China Wholesale – Guide to Find Products to Import from China

As sellers turn to Amazon, there’s no better time to source from China

The coronavirus pandemic has clobbered businesses worldwide with one exception – e-commerce, particularly Amazon. As lockdowns and mobility restrictions in early drove brick-and-mortar shops to down their shutters, many of them permanently, Amazon sales rose 40% year-on-year in the April-June quarter. It earned $5.2 billion in profits, doubling its earnings from the same period last year. This, despite the e-commerce giant hiring 175,000 new workers to deal with the sales rush and spending $4 billion on coronavirus-related safety measures. The record sales and revenue were driven by locked-down shoppers taking their buying online. And it wasn’t just Amazon that benefited in those early days of fear. According to a Mastercard SpendingPulse report, e-commerce accounted for 22% of retail sales in the United States in April-May, up from 11% in the same period in . In the United Kingdom, this figure was a record 33%. