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Things to Know About Bulk Importing from China

2024-01-02
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Things to Know About Importing Bulk Products from China

China has become a major source of all products due to its low-cost labour, favorable government policies, and investment in infrastructure and technology. The country has a huge population, which has provided a large pool of cheap labour that has helped to drive down the cost of production. Chinese government has invested heavily in infrastructure and technology, which has enabled the country to build a modern and efficient manufacturing base.

All of these have allowed China to produce high-quality products at competitive prices, which has made it a major player in the global market. In addition, China has developed a strong export-oriented economy, with exports accounting for a large portion of the country's GDP.

Another factor is its focus on innovation and new technology. The country has already made a heavy investment in R&D and has developed a very strong technology sector, which can produce various cutting-edge products and always stay much ahead of the competition.

Overall, the combination of China's low-cost labor, favorable government policies, infrastructure investment, focus on innovation and new technologies, and strong export-oriented economy make it a target sourcing location for many countries. For this reason, some purchasing agents located along the coast have also been spawned. For example, Shenzhen sourcing agents.

China has become the largest supplier of bulk import thanks to their ongoing improvements in the export industry, which helps firms save a lot of money and give them affordable yet high-quality inventory. Buying bulk items 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.

There are many factors involved, thus the process of importing bulk goods from China isn't as simple as it might seem. You need to know how and where to look for the most suitable suppliers, how to speak with the manufacturers, and how to arrange shipment.

Find a good product

There are two main aspects to consider when selecting products. One is whether the product itself is popular in the market, and the other is the quality of the product.

Chinese manufacturers have the ability to produce large quantities of goods because they have low-cost manual labor, large pools of skilled workers, strong government support, a sizable capital base, ample reserves of rare earth metals, and even sizable supply chain infrastructure. Although the selection chances are plentiful, some Chinese suppliers may offer cheaper but poorer quality goods. If you are not a foreigner familiar with the Chinese market, you may consider spending time researching Chinese suppliers or working directly with external service agencies, such as sourcing agent in Shenzhen or buy quality inspection services China.

Find a good 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, Global Sources 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.

Background check: Most businesses have a website where you can find more details about them, including their history, registration status, operating location, business policies, and other information. If the word "production" does not appear in a registered business license, 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 manufacturer and not a chain. This way, if there is any defect or change to be made in the product, it can be conveyed directly to the manufacturer. 

Product certification: In order to enter a specific market, several mandatory or preferrable product certifications are required. For example, CE is required for toys, electrical appliances, batteries, and electronics, if you want to import to the European Union. UL/ETL is necessary for electrical and electronics products, if you want to import to the United States.

Sometimes, production certification is also preferrable as it’s an indicator of both the provider's potential and industry capability. A manufacturer's certificate indicates that your work has been examined and approved as producing reliable products. ISO9001 is the common certification for Chinese factories. There are other specific certifications such as SEDEX, SA8000,BSCI, HACCP, CCC and so on.

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.

Negotiate for an order

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.

Transportation cost

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.

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 in-process inspections to assure product quality before shipment. 

A China sourcing agency is knowledgeable about every facet of sourcing bulk products from China. In China, sourcing agents play important roles. They can help you find the right trustworthy suppliers, lowering the risk of fraud and defective goods.

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