Episode Number:

61

February 16, 2026

https://youtu.be/BKYRuwUrpno

In this episode of The eCom Growth Show, Danan Coleman speaks with global sourcing expert Lyden Smithers to challenge one of the biggest narratives in eCommerce right now: should brands really move manufacturing out of China?

With over a decade in eCommerce and responsibility for more than $100 million in annual online sales, Lyden breaks down what most sellers get wrong about suppliers, negotiations, and long-term partnerships.

Meet Lyden: The Supply Chain Strategist Behind $100M+ in Online Sales

Lyden Smithers has spent the last 11 years building, scaling, and sourcing eCommerce brands across Amazon and TikTok Shop. He leads supply chain strategy for multiple brands and agencies, negotiating directly with manufacturers in China and beyond. As the founder of China Magic, he brings groups of sellers to the Canton Fair to build real supplier relationships, improve payment terms, and unlock operational advantages most sellers never access.

Extended Payment Terms Aren’t Just About Cashflow

Many sellers assume payment terms only matter if cash is tight. Lyden sees it differently.

  • Upfront payments create transactions. Extended terms create partnerships.
  • When suppliers are financially tied to the outcome, they’re more invested in fixing issues.
  • Shared risk leads to shared responsibility.
  • Payment terms can protect you during volatile periods like Chinese New Year, when factory workforce turnover can reach 30%.
Strategic Insight: Strong terms aren’t about squeezing suppliers, they’re about aligning incentives.

The Biggest Negotiation Mistake Sellers Make

Too many eCommerce operators approach factories like they’re negotiating for a used car.

  • Treating suppliers as opponents leads to corner-cutting.
  • Forcing aggressive price drops often results in compromised quality.
  • Manufacturers typically operate on 10–15% margins, large price cuts have consequences.

Lyden’s approach is simple: move to the same side of the table.

  • Work together to reduce costs through smarter materials, process improvements, or volume planning.
  • Present annual forecasts to justify better pricing or terms.
  • Create true win-win scenarios where both sides grow.
Key Takeaway: If the factory loses, you lose later.

Why Face-to-Face in China Changes Everything

In Chinese business culture, relationships—”guanxi”—drive outcomes.

  • In-person meetings unlock better pricing, lower MOQs, and improved payment terms.
  • Factories evaluate you just as much as you evaluate them.
  • Shared meals and factory visits build trust that email never will.
  • Many top-tier manufacturers avoid platforms like Alibaba and instead prioritize serious buyers at Canton Fair.

Lyden emphasizes that traveling to China consistently pays for itself through better deals and stronger partnerships..

Reality Check: You’re not just choosing a supplier—they’re choosing you.

Should You Move Manufacturing Out of China?

With ongoing tariff discussions and geopolitical uncertainty, many brands rushed to relocate production.

Lyden’s perspective:

  • No country matches China’s infrastructure, efficiency, and manufacturing depth.
  • “China Plus One” strategies can work, but often come with longer lead times (up to 90 days vs. 30–45).
  • Alternative countries frequently rely on Chinese machinery, management, and raw materials anyway.
  • Shipping routes and production scaling remain strongest in China.
Smart Strategy: Consider diversification, but don’t abandon the most developed manufacturing ecosystem in the world without clear financial justification.

Leverage That Actually Works With Manufacturers

Negotiation power doesn’t come from threats, it comes from positioning.

Top leverage plays Lyden recommends:

  • Visit during Canton Fair to signal access to competitors.
  • Present 12-month growth projections.
  • Trade larger orders for better terms.
  • Build relationships before making demands.
Simple Hack: Even mentioning you’re attending Canton Fair can improve your negotiating position.

China Magic: Learning the Supply Chain Firsthand

Through his China Magic trips, Lyden brings ecommerce sellers directly to Canton Fair and local factories.

Participants learn how to:

  • Navigate the overwhelming scale of Canton Fair efficiently.
  • Validate products before sourcing.
  • Negotiate payment terms and pricing strategically.
  • Build long-term manufacturing partnerships.
Bonus: Anyone who mentions The eCom Growth Show when booking through ChinaMagicTrip.com receives $500 off their ticket.

Connect With Lyden

Final Thoughts

Manufacturing strategy isn’t about chasing headlines or reacting emotionally to tariffs. It’s about understanding infrastructure, incentives, and relationships.

China remains the global leader in scale, speed, and production capability. The brands that win aren’t the ones jumping countries, they’re the ones building deeper supplier partnerships and negotiating from a position of clarity.

Stay tuned for more episodes of The eCom Growth Show, where operators share the strategies that create durable ecommerce growth in a changing global market.