach out to brands they have developed products for, ask for reviews. Or engage a manufacturer support expert to help.
6. Visit Facilities or Conduct Virtual Tours
If feasible, arrange visits to the facilities of your top manufacturing candidates or conduct virtual tours to assess their operations firsthand. Observe their production processes, equipment, and workforce to gain insights into their capabilities and working conditions. Pay attention to factors such as cleanliness, organization, and compliance with safety standards.
For example, if you’re outsourcing the production of solar battery devices, visit the manufacturer’s workshop to assess their techniques and quality control measures. Design 1st often tours potential suppliers and manufacturing companies alongside clients to meet teams face-to-face.

design-1st-manufacturing-pa
Image: Design 1st staff and clients meeting with suppliers in China
7. Negotiate Terms and Contracts
Engage in transparent negotiations with chosen manufacturers, discussing terms such as pricing, payment schedules, and intellectual property rights. Clearly define expectations and responsibilities to avoid misunderstandings later on. Negotiate terms that are fair and mutually beneficial, taking into account factors such as volume discounts, payment terms, and exclusivity agreements.

For example, if you’re partnering with a manufacturer to produce a new line of branded apparel, negotiate licensing terms to protect your brand’s intellectual property rights.

8. Develop Prototypes and Samples
Collaborate with manufacturers to develop prototypes and samples of your product. Evaluate quality, functionality, and aesthetics before proceeding to full-scale production. Iterative prototyping allows you to refine your design and address any issues or concerns early in the process. Seek feedback from stakeholders and make necessary adjustments to ensure the final product meets your requirements.

If you’re launching a new line of products, it is crucial to work closely with the manufacturer to prototype and test different design iterations until you achieve the desired functionality and user experience.

heatstone proto build test
Image: Design 1st engineer testing electrical heating patio stones
9. Consider Geographic Location and Logistics
Take into account the geographic location of each manufacturer and how it may impact logistics, shipping costs, and lead times. Consider factors such as proximity to raw materials, transportation infrastructure, and potential trade restrictions.
Opting for a manufacturer located strategically can help streamline production processes, reduce shipping expenses, and ensure timely delivery of your products.
If you want your product to be “Made in the USA” consider what mix of parts, assembly, and manufacturing allows for it to be “made in the USA”. Can you import parts, components, and materials to a USA manufacturer for final assembly?
10. Establish Long-Term Relationships
Cultivate long-term relationships with your manufacturing partners based on trust, communication, and mutual respect. Maintain open lines of communication and collaborate on continuous improvements to optimize efficiency and quality. Regularly review performance metrics and address any issues or concerns proactively. A strong partnership with your manufacturer is essential for the success and sustainability of your product.

For example, if you’re launching a new line of consumer electronics, foster a collaborative relationship with the manufacturer to facilitate ongoing product enhancements and updates based on customer feedback and market trends.

By following these ten steps, you can navigate the process of finding the right manufacturer for your product idea with confidence and clarity. Remember to approach each step thoughtfully and strategically, prioritizing factors such as quality, reliability, and compatibility with your vision and values. With diligence and determination, you can forge a successful partnership that brings your product to market and sets the stage for future growth and innovation.