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Tips of Bulk Purchasing Products from Chinese Wholesalers



If you are planning on starting a retail business, you need to research two things: your prospective customers and your wholesale suppliers. Many retailers buy products from wholesale markets. This benefits you because wholesalers will not only become the source of your goods but will be a good support to you with your evolving needs. To make profits, you will have to buy bulk quantities at competitive prices.

Your retail business can be highly profitable if you prefer to import low-cost products from China. Many of you may have not done any business with any Chinese company, hence it may appear to be quite complicated and risky. It may require a lot of time and patience to find the right supplier, then negotiate the price, and at last finalize a profitable deal.

Finding a supplier can be challenging for many companies. When they discover that the delivered products often do not meet the specifications of the claims made by the vendors, the situation becomes even more difficult. You will require enough knowledge of the Chinese market to be able to prevent these events. It is crucial that you are aware of how to interact with these suppliers.

What is the benefit of bulk purchasing from China? 

Bulk purchasing from China will ensure that you have sufficient inventory at any given point in time to fulfill your orders. In addition, your profits will increase as you buy more and more in bulk. Increased sales will lead to an increase in quantities purchased from the wholesaler and a better price bargaining position for the retailer. Wholesalers are middlemen between the retailer and the manufacturer. A retailer gets a discount from the wholesaler because they buy in bulk from China. A retailer's profit is the difference between the wholesale price he pays and the retail price that he sells at.

Steps for bulk purchasing products from Chinese wholesalers

1. Find the right wholesaler

The best way to find a wholesaler in China for the product you are looking for is by using the internet. Make a list of all the wholesalers that suit your requirement. The second method to locate wholesale suppliers is to go through directories that list wholesale suppliers. This will help you locate the best suppliers in a short time. It may prove beneficial to check classified ads in trade magazines advertising wholesalers in your industry. Thirdly visiting trade shows will bring you in contact with wholesalers looking for retailers for their products. If you are satisfied, then you can do business with them there and then. Otherwise, make notes of all options and get back to your office and do additional research before committing yourself to any orders.

In case you are going to deal in a branded product, then get in touch with its manufacturer and request wholesale prices. This way, you can maximize your profits. In case they refuse, then take reference of wholesale dealers of their products and crack a deal with them. Other ways to find wholesale dealers include contacting the chamber of commerce of your area or getting in touch with other entrepreneurs. Networking is a good way to find reliable wholesalers.

2. Choose a wholesaler

Once you have listed down the Chinese wholesalers you think are suitable, go online and read reviews written by other retailers with experience of working with them. This will enable you to make a decision to contact them or not. After making a list of wholesalers that seem right to you, be cautious of fake wholesalers. Sometimes, an internet search may lead you to scammers who can cheat you by mediating between you and the genuine wholesaler. They will book your order at a marked-up price and forward the order to an actual dealer. Your profit margin will come down, as you will be paying more than you would have if you had dealt with the genuine dealer.

3. Finalize the deal

After this background check, clarify all the terms and conditions with the wholesale distributor before finalizing the deal. You may want to find out how much time they take to process an order, what is their return policy, how do their discounts change with volume. You may also ask for samples to ensure that quality is satisfactory, and your customers will receive standard quality. 

Also, before signing the contract with the wholesaler, do not hesitate to negotiate all the terms that are crucial for the smooth running of the business. These include the time of delivery, pricing, and minimum order to see that they suit you. You can also get the contract reviewed by your lawyer in case you have overlooked something.

Choice of wholesalers depends on goods to be sold

If you plan to retail in a wide variety of goods, then look for wholesalers who have all the goods you need. You can hire a sourcing agent in China, or else deal with different wholesalers for different goods to build up your inventory. Always ensure the kind of goods the wholesaler sells supports your retail store for consistency.

1. Price point is crucial to profits

The purpose of starting a retail business is to make a profit. When you decide on a supplier, it goes without saying that his pricing should be such that you should be able to make profits.

2. Choose a reliable wholesaler

Avoid working with people who are unreliable. Wholesalers who do not deliver on time, do not deliver at all, or send damaged goods will cause a lot of harm to your business and should be discontinued immediately.

3. Good customer service is important

The company you choose to work with should have a dependable customer service set up that you can contact in need. This is important for the smooth running of your business. A company where no one is around to answer your queries or keeps passing your queries from person to person is not worth the while working with.

