You know what? Every month, more than 10,000 people in the world are searching on Google for “how to buy wholesale from China”!
I’m not surprised because I’ve seen many of our customers make a decent living for their families with their wholesale business.
But of course, we’ve also heard of some horrible experiences from buyers about their wholesale-from-China journey.
In this article, I’ll share everything you need to know about buying wholesale products from China.
Wholesale from China FAQ ( Make or Break Your Wholesale Business)
Buying in bulk from China isn’t rocket science, but several fundamental questions will make or break your wholesale business.
Which way to buy wholesale from China: off-the-shelf vs. private label?
There are usually two options for wholesale products in China, off-the-shelf and private label.
Off-the-shelf refers to the supplier’s regular products, usually in stock and packaged in a supplier-branded or neutral packing.
Private labeling is when a supplier produces goods to your requirements, and the product or packaging is under your brand name.
How should you choose between them?
It’s all about what minimum order quantity and production lead time you can accept.
Private labels or OEM usually display your logo on the product, which requires changing the mold or screen printing the brand logo on the product’s surface.
Both factories and wholesalers have higher minimum order quantity requirements for such custom orders than their regular products. Also, it takes longer for suppliers to produce customized items.
For example, if you want to purchase handbags wholesale from Guangzhou, China:
- If you choose off-the-shelf, the supplier will allow you to take five of each color per model.
- However, if you need to customize your logo and packaging, you need a minimum order of at least 300 pieces.
If you’re a newbie buyer planning to import wholesale products from China for resale, it’s best to start with off-the-shelf items and test the target market first to avoid investing in too much inventory.
On the other hand, if you’re confident in your judgment of market trends, private labeling can help you establish your brand and differentiate yourself from your competitors.
Which is better for you: wholesale vs. Dropship?
Dropshipping is an asset-light supply chain management model that allows retail sellers to operate their stores without inventory.
The retail seller receives payment from the customer and places an order with the supplier, who then ships the product directly to the consumer.
Wholesaling, on the other hand, usually involves buying products and maintaining a certain amount of inventory.
If you’re still torn between the two models, wholesale versus drop shipping, let’s look at each’s pros and cons.
- In contrast to drop shipping, the advantage of buying products in wholesale is that you can customize your product packaging, control when and how you ship them.
- However, the disadvantage of wholesale versus dropship is also obvious, which is that you need to put money into inventory.
If you’re running multiple SKUs, you can use a combination of wholesale and dropship, e.g., buy in bulk for products that have a steady demand and drop ship those new launch products that need to test the market.
Which is a better wholesale supplier for you: wholesaler vs. manufacturer?
Many buyers want to purchase directly from the factory when it comes to importing from China.
But actually, working directly with the manufacturer may not always be your best option.
Why? Factory prices are lower, aren’t they?
Here are the facts you can’t ignore when buying wholesale products from a factory:
If you have a small order quantity, the price you get from the factory may be higher than the wholesaler’s price.
In the supply chain, each role has its necessity. Factories are good at manufacturing but often not at distributing products.
For small buyers, manufacturers don’t know what price to quote, and they don’t care about small orders, so if your order is not as big they expect, the factory may have you contact their distributor.
Wholesalers carry more styles of products than factories.
Maybe you don’t understand this at first glance, aren’t all wholesalers’ products made in factories? Why do wholesalers have more styles?
This is because wholesalers or trading companies carry styles from many different factories, you can think of them as factory distributors.
However, suppose you work directly with anyone of the factories. In that case, you will not be able to get many styles because the factory reduces the number of styles produced and increases each style’s quantity to achieve economies of scale and reduce production costs.
Wholesalers offer lower minimum order quantities and faster lead times than factories.
Products sold by wholesalers are usually in stock, which means you pay for them and they ship right away. And for products that are in stock, wholesalers don’t mind letting buyers place small orders first to build customer relationships.
In contrast, factories usually have no inventory, and for every order you place with them, they need to prepare raw materials and arrange the production. So the manufacturer will have a much longer MOQ and lead time.
Where can you find the best wholesale suppliers/vendors in China?
Many startups that would like to buy in bulk from China are trying to find the best wholesale website first. But they may not realize that buying from China wholesale websites may not be the best fit for them.
This chapter will discuss the ways to find a wholesale vendor and their pros and cons.
China Wholesale Websites
There are many benefits to buying from a Chinese wholesale site, especially for 2020, where under COVID-19, you may not be able to go to China in person.
