When buying wholesale from China, there are some common mistakes that importers make. It is necessary to list the mistakes step by step based on the process of purchasing period. Let's go ahead and check the followings:
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When choosing products, importers always go after the fad, but if you want to build a long-term business, we do not suggest this speculative action. As it is difficult to identify the perfect timing, focusing on products that would maintain a long-term business is a better choice.
Many importers might think low-value products seem cheap so they can save lots of costs. But they ignore the core that low-value products mean any product enhancement will not increase its value. Even when the international shipping cost has been taken into consideration, just think again whether this business is suitable for you.
Market demand is one of the main factors to be considered when importing a good product from China. There is no doubt that highly consumed products meet the demand. Selling these products have a fierce competition on the market, so the profit is totally transparent. It is completely a tough game.
For large products, the shipping cost will be more expensive than the product itself. What's more, it is highly possible for the product breaking during the shipment. If you want a safer package, you may pay extra charge on the storage. It is not a good choice to pick a product with higher shipping costs as well as a large volume.
Most importers prefer to purchasing directly from the China factory, as factories can offer more reasonable prices. However, when you select suppliers, you should consider your business model and scale. And then, making a trade-off between products, prices and services are the key points that should not be ignored.
There are always exists the cheapest prices in the market. But also, the cheapest prices sometimes mean more problems. Some suppliers will promise you with their good quality products at cheaper prices. Just take deep thought, seldom will you get good quality products with the cheapest prices in the business? So, don't take any chances for that supplier with the cheapest quote.
Many buyers may think that a 'gold supplier' is equal to a 'great supplier'. In fact, most suppliers in Alibaba are gold suppliers. 'Gold supplier' refers only to a paid membership in Alibaba, which means that everyone can pay to get it. Thus, the 'gold supplier' is never the standard of judging the quality of suppliers.
It is not easy to get a refund from Alibaba suppliers. Trade assurance is not like third party e-payment (like the Pay-Pal) which always protects the buyer's interest. When comes to quality issues, it is requested three pieces of evidence: Sales contract, Inspection report, and Lab testing report. When choosing suppliers, trade assurance is not always 100% safe. Buyers should carefully think about the supplier's professional experience, communication efficiency, price, etc.
Many foreigners are unprepared for the sourcing before coming to China. As Shanghai is such an international city of China, they usually come to Shanghai directly for purchasing without any preparation. The result is, they usually can't find what they was looking for.
In China, there are many industrial clusters, usually located in the southeast of China. Each industry cluster has its own product specialization. Like you can not look for suitable fixtures in Yiwu, as the main production areas for fixtures are in Zhongshan.
Canton Fair is the largest exhibition in China, which includes a wide variety of products. Many suppliers in the Canton Fair are big trading companies. If you have lots of different items needed to be purchased with low MOQ, the Canton Fair may be not suitable for you.
When you got a bad sample provided by your supplier, your supplier promises that they will produce it perfectly during mass production. If you are in such a situation, you should pay attention. Because a reliable supplier will work well with you from the beginning to the end.
Actually, many Chinese suppliers have no idea about product certification. The certificates are generally required in the Customs Clearance. While a test report to certificate needed in the local market for product sale. You should not rely only on some suppliers words and you need to verify it on the relevant office's website.
Generally, it is common to use for business transactions with Europeans and Americans. But in China, using WeChat to do business with Chinese suppliers is normally. As it is the most common communication tool in China, you may get an immediate response by WeChat than .
Actually, many Chinese salesmen will not check emails after work. Even though they can still receive updates from you outside their working time, many of them will wait until the next day to reply. Thus, it is better to know the time difference between China and your country.
Usually, it takes one workday to receive the payment from US to China while Europe is slower, 3-5 days. But when it comes to Chinese holidays, the process will be extended longer. Thus, when Chinese holidays are approaching, it is vital to assure that the transfer gets to your Chinese supplier before the holidays.
T/T is the most common payment, but it is not a cost-saving way for all possible amounts of payment. For example, transferring $100-200 will deduct $30-40 as bank charges. Usually there are 4 payment methods: Paypal, Money gram, Western Union and Wire transfer(T/T). Also, it is vital to use big banks instead of the small local ones, as the latter will cause more bank transferring.
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Sea shipping is always considered to be the cheapest way of shipment. Although weight is the important factor of the price, the shipping charge tends to be based more on the size of a shipment. If you are shipping less than a container load, your price is often decided by cubic meter. Thus, larger and heavier shipments that are much cheaper to ship by sea, while air shipment will be less expensive for smaller shipments.
To avoid customs duties, many importers want to declare a lower value for their goods. But if your total declared value is too low, the cargo will be flagged and be detained directly. Undervaluing the declared value amounts to tax fraud is a criminal offense. So, there is no chance of being lucky.
Festivals like Christmas and Chinese New Year are the peak seasons for shipment. As Christmas is the shopping festival, many importers will store up before it to have enough supply for sale. While on the Chinese new year, many places may take long vacations for 1 or 2 weeks. Thus, many freight prices will rise during this festival period. Try to avoid the peak seasons as much as possible.
Being careful to avoid these mistakes may lower your purchasing risk. Which mistakes still confuse you? Or have you ever had any other problems when buying wholesale from China? Leave your COMMENTS and let's figure it out.
With perfect timing, there's no doubt that you can rack up millions from the latest product fads. For instance, from to , the hot item, the fidget spinner, helped two of my customers earn big money. But as time passed, fidget spinners are less and less popular, which bewildered these two customers. Now they are faced with problems deciding what new products to sell.
In addition, if your products are seasonal, it means that you need to sell them quickly in the right season. Otherwise, when the season passes, you have to drastically lower prices to get sales and avoid long-term storage fees. But in fact, it is quite possible they won't be all sold in time.
So, to develop a long-term business, we do not suggest this kind of speculative behavior. The timing of taking advantage of product fads is critical. Being too early or too late can make a huge difference. But for most of you, it can be difficult to identify the perfect timing. Therefore, focusing on products that would sustain a long-term business would be a wiser choice.
You may always be attracted to low-value products because you think the cost of purchasing is low. But they are often together with fierce competition, low added value, and thin margins.
For a low-value product, the potential to increase its value is little. For example, the selling price of a cheap bottle opener will not significantly increase even if you put it in fancy packaging.
Besides, low-value products made in China only seem cheap initially, because the international shipping cost has not yet been taken into account. Even though it is a low-value item, the shipping fee is still the same high. Once you subtract product cost and shipping cost from your sales, there won't be much profit left for you.
One of my customers once sold disposable food containers on Amazon. It seemed like a good business because the product price from China is just $ 0.75/piece. But there were already too many sellers selling the same product on Amazon. As a result, many of the food containers are still lying in his warehouse until now. So, after doing a careful check, if there are already plenty of players on the field, please stop to think about whether this business is suitable for you.
When talking about a good product imported from China, market demand is one of the main factors to be considered. Highly consumed products meet the criteria without a doubt.
Our customers once inquired about the A4 printing paper. But when they started selling some, they found out that it was not as easy to sell as expected.
Selling highly consumed products is utterly a cut-throat competition. Thousands of players are sharing the cake. The profit is totally transparent. Moreover, they have been in this segment for a long time and already established their own stable sales channels.
For large products, like dressing mirrors, shipping will cost even more than the product itself. Besides, the probability of the product breaking must be considered. If the product is sold on Amazon, there will be extra charges for storage and handling. The same goes if you plan to store it in your own warehouse.
For someone who is just starting out, it's never good to choose products with less value, but higher shipping costs and taking up larger storage space.