How to Purchase China Wholesale Electronics

With China producing so many of the world’s goods, it is only natural that there are many business opportunities in China wholesale electronics. Buying and selling wholesale products from China can be a lucrative business model for those who are informed and do it properly.

Factory direct or wholesale
While it is possible to order goods factory direct from Chinese factories, it is often best for those starting a business to go through a wholesaler, unless a unique product needs to be manufactured. Chinese factories frequently have very close working relationships with wholesalers so the price difference may be minimal. China wholesalers will offer more products, secure payment methods, lower order quantities and are generally easier to do business with than going directly to a factory. However, there are exceptions such as when ordering larger quantities.

Finding the right supplier
Regardless of whether going China wholesale or factory direct, it is important to choose suppliers very carefully. The most thorough way to confirm this is to go to China or have an agent there to check out things first hand. However, this is costly and time consuming.

Fortunately, like so many other things, the internet has changed the game. It is possible to order everything online without any business trips. However, steps need to be taken to ensure the reliability of the supplier.

There are many websites offering ways to find good suppliers. For example, has a system for audited suppliers. These suppliers will go through a verification process that makes them much more secure than a free supplier that has not. In addition, it is possible to check reviews and other references to further ensure the source can be trusted and is legally registered.

For the most secure suppliers, those buying China wholesale also can use sites to include SaleHoo that only represent verified suppliers and break relationships with any wholesalers that do not provide a satisfactory level of service.

When purchasing from a Chinese supplier, it is best to use a payment service such as MoneyGram or PayPal that has a policy on refunds. A bank transfer does not leave any room for recourse if there is a problem with the shipment.

Types of China wholesale electronics products
With China such a manufacturing hub, just about anything, from shoes to phones and cameras can be found. As China has advanced in manufacturing prowess, Chinese wholesale electronics (the best area for these is Guangdong Province) have become particularly attractive.

Anyone buying China wholesale electronics first needs to very carefully consider the types of products they would like to sell. It is usually best to avoid products to include children’s toys that are more regulated. Carefully look at regulations and import duties before deciding on any product.

Branded and non-branded wholesale products
Keep in mind that it is generally impossible to legally purchases branded products directly from Chinese producers and sell them. Agreements with between the owners and suppliers of these products will forbid it. Therefore, branded products that can be purchased from a wholesaler are likely to be counterfeit.

With this in mind, it is necessary to buy non-branded products. While these products will be cheaper, they will generally be of lower quality. For consumers more interested in price, such products can sometimes be the best sellers. In addition, keep in mind that non-branded products can often be branded with one’s own name for large enough orders.

Advantages of China wholesale
Besides the obvious cost advantages, it is important to keep in mind that many products that can be found from Chinese wholesale are often not on sale yet in the US and other markets. It is sometimes possible to find undiscovered products that can really take off.

Drop shipping
One attractive way for some to sell wholesale products is by drop shipping. This eliminates the need to keep inventory since the product is shipped directly from the China wholesaler to the customer. However, the drawbacks are that the unit costs will likely be higher without bulk purchases, and having each product shipped separately from China will cost more, although this may be at least partially made back since it will not be necessary to warehouse the product and send it to the customer from there.

Taxes and import duties
On top of shipping costs, any taxes and important duties must be figured into the total costs. Although these are generally low for electronics, they are much higher on others. Consider these costs when deciding on what products to buy and sell.

Getting the best price
Always look around and consider as many suppliers as possible. Buying in bulk and stressing long-term relationships can help lower unit costs. However, do not become so fixated on price that the quality of the products or the reliability of the supplier is sacrificed.

In addition, remember that goods need to be covered by warranties, and orders should ship with services such as DHL and EMS which allow the packages to be tracked when possible.

Get the Best Prices with China Wholesale

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 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.

Ecommerce platforms
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.

China Becomes the World’s Second Largest Economy

China has now surpassed Japan as the world’s second largest economy. While this says as much about Japan’s relative decline as China’s rise, it is still is an important milestone that demonstrates China’s rapid transformation that is sure to bring more changes both inside and outside its boards.

It was not long ago that China had the image of a backwards and poverty stricken military menace in the minds of many. While it was sometimes feared for its numbers and ideology, it was not considered a serious economic force. However, since the market oriented reforms that really started kicking into gear in the early 80’s, it has marched steadily forward to become an economic superpower.

Able to keep its economy at a healthy growth rate while much of the world has struggled, it can be argued that growth in China is vital to the rest of the world economically. Now increasingly becoming a consumer as well as an exporter of goods, the Chinese market is very important to more and more nations and has outstripped the US as the number one export market for some. This has allowed China to flex its economic muscle much more than it ever could in the past.

Relatively scarce on resources, especially when one considers it has a fifth of the world’s people, China is now aggressively signing deals abroad for energy, minerals and other resources to feed its economy. While this can be expected from a nation that is acting as the factory for much of the world, some worry it is setting the stage for future conflicts over resources as its economy continues to grow.

However, it is important not to be too dazzled by China’s economic success. It has fiscal, social and other issues that may cloud its future. With its enormous population, it still ranks low in per capita income in spite of having the world’s second largest economy. Still closed politically, there are many problems with corruption, cronyism and public discontent that are not being properly addressed.

Very dependent on exports for economic growth, China needs good relations with the rest of the world if it to keep its economy humming. With its state-run banks saddled with bad loans, often made for political reasons, it needs to tread carefully if it is to avoid its own financial crisis.

Having taken steps to greatly reduce its birth rate well before becoming wealthy on a per capita basis, China may also soon be facing demographic problems with fewer younger people to support an aging population.

Furthermore, while China is still a relatively poor country and wages are low by the standards of richer nations, they are rising fast. This has made manufacturing in China less competitive than it once was and some lower wage manufacturing has begun to shift elsewhere.

Still, China has an industrious and disciplined work force. Moreover, for all the problems with its closed political system, it at least has stability and is free of the kind of strife that hurts so many nations economically. These factors, combined with the massive infrastructure investments being made, are likely to keep China competitive and growing as an economic powerhouse.

With its much larger population, it remains on course to eventually surpass the United States too and become the world’s largest economy. If that day comes, the effects on China, and the rest of the world, will certainly be huge.