China is a major player in the wholesaling market, offering products at lower prices.
With its efficient production capabilities and wide range of products, numerous wholesalers opt for Chinese goods to meet their supply demands.
Sourcing products from China often seems a complicated and risky pursuit for beginners. However, things get smooth after you understand the procedure and find a suitable supplier.
In this blog post, we’ll introduce you to buying wholesale from China. So, let’s get into it.
Steps to Buy Wholesale from China?
Sourcing goods from China is a lucrative endeavor. However, this purchasing process is quite challenging. The following are the steps for purchasing wholesale items from China:
Understand Your Role in Buying Wholesale
Understanding your role in wholesaling is crucial as it allows you to be responsible. When you buy goods from some foreign country, like China, you are an importer. Your role involves searching for reliable suppliers to provide high-quality goods and negotiate the contract terms. After sorting the right supplier, you need to provide them with a delivery location. Import products are delivered via ocean shipping or air freight.
If you have a huge order, you have to go to your nearest shipping store to receive the order. However, smaller orders are delivered to your delivery location without any hassle.
Find Quality Products
Deciding what to buy is a critical step for establishing a sustainable business. Don’t rush to purchase any product in bulk. Take time to analyze your market and understand the demand for various products. It might seem daunting and time-consuming, but it will save you money and effort in the long run.
Moreover, China is a vast marketplace with numerous production facilities. Though Chinese manufacturers are known for their unique and high-quality products, not all are reliable. Some Chinese suppliers offer products at low rates. However, the product quality is not worth spending.
Don’t get tricked by the low price of products. The quality becomes more significant if you are purchasing for reselling. Pay attention to evaluating the quality of products you want to import.
Inspect Your Country’s Import Laws
Countries have variable import regulations. Learn about your country’s import laws before placing your order. Inspect if the wholesale items you want to import from China are compatible with your country’s import laws. Learn about the safety standards and labeling requirements for various import products.
Some countries banned certain products for safety or health concerns. Also, ensure safety standards and labeling requirements to comply with your country’s laws. Importing any restricted or banned product can be risky as your package might be returned by the customs department. In some cases, you might get fined for importing prohibited items.
Obtain Your Product’s Tariff Classification Number
A tariff classification number is a unique combination of ten digits allocated to each imported item. It enables you to calculate the rate of duty and import tax.
Incoterms is another significant term while calculating the total cost of buying wholesale from China. Pay attention to the calculation of these costs before placing an order.
Find a Chinese Supplier
After deciding on the wholesale product you want to import, you have to locate a reliable supplier. Various platforms, like Alibaba, Google, or online and offline directories, allow you to search for wholesale suppliers.
While searching for the right product supplier, check their knowledge about the product, industry experience, and reputation. Also, learn about their shipping terms, payment schedule, and product delivery time. These aspects enable you to determine whether the supplier can meet your requirements.
If you found a suitable manufacturer, ask for a Performa Invoice. The document contains various order-related details, including the weight and dimensions of the package, price and product description.
Once you are satisfied with the supplier, prepare a contract or ask the supplier to prepare one. Ask your supplier for samples. They allow you to determine the quality and potential issues with the product. Make sure to have smooth communication during the entire process to minimize the risks of disputes.
Determine the Shipping Costs
International shipment is a costly pursuit that involves several fees. Most of us just know about shipping costs. You have to pay for container, packaging, and terminal handling. Moreover, you also need to consider broker fees to calculate the shipping costs.
Ocean shipping is hectic and requires a lot of effort. However, it is cheaper compared to air shipping. You can save 5 to 6 times by opting for ocean freight on import of larger orders.
Monitor Shipping Procedure
International shipping is a time-taking pursuit. It might take more than 30 days to get your order from China if you are a resident of the East Coast of the United States. However, if you want your package delivered on the West Coast, it will take about 13 days.
