There are thousands of companies around the world that import wholesale goods from China – and make big and sustainable profits. For most beginners in this business, this seems easy and cost-effective. Well, maybe in theory – but the fact is that many fail to avoid some of the usual pitfalls. That is why we draw your attention to 5 mistakes when buying wholesale from China.
- 1 What Is The Secret Of Trading Products From China?
- 2 Make A Good Choice Of Products To Import From China
- 3 Common Mistakes When Buying Wholesale From China
- 3.1 1. You pay the full deposit without inspection of the goods
- 3.2 2. You choose products without looking at samples of goods
- 3.3 3. You’re buying wholesale from China without the adequate certificates
- 3.4 4. Buying wholesale for specific seasonal products
- 3.5 5. It is always a mistake to chase only the lowest prices
- 3.6 Conclusion
What Is The Secret Of Trading Products From China?
Commerce, and especially online commerce, is one of the most lucrative businesses today. Traders were always buying wholesale at lower prices – and later selling it as retail at higher prices, making significant profits. This activity has gained additional importance with the start of online commerce – as well as the mass buying wholesale from the Chinese suppliers. The question arises: Why do we import goods from China? Many retailers initially wondered why importing from China when it is certainly easier to buy products from local suppliers and distributors. So why is China still a better option for buying wholesale?
This is the first and basic parameter for every retailer. Namely, Chinese manufacturers engaged in mass production offer their products at way more affordable prices than anyone else. Even when you take into account the costs of delivery, quality control, and import duties – the savings you can make when buying from a Chinese manufacturer are huge, and it will pay off more even when buying goods from local distributors.
Chinese factories are generally more cooperative. They will set lower minimum order requirements, have greater expertise in tools and molds – and can, and are willing to produce in both large and small quantities.
Although China’s labor costs are more expensive than in some other Southeast Asian countries – benefits such as developed infrastructure, developed supply chains, and skilled labor force will make up for it.
Make A Good Choice Of Products To Import From China
A good selection of products is certainly important for success when buying wholesale from China, but it is less important than you may think. Of course, you should take into account your budget and overall market conditions for the selected products. But other than that, you can enter any market and succeed if you have the right strategy and enough capital to invest. However, some of the typical mistakes that often happen should be avoided.
Common Mistakes When Buying Wholesale From China
1. You pay the full deposit without inspection of the goods
This is a common mistake often made by newcomers in a wholesale business. Namely, it is always advisable to first pay only an advance. The percentage can go up to one-third of the amount of your complete order. Then, the rest should be paid after you inspect the goods you buy from China. We’ve already mentioned that Chinese suppliers are very flexible – so if you are a good bargainer in the trade, maybe you can reduce this initial percentage of the deposit. So make sure your deposit is as low as possible until you check the quality of the goods you ordered – and then you can pay the remaining amount.
2. You choose products without looking at samples of goods
This mistake is also one of the typical, even for more experienced traders. Namely, often, due to lack of time, people tend to immediately order and buy wholesale – without requiring samples of things they order. This is certainly not a good practice, because when ordering like that, you cannot know the quality of the goods you are ordering. It often happens that after such an order, wholesalers are surprised because the goods are of poorer quality or short-term use. Therefore, it is always recommended that you ask your supplier in advance for samples of the goods you plan to order. Finally, even when the ordered goods reach you – you will be able to compare them with the sample you have. According to JustChinaIt, that way, you can see if the supplier respects the quality standards that you have agreed to in advance.
3. You’re buying wholesale from China without the adequate certificates
This can be one of the biggest mistakes you can make when buying wholesale from China. Namely, different countries have different regulations – especially, when it comes to the quality of materials from which certain products are made. You need to know these regulations in your country so you can require Chinese suppliers for the needed certificates. It is very important to do so – because without these certificates you might not be able to work. Also, without certain certificates, you might not be able to import certain products from China – so you can expect a greater loss. Therefore, make sure to ask for all the necessary certificates from Chinese suppliers.
4. Buying wholesale for specific seasonal products
This happens when you misjudge your customers’ interest in seasonal products. So you have to be careful – and that means you have to examine the market in which you will do your business. Seasonal products can sometimes bring you a good profit. However, they can also deceive you. It’s the same with products that are in trend one season – which doesn’t mean it will be the same next season. Let’s say you bought a large amount of Christmas decorations and Christmas trees. The interest in such products will last only during the New Year and Christmas – and after that, there is no interest in them. Therefore, you should try to buy goods in large quantities that will have sustainability – that is, things that you’ll be able to sell out of season.
5. It is always a mistake to chase only the lowest prices
Nowadays, there are many Chinese suppliers on the wholesale market. Of course, where the competition is high – the suppliers will use various tactics to get your attention. Price is definitely one of the primary things you will pay attention to. However, don’t think that the cheapest offer is always a good choice. In fact, in practice, the opposite things often happen. Suppliers offer you almost unrealistically low prices and you think you will do a good job. You make a deposit – and then you face another type of problem like changing the starting price of the products. Suppliers will use various excuses – from the fact that raw materials have become more expensive, to the fact that shipping costs have increased, etc. What do you do then? You have already paid the deposit, and the difference in the price at which you should have earned is no longer the same. So do not run for the cheapest offers, because they are usually not realistic. Rather do business with reliable suppliers from China, even if they are a bit more expensive – because, in the end, it will still pay off.
Many wholesale sellers make mistakes when buying products from China. This sometimes happens because they are beginners in this business, but it also happens to those who are already in business but are unable to respond to some of the challenges. Therefore, we hope that we have at least partially pointed out some of the typical mistakes – and that you will be able to avoid them and achieve good cooperation with your Chinese business partners.