If you’re the CEO of a small to medium-sized online retailer, make sure you buy direct from China, not your local wholesaler.
China is known as the factory of the world. You can buy all kinds of products in China.
Products made in China are cheap, but the quality is excellent. In China, you can buy the best quality products at the lowest cost. By buying directly from China, you can maximize your profits.
But at the same time, buying from China may not be as easy as it seems. Especially, when you shop for the first time, the whole process can seem chaotic and expensive.
However, don’t worry, Chinasourcify team has rich purchasing experience in China. We have developed this scientific guide to help you buy direct from China professionally. Let’s go now.
9 Reasons Why You Should Buy Direct from China
At first, you might be skeptical about purchasing directly from China.
You wonder if buying directly from China would be more advantageous than sourcing locally.
But after reading the following 9 reasons, you can’t wait to get in touch with a Chinese supplier (or factory) directly and start your business.
a) Cheap Products with High Quality
Chinese suppliers offer a wide range of products at relatively low prices. You may be wondering why products from these sources are relatively cheap. The answer is not far-fetched.
A quick glance at the vast number of low-cost manufacturing industries shows that these factors contribute to low prices. Now, assuming you buy even in bulk, your order price will be even lower.
b) Latest Trending Products
In order to attract more buyers, China is very sensitive to the latest trending products. For example, The squid Game was released on September 17, 2021.
But you can find Squid Game merchandise at The Yiwu wholesale market in less than a week.
This type of product can easily help you achieve 7-digit online e-marketing in a short time.
c) Rich Product Range
You can see all kinds of products made in China around you, such as clothes, tableware, bicycles, jewelry, furniture, and so on.
Sourcing directly from China gives you a wider selection of products. This has great significance for customers who do online e-commerce business.
Rich product resources allow you to easily move from one niche product to the next.
Let’s say, if you fail in the kitchenware market and find that the competition for kitchenware is too great, you can switch gears and jump right into the pet products market.
d) Cheaper Labor Cost
As we all know, labor costs in China are low. Salaries are much lower, and these manufacturing companies are also very advanced in terms of infrastructure. The production process does not seem to be difficult.
When you order directly from these suppliers, it is easy to take advantage of these good things.
e) Fast Response Time
If you purchase through a trading company in your country, these trading companies will eventually come to China to purchase.
So when you discuss some product details and parameters with them, they cannot respond to you quickly because they also need to consult China’s product supplier.
But if you buy directly from China, the real Chinese supplier is standing in front of you. They are very knowledgeable about the product and can quickly answer your questions and solve your doubts.
f) Consider the Total Product Cost
Although you can purchase all kinds of goods from various countries in the world, directly purchasing from China is undoubtedly the most cost-effective.
This is not only reflected in the price advantage of products made in China but also the cost advantage of all other supporting services, such as the comprehensive cost of quality inspection, freight, etc.
g) Higher Production Capability
Chinese products are often produced in batches by factories, and the quantity of all products is an important factor in determining product costs.
Maybe you can purchase the same product in different countries, but it takes the shortest time to complete the same quantity of products in China.
Because China has a higher production capacity.
h) Avoid Your Local Middleman
Generally speaking, some of your local wholesalers also purchase products from China in bulk. And they will purchase a lot of products and ship them to your local area by sea.
Purchasing directly from China can bypass your local wholesalers. If you buy from a local wholesaler, their prices also include their profits.
It is possible that the factory price of the product in China is $1.5, but you need to spend $2 to purchase from your local middleman.
i) Easy to Find Suppliers Online
When e-commerce has not become popular, it may be difficult for you to find Chinese suppliers and buy directly from them.
Perhaps only large wholesalers can come to China and find suitable suppliers. They import goods into your country and then wholesale them to you, earning the difference in price.
But thanks to the popularity of online e-commerce, you can easily find Chinese suppliers from e-commerce sites such as Alibaba, Made-in-China, Dhgate, etc., and purchase directly from China through online transactions.
Two Preparations Before Buying Direct from China Journey
Preparation #1：Determine the goods you want to import
Good products can help you easily develop your business to a new level, while bad products may directly ruin your business.
So before you start your journey of buying directly from China, you should do some research first. You should choose your product based on what people in your target market like and what problems they want to solve.
Preparation #2：Learning about local import rights & policies
Before buying goods to your country, as a business or individual, you need to confirm whether you have the right to import to your country.
Tip: You can ask the local customs broker for details
Different countries will have different policies. Before buying directly from China, you should learn the policies of different countries in advance.
For example, the VAT policy was issued by the European Union on July 1st, 2021.
If you do not know these policies in advance, you will encounter a lot of trouble in the subsequent procurement process.
Sometimes even if you pay the supplier for the goods, the customs of the destination country will not release the goods to you. Because your goods do not comply with the policy of the destination country.