Save shipping documents to understand the customs clearance process. It allows you to keep an eye on the movement of your package as it reaches your country. Request your custom broker to handle the package-receiving procedure. Custom departments allow you to pick your order if it has no issues. If you have a small package, you’ll get it at your location.
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Where to Find a Supplier for Purchasing Wholesale from China?
If you don’t want to go through the hassle of going to China and visiting each supplier personally, you can search online. Here are some of the best spots to look for a trusted product supplier:
Alibaba
Alibaba is one of the top e-commerce marketplaces for companies. It is a perfect place to spot a supplier from China for anyone who wants to start a business-to-business company. Spotting the required product and browsing the suppliers in China has become more convenient through the Internet.
You can find all types of wholesale items, from electronics to clothing. The platform also enables you to spot the best suppliers by tags, like gold suppliers and verified suppliers. The rating system also allows you to learn about the supplier’s reputation. Once you locate a suitable manufacturer at a low price, place your order.
MoerSourcing
MoerSourcing is an amazing platform for companies searching to purchase wholesale items from China. It offers sourcing services, allowing you to source wholesale products at a reasonable cost. It has a team of professionals who understand the Chinese wholesale market and offer you details about all types of products.
The professionals at MoerSourcing allow you to find wholesale products at the best prices. They also handle the sourcing process, allowing you to concentrate on your business activities. Moreover, they also help you negotiate terms for purchasing. With a hassle-free sourcing process, MoerSourcing can elevate your purchasing experience.
DHgate
It is another great marketplace for sourcing legitimate Chinese suppliers. It offers durable and high-quality products from reputable manufacturers. The platform ensures the legitimacy of Chinese goods. This feature is crucial for novices struggling to spot a reliable supplier.
DHgate also offers buyer security and a money-back guarantee. The platform allows you to claim a refund in case of any issue with the product quality. In addition, it also establishes a strong reputation for secure delivery of all types of products. However, this platform offers limited products, making it difficult to purchase unique products.
Made in China
It is a fantastic platform that connects Chinese suppliers to the rest of the world. It primarily focuses on wholesaling from China. From home appliances to industrial equipment, you can get all types of machinery on this platform.
You can research various suppliers and learn about their reputation and expertise to provide the required product. You can spot a supplier that can meet your requirements and offer you affordable prices. Moreover, this platform also allows you to place small orders, making it convenient for businesses that are short on capital.
Banggood
Banggood focuses on the wholesaling of home appliances and electric gadgets. This website is also known for purchasing high-end PC components from China. The acceptable cost of products and the availability of premium electronics make it a high-end e-commerce platform.
Its quick shipping service allows you to get the wholesale stock in a duration. You can purchase a limited quantity from this platform. However, buying small quantities may result in higher prices. The price becomes reasonable if you want to buy electronics in bulk.
Global Sources
It is a popular business-to-business platform that serves as a channel between buyers and suppliers. Its extensive supplier directory allows you to search for the best manufacturers from China.
Global Sources enables you to learn about the supplier by offering you supplier profiles, product specifications, and buyer reviews. The badge system makes it more convenient to spot the best supplier with the most suitable terms. You can find a legitimate supplier for any type of product here.
It also organizes trade shows to connect suppliers and buyers. You can visit such exhibitions and meet the manufacturers in person to foster trust. The exhibits mostly showcase electronics and fashion items.
The Canton Fair
Trade shows and exhibitions are excellent platforms to search for your desired products. The Canton Fair, also known as the China Import and Export Fair, offers a fantastic opportunity for entrepreneurs to explore the market. It is organized in Guangzhou twice a year. It is held in spring and fall, allowing manufacturers to showcase their goods. You can spot the best quality and learn about the best wholesalers.
The huge variety in the show allows you to find all types of unique goods. Participating in The Canton Fair also saves you from time-consuming visits to several manufacturing facilities.
Yiwu Commodities Fair
This exhibition is held in Zhejiang, Yiwu and is one of the largest fairs in China. It is organized in October each year, showcasing a huge variety of trade goods. You can find unique wholesale products without visiting multiple stores.
