Buying Wholesale Products From China: Sourcing process from A to Z

Today, we focus on sourcing steps when buying from China. We know how difficult it can be for import startups, local buyers seeking to outsource manufacturing and young entrepreneurs to get familiar with global sourcing. Buying wholesale from China not only requires planification, funds and a sales outlet. Many times over, we have been asked what IncoTerms mean, or how to handle customs clearance for goods made in China. Whether you import from China, Turkey or any other country, understanding the sourcing steps is the cornerstone to the success of your purchasing wholesale from China.   

Reach Out to Sourcing Companies

Your first step is to contact a reliable sourcing company. They can make your buying process stress-free. You can get all the information on a single platform and reach out to the market anytime, anywhere, without visiting China for research purposes. This can save you a lot of time, energy, and money taken for visiting Chinese factories and negotiating with suppliers.  

Reach the Market by Visiting Factories and Manufacturers

Physically visiting manufacturers and factories can be time-consuming, but it will allow you to identify the products and negotiate with the suppliers. Buying wholesale products from China directly from the manufacturer can save you a lot of money since you will be getting the products at a factory rate.

Decide on a basket of goods to import

Now that you have a better understanding of purchasing costs, purchasing terms and overhead costs associated with exporting goods from China, you have to decide on a basket of goods. When importing goods globally, shipping costs together with taxes impact directly on your cost price. In order to keep your cost price low enough to generate margins, you may decide to import a specific basket of goods that :

• Can be shipped together so to fill a Full Container Load (FCL)
• Are not taxed heavily at customs in your market
• Sales figures are high enough to buy wholesale from China without generating too much storage cost once delivered

Buy samples from China, Turkey or Vietnam

You already know that your project is feasible cost wise. Now is the time to use all the contacts you have gathered through the sourcing agent in China, and your factory visits. Assessing the value for money is always the last step before placing a global sourcing order. We suggest you buy 1 to 3 samples from Chinese vendors and compare them. Upon achieving this step, you will be able to conduct negotiations and place your order with the factories of your choice.

Negotiation and order placement

Negotiations can vary widely between factories, buyers, and can mostly be impacted by :

• Quantity of purchase (the lower the quantity, the lesser the manufacturer will be willing to give you low prices)
• Product customization (usually the more you customize a product, the higher the costs)
• Availability of fresh stock, or unsold stock (leverage is more important when you feel that a vendor wants to get rid of an unsold batch of goods). 

Whether you plan to deal with Vietnam suppliers, a factory in Turkey or Chinese manufacturers, you must always keep in mind that a “Golden Sample” and a detailed Proforma Invoice is sometimes the most efficient protection you can offer yourself against potential miscommunication, human error or manufacturing defects.

Quality Control

Be careful about choosing the right quality control for your whole purchase. Whether you import pens, toys or electronics, a product check before shipment is always preferred. Thanks to a 1-day goods inspection you can ensure that the quantity and quality of the product is up to expectations. You can also avoid importing products with a high defect rate early on, and most importantly, before paying the balance.

Always keep in mind that a 1day inspection is always less costly than handling after sales complaints, incurring local postage fees for returns and replacements.

Shipping goods to your market

Shipping containers from China or anywhere else involves at least 4 stages :

• Stage 1 : getting goods delivered to port of departure
• Stage 2 : clearing goods for exports
• Stage 3 : shipping goods to destination
• Stage 4 : clearing goods for import and delivering to your local warehouse

Each stage requires specific knowledge and smooth communication between Seller, Buyer, Shipping Agent etc.… Choosing between sea freight, airfreight or rail freight relies on expertise and dedication from parties such as the sourcing agent and forwarder. For this step, timing is of the essence. From shipping quotes to ensuring that goods are delivered in time for your business to have stock during peak season, and gets replenished timely requires great effort and planning.

While export clearance is usually handled by suppliers, import clearance (at destination port) is usually handled by the Buyer and its clearance agent. Cost associated to the clearance of goods also weighs on your import’s profitability. Ask your local agent for a quote in advance.

Conclusion

So, this is your step-by-step guide to procuring wholesale products from China. Follow the rules above and get the right products at the best prices.

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