1. Do Market Researching
You simply need to research before setting up your business. As we all know, there is much competition in the market, and if you jump into the crowded marketplace, it will be challenging for you to reach your business at the top.
You have to do more struggle to get your goals. So it is crucial before applying for any business your first step must be complete, compelling research.
The competition in the market is becoming high day by day, and if you want to earn more profit, it is nearly impossible to skip this step. It will be nearly impossible for you to compete with the market and replace the old sellers. Though there is a significant demand for sourcing products from China, you will still find it tough.
While researching, first check out the most demanding product in the market and then source from China.
For this purpose, you can make searches on Amazon to find out the top 1,000 products in any niche. If the product you’re thinking of for business is not in the top 1,000, then you would hardly do not earn your living from it.
Once you are successful in finding that product that fits the desired criteria, select two or three from there that you think to have enough knowledge about them.
For example,
if you are good at planting and gardening, you should wisely invest in seeds and related products rather than investing elsewhere. You just have to find a product that people want the most rather than being competitive with the existing markets because it will give you nothing but a wastage of your money.
For this purpose, you can choose a product that you think you are good at and give it your personal touch. Mainly, the only thing you will be going to change is the marketing technique, and this will allow you to stand in a top position.
2. Get In Touch With Chinese Manufacturers
It has been seen many times that people skip the first step. They don’t bother to research. They simply imagine that they will start earning magically soon after throwing up a product.
However, some people don’t like to contact manufacturers for different reasons. It doesn’t mean that they don’t know this, but they are confused about where to start or how to do it.
The process of this is relatively straightforward: All you need to do is go to China wholesale websites like Alibaba (a massive network that connects you with hundreds and thousands of qualified manufacturers from China).
Send messages to at least 10-15 suppliers. You have nothing to lose.
You can have a brief talk with them, chat about different criteria, and take advantage of their experiences.
After that, please select the manufacturer that you think fits best to comply with all your needs and then start working with them and source products from China.
Where to source in China?
Here are some references for you sourcing products from China online:
| Company | Category | Type |
| Alibaba | General | Wholesale |
| AliExpress | General | Wholesale & small order |
| Global Sources | General | Directory |
| dhgate.com | Limited category | Wholesale |
| Made in china | Machinery, Electronics | Directory |
| 1688.com | General | China domestic |
| Lightinthebox | Limited category | Wholesale |
Then share your message with your manufacturer by sending a simple message along with the mentioned below lines:
“Hello, my name is (your name). I’m texting you because I am in dire need of (your product name). Can you please offer me your price and quotations (also tell the number of units you want to order) and an estimated delivery time? Thank you! I would like to highlight one more thing as I’m not only contacting you but also your competitors, so please be kind and reasonable with your quote. Regards, (name).”
But, you have to keep in mind that you have not accepted any offer yet. However, If you noticed that there is no option for ordering a sample yet, you want to test the factory’s responsive rate and communication.
Because it is necessary to maintain quick and clear communication while making your source from China, a little delay in the shipment could make your customers furious because of not getting their orders in time.
For example, supplyia China sourcing agent usually makes a response within 24 hours This problem may result in a disaster and can ruin your whole business even before it gets started.
So, it is a better option only to select those companies that provide the fastest communication and can respond quickly before moving towards the next step.
3. Negotiate With The Suppliers
The main reason for not adding the word “sample” in the above portion is that it might give your manufacturers a severe non-impression.
Every day, these Chinese companies receive so many emails and messages about samples. Sometimes, those people are also asking for samples that don’t have enough money to invest even in the first shipment.
If you place orders for large volumes of products, factories will be able to earn more money as they usually offer low prices. So the more the project, the more they will earn.
It will be best to place orders for around 50 or more units for the first time. Ordering for only one to two products will give them the impression that you don’t have enough cash to invest with them and in this way they can’t make more money.
4. Start To Order Samples
After receiving the manufacturers’ quotes, you can now pick the best price among all and order your first round.
Then you need to select the location. It could be a warehouse or maybe your home or business, send them a message asking for payment methods and also about the delivery date.
Now sit back and relax, wait for the ordered product to arrive. Meanwhile, you can work on your website, your marketing strategies, your copywriting, and all the other aspects as well.
When you get your initial order, you have to inspect at least five to ten units to check the quality level and defects. The final thing you would do is to check for damaged or flimsy products. If you are not feeling satisfied, you can contact the factory and ask them for replacements or simply go through for other factories.
How much should you pay? Expect anything from $30-$200, depending on the complexity of your product.
5. Order a Bulk Amount – Buy Wholesale from China
Once you have followed all the steps correctly, you are set to order for a bulk amount. But you have to pay attention to the payment in case face a scam.
Many suppliers require a deposit of around 30%, and the remaining amount would be paid before shipment.
This means that you are risking your deposits, but you have full control over the remaining balance, which needs to be paid after quality control and lab testing.
Is it an excellent option to pay my supplier after the arrival of goods?
No, it is a must to pay before you receive your parcels. This is your supplier’s choice if he agrees to accept payment upon the release of the bill.
Many suppliers are aware of the fraudulent nature of some buyers (not targeting all the buyers). So, they usually don’t offer payments after delivery, as by doing this, they will end up with no payment by the fraudulent buyers.
Can I get credit from my supplier?
There are some big buyers like Wal-Mart that can offer you free credit lines. For example, they can allow buyers to pay after 90 days of delivery. However, this does not apply to other small buyers.
Can I pay Chinese suppliers in different currencies like Euros, AUD, GBP?
These days most of the Chinese suppliers will accept the payment in US dollars other than any currency. While some of the old suppliers from 2010 can accept the payments in Euros.
What will be the safest payment method while sourcing products from China?
The safety of payments is entirely dependent upon the type of transaction, and its management. For instance, if we talk about wire transfers, they are counted as unsafe ones because they don’t offer any refund.
On the other hand, Letter of Credits offers an extra layer of security, but this could also be highly risky if a third party sets the terms.
Am I supposed to open a USD bank account to pay my supplier?
No, not necessarily, you can convert your local currency whatever it is into USD when transferring payments to your supplier’s bank account. Opening a USD bank account can save your exchange rate risks, and you can quickly source from China.
6. Arrange Ocean Freight or Air Freight.
The first thing you need to do at this stage is that you must familiarize yourself with shipping incoterms. Incoterms are trade terms that are used internationally for determining where and when the cargo will be transferred.
Usually, there are 5 ways to shipping from China.
- Air express
- Air freight
- LCL ocean freight
- FCL ocean freight
- Expedited ocean freight (competitive with air freight lead times)
| Condition | Airfreight | Ocean freight |
| Reliability | More Reliable | Less reliable |
| Speed | 3-15 days | 30-40 days |
| Cost | Expensive | Cheap |
| Logistics | rules | paperwork |
| Tracking | provide | some provide |
| safety | safe | possibility of damage |
| Charge method | weight/dimensions | weight/dimensions/fix price |