If this happens, you will suffer a great loss. This is absolutely detrimental to your career.
How to Buy Direct from China Step by Step
1. Find the China Supplier Source
Finding Chinese suppliers is no longer a mystery. As long as you can access the Internet, you will find thousands of Chinese suppliers within 1 second.
According to our procurement experience, generally speaking, people often use the following three methods to find suppliers from China.
China Products Exhibition (Canton Fair, Etc)
If you have the resources to go to China, participating in trade fairs is the best choice to find reputable suppliers.
China Local Wholesale Market (Yiwu Wholesale Market)
It is worth visiting the wholesale market in China, where you can browse a large number of products at very low prices. For example, Yiwu Wholesale Market is the largest wholesale market in the world.
Yiwu is a relatively comprehensive wholesale market. And there are also many wholesale markets for professional products in other provinces of China, such as the Huaqiangbei wholesale market related to electronic products.
China Wholesale Websites
For small businesses that do not have the resources to fly to China, an online Chinese wholesale website is the best way to order wholesale products directly from China.
You can search for suppliers on Google, but most companies will go directly to the business-to-business directory, and you can find thousands of Chinese suppliers. Among the most famous B2B wholesale websites are:
- Alibaba
- Aliexpress
- Dhgate
- Made-in-China
2. Submit High-quality Inquiries or RFQ
Whether you are attending an exhibition or purchasing directly on a Chinese wholesale website, posting a high-quality inquiry is the first step to getting in touch with suppliers.
You need to write an effective, clear, and detailed inquiry to ensure you get what you need.
We recommend including the following information about the product you want to purchase:
- Product description and specifications
- Package
- Estimated quantity
- Necessary images
- Other key points, such as brand, etc
The more information you provide, the more likely you are to attract sellers who can meet your needs. In addition, ask the right questions to help you determine if the supplier is suitable for you:
- Target price
- FDA, CE/European standards, and other certifications
- The origin of the ship
- Shipping terms and fees
In addition to publishing high-quality inquiries, you can also submit RFQ (Request for Quotation). describe your product in detail in the request. The best practice is to attach Amazon or other links you see on the Internet.
Regarding how to write a good RFQ, you can refer to How to write a high-quality inquiry above.
3. Negotiate Moq and Price
In the negotiation process, the minimum order quantity and the product price are two very important factors.
When you want to discuss these two issues with the supplier, you need to be more polite and professional. This can give the supplier a good impression and make them realize that you are a very high-quality purchaser.
If you succeed in doing this, the supplier will try to answer any questions you have, otherwise, you may get no response, even if they have read your inquiry.
For the negotiation of MOQ and price, you can refer to the following practices.
For example, if the MOQ is set to 5000, it is inappropriate to request an ultra-low order quantity of 200 at the wholesale price. You can try to set your target between 3000 and 4000 because this number is closer to the seller’s minimum order quantity.
If the price of each item is $10, don’t bid $2. Otherwise, the seller will think that you are not their target customer, perhaps just a competitor asking for the reserve price. A quote of $7 or $8 may be more reasonable, especially when you order 1,000 pieces.
Keep in mind that the seller may not accept your first offer, so there may be some back and forth. You need to make sure that the price you set makes sense for your business.
4. Discuss Logos and Packaging for Branding
We fully understand that all customers want to print their own logo for brand promotion. But you should know printing logos and packaging are costly.
Chinese products are mass-produced, so suppliers will have a minimum order quantity for products that require logos. Especially when you are directly cooperating with the factory, it is impossible for the factory to help you make 10 products with a logo.
So when discussing logos and packaging, make sure you will purchase a certain amount of products. Generally speaking, 500 is a reasonable and acceptable number for suppliers.
Of course, if you cooperate with some middlemen, they are also willing to print logos for you, even if your quantity is only 50-100.
Because the cost of making a logo is relatively high, they will increase the price of the product accordingly. This way they can ensure that there is enough profit to handle small orders.
5. Collect 2-3 Samples for Comparison
It is really difficult for you to judge whether a supplier is qualified before receiving the samples.
Through various aspects of the investigation, you can only know that he may be a qualified potential supplier, so it is necessary to collect samples to evaluate the quality of the product.
You may have heard that don’t put all the eggs in one basket.
This sentence also applies to the selection of suppliers. You can’t just collect samples from one supplier and hope that their sample is qualified.
The correct approach is to collect 2-3 samples from multiple suppliers to compare the quality and price of the products.
6. Discuss Payment Terms and Place Orders
When you are ready to place an order, you should consider the payment terms.
The common payment methods in business are 100% T/T in advance, 70% deposit and 30% before shipping, 50% deposit and 50% before shipping, 30% deposit, and 70% before shipping.
