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Chapter #1 How to buy direct from China Basics
Are you a small company or firm that sells products online? Or are you curious how your direct purchase from China can take your business? Well, say no more because you are in the right place.
There are many benefits when you buy direct from China factory or buy products directly from China. For instance, you can find everything in the Chinese market—with the best quality of products at a lower price. Which will help increase your profit and aid in your business success.
However, it’s not always this austere when you buy direct from China, especially your first time. You can face difficulty and high expenses as you go through the entire process. Hence, we’ve provided you with a step-by-step guide on how to buy direct from China.
What are the top products to direct purchase from China?
China has been the go-to place where businesses, companies, and importers around the world buy their products. The country sold at least $2.056 trillion of products last 2020.
Based on estimates, 56.3% of products are sold solely in Asia. At least 18% imported to European countries, 8.5% in North America, 7.2% in Latin America, 6.4% in Oceana, Africa, and Australia, and 3.5% from Chinese imports.
In addition, World’s Top Exports provided data of the 100 product imports of China that valued around $1.643 trillion or 79.9%.
What can you expect when you buy products directly from China?
While buying products from China is one of the most cost-effective approaches you can take. There are still hurdles that you need to overcome. Hence, we’ve listed some of what you can expect when you buy products directly from China:
The Minimum Order Quantity (MOQ)
When you buy direct from China factory, you should expect them to set a large quantity. Every factory has its own MOQ. At most, the MOQ will be 500 or higher per product. The reason for this is they will produce products all at once. So, when they lower the MOQ, the production cost will be much higher—which is not feasible for most importers.
However, it doesn’t stop there. Some factories do allow low MOQ with the direct purchase from china. The key? Negotiation. You can send quotes from your China direct supplier, including your needs, requirements, prices, of course, MOQ.
Language is the common problem of most buyers when they buy direct from China. In reality, 99.5% of Chinese don’t know how to speak English in China. In the same way, most buyers find it hard to learn Chinese and Mandarin.
What you can do is hire a translator if you’re visiting these China factories and suppliers. Or request to chat on WeChat, Skype, or e-mail if you are transacting online.
Long Lead Times
Many buyers and importers believe that everything will run efficiently when you buy from China. However, we’ll debunk that misconception. In reality, you have to expect to wait months, one to four months at most, and longer for customized products before you get your products.
You have to remember that even when you buy direct from China factory, product creation will not begin. Unless the final order is done and you pay a small deposit.
Quality control is an issue when you buy direct from China factory. You can receive defective products and quality that are far from what you anticipate them to be.
It is why you need to be very specific on your requirements, needs, and exactly what you want. Hiring a sourcing company to arrange the inspection is also a good thing.
Terms of Payment
There are different modes of payment that you can do. However, you need to pay through bank transfer when you buy direct from manufacturer China. You can expect to pay a deposit, typically 30%, for the initial cost, then pay the remaining if they shipped the products.
What to expect when communicating with a supplier or manufacturer?
Most of the time, you will communicate with many China direct suppliers and manufacturers. Primarily if you’re new in this field, you need many quotes. It is why you should expect problems in communication, such as:
Language and Cultural Barriers
As we’ve mentioned above, many Chinese doesn’t speak English. They might know the basics, but it may not be enough, especially if you start talking about things. Though, they are likely to be better at reading it than speaking it or comprehending it. So, having a written note of what you want to say comes in handy.
Additionally, you will also face cultural differences when you buy from China. The most common contrast between Chinese vendors and the US is that Chinese vendors don’t engage in any form of conflict.
Being nice and friendly is rooted in their culture. For example, Chinese vendors will welcome you and rarely interrupt you. They might concede with what you’re saying but flip around if they don’t understand what it means.
These two factors might be a problem, mainly in contact and product result.
Here’s what you need to note: never assume that the Chinese vendors know what you need. As said, there are language barriers, so your vendor will find it hard to understand what you’re saying. In the same way, how confused they will be if you use jargon and spell some wrong words in the documents you’ll provide.
Contracts Are Not The End
Contracts are important when buying products from China. However, China contracts are different from those in the US. When the final contract is signed in the US, the agreement and needs are final too, which is not the case in China.
There are times when factories and manufacturers tend to change agreements, even with final contracts. For example, there will be an additional cost, or they cannot make the products. Hence, the contract is forfeited.
Chapter #2 Reasons why it is best to buy products directly from China
China has the largest market in the world. They are considered the “World’s Factory” with a slew of industries and buildings to keep them afloat.
The ideal way, especially if you’re a business and importer, is to make a direct purchase from China. Because if you are to buy direct from China factory, you are removing the mediators from the equation.