- Variety of styles: ⭐⭐⭐
- Transaction Security: ⭐⭐
- Product Price: ⭐⭐
- Communication: ⭐⭐⭐
- Availability: ⭐⭐⭐⭐⭐
- Access costs: ⭐⭐⭐⭐⭐
- With a keyword search, you can easily see many products on any Chinese wholesale website, but suppliers usually don’t upload their latest products online to avoid copying by their peers.
- Due to the business model, Chinese e-commerce marketplaces have no incentive to rigorously vet their supplier members, which has led to many scams.
- Chinese suppliers have a very low barrier to selling on wholesale websites, and many of the suppliers you find online don’t necessarily have supply chain strength, but they are very good at online marketing.
- Most vendors you find online are probably using Google Translate to communicate with you, which is why they often don’t respond to emails.
- You can use wholesale websites to buy from China any time you want, and you don’t have to pay to access them.
China Wholesale Market
Sourcing from the wholesale markets is a traditional but effective way of importing from China. You can see and touch a large number of products in a short period. You can think of the wholesale market as a year-round trade show.
- Variety of styles: ⭐⭐⭐⭐⭐
- Transaction Security: ⭐⭐⭐
- Product Price: ⭐⭐⭐⭐
- Communication: ⭐⭐
- Availability: ⭐⭐⭐⭐
- Access costs: ⭐⭐
- Wholesale markets are where products gather and distribute. You’ll be able to see more styles here than in any factory.
- Just because the supplier has a booth in a wholesale market doesn’t mean they are 100% reliable. But usually, wholesale market stores are more trustworthy than online marketplace.
- If you have the right approach, you can get very low prices from the wholesale market. Because the wholesale market is for professional buyers, suppliers know they won’t get a deal if they quote too high.
- Most wholesale market sellers don’t speak English or only speak basic English. You can “communicate with a calculator” for small orders, but more complex orders can be challenging to communicate in detail. For example, when you need a custom logo.
- The wholesale market is open all year round, except for official holidays such as the Chinese Lunar New Year. Yes, it’s available even on Saturdays and Sundays. But at the very least, you need to fly to China in person.
- You don’t need to buy a ticket to enter any Chinese wholesale market. Your main cost will be round trip flights and about 5-7 days of hotel accommodations.
Trade Show in China
When we talk about trade shows in China, you probably think of the Canton Fair, which is held twice a year in Guangzhou, but there are many more niche trade shows in China for various industries.
- Variety of styles: ⭐⭐⭐⭐⭐
- Transaction Security: ⭐⭐⭐⭐
- Product Price: ⭐⭐⭐
- Communication: ⭐⭐⭐⭐
- Availability: ⭐⭐
- Access costs: ⭐⭐
- Suppliers usually showcase their latest and best products at trade shows.
- Suppliers at exhibitions are usually more credible than those in the wholesale market.
- The prices you can get at a trade show are usually higher compared to the wholesale market. After all, the suppliers have invested a lot of promotional expenses in exhibiting.
- Vendors at the Canton Fair are good at communicating in English, and industry shows are relatively less so.
- China trade shows are usually held once a year or twice a year, so if you are looking for products, there may not be a suitable show taking place.
- Most exhibitions do not require a ticket to attend. Your cost of attendance is the round trip airfare to China and accommodation. Hotel rates increase dramatically during the fair, so it’s best to book early.
China Sourcing Agent
Sourcing agents are key roles in China’s wholesale supply chain and can help you find the right reliable suppliers, reducing the risk of fraud and product defects.
- Variety of styles: ⭐⭐
- Transaction Security: ⭐⭐⭐⭐⭐
- Product Price:⭐⭐⭐⭐⭐
- Communication:⭐⭐⭐⭐⭐
- Availability: ⭐⭐⭐⭐⭐
- Access costs: ⭐⭐⭐
- Unlike trading companies, most sourcing agents do not have a catalog. What sourcing agents are good at is finding the source of the product.
- The sourcing agent acts as a third party to audit suppliers for buyers and control product quality.
- The sourcing agent will find the right supplier for the buyer’s needs and verify whether the supplier is a trading company or a factory.
- Sourcing agents have better customer service and language proficiency than Chinese suppliers. They act as your local representative.
- Unlike finding a wholesale supplier online by yourself, a sourcing agent will charge a service fee.
Top 5 wholesale product from china and your key takeaway
There are many things to keep in mind when buying wholesale products from China, and this chapter will talk about the most popular wholesale products and the key takeaways you need to know.
