Everything You Need to Know About OEM Vendor

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Everything you need to know about oem vendor


If you’re a product sourcer, chances are that one of your biggest headaches is finding the right vendor.

The process can be time-consuming and complicated, so we’ve created this blog post to help you get started on your search for the perfect OEM vendor.

We believe that the information we provide this blog can help you solve your problems,

This blog will include the following topic:

What is OEM meaning, the difference between original and OEM

What is OEM vendor mean?

Why should you choose an OEM vendor

How to search for OEM Product suppliers?


What is OEM meaning and What’s the difference between original and OEM


OEM is the abbreviation for Original Equipment Manufacturer, also known as contract manufacturing, commonly known as OEM (production), the basic meaning is that the brand producer does not produce the product directly, but is responsible for designing and developing new products and controlling the sales channels using the key core technology at its disposal.

The original equipment manufacturer commissions specific processing tasks to other manufacturers of similar products by means of contractual orders, and then buys out the ordered products at a low price and directly labels them with its own brand trademark.

This type of cooperation in which production is commissioned is referred to as OEM. The manufacturer who undertakes the processing task is referred to as the OEM manufacturer and the products it produces are referred to as OEM products. As can be seen, contract manufacturing is a form of “OEM production” in processing trade, and in international trade, it is the export of labor services in the form of commodities.

Original Parts are quite similar to OEM vendor spares. The difference is that they were parts that were originally supposed to be installed on the car when they leave the factory. These parts are often priced higher than OEM vendor spares because they carry the brand logo. Genuine parts often hold very little advantage over OEM parts although there are cases when that’s not true.

What does OEM vendor/OEM supplier mean? 


An OEM vendor is a hardware or software company that provides technology, that will be integrated into another system or product. It also referred to as Original Equipment Manufacturers (OEMs)

Typically OEM vendors compete against each other in terms of price and quality to gain market advantage in volume sales into end-user markets at retailers such as Wal-Mart and Best Buy.

Because OEM vendors are selling technology to other OEM vendors like Intel, HP, Dell, etc., they must comply with the same industry standards set by organizations like ANSI, IEEE, and ISO/IEC.

Such scenarios allow OEM vendors to be a “force multiplier” for OEM system integrators.

OEM vendors are found in the PC hardware and software industries as well as embedded systems like medical devices, printers, network hardware and small electronics.

OEM providers can cost-effectively deliver enterprise-ready products by leveraging their ability to include any of hundreds of technologies into an integrated product or solution.

OEMs provide performance and value at competitive pricing due to full vertical integration with R&D, manufacturing, logistics and sales & marketing organization.

The OEM business model originated when manufacturers that wanted computers designed specifically for their needs could not find a company that would build them exactly how they wanted it built (or didn’t have the capabilities).

So these businesses started searching for another firm that had the expertise in-house to build their computers, someone like IBM. OEMs became the solution.

oem vendor

2. Why should you choose an OEM vendor

(1) A great opportunity for improving and growing their business.

There is no denying that OEM relationships can be difficult and require a lot of work from  to manage and maintain.

However, these challenges can also help you gain access to new business opportunities that you wouldn’t have otherwise had if they went direct to retailers or distributors;


(2)  Provide additional market coverage

OEM vendor relationships can give you more exposure into retail markets that they may not have had with traditional distribution partners.

Remember, generally speaking, when an OEM goes straight to the retailer or distributor directly, it only  has access to that channel;

OEM vendors can provide you an extra distribution channel into retail for those who choose to leverage this type of relationship.


(3) Provide you with more insight and information

About the market, OEM vendors can provide more information, because they are seeing it from their vantage point within each individual retailer or distributor.

(4)  Know consumer trends and  OEM demands

OEM vendors can provide you with information on how OEMs are performing against competition in the retail channel.

OEM vendors become the OEM’s eyes and ears within each retailer or distributor but, unlike OEMs who go direct to a channel partner, OEM vendors have a more vested interest in seeing that their partner- you succeed.

Because many of  the partners are also OEM vendors, OEM vendors typically have a greater vested interest in OEM vendors’ success.

OEM vendors that have relationships with OEMs can share with the OEM how their products are doing and give the OEM an idea of what to expect from upcoming seasons.


(5)Other advantages  

OEM vendors can also help you expand into new markets, improve brand recognition and maintain more control over product messaging.

The benefits of an OEM vendor relationship are numerous but the business owners that recognize the value of working with a manufacturer who understands its business challenges will be much more successful



3. How to search for OEM Product suppliers?

Finding a good OEM vendor or OEM manufacturer is not an easy thing, since if you don’t know how to search for the right one.

It’s very possible that you will choose the bad OEM supplier and then you will have to throw your product away.

It is not uncommon that OEM vendors cheat foreign buyers by offering high quality products at low prices, but when the OEM products are delivered to foreign buyers’ doors, they find that OEM products have poor quality and won’t work properly.