These are not only the basis why it is a smart move to buy from China. Keep on reading as we confer the following:
Cheap, trendy, and quality products
Many importers who buy direct from China suppliers hold a wide variety of product choices at a fair price. You can see how many factors lead to low product pricing—starting with the low-labor cost. China has a cheaper wage than other countries. Also, if you buy large quantities too, you will arrive at a much lower price.
China, the world’s factory, lives up to its name by providing up-to-date products. Every little change or trend will most likely begin with them because most countries source there. You will get hot products before they’re available in other countries or sellers if you buy direct from china suppliers.
We’ve mentioned above some of the reasons why the product cost is cheaper in China: the low labor cost and MOQ. You can get the lowest price when you order in bulk from China vendors. And because you are to buy direct from China factory, you won’t have to worry about go-betweens or trading companies. But, note that there are additional costs—for instance, factory inspection, sample products, and more.
Production span and expense
Because China has a wide range of sectors and equipment, it’s not impossible to have improvements forefront. It is why their production capabilities and span are very high. When you buy direct from manufacturer China, you can be sure that you will get products at a high rate and cheaper. If you compare China with the local production in some countries, there is a big gap, considering the labor cost, equipment, making process, and resources.
It is well-known that China has cheaper labor costs than other countries. In fact, it is 4% lower than in the US. Based on the data posted by China Briefing, the highest monthly minimum wage in China, specifically in Shanghai, is RMB 2,590/US$400. And the highest hourly minimum wage is RMB 25.3/US$3.9 per hour, which is Beijing.
Fast lead times
If you have close links when you buy direct from China factory, you can expect faster lead times. Building connections with suppliers and manufacturers is important since they will cater to you more. The delivery, inquiries, and negotiation will be easier too.
As we noted, a relationship is no joke if you want to buy from China. There are higher chance suppliers and manufacturers will view you differently if you’ve had strong ties and reliable connections with them. Opportunities will flock to you. For example, you can get exclusive access to their experts and teams or allow you to help in product development.
Chapter #3 How to buy direct from China
After you’ve decided on buying products from China, you need to be aware of the process. It’s now time to learn the strategy and things that will get you the best deal.
But before we dwell deeper, you need to remember these three things:
- If you want to buy products directly from China, you should buy them in bulk.
- Order a sample product first.
- Source a trustworthy supplier.
Know which products can you buy from China
We will debunk this idea: you can buy everything in China. Technically, yes. However, there are restricted goods and prohibited goods that the Chinese government set. Some of these goods also need licenses before you can import them.
- Used electronic or mechanical products
- Food, sources, and animal feed products have some health risks
- Harmful to the ozone layer
- Lethal poisons
- Arms, bullets, and explosives
- Animals, food, or plants with diseases
- Fake money
In addition, you should also choose products that are in high demand. You don’t want to risk your time and money on products that will sell or not help your business at all. It is where researching came in handy. Some products produced in China are excellent among the rest, even profitable.
According to restricted goods and prohibited goods, there are 16 most profitable products that you buy from China:
- Mini Fan
- Bluetooth Earphones
- Grooming KIt
- Cuter and Grater
- Stainless Straw
- Pet Clothes
- Derma Rollers
- Ring Lights
- Water Bottle
- Portable Aircon
Look for a China direct supplier online
Your success in buying China products will depend on your China direct supplier. They’re like your business partners who have the power to affect your business—make it successful or a failure. Hence, it’s crucial to choose them wisely.
There are various ways for you to source your suppliers, especially online. First, look into their websites. Chinese vendors and suppliers use the power of websites to reach their target buyers. Here you can browse their products, services, credential, and how to contact them.
Second, through B2B platforms. Many suppliers put up their companies on these platforms to reach foreign buyers. Some of these platforms include:
- Global Sources
Also, once you find your chosen suppliers and place orders. You should expect at least 45 days to months before the products arrive at your door. It normally happens if you buy direct from China. It would be best to find suppliers and order your products ahead of time.
Get a quote and sample products
As we’ve cited, after choosing the suppliers, it’s time to place an order on the products you want. The thing is, it’s a long process, too, before you get your bulk orders.
Once you get quotes and exchange information with your suppliers, you need to ensure the quality of products. Therefore, it’s an excellent notion to ask your suppliers to send you a sample.
Note: Do not only rely on pictures, because they will appear suitable.
Technically, you will have to pay small amounts for the samples, especially customized. But it is to guarantee that you will see the quality (whether it’s good or rejected) first hand. You should also note the lead times, communication, and documents, on the initial quotation and throughout the sample production process.
Negotiate a contract
After getting your sample products, you can now decide whether you will continue ordering large MOQ. It is where you will place orders and begin necessary transactions.
You can expect that there will be a price change. If the prices are too high, you have the option to negotiate. We’ve posted a negotiation guide for you to give in-depth information on what to do. You should also note the payment terms. Make sure to clear this one for you to have a smooth transaction.