Wholesale clothing from china
If you want to start a wholesale business, consider importing women’s, men’s and baby clothes from China, as apparel products are usually not affected by economic cycles and are always in great demand.
Clothing Manufacturing city in China:
- Guangzhou (Women’s Fashion, Baby Wear)
- Xintang (Jeans)
- Yanbu (Lingerie)
- Ningbo (Men’s Wear)
Common Wholesale Clothing Quality Issues:
- Wrong size,
- Lack of wash markings,
- Messy needle alignment
Regulations for importing clothing in bulk:
- Apparel labels need to indicate the country of origin
- Labels need to include fiber content
- Clothing material needs to meet flammability standards
- Clothing material needs to meet hazardous substance standards
Wholesale jewelry from china
China doesn’t seem to be the birthplace of international luxury jewelry brands, but the country is actually exporting a lot of gold, silver, and gemstone jewelry wholesale to the world.
Jewelry Manufacturing city in China:
- Guangzhou (gold jewelry, zircon jewelry, semi-precious stone jewelry)
- Yiwu (fashion jewelry and accessories)
- Dongguan (Stainless steel jewelry)
- Shanwei (925 silver jewelry)
Common Wholesale Jewelry Quality Issues:
- Surface scratches and dents
- sharp edges or points
- Missing parts
Regulations for importing jewelry in bulk:
- Jewelry should not contain excessive amounts of heavy metals or chemicals, such as nickel, lead, cadmium, mercury, and phthalates.
- The country of origin needs to be displayed on the jewelry product or packaging.
- If a jewelry product contains parts of wildlife (e.g., shells, coral, leather, and wood), it is essential to ensure that these are not from endangered species.
- Precious metal jewelry needs to be marked for precious metal content.
Wholesale electronics from china
Electronics is one of China’s most exported products. Personal consumer electronics are frequently replaced every 1-2 years, which presents an excellent business opportunity for many entrepreneurs interested in wholesale electronics from China.
It’s also due to the rapid upgrade of electronics that margins are usually high in this category.
Electronics Manufacturing city in China:
- Shenzhen (electronic components and consumer electronics)
- Dongguan (Consumer electronics manufacturing)
- Wuxi (microelectronics, semiconductors, integrated circuits)
Common Wholesale Electronics Quality Issues:
- The product does not function
- Insufficient tensile strength of the power cord
- False battery capacity
- The plug is not suitable for export markets
- Incorrect product parameters
Regulations for importing electronics in bulk:
- Electronic products must be electro-magnetically compatible and must not interfere with other electronic products.
- Permissible levels of hazardous substances need to meet target market standards.
- The Waste Electrical and Electronic Equipment (WEEE) Directive logo must be on the package or product.
Wholesale bags from china
Handbags are products that are needed every day just as much as clothing.
Burberry, Prada, MiuMiu, and other famous brands are actually made in China, which is why many entrepreneurs plan to wholesale handbags and luggage from China.
Bags Manufacturing city in China:
- Guangzhou (Leather bags, backpacks, luggage)
- Baigou (PU fashion purse)
- Pinghu (Luggage & suitcases)
Common Wholesale Bags Quality Issues:
- Poorly sliding bag zipper.
- The stitching bursts open under tension.
- Discoloring of leather or cloth
- Strong smell of glue
- Bag deformation
Regulations for importing bags in bulk:
- Bag products cannot contain excessive amounts of heavy metals and hazardous chemicals.
- Importers, manufacturers and sellers of handbags must state whether the product is made of imitation leather (e.g. PU leather).
- Product labeling requirements, such as country of origin and conformity mark, may also need to be printed on the product packaging.
Wholesale furniture from china
You may know that IKEA imports furniture from China, but what you may not know is that many homeowners actually buy furniture and building materials for their new homes wholesale from China. After all, home renovation is a big investment, and buy from China can save a lot of money.
Furniture Manufacturing city in China:
- Foshan (All kinds of furniture)
- Zhongshan (Office furniture)
- Nankang (Wood furniture)
Common Wholesale Furniture Quality Issues:
- Wrong dimensions, materials and colors
- Wobbling
- Sharp edge
- Strong odor
- Poor load capacity
- High moisture content in wood furniture
Regulations for importing Furniture in bulk:
- The content of hazardous substances such as formaldehyde, phthalates, and lead must not exceed the required value.
