The best way to find cost effective products without jeopardizing quality is to use a company like Kanary that has worked for many years with reliable suppliers. If you plan on buying from China on your own, It is important to do your due diligence on suppliers and have sampling rounds.
The supplier should have in-depth knowledge about the products they are manufacturing and, even better, they should have a design/engineer team that can help them improve qualities and eliminate flaws.
Additionally, you should make sure you are purchasing from a supplier in the same region of China that you plan shipping from so that shipping costs do not significantly increase the cost of your product.
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A hat for 1 dollar, a dress for 2 dollars &#; buying goods in China often exceeds our price expectations. But buying directly from China is not easy for foreign traders. This article provides detailed steps on how to buy from China and profit from international trade.
China is rich in production resources, low labor costs, and infrastructure, so sourcing from China is cost-effective, and direct sourcing eliminates middlemen, avoids additional costs, and improves profit margins.
As a major trading nation, the Chinese government has formulated several policies (e.g. preferential tariffs, free trade agreements, etc.) to support the foreign trade supply chain, which can help you deliver goods to their destinations smoothly and efficiently.
Nowadays, thanks to improved infrastructure and production technology, you hardly need to worry about the quality of &#;Made in China&#; as long as you can find trustworthy suppliers.
By working directly with Chinese suppliers, you can customize your products, such as adding your brand logo, changing details and designing packaging. This helps you to be more competitive in the market and sell at a higher price.
Before you start your foreign trade journey, you need to know your target market. Find a good product that has potential or market demand. Make sure that the imported goods are saleable so that you can at least break even, if not make money.
Keep in mind that the best-selling product on the website is not always the right one for you. If you&#;re a beginner, it&#;s hard to sell products in the &#;red ocean&#; of competition. Instead, look for innovative &#;blue ocean&#; products with growth potential.
For example, it is well known that Xiaomi started out as a smartphone company. As the smartphone market became increasingly competitive, they conducted thorough market research and found a &#;blue ocean&#; opportunity in air purifiers. They launched the Xiaomi air purifier and quickly captured the market.
China has a long history, and its traditional culture has deeply influenced its business culture. It is often said that China is a &#;relational society&#;. Understanding the following aspects of business culture can help you do business effectively in China:
While you should respect, understand and trust others, it is vital to find trustworthy people. To find a reliable supplier, research their online reputation and certifications. Make sure they are able to produce quality products that meet your standards. If possible, visit their factory in person to inspect the production environment and equipment.
Online Websites
Offline Trade Shows
Alibaba
China Import and Export Fair
Global Sources
China International Import Expo
Made-in-China
China-ASEAN Expo
DHgate
China International Industry Fair
China Hi-Tech Fair
AliExpress
China International Food and Beverage Exhibition
HKTDC
China Yiwu International Commodities Fair
HC360
China International Textile Fabrics and Accessories (Spring/Summer & Autumn/Winter) Expo
Channels
Websites
Scope of Inquiry
National Enterprise Credit Information Publicity System
http://www.gsxt.gov.cn
Basic company information, registered capital, legal representative, business scope, annual reports, administrative penalties, and abnormal business listings.
Local Administration for Market Regulation (e.g., Shanghai Municipal Market Supervision Bureau)
http://scjgj.sh.gov.cn
Business registration information, operating status, annual reports, and records of administrative penalties.
Third-party commercial credit rating agencies (e.g., China Chengxin International Credit Rating Co., Ltd.)
http://www.ccxi.com.cn
Credit rating, financial status, operational capability, and credit history.
Industry associations and chambers of commerce (e.g., China Chamber of International Commerce, CCOIC)
http://www.ccoic.cn
Company&#;s status and reputation in the industry, membership, and industry evaluations.
China International Electronic Commerce Center (CECBC)
http://www.cecbc.org.cn
E-commerce transaction records, company e-commerce certification information, and credit evaluations.
Alibaba TrustPass
https://www..com
Supplier&#;s integrity records, transaction history, and customer reviews.
Tianyancha
https://www.tianyancha.com
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Business registration information, shareholder structure, legal representative, legal proceedings, and operational risks.
Qichacha
https://www.qcc.com
Business registration information, financial data, intellectual property, legal proceedings, and credit information.
Credit China
http://www.creditchina.gov.cn
Credit records, list of dishonest entities, and administrative penalty information.