The best thing about this fair is that it allows you to purchase even a small quantity at an affordable price. It is the perfect spot to find handmade goods by the local people. Though the Yiwu Commodities Fair is not very popular among international retailers, joining it can help you learn about various Chinese suppliers.
China Hi-Tech Fair
This fair is held in Shenzhen each year. Shenzhen is acknowledged for its high-tech manufacturing facilities. This exhibition offers an amazing opportunity for businesses looking for tech suppliers.
You can also find innovative products with unique features at this fair. Dealing with the manufacturers of such exclusive items can help you gain a competitive edge in the market. Moreover, searching for an innovative product can help you attract customers’ attention and create a sustainable company.
East China Fair
It is one of the largest and well-known exhibitions in China. East China Fair is known for its wide range of household product displays and the closing of numerous deals in the convention center. You can see textiles, clothes, gifts, and art pieces.
This huge fair attracts manufacturers from various nations, encouraging them to display their goods. You can find reliable suppliers of various products with competitive pricing.
Also Check: Made-in-China.com Wholesale: Top 5 Reviews
How to Make a Deal to Buy Wholesale from China?
Closing a successful deal with a Chinese wholesaler can boost your business and positively impact your company’s ROI. The following steps can help you make a successful deal with a Chinese wholesaler:
Effective Communication
For any successful business task, communication is a key factor. Not knowing the Chinese language can hinder your deal, making it difficult for you to share your requirements. Things become more challenging if you lack English speaking skills.
Learn the Chinese language if you are looking to work with a Chinese supplier for the long term. You can hire a translator to ensure smooth communication between the two parties. If you are a fluent English speaker, working with a Chinese manufacturer who can speak English can be a better choice.
Moreover, you also need an efficient communication channel to communicate with the Chinese supplier to prevent potential issues. You can employ various communication channels, like emails, phone calls, or social media platforms, to stay connected with the supplier. While communicating, Chinese manufacturers prefer written communication as they can better understand written English than verbal talks.
Commuting Problems
China is the most populated region with numerous transportation issues. Commuting might not be as easy as your area. Traffic jams, high toll taxes, and other transportation issues can be daunting.
These commuting issues can delay your visit to a manufacturing facility or supplier. Be patient while visiting various cities in China. Such issues also affect the delivery of goods to your location. Keep the delivery duration flexible while dealing with Chinese suppliers.
Issues With Written Contracts
Written contracts are often seen as a guarantee of the terms and conditions two parties have finalized. However, in China, contracts can’t bind anyone. You might think a contract with a Chinese supplier is the final word, but they might alter it later. They might also give you a suitable reason for altering the terms.
The alteration in contracts doesn’t make Chinese suppliers fraudulent. Slight setbacks are normal for them, and you can expect such shifts while purchasing wholesale from China. Written agreements become almost meaningless if you are placing a small order.
Negotiate a Fair Price
Finance is a crucial element of any business. To build a successful reselling company, acquiring wholesale products at cheap prices is necessary. Don’t be afraid of asking for a low price while dealing with Chinese suppliers.
By negotiating the product costs, you can improve your profit margins and offer your products at competitive rates. However, while negotiating the price with the supplier, don’t compromise on the quality of goods. Compromised quality can cost you more than saving some money on the purchase.
Be Clear about Your Requirements
Communicating your requirements is necessary while closing a deal with a Chinese manufacturer. If you have any specific demands or want your supplier to add some additional features to the product, ask them clearly. Don’t expect suppliers to accomplish something unless you communicate with them.
Mention as many details as you can to avoid any disputes in the final order. If you forget to mention something clearly, the manufacturer might not consider adding it to complete the order on time. For instance, your supplier may provide you with an aesthetically unpleasing product if you have not mentioned the aesthetic details of the product.
Even though most Chinese suppliers don’t take the written agreement seriously, mentioning the product details helps them understand your requirements. It also saves you from purchasing a product with missing features.