- Solid wood furniture needs to be fumigated
- Children’s furniture has stricter product and labeling requirements
- Some countries, such as the United States, have imposed anti-dumping duties on wood furniture exports from China.
What are the risks and problems when buying wholesale products from China?
Many companies haven’t imported from China yet because they don’t know how it works and are afraid of the risks involved. There are actually risks in everything you do, but if you think buying wholesale from China is worth doing, you just need to be prepared for the potential problems.
Let’s take a look at the potential risks and solutions of buying wholesale products from China.
1. Wholesale supplier scammer
If you’ve heard that people can get scammed from overseas retail sites, I can tell you that it’s riskier to buy wholesale overseas.
You paid for the goods but never received them, or received them completely different from what you originally agreed to.
Fraud prevention solutions
Before choosing your wholesale supplier, do a thorough background check on your supplier. Appointing a sourcing agent as your representative in China can reduce supply chain risk.
2. Wholesale products from China might not meet your country’s product regulations.
If you are from a European or American country, you need to be careful when purchasing wholesale goods from China. The products you buy may not meet your country’s compliance regulations.
For example, suppose you are planning to wholesale electronic products from China to the UK. In that case, the products may need to have CE, ROHS, or REACH certifications, which are generally not available from wholesalers, or the certificates provided may be fake.
Compliance solutions
When you are planning to import from overseas, you need to be aware of your country’s regulations for importing products to avoid certification issues that prevent goods from being sold in the destination country.
3. Your wholesaler cannot customize product packages or labels.
The most significant advantage of buying from a wholesaler is that their products are in stock, so you can pick them up right away.
Also, because it’s in stock, the packaging is already done, and you can’t customize the box and label for your brand, especially if you’re starting out and have very few order quantities.
Customized packaging solutions
Generally, wholesale suppliers in China are reluctant to make custom packaging for small orders, but you can find a local packaging factory to make the boxes or bags you want.
4. High risks and costs for mixing goods from different suppliers in one container
Many buyers who come to the wholesale market in China buy different types of products and then concentrate them in one container to be shipped by sea.
The problem is that the suppliers are usually far apart, often creating various problems.
- Goods were lost due to improper handover from the supplier.
- Local logistics delays leading to delays in sea shipment.
- Vendors charge higher than normal local transport costs.
Shipping consolidation solutions:
Appoint a third party to be responsible for local logistics, retain evidence of the supplier’s handover of the goods, and arrange for shipment at least three weeks before the goods are produced. Also, you should consider having a container loading inspection to make sure your cargos are fully loaded into the correct container.
5. Product defects and insufficient quantities
We often get questions about whether it’s safer to buy wholesale in small quantities than to buy in bulk from a factory and whether we should inspect the goods.
In fact, pre-shipment inspection is always necessary. A small amount of wholesale products doesn’t necessarily mean they’re good quality. It may be that you find few substandard items, but the substandard rate is still high.
Wholesale product quality control solution：
- Put all your requirements on the contract or invoice before you pay the deposit.
- Inform the wholesale supplier that your agent will come to inspect the goods once they are ready.
- Maintain a good relationship with the wholesalers and let them know that this is not one-time business.
Stop doing these when you’re buying wholesale from China
When you’re first starting out in the China wholesale business, you may sometimes be doing wholesale with a retail mindset.
Or you may not understand the Chinese culture when communicating with your suppliers.
If you just want to wholesale from China for your personal use, that’s fine. But if wholesaling from China is your main business, you’d better avoid these common mistakes.
Mistake 1: only looking for wholesalers with free shipping.
We all love free shipping products. Because the price is straight forward and you don’t have to pay extra.
This idea is correct, but only for retail, and if you buy wholesale products looking for free shipping, you usually lose more than you gain.
Wholesalers are usually not good at controlling the cost of logistics, and the so-called wholesale free shipping actually includes shipping costs in the price of the product, and you have no way of knowing the true price of the product to compare it with other suppliers.
Best practice:
If you find a product you are interested in, specify you need the EXW price when requesting a quote.
If you manage your wholesale supply chain by yourself, be clear about the pick-up address and the volume, gross weight, and carton number of goods. It can help you save a lot of logistics costs.
Mistake 2: Trust the price range on alibaba.com.
I remember one time when our sourcing team sent a researched product quote to a customer who then said he saw a lower price on Alibaba.
Our sourcing team was confused because, in our experience, this was almost impossible.
We later found out the price that the customer was talking about was the price range on the Alibaba product page.
