How to buy wholesale from China?
Many importers opt to buy their raw products wholesale from China. Why? The benefits are several, from low costs and an extensive supplier base to checking out the factory firsthand and reduced risks. All these benefits make China one of the major hubs for outsourcing or buying wholesale material. According to Santander, China’s exports amounted to 2,590,221million USD in 2020.
Importing from China might sound like the right option for your business too. But how would you go about it? In this blog, we will explain the process of buying wholesale from China and help you figure out the right way by weeding out the chances of errors. Let us get started!
Buying wholesale from China
Following are the steps you need to undertake to buy wholesale from China without any added stress.
Find and connect with the suppliers. The first step in the process of buying wholesale products from China is finding suppliers. There are many suppliers in China, making it difficult for an outsider to navigate through the options.
Once you have found the right supplier for your order, you need to get in touch with them and discuss your requirements with them.
Ask for samples
Once the supplier knows what you want and how you are planning to use it, you need to request samples for your products. Most of the suppliers will send you a picture of the product, but a picture is not enough when you want to assess the quality of the product. Ask the supplier if they can ship you a sample before you place the order. You will be asked to pay the shipping charges for the sample, but it will be worth it.
Having a sample does not only allows you to measure the quality of the product but also gives you something to compare the final products with.
Specify your order
Now, you need to get to the details of your order, you need to list out all your specification, including the height, weight, length, breadth, colour, material and sturdiness of the products. Do not take this lightly, as the supplier may intentionally or unintentionally cut corners to settle their costs.
If you can, send a neat diagram of the requested products along with the measurements and other details to the supplier to reduce any chances of miscommunication.
Negotiation
The next step in the process is negotiating the payment terms. Every supplier has a different payment policy, and you need to understand it thoroughly.
Considering you are looking for a company to buy wholesale from China, you can also enjoy discounts. It is easier to get nice discounts from Chinese wholesale suppliers but be sure that the final price is agreed upon and written down to avoid problems later.
Down payment
Suppliers may or may not ask you for a down payment, depending on their policies. They may ask you to pay a certain percentage of the order total, let us say 30 per cent, upfront before shipping.
This percentage, too, can be negotiated if you would like it.
Trade insurance
If you are paying the down payment, you would also like to have some assurance that your products will reach you in a decent condition. Many Chinese suppliers provide trade insurance where your down payment or any other payment you made in regard to the wholesale purchase will be returned in case the products received are damaged or if they are lost in the shipping process.
Ask about this insurance to your supplier and go over the provisions it covers and how you can benefit from it.
Shipping
The next step in the process of buying wholesale from Chinese suppliers is the shipping process. You need to decide how you will import the product in your country, by road, railways, air or water. You should go over all the available options and choose the one that is the most economical and least risky for you.
Hire an agent
Almost every country has few too many laws covering the imports part of its trade. These laws are highly complicated, and one mistake could result in a huge loss. You alone can not go over these laws and do the right thing. So, you hire a customs agent. These agents are specialised in the import and export trade market and have a complete knowledge of the laws surrounding it. They will smooth over the importing process for you and make it easier.