It is crucial to know that the shipping method will affect the overall cost and time of delivery. For example, there are different shipping methods like sea freight, air freight, regular post, and more. However, if you are keen to wait for at least 30-40 days, it is best to choose sea freight because it’s less expensive. But, air freight is a more expensive option but a fast delivery time.
Delivery may take a couple of weeks or months. So it would aid if you were always prepared to deal with all the concerns, especially with delays.
Shipping is not complicated, especially if you have necessary documents, such as commercial invoices and bills. You can have many concerns if there are missing documents or no documents at all.
Chapter #4 Ways to find and buy direct from China suppliers
Buying products from China is an ideal choice for your business, especially if you’re a start-up. If you want to sell high-quality products to make large profits, China is the right place for you.
Since it is now accessible, you can find many China direct suppliers online and on-site. So, in this chapter, we will provide you with lists of sourcing options that will work for you.
Find a China direct supplier
To buy products directly from China is among the most excellent method you can do. To do a quick rundown—visiting China should attend trade events. It is the best way to get in touch with a solid and credible supplier. There are thousands of vendors and suppliers invited to participate in this fair.
Second, many wholesale websites offer a variety of products. Many suppliers and vendors from different industries post their services and products.
Third, sourcing companies have lists of suppliers which are trusted and credible. You will eliminate the risk of scams and unverified suppliers by opting for this one.
Go to trade shows and factories
Canton Import And Export Fair
This event takes place in Guangzhou, China, twice a year—usually the month of the end of May and the beginning of November. This fair is divided into three stages and a distinct product type to choose from.
The East China Import And Export Commodity Fair
The East China Commodity Fair takes place in East China. It is the largest local trade show in China and is hosted in Shanghai. Compared to other Chinese trade shows, this is where the most significant transaction happens.
Global Sources Tradeshow
Global Sources Tradeshow is a massive trade show too. It takes place a few days before the Hong Kong Canton Fair, which allows you to visit many at once. The event is unique too, with speakers all over the world is present to speak.
Beijing International Auto Show Fair
At this trade event, you may see a variety of autos and various products. It will be a good place to go if you sell cars or similar items to people.
Wholesale markets are among the best places to find products and suppliers in various products. Some of the most prominent wholesale markets are:
- Yiwu Wholesale Marketplace
- Guangzhou Wholesale Market
- Shenzhen Wholesale Market
Look into wholesale websites online
Nowadays, more and more suppliers choose to put up their companies and products to various services. Some of the finest places to visit online are:
- Global Sources
Work with a sourcing company
You may also opt-in buying products from China using China sourcing agents rather than looking through Google, Yahoo, or other platforms. It is the safest option to acquire trusted and dependable vendors.
Minimum Order Quantity (MOQ)
The minimum order quantity (MOQ) is essential, especially if you buy direct from China factory. Most of the time, suppliers and factories will require at least 500-1000 items or more. Hence, it would help to weigh your options to find which ones will work for you.
Other services and prices
A reliable China direct supplier will allow you to make multiple selections before deciding whether or not they are suitable for you. So it should be your goal to know other information about them. For example, research the cost, area, and other data.
Chapter #5 Tips when you buy direct from manufacturer China
Get a tracking number
For eCommerce and businesses, a tracking number is an essential document needed. If you buy from China, these tracking numbers reduce the risk of losing the products. At the same time, track where the products are going.
Check for the quality and quantity before paying
Even though the Chinese market is improving, there are still issues you can encounter, such as scams and faulty quality. The good thing is that you can do strategies to avoid these problems. For example, you should verify your suppliers’ documents and order sample products first.
Pay through legit payment services
It would be best if you note that it’s not a good idea to pay the total amount, whether the deal is good or not. There are many payment services established online. However, a money transfer is not the best option if what you’re paying is only a small account.
On the other hand, PayPal would be a good option. Because it’s the largest payment service and has good payment protection, you can reduce the risk of scams.
Notice the red flags
The moment you talk with a supplier or factory, you can notice whether their values and way of business align with yours. It’s simple to identify scammers after asking a few questions.
It would also be best to keep an eye out for the intermediaries. Many fronts as a factory, but they are only trading companies in reality.
Chapter #6 Why work with JUSTCHINAIT when you want to buy direct from China
There’s no better place to source your products other than the Chinese market. It’s a proven strategy for any firm and business to use for global sourcing. You can find anything in China—clothing, home goods, toys, shoes—name it.
Even though it’s an exciting market, to buy direct from China is not easy as you think, especially if it’s your first time. Because in reality, it’s time-consuming, complicated, and costly.
It is where sourcing company like JUSTCHINAIT comes in. Importing and buying products from China is one of our specialties. Among others, we can provide you will all of your needs.