Also Check: How to Find China Wholesale Suppliers? Top 5 Methods
What Should You Consider While Buying Wholesale From China?
Establishing long-term partnerships with Chinese manufacturers can be advantageous for your company. However, the purchase process comes with several risks. The following strategies can contract with the right Chinese supplier and get the best wholesale products:
Don’t Go With Bad-Quality Products
Cheap price tags are an indication of low quality and poor manufacturing. If the price is much less than what other suppliers are offering, then it is a red flag. Don’t ignore the quality of goods. Compromised quality might seem profitable initially, but it can lead to costly damage to your company’s finances and reputation in the long run. Invest in quality goods to establish a strong impression in the market and retain customers.
Keep the Chinese Holidays in Mind
Chinese celebrate their holidays with great enthusiasm. Most manufacturing facilities stay closed during such holidays. Chinese New Year is a prominent event in the Chinese culture. The manufacturing units remain closed for about three weeks due to official holidays. Not considering these holidays can affect the delivery time of products. This delay can lead to a financial loss if you don’t have enough stock for retailing.
Explain Your Requirements
If you have any particular requirement regarding the product or shipping, explain it to the supplier on time. It’s better to discuss them before placing the full order. If you fail to communicate all the requirements to your supplier, you may get an unwanted product. You may also have to spend extra effort and money to fix the issue or add the required features.
Avoid Showing Distrust to The Supplier
Respect and trust are core requirements for a successful business association. Exhibiting rudeness and suspicion to a new supplier without any reason can ruin a profitable partnership. If you doubt anything, ask politely. Having a good relationship with the supplier will help you boost your business. The supplier will acknowledge your concerns and work to provide high-quality.
Conduct Research About Your Supplier
Before signing a contract with a supplier, you need to investigate them thoroughly. Search for their expertise, experience, and reputation. You can ask them to provide references from their previous clients to ensure their credibility. Requesting a sample from your potential suppliers can also help you gauge their manufacturing quality and workmanship.
Ensure FOB Terms Compliance
FOB terms vary for different ports. Prefer suppliers who accept FOB terms and conditions. If they have some issues with the terms, ask them the reason. Prefer to work with a supplier who accepts FOB terms. These terms minimize your shipping costs and offer you more control over your order.
Pay Attention to Package Delivery Time
The delivery time of your wholesale products can significantly impact your business. Overseas shipping is a time-consuming process. Economic conditions and political circumstances can delay your package. Moreover, large orders take more delivery time than small packages. If you order something in bulk, keep the delivery schedule in mind. Paperwork and customs clearance also require an additional seven days.
Learn About Import Regulations
Knowing import rules and regulations is necessary if you want wholesale goods for business purposes. Import regulations are applied to your package if it contains wholesale products. If you are importing a bunch of products and claiming it to be for personal use, the customs authorities might not recognize your answer. You have to pay the import tax, so knowing them before placing an order can save you from spending more than expected.
Also Check: 15 Best Fashion Wholesale Clothing Suppliers from China
Challenges Associated With Buying Wholesale From China
If you are new to wholesale purchasing, you might face a lot of challenges. Most of them make mistakes while handling these challenges. Here are some common mistakes most novice buyers commit when start sourcing wholesale from China:
Mixing Supplier Types
Before tapping into the wholesaling industry, you need to understand various terms, like factory, trading firm, sourcing agent, and manufacturer. Understanding these terms facilitates the wholesale purchasing process. Here is an overview of these terms:
The factory is a manufacturing facility that builds the product. The manufacturing process can be done by employing labor or machinery. If you have found a factory owner for getting wholesale products, you are buying from the factory.
A trading firm is like a middleman. They source the products and ship them to you. However, they raise the product price to make a profit.
A sourcing agent also works like a trading company. However, they directly connect you to various manufacturing factories. They also offer you factory inspection to ensure your company is getting the best quality products.
The terms “manufacturer” and “supplier” are often used interchangeably. Manufacturer is often used for a factory. However, suppliers can be used for any of the above three terms.