Choosing different proportions of advance payment mainly depends on the relationship between you and the supplier.
If you trust each other very much, you can choose 100% T/T in advance. For the first transaction, the risk of this approach is the greatest, because you have paid all the money to the supplier before the goods have been produced.
Most buyers will choose the part of the deposit and part of the final payment. This allows you to always have control in this trade process.
But no matter what the payment terms are, you can’t expect to pay after receiving the goods.
Of course, I do not deny that some Chinese suppliers will provide a billing period of about 30-60 days. However, such terms are based on deep cooperation and are only aimed at some super-large wholesalers, such as Wal-Mart and Disney.
7. Get Ready for Shipping
You can use a variety of shipping methods to ship products from China to your country/region, including air and sea shipping.
Generally speaking, for a large number of relatively heavy cargo, sea shipping is usually cheaper. However, if you buy a lot of light goods, air freight will make more sense.
Due to shipping time and shipping cost considerations, many people also choose to combine air and sea shipping. This method of intermediary by air and sea is a very good choice for e-commerce sellers.
The terms provided by the supplier are also important. Shipment can be ex-works (EXW), free on board (FOB), or cost insured freight (CIF). Evaluate each item and find the term that suits you best.
Usually, the supplier can help you ship the goods to your country/region, but the shipping cost is more expensive.
The best advice here is to hire a freight forwarder to help you ship from China. Try to quote from 2-3 freight forwarding companies, and then choose a company with a reasonable price.
4 Ways to Find Top China Wholesale Supplier Online
Alibaba
Alibaba is a well-known e-commerce website in China, where you can get every product at a low price.
Alibaba is headquartered in Hangzhou, China. This is the best place to source Chinese products for small businesses.
It is the largest enterprise wholesaler website. If you are buying from Alibaba, it means that you are buying from a different manufacturer that has an online store on Alibaba. Compared with other platforms, the minimum order quantity of this website is higher.
Aliexpress
Dhgate
DHgate is headquartered in Beijing, China. You can buy any type of product here, but you must buy in bulk.
Don’t worry, because you are buying products from a Chinese manufacturer registered with DHgate.
It is also the business of a wholesale business company that sells products made by small and medium manufacturers. The site lists nearly 40 million products on the site.
Most companies can list their store pages on the website. Therefore, if you have any questions, it is best to contact the supplier, this is the best way to protect yourself from fraud.
Made in China
Made in China is also a B2B wholesale website.
It is of the same nature as Alibaba. But Alibaba’s products are more inclined to daily necessities. And Made-in-China is more famous for large-scale mechanized products and industrial supplies.
If you are a buyer in this category, you can try to use Made-in-China.com.
Find the China Best Sourcing Agent to Buy Direct from China?
There are many sourcing agency companies in China, and you can also ask them for help.
By cooperating with a China sourcing agent company, you will be appointed a professional sourcing agent who has rich Chinese purchasing experience and can help you find the most suitable supplier (including real factories).
Chinasourcify, as the best China sourcing agent company, provides one-stop sourcing services from the beginning of product sourcing to the end of door-to-door shipping.
Cooperating with a sourcing agent, you don’t have to spend a lot of time looking for products.
You don’t need to spend a lot of time communicating with Chinese suppliers.
You only need to tell your agent about your procurement needs in detail, and he will help you complete the procurement plan.
You can save more time on marketing and branding because this is what you do best. As for the procurement matters, leave it to the Chinese sourcing agent who is best at procurement.
Buy Direct from China Conclusion
If you buy directly from China, it will be very convenient for your business. The Chinese market is well-known for offering the best quality goods at low prices.
Therefore, it is best to understand all the major and minor details before buying from China. Hope the information above can help you with a better understanding of how to buy direct from China.
Tips: You can paste the product links from Amazon, Alibaba, Aliexpress, or your main competitors on the form. So we can learn better about your products. If you have any documents like images, PDF, Excel, etc, please send them to info@chinasourcify.com
3 thoughts on “How to Buy Direct from China A-Z Guide”
Hey there! This post couldn’t be written any better!
Reading this post reminds me of my old room mate!
He always kept talking about this. I will forward this article to him.
Fairly certain he will have a good read.
Many thanks for sharing!
I contacted several underwear manufacturers from Alibaba. It is ready hard to know if the materials are ok just from the images. So I want to buy the samples from each manufacturer. But the shipping cost is so high for different samples from different manufacturers. Can you tell me how to save the shipping cost?
Hi Amrita, the suppliers on Alibaba only offer the help once you brought from them. But before the final procurement, they will not help you collect samples from different suppliers. So I suggest you use a sourcing agent or a shipping agent to help you with samples collection and send them to you in one shipment, which will save you the shipping cost.