China enjoys widespread recognition for its rich history, powerful imperial dynasties, and unique culture. It is currently the fastest-growing economy, rapidly developing into a global superpower that is constantly altering how companies and people conduct their business.
China has become the largest supplier of bulk import thanks to their ongoing improvements in the import/export industry, which helps firms save a lot of money and give them affordable yet high-quality inventory. Whether you run a small, medium, or large-sized business, buying bulk products from China can help you stock up on a wide range of items that aren't available locally while also saving you the cost of manufacturing those items yourself.
Therefore, both large and small firms can use their resources to concentrate more on research, marketing strategies, and promotions while also keeping the option of re-branding the product they buy in large quantities.
When not manufacturing anything, the business owner can charge lower pricing and make better profit. While directly sourcing from China, many important considerations must be made and that will be very helpful to you in the long run.
There are many factors involved, thus the sourcing process of bulk products from China isn't as simple as it might seem. You need to know how and where to look for the easiest suppliers, how to speak with the manufacturers, and how to arrange shipment. This article can help you understand the procedures, necessary items, and safety measures for the Chinese products import process.
Look for target market
You should focus on your specialty before worrying about the products you want to offer, your website, or the Chinese factory you'll order from. This is the small market that you are merely trying to reach. Be specific instead of general.
Consider specializing in the traditional market rather than experimenting with new products. This enables you to compete without intensifying against well-known brands leaving you struggling the entire time.
Once you understand your market, developing your marketing will be much simpler. Once you've identified a specific niche, you're ready to succeed in a particular phase of your trading journey.
Find a good product
The Chinese manufacturers are equipped to produce large quantities of goods because they have access to low-cost manual labour, plenty of skilled personnel, strong government support, a respectable capital base, adequate rare earth metal reserves, and even a respectable supply chain infrastructure.
Shortlisting the product, you're interested in, and the suppliers is necessary. Many people prefer to use a Chinese sourcing agency to make inquiries, connect with the simplest suppliers, and get their products delivered safely.
The product you want to import needs to be in high demand, easy to use, cost-effective, profitable and must have frequent sales.
Some Chinese suppliers may offer cheap but poor-quality goods. Avoid these products at all costs, especially if you want to offer them to your clients. Therefore, you should be able to distinguish between good and bad products. That is how your company can expand.
It is difficult to manage global sourcing, especially when you know language is the main barrier. Thus, many businesses hire sourcing agents that work as a bridge between suppliers and clients.
These sourcing agents know the local market more than western businesses. They know the right raw material supplier, the best manufacturer, and the right way of shipping products, and sometimes they also perform factory audits and IPQC inspection to assure product quality before shipment.
Check the laws of your country
Check to see if you can legally import bulk products from China before you purchase them from the supplier. Import limitations on certain types of goods exist in some nations. Some products, including alcohol, tobacco, and a few drugs, are prohibited in many countries.
One of these prohibited items would be returned to the shipper if you attempted to import it. You may also face government fines and penalties for not abiding by the law.
Product’s classification number and Incoterms
Each imported product has its ten-digit tariff classification number. To determine the rate of import duty you must pay, you require the Certificate of Origin and the tariff classification type. Additionally, the land cost needs to be calculated as well. It is important to focus on the Incoterms.
Be sure to determine the landed price before submitting your order to the provider. You can calculate the FOB (free on board) rate by including the goods value, Chinese shipping costs, customs clearing fee, land transport prices, and Duty & Tax prices.
Find Chinese supplier
Internet search is a popular choice for those looking to import bulk products from China. You can continue to visit online sourcing portals like Made in China, and Alibaba which give customers recommendations for Chinese vendors.
Finding a manufacturer and buying straight from them is always advised because it will help you reduce costs. When looking for the best supplier, consider the following criteria.
Check background. Most businesses have a website where you can find more about them, including their history, registration status, operating location, business policies, and a lot more. If the word "production" does not appear in a registered business policy, the provider you are working with might not be a factory and instead be a trader.
So, they only supply products, but the manufacturer is someone else. However, you need a direct supplier and not a chain. This way, if there is any defect or changes to be made in the product it can be conveyed directly to the manufacturer.
Production certification. A production certificate is an accurate indicator of both the provider's potential and industry information. A manufacturer's certificate indicates that your work has been examined and approved as producing reliable products.
Exporting experience. Experienced vendors are fully aware of both the export process and any applicable safety or compliance regulations. Instead of asking your provider about the export strategy for your state, ask them to present you with the shipping B/L from the previous shipment for confirmation.
Location. Consider the distance from your supplier to the port or the airport. The pre-carriage transport cost of your cargo decreases as the gap gets shorter.
You can also find Chinese suppliers from –
Even though sourcing via wholesale markets is an old method of importing from China, it is still successful. In a short time, you'll see and experience a huge variety of goods.
There are more specialized trade fairs in China for various industries, but when trade fairs in China are mentioned, you probably think of the Canton Fair, which is held in Guangzhou twice a year.
In China, sourcing agents play important roles. They can help you find the right trustworthy suppliers, lowering the risk of fraud and defective goods.
The first rule of your negotiation strategy should be to get in touch with several manufacturers to ensure you obtain the best price for your product. Contacting various vendors helps in talking to them by comparing their prices.
You are in a stronger position because you have a choice. If you don't like their conditions, you can always get out of the agreement.
Reach out to three to five of your preferred potential suppliers and make sure to mention that you are talking to many other suppliers. Bring them up for their best worth and present your argument for why they must give you a high price.
Include terms like a long-term collaboration and impending huge volume orders while your business is just getting started.
Numerous expenses are involved in product delivery, including broker fees, packaging charges, terminal handling fees, and container fees. If you don't have a service or organization to help you with shipping solutions, you should get in touch with a reputable freight company.
Each of the aspects needs to be taken into consideration for you to produce logistics prices.
Once you're satisfied with the freight estimate, you can transmit your provider's contact information to the location where the supplier will be contacted, and your product will be delivered packaged and ready to use.
Tips to remember
Before anything is shipped out, you must talk to the provider if you have any specific demands or standards for the products or delivery. If you don't, you might get materials or items that aren’t up to the mark.
Try to communicate with a new supplier by showing trust and respect when you are doing business with them. You must get along well with your supplier if you want them to take good care of your products and provide you with top-notch customer service.
Please confirm that your supplier is willing to accept FOB terms for the nearest port or airport. If so, you will have to pay less for shipping and have more control over the shipment.
Shipping goods across the seas from one country to another takes a long time. Make sure to add at least 30-day shipping times into your planning.
Only if you are importing goods for resale or business purposes, you need to be concerned about import laws. The customs authority has the final word on your claim if the shipment is for personal use.
It's important to encourage advice and help from the appropriate experts, especially when your new firm is just getting started. Failure to do so will subject your company to considerable hazards, including fraud, issues with product quality, and legal risks.
A China sourcing agency is knowledgeable about every facet of sourcing bulk products from China.