Focusing on The Price Only
Considering the wholesale price of a product is necessary to establish a successful business. However, considering the cheapest rates can’t be the best choice. Moreover, opting for high-priced products can also be damaging as the price can’t guarantee the quality.
To ensure quality and profitability, you have to visit multiple suppliers. Learn about the market rates and delivery duration of the product. Negotiate with the suppliers if you consider the price of the product to be too high. Make sure to find the right supplier with a reasonable price tag.
Negotiating on Shipping Charges
Most suppliers don’t want to negotiate on shipping. Some suppliers do charge an extra shipping fee, but most of them charge what they have to pay for shipping. Negotiating on shipping can negatively impact your partnership with the supplier. So, It’s better not to compare the shipping prices of different suppliers.
Assuming Suppliers to be Factories
You might think all Alibaba’s suppliers are factories. However, this is not true. A lot of trading firms show them as factories to make a profit. They take the products from factories and deliver them to you. Buying wholesale goods from such firms can cost you more than the factories offer. To get the best price, visit the factories. Don’t rely on the pictures or websites of factories, as numerous trading firms also have well-designed websites with images of factories.
Relying on Reviews Only
Though reviews are a great source to access the reputation of a supplier, they can be fake. Some suppliers display forged reviews to attract customers. Working with such suppliers can be a costly mistake. Make sure to identify genuine reviews. Researching the suppliers can help you learn about the quality of their products and services.
Not Hiring Sourcing Agents
When you start reselling a business, ensuring the quality of the products is crucial. It becomes more significant when you are reselling directly to consumers via an online platform. Ignoring the quality of the product can ruin your business.
Hire a sourcing agent to ensure the delivery of quality products to customers. Sourcing agents conduct regular inspections of factories. They also help you close a fair deal with the factories, ensuring you get the best product at a reasonable price.
Not hiring a reliable sourcing agent can put your business at various risks. Experienced reselling companies also rely on the proficiency of sourcing agents. These agents search for the best products and negotiate the best price, making their business more successful.
Also Check: Chinese Stationery Wholesale: A Guide to Sourcing Affordable and Quality Stationery Products
FAQs
How do you buy items wholesale from China?
Start the process by searching for a reliable supplier. Various websites and tradeshows can help you spot a trusted supplier. Research the potential suppliers and learn about their reputation. After verifying their credibility, communicate with them. Negotiate various terms, including payment terms, shipping costs, delivery time etc. Sign the contract and monitor the shipping process to get the order on time.
How do I buy directly from Chinese suppliers?
Hire a sourcing agent to buy directly from a Chinese supplier. Sourcing agents reside in China and know various manufacturing factories. They help you connect to the factories and bargain the best rates for you. You can also search for suppliers on websites like MoerSourcing, Alibaba or Made in China.
Do I need a license to buy wholesale from China?
Yes, you may need a license to buy wholesale items from China. Though, you don’t need it for all types of products. You can import certain wholesale products from China even without a license. However, it is best to check the licensing requirements before placing an order.
How do you find wholesale suppliers in China?
You can find wholesale suppliers in China by visiting online websites or tradeshows. Various websites, like MoerSourcing, Alibaba, and DHgate, allow you to search for wholesalers. You can also go to tradeshows held in China to learn about wholesale suppliers.
Conclusion
Buying wholesale from China is a profitable business. Chinese manufacturers offer you quality products in bulk. The efficient manufacturing capabilities of Chinese manufacturing facilities make them stand among the top wholesalers in the world.
If you are looking to establish a reselling business, you need to find a trusted manufacturer. Negotiating payment terms enables you to get the best price. It can expand your profit margins and help you grow your business.
MoerSourcing is one of the best sourcing companies in China. Our experts can help you find the best manufacturers in China. They also help you negotiate prices, delivery time, and other terms. You can spot a reliable supplier with our experts and get the wholesale products on time. So, CONTACT US TODAY and start establishing your business in a competitive market.
