Why and how small stores import Chinese product from Chinese wholesalers?

With most of the world’s products being manufactured and the manufacture cost being cheaper in China than other countries, it makes sense for entrepreneurs and businesses to import from China. Low labor costs and cheaper production inputs allow for a higher profit margin than if importing from other countries. Thanks to the high manufacturing capacity, the transit times of import products are much faster coming from Chinese wholesaler.

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Everyone could make big money by import from China. Here I want to talk about the situation of some small stores import from China. Usually, there is a supply chain from manufacturer, distributer/wholesaler, small stores/retailers and consumers. Each participant in the supply chain provides a specific value-adding service that through focused specialization in systems, equipment and management, delivers their particular service in the most efficient and cost effective way.

A small store can skip the distributers/wholesalers and go directly to the manufacturer, which may be a good way to earn more money. But it is wrong. When the benefit of lower price from the manufacturer is weighed against the increased costs, quite often a less profitable result is the outcome.First, if you buy directly from manufacturer, you need reach MOQ which is such a high volume for small stores import from China. Second, to obtain the same range of goods, small stores need to buy products from many different manufacturers, which will cost a lot of money and time. Third, small stores must have enough space to store so many products. Thus, it is not reasonable to purchase directly from Chinese manufacturers.

Then how to buy products from Chinese wholesales?

The first step is to select the imported products. Your business depends on the products it sells, so do some research and choose wisely. At the same time, you could start researching the landing cost, transport costs by forwarder, import duties, local transport costs, inspections fee, etc. There are a number of hidden fees, and an import management company can help minimize the landing cost. You could consult some freight forwarders for cost breakdown sheets and compare.

After the products have been chosen, find a Chinese wholesaler that you can trust. You can check on the internet because most of the Chinese wholesalers have their official website. You could compare them, do some proper research, even chat with them and ask for some sample, which will help you find a better deal.

The most important thing is to negotiate the trade terms with your wholesaler–discuss shipping terms and payment terms, as well as a down payment. Never pay the full purchase price upfront — if there’s a delay in the shipping or problem with the product, it is likely you will never see that money again. Walk away from any supplier who demands you do so.

Everyone who wants to make big money from China wholesale should know the above well. And if you fully prepare, please do not hesitate to start your business. Hope you can make big money.