China Judgments Online
http://zxgk.court.gov.cn
Whether the company is listed as a dishonest entity, enforcement records, etc.
On-site Inspections
Supplier&#;s actual production environment, machinery and equipment, production capacity, management level, and quality control.
After choosing a good supplier, remember to keep in touch with them. Regular communication will help you build trust, understand the Chinese market, and keep up to date with customs and shipping changes.
The more information you gather, the better for your future business. It gives you a basis for price negotiations and helps avoid being cheated by unscrupulous suppliers or facing product discrepancies due to miscommunication.
Channels
Recommended Use
Purpose
Advantages
Send detailed information, contracts, quotes, order confirmations, and documents.
Records
Instant Messaging Tools
Quick discussions, instant feedback, urgent communication
Efficient
Video Conferencing Tools
Face-to-face communication, important discussions, business negotiations, product demonstrations.
Transparent
File Sharing and Collaboration Platforms
File sharing, collaborative editing, project management.
Efficient
When doing business with the Chinese, you must learn to negotiate. Walmart was able to capture the Chinese market before other brands because it spent a lot of time studying the Chinese market. They learned to respect each other and be flexible in negotiations. If you don&#;t know how to negotiate, it&#;s hard to make money in the Chinese market.
When negotiating import and export trade with Chinese suppliers, focus on the following areas:
Before placing an order, you can ask the supplier for samples, which will help you to confirm the product quality, specifications and other details. Many differences can not be seen from pictures and videos, and can only be fully verified by getting the products.
When choosing factories for our customers, we will also ask for samples first, screen them and send them to our customers for inspection, and then place an order for production after confirming that there is no error. This can effectively control the risk and reduce the time and economic loss caused by the picture does not match with the real thing.
Sample inspection process:
When sourcing from China, you need to understand the relevant Chinese laws and regulations to ensure a smooth process. It is also important to understand the terms of the contract. List the terms that protect your rights to avoid contractual disputes and unnecessary hassles, saving you valuable time.
Here are some laws and regulations for your reference:
Often times, the details make the difference. More than just placing an order, confirming order and shipment status is easy to overlook, but very important.
Apple has made this mistake. in , Apple&#;s new product releases and production schedules were severely impacted by not confirming orders with key suppliers in a timely manner. This caused consumer dissatisfaction and further affected Apple&#;s market share.
Planning transportation and logistics can also be a challenge. If you lack experience and time, consider working with a professional international freight forwarder. If you have enough time to learn, arranging the entire logistics process on your own can be more hassle-free.
So, how do you arrange your own logistics?
H&M, the world&#;s leading apparel retailer, had failed to resolve logistics and quality issues with its Chinese suppliers in a timely manner, resulting in overstocking of some items and out-of-stock of others. Failure to adjust product quality in a timely manner also damaged its reputation and led to a significant loss of customers.
Providing feedback and making adjustments to suppliers is often forgotten. If you are satisfied with your current supplier and intend to establish a long-term relationship, be sure to provide timely feedback on product issues. This will save you trouble next time and help avoid repeating the same mistakes.
Many people may have a stereotypical image of &#;Made in China&#; as meaning cheap products. However, over the years, Made in China has produced many high-tech, high-quality products.
Made in China technology has always been strong and product quality can be very good. The problem is that some people blindly cut costs to increase profits, resulting in poor quality. You and your partners must develop quality control strategies in advance to prevent low quality products.
Profit margins on products imported from China vary by industry. According to online data, the highest profit margins are found in footwear and apparel, home appliances and toys, which reach 30-60%. However, the actual profit depends on factors such as production costs, logistics, and product pricing. You need to be able to manage and balance these aspects.
China is politically stable and has good law and order, and in general it is safe to import from China. However, there are some uncertainties affecting safety, such as whether the suppliers are qualified, whether the products comply with laws and regulations, and whether the logistics are safe, etc. Patience and attention to these details are required.
If you find a reputable and professional purchasing agent, they can save you a lot of time and help you avoid many risks.
However, some agents may masquerade as legitimate agents but are actually scammers. Always check the agent&#;s company registration and business license to make sure they are operating legally. Communicate through transparent channels, use official payment methods and don&#;t transfer money to others easily.
After reading this article, you now know how to source directly from China and understand many of the details that even the experienced may not be aware of. It&#;s time to put this knowledge into practice.
If you get stuck, SourcingWise can help. We offer customized import and export solutions to save you time and money.
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