After confirming the product specifications with this Alibaba supplier, it turned out that our initial quote to the customer was 25.7% cheaper than this supplier’s price.
Wholesale from Alibaba solution:
If you want to buy wholesale products from Alibaba, don’t care too much about the price range of the product.
Most of the lowest prices written on Alibaba product listing are fake for attracting your clicks. There is no way you can get that price.
If you see a product you like, take the time to communicate with each vendor to confirm product specifications and minimum order quantities so you can get the actual price.
Mistake 3: working with wholesale companies dealing with a wide range of product categories
When you need to buy different products from China, it’s easiest to work with a wholesaler who has all the items you need.
But is this the best? For example, you need to buy wholesale building materials from China. You want to buy stone, flooring, windows, and doors. If you can find a supplier that sells these products, they are definitely a trading company.
Choosing a wholesale supplier specializing in a particular category can save you 10 – 30% compared to working with an all-in-one wholesaler.
Mistakes 4: only work with the wholesale supplier who offers the lowest price
There’s nothing wrong if you’re hoping to save costs, but if your only criteria for choosing a supplier are low price, you’re putting your wholesale business at risk.
There is usually a reason why supplier A for the same product is more expensive than supplier B. It could be:
- One of their product parameters is different.
- Different lead times.
- Different payment terms.
- With product certification or not
- Different mass production defective rates
- Does it include China VAT?
You can only find the best price if you know the differences between the different prices and then make your choice based on your own needs.
Mistake 5: paying the balance for wholesale goods without quality inspection
When you buy wholesale products from China, the biggest mistake you can make is assuming that the goods produced will be the same as the samples.
There are always problems when you receive goods due to the supplier’s attitude or quality control capabilities.
The best thing to do is check the quality of the goods before you make the final payment.
There are lots of things to learn about production inspection, such as how many to sample, what aspects to check, and how to deal with defects if found.
But at the end of the day, inspection is about finding problems, not preventing them. Therefore, we always inform the supplier in writing that we will inspect the goods before making the final payment.
Mistake 6: thought you’d be 100% safe with Alibaba Trade Assurance.
Alibaba trade assurance is well-intentioned and wants to create a system of trust between buyers and suppliers.
However, in practice, buyers are not fully protected by Alibaba Trade Assurance.
- Only communication records on Alibaba can be used as evidence of disputes.
- Trade Assurance protects only payments made through Alibaba.
- Alibaba does not inspect the goods, so it does not judge the quality of the goods you receive.
- If there is a quality problem, most of your complaints will be left pending due to lack of evidence.
Mistake 7: ask your supplier to arrange shipping
There are a lot of new wholesale buyers who prefer to have their suppliers arrange shipping.
I can understand, it’s convenient.
But the truth is, your supplier is not the right one to arrange your logistics.
Why?
- Most suppliers are not good at supply chain management
- Suppliers do not understand your country’s customs clearance requirements
- Suppliers are not obligated to save you money on shipping
- The supplier’s appointed logistics company may not defend your rights if problems arise
The best practice is to let your Chinese agent or freight forwarder take care of the shipping arrangements.
Mistake 8: thought shipping by sea is always cheaper than by air.
Quick question: “Is sea freight cheaper than air freight, yes or no?”
The answer is, it depends.
Let’s start by looking at the composition of air freight costs, which are usually.
- Gross weight = actual weight
- Volumetric weight = Lcm*Wcm*Hcm/5000
Then compare the gross weight to the volumetric weight, and charge according to which is the greater value.
The cost components of sea-bound bulk cargo, on the other hand, are usually.
- CFS consolidation charges RMB 40/CBM
- DOC documentation costs RMB 300/BL
- CUS customs brokerage fees RMB 320/BL
- ENS EU entry summary customs declaration (manifest charges) RMB 180/BL
- AMS/ACI US/Canada manifest charges RMB 180/BL
The above is only for the China side. There are additional fees for the destination country.
Moreover, many sea routes have a minimum order quantity for LCL cargo, usually around 2-3 cubic meters.
So for a small number of orders, air freight will be cheaper than sea freight. In the following cases, it is recommended to choose air freight:
- Cargo gross weight is lower than 50 kg.
- The volume of the goods is less than 1 CBM.
- The goods need to reach their destination within 20 days.
If you want to buy wholesale from China
Which of the methods described above would you choose to find your supplier, and why?
Do you have any questions but the article hasn’t covered them yet?
Feel free to comment below!