The OEM vendors then ask for unreasonable compensation from OEM buyers. You may lose money or even worse, you may once again make other OEM suppliers become your enemies because of this bad experience!

How do OEM buyers avoid these OEM scams and OEM traps?

Below is the best ways to find product supplier.

(1)Online OEM directory website

Searching OEM supplier online is probably the most efficient way to find OEM product supplier. OEM buyers can search OEM product suppliers in OEM directory, which are mainly OEM websites and business directories.

You can use google or bing, type: OEM Directory website or OEM Business directory website, then click Search button. The first company that shows up is a good start!

OEM buyers can visit OEM directory website or OEM business directory to have a look at the OEM products suppliers in there, then find one that is similar to your OEM product. OEM suppliers that offer OEM product with lowest price are usually good OEM suppliers , so OEM buyers should choose quality over low price.

(2)Exporting trading companies

Find product supplier through importing and exporting trading companies.

OEM buyers can find OEM suppliers from importers and OEM sales agent, which are usually trading companies. OEM buyers should contact the local trade office of foreign brands in China to get a list of OEM product suppliers, then choose one that is similar to your OEM product.

OEM supplier that offers OEM products with lowest price may not be the OEM product supplier OEM buyers need. OEM buyers should choose OEM suppliers that can do OEM services well.

(3)Certain Website

OEM Buyer and OEM Product Suppliers from A website Where Importer and Exporter Trade Together.

If you are a new OEM buyer whose OEM products haven’t been sold yet, you can try to find supplier on the OEM website where OEM buyer and OEM supplier trade together.

OEM buyers can hire OEM product suppliers from this OEM website, OEM sellers also can take OEM orders from there.(This is called OEM B2B website.) All of the OEM product suppliers registered on this OEM B2B website are usually OEM product manufacturers who have good reputation in their specific industries.

OEM buyers need to pay OEM product supplier once OEM product are sold。

(4)Online Forums

OEM Product Suppliers From Online Forums Before you take any steps further, please first read the OEM product description carefully, OEM buyers can post OEM product requirements in OEM forum. OEM suppliers can also find OEM product specifications and OEM price from OEM forums.


(5) Trade associations

OEM Product Suppliers From Trade Associations If you have no time to deal with online OEM product supplier search, you could choose other way to find a good OEM supplier: the  OEM product suppliers from OEM industry trade associations.

OEM buyers should contact the regional OEM product supplier association and find OEM suppliers that can do OEM services well in their region or area. You can make OEM business card to OEM product you need, then visit them and ask for OEM service.

4 Reliable Product sourcing companies


Pangea is your No.1 choice for product sourcing in Australia. With factory partners in China, United Kingdom, Hong Kong and other markets you can be sure your products are sourced from the right place.

Pangea is an award-winning team in sourcing. They can help you with your OEM/ODM requirements!

One of the biggest headaches of importing is shipping. Pangeas’ professional warehousing can help with your entire order management chain.

Pangea has won great reputation in sourcing products like timber, mosaic……

The Sourcing Co

Since 2014, The Sourcing Co. has offered a unique combination of expertise as both a supplier and a manufacturer, providing an end-to-end service for businesses across the world, from entrepreneurial startups to global corporations.

We offer a one-stop-shop for all commercial product sourcing.

While most supply companies use the services of a retailer, distributor, stock product supplier, overseas trading firms, and factories, we combine all of that into one.

The result is a more simplified and cost-effective ‘factory-direct’ service – with more value to you.

Dragon Sourcing

Dragon Sourcing is a procurement services provider, delivering significant and sustainable value to organizations in the procurement of their goods and services from emerging and developed markets.

Whether the objective is to procure competitively from emerging markets for export, to procure for local operations, or to gain global procurement intelligence to make better decisions, Dragon Sourcing is your partner of choice.

We aim to develop long-term relationships based on trust, transparency, and business integrity with a limited number of organizations.

Founded in 2004, we have expanded to offices across Asia, Europe, and the Americas which means we are able to closely integrate with both our clients and their supply markets.


In this article, we have shared what we know about the OEM vendor, including

1.What is an OEM vendor

2.Why should you choose an OEM vendor

3.How to search for OEM Product suppliers?

4.reliable Product sourcing companies you can choose

In the end, your goal should be to find a reliable and high-quality OEM vendor that can provide you with products at competitive prices.

It may take some time for you to find an appropriate supplier, but if you want more information on how to go about finding one we recommend using Alibaba or another site like it.

They have tons of search filters which will help make this process easier. Once again, use this information as guidelines and not rules because no two businesses are alike.

The only way you’ll know what works best is by putting in the work required to figure out who’s right for your needs!

If you still have other questions, please feel free to contact us, thanks for your reading!