Expert in this field
JUSTCHINAIT has been running the business for over 11+ years now. We established the name as one of the “top 1 sourcing companies” through the process. Since 2010, we have been importing and exporting and have worked with over 900 clients. Our 78% client repeat purchase rate and recommendation established our credibility.
Many problems might arise, primarily if you’re a first-time buyer. However, in JUSTCHINAIT, we’d reduced that number through carefully planning, experience, and business strategies.
We value you as customers, your time, effort, and expenses. Hence, you can contact us, send us a quote, and we’ll be happy to guide you to buy from china successfully.
Source trusted suppliers and manufacturers
Sourcing trustworthy suppliers are among the many challenges that importers will face. Suppliers and factories are crucial in building your business. You don’t want to work with someone incompatible with your company because you might lose money. Or worse, receive products that are not worthy of selling.
Instead, JUSTCHINAIT aims to provide you with return profits and lists of reliable suppliers. In only 4 hours, you can receive many quotes from various supplies through us.
Get the best deals
We understand that cost is a vital issue to consider, whether for our services’ product cost or payment. When you make a direct purchase from China, it will cost you more. You will spend more if you’re going to arrange everything yourself than working with us.
Plus, we make sure that every circumstance is under control. We promise you that we will find the best deals for product prices and the overall cost. The little money you will pay with us will be worth it.
Skilled when it comes to customs and tariffs
The amount of duty or taxes imposed on your shipment is based on its value. Both the custom duties and VAT are the estimate of the percent of the value of your products. Sometimes, tariffs are also added to the HS code, which is an additional cost.
Most of the time, duties and tariffs appear more complicated because it is. However, we have experts who know how to calculate and deal with the amount of money you’ll pay.
Fast Shipping Services
In JUSTCHINAIT, we offer China shipping services. Instead of arranging everything yourself, we can help you organize your shipping process along with the custom. At the same time, you can obtain all your products as soon as possible.
Chapter #7 The things you need to know when buying products from China
Learn your rights
When buying products from China, it is essential to know your rights. You have to research whether you are liable to import the products you’re interested in. Sometimes, products are subject to rules in China and possibly your country. For example, tobacco products are restricted from being imported and exported. If it’s something you want to sell, China is not the right place to buy them.
Find right suppliers and products
Finding suitable suppliers and products is something you should pay attention to. It is why you need to do your research in all aspects. To know which suppliers are legit, request documents, see their feedback and previous work.
Also, make sure you do your research before deciding what you may and cannot bring into the country. Remember, there are lots of restrictions when it comes to products. You don’t want to do illegal importing, so you need to be careful.
Know the calculation and classification
You should identify the ten-digit tariff classification code of your products. It helps calculate the import duty rate. But remember, you need to pay import duty on your shipment if it reaches the value of more than $400. In addition, this will help you on how much you’ll charge your clients to earn a profit.
The best way to organize your shipment is to hire a shipping or custom agent. But if you are to arrange the cargo yourself, you need to have certain documents like:
- Origination certificate
- Customs bond
- Lists for packing
- Custom Bond
- Bill of lading
Making the right payment to your chosen China direct supplier is a factor when you buy from China. Recently, the Chinese government increased the value of the Yuan or RMB. However, you can either purchase the products in USD.
In addition, we have a tip for you in terms of payment.
- When you use the Yuan or RMB currency, you will have a better standing in the negotiation.
- Never send payments using an unverified account, or pay in full amount.
- Use a mode of payment that works for you and your supplier.
Chapter #8 FAQs when making a direct purchase from China
- How to buy toys direct from China?
The toy sector is predicted to be worth billions of dollars. In fact, most international toy businesses produce their products in China. China provides many toys, from traditional toys to trendy markets. Some of the toy products you can buy from China are:
- Action Figures Toys
- Inflatable Toys
- Stuffed Toys
- Games and Puzzle Toys
- Educational Toys
- Toy Musical Instruments
- Building and Construction Toys
Are all the Made in China do not meet international labeling criteria?
Well, you don’t have to be concerned about this issue, especially if you’re using the verified B2B platforms. The majority of these platforms have their products meet international labeling regulations. They are strict in this matter, thus imposing strict product violations. However, you still need to double-check the specific products you want.
Is it required for me to pay import duty from China?
Definitely, yes. However, only if your products reach or are higher than $800.
Is buying from China and reselling illegal?
The answer is no. If you are selling the products you bought in China legally, you will not have a problem reselling them. Hence, it’s up to you if you want to sell the products as much as you want but remember, legally.
Is it vital to have a license to import from China?
Unless your importing is restricted or harmful, you don’t need a license to import from China. It is because the Chinese government imposed these required documents. Hence, it will depend on what you want to sell.
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