4. Knowledge about the product is crucial

The wholesaler you decide to work with should be well informed about the products they sell. This allows you to keep your customers well informed about the products you sell. It also makes you feel confident that your wholesaler is sure of the quality of products they sell. If the wholesaler cannot answer your queries about the products confidently, it could mean their goods are not of the best quality.

5. Do they provide drop ship service? 

If you plan to sell online, it is to your advantage to find a wholesaler that also provides a drop-ship facility. Under this facility, the wholesaler will not only provide storage for your inventory but also ship your orders to customers. When a customer orders from your e-commerce retail store, the order information is passed to the wholesaler, who will ship it straight to the customer. This allows you to save spending on shipping and storage. But to maintain your reputation, you must ask for samples of all the products you plan to sell to check quality.

Fake drop shippers have caused many startups to close prematurely, so choose them very carefully. To identify fake drop shippers, look for the following signs:

Insufficient contact details - Dropshipping wholesalers may not be able to create an appealing website due to a lack of proficiency and funds. But it is expected from them to give important details like contact numbers, address, and other basic information. Wholesalers who do not provide this essential information cannot be trusted, and time should not be wasted negotiating with them.

Promise of extra high margins - A drop-shipper cannot give you very high margins on products. The reason being that they have to bear the entire cost of storage and execution of orders. Thus, if a supplier claims that they will give you extra high margins to enable you to earn quick profits, they are not to be trusted. Avoid getting into business with them. There is a great possibility that either their packaging is inferior, or the quality of goods is poor. You will end up with large returns from dissatisfied customers. This will lead to loss of reputation and increased costs.

Demand membership fees every month - This is a very common trap set up to cheat startups. Genuine drop shipping suppliers never demand a fee for keeping inventory. They get paid on every order. Thus, avoid suppliers demanding membership fees or service charges, as they are fake and not trustworthy.

Refuse a written service contract - It is prudent to get into a written contract with the drop-shipping supplier. This way, you eliminate any kind of ambiguity in terms and conditions between the two parties. In case the supplier does not agree to get into a written contract, then he is not a genuine dealer, so must be avoided. Only people who are fake do not want to get into a legally binding contract.

Tips about bulk purchasing products from China

1. Precaution is a must if you choose to buy from manufacturers directly 

Normally, online sellers purchase products from wholesale suppliers. These wholesale suppliers function as links between the retailer and the manufacturer. So, one would think purchasing directly from the manufacturing firm would translate into higher profits for the retailer, but it is not so simple. 

The manufacturers have no time for marketing and selling their products. The distribution and promotion of products are too time-consuming for them. They rather concentrate on the manufacturing aspect of their business. Thus, they outsource the selling and distribution aspect of their business to middlemen. This way, they make products, and the wholesale supplier brings them customers. 

Sometimes the manufacturer is very small and so does not appear on a wholesale supplier’s list. A seller can take advantage of this situation by becoming their sole distributor. This way you can negotiate for a better price. If you pass on this saving to your customer, then you can establish a market reputation of offering the best price and enhance your business. The flip side to this situation is that a small manufacturer may not be able to perform in times of peak demand season. They may not be able to fulfill spikes in orders during festivals and holiday seasons. This will negatively impact your reputation as a retailer. 

2. If you choose to buy from wholesalers, negotiate well 

Try and work out a better deal for yourself. One way is to ask for an early bird rebate. Make full payment before time and ask for a discount. Your supplier will be happy to oblige because you put money in his hands. Their purchasing power improves with enhanced liquidity. 

You have to make sure that the discount you get on early payment is to your advantage in terms of financial gain. Work with your accountant to calculate whether your earnings will be better from interest income on money kept in your own accounts. Calculate whether you can make more money by investing somewhere else. 

Negotiate with your supplier about who is to bear the cost of shipping. Some suppliers are happy to bear the cost of shipping if the order is of a certain amount. It will be advantageous to increase the size of your order to save expenses on freight. Suppliers will not be open about this option, so before entering into a contract with them, negotiate all the terms.


Improving your profits and inventory is directly related to how you purchase from wholesalers. Thus, spend enough time researching what terms and conditions you have to settle with your wholesalers. The prices at which you buy from the wholesalers in China should work for both for the association to last in the long run. The bottom line is to work with suppliers who deal in good quality products, are dependable, and can back you in your growth. So good research work and calculation of numbers ahead will help you make smart decisions for the growth of your business.

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