There is no denying the value of purchasing at the wholesale price, and China wholesale offers some of the best deals around. With its lower labor costs and increasing manufacturing know how, Chinese products are some of the cheapest in the world. However, buying Chinese wholesale or factory direct has its unique challenges, and it is necessary to know all the options.
China factory direct
One option for those who want the lowest prices from China is to make a custom order with a factory. While this is certainly the way to go in many circumstances, keep in mind that it is not practical for the typical small business. There are a number of issues that come with placing a custom order in a Chinese factory. Apart from sampling, payment and shipping, there is the order size to consider. Although it is sometimes possible to place relatively small orders for custom goods, it is not usually economically practical since unit costs will probably be comparatively high without a larger order. Therefore, custom manufacturing should generally be reserved for those situations in which bulk orders can be placed.
China export agent
Fortunately, there are many existing products in China that can be purchased directly from factories and wholesale. For those new to China, this is best done through a China export agent. These agents monitored and encouraged by the Chinese government to promote Chinese goods overseas. A good agent will help find goods, monitor quality, arrange shipments as well as documentation, help with price negotiations and everything else in the process.
These agents also can be a great help when going to China directly. This includes booking hotels, arraigning transportation and meetings with suppliers to help them make the personal contacts that are so important for doing business in China.
Whenever looking for goods China wholesale, it is always vital to use reputable agents. Many can be found on sites to include alibaba.com or direct web searches. Never select an agent with first checking for reviews and other feedback. The agent should be upfront about any compensation and costs. In addition, ensure that the agent is not simply directing customers to those places that pay commissions since their goods may not be the best option.
When done properly, using an export agent helps buyers get some of the lowest unit costs possible. However, this system is not practical for many small businesses since order quantities are still relatively large and payments usually must be made by wire transfer.
For smaller operations, the best way to go China wholesale is often though ecommerce platforms. Some of the biggest players in this field include Alibaba, Made in China, Global Sources, Favordeals and SaleHoo. These services allow buyers to browse through all kinds of products and then connect directly with the suppliers. The suppliers will include manufacturers, wholesalers, liquidators and dropshippers.
While the terms will vary with the supplier and quantity, buyers can often find much smaller order quantities and more secure payment options to include credit cards. In addition, these sites will screen their suppliers to weed out those who may be substandard. This does not eliminate the need for buyers to exercise caution when selecting a supplier, but it does make the process easier.
Dropshipping is an attractive option for some. When using a dropshipper, the goods will go directly to the customer. Therefore, the seller does not have to handle and ship products or keep an inventory of goods. It also makes it possible to offer wholesale products from China and other places worldwide. This business model generally comes with higher unit costs for products and has other drawbacks that mean it is not for everyone. However, it works very well in many situations.
Caution when sourcing
Depending on the product, country and other circumstances, there may be high import taxes and other fees. Everyone importing goods from China and elsewhere needs to research and get an idea of what they will be before making any purchases.
Quality control should be another area of concern. While things have been changing, Chinese factories and wholesalers often do not have the same way of looking at quality as most in the West do. Therefore, measures always need to be taken to ensure quality control before goods are shipped.
It is also vital to make sure the goods being imported will not have any special restrictions placed on them. It may be best to stay clear of products like food and toys that will generally that have the most government regulations placed on them.