If you have a small business then you need to buy your product of the right quality from a source who can offer you the best price so that you can have a higher profit margin. Therefore, it will always be beneficial to you if you shop around.
Since manufacturing costs are usually much cheaper in China, many companies try to identify a suitable manufacturer in that country to buy them. Why not directly order products from China?
Most companies who are either engaged in a certain online selling of products or are small enterprises can make a good profit if they buy from China directly at factory prices.
Also, if you are producing any product, then you may consider buying certain raw materials, components, or packaging materials from China, which could increase your profitability.
A few years back, only a few big companies could import all these items from China and maintain an office in that country to look after imports. However, thanks to internet technology, today any company can search online and can identify a suitable supplier in China.
Although even e-commerce also has a few pros and cons that can often derail your business, therefore, in this article we will share a few tips so that you can successfully directly order products from China.
1. Know how can you approach Chinese suppliers
You must understand that production and delivery times are two different things. Shipment may take place after around 45 days of production.
Often few buyers contact Chinese suppliers without any clarity and then unnecessarily chase the supplier for delivery which can irritate them.
Bear in mind a few things:
- The supplier, howsoever committed he may be will never offer you a unit price in advance as the price changes based on the quantity you order
- To offer a quote, the supplier needs to work a lot, so if you keep changing your requirements then you will annoy them
- Chinese suppliers keep getting many requests daily so they are not afraid to lose your business, particularly if your need is small.
Therefore, before you approach any Chinese supplier be clear and specific. As they have poor knowledge of English and if you constantly change your need, they may not send any quote at all. A good sourcing agent in China could be more helpful to you.
2. How to find your right supplier
The following are the steps involved to find the right product suppliers in China
- Research: One of the easier approaches to researching your right supplier can be visiting the Alibaba site, where you will find many lists of manufacturers in China.
Besides that, you can also refer to a few online directories that you can find through a Google search.
- Outreach and collect information: Once you have succeeded in identifying at least a minimum of 5 such suppliers then you must try to find reviews about those companies or try to obtain any referrals to obtain proper feedback about the company and shortlist a few companies with whom you want to do a business.
- Communicate your designs: You can share with these companies your product, specification details, quality parameters, sketch, or picture to know the price they can offer.
- Order samples: To start with, you may order a few samples of your desired product and try to evaluate whether it can meet all your specification and quality parameters.
- Negotiate: If your product has been approved by you then you can negotiate the price for the item. While negotiating the price, you must calculate the total cost involved in importing the product (landed cost) so that you may know at what price range you can earn a good profit.
- Place your order: Once you have got your agreed price then place your order for the item.
If you can find the help of any trustworthy sourcing agent and then directly order products from China, you can be assured that all the above activities are well taken care of.
3. Buy from China through wholesale markets
While considering China as your supplier, you must also check out the wholesale market where you will find different products available at extremely low prices.
Wholesale markets remain open throughout the year except during Chinese holidays which may remain closed. Most of the items are sold off the shelf, hence you can select your product after ensuring the quality.
Remember, you are buying from certain wholesalers and not the manufacturer. So, you have to segregate good products from the lot so that you may not end up getting any knock-off products.
4. Customs and Duties
It is important to know beforehand before the purchase and what custom duties you have to bear on the products that you are importing from China.
Custom duties may change based on your imported products and which can affect the final price of the products. While VAT may differ, however, customs duties remain the same for all EU Countries.
5. How to buy from China directly in small quantities at factory prices?
If you buy at wholesale prices from China directly then it can be very convenient as you can get plenty of discounts on prices, but it is not so easy to find the right supplier, who can properly make shipping arrangements, get the customs clearance, as well as offer you a clear and concise quotation.
The answer to this problem can be appointing a certain sourcing agent in China. An agent can help you to import any products from China, very swiftly and easily! They can help in:
- Sharing the specifications of your product in English
- Can directly contact the company
- Have small MOQs
- Ensure you are buying from certified suppliers
- Can ensure the right quality of the products
- Offer you a clear quotation where you can get all information on shipping costs as well as custom clearance
- Help you to receive your goods at your doorstep
There can be many ways you may be scammed when you are buying any product from a country for the first time. Therefore, any sourcing agent in China will enable you to directly order products from China after taking his advice and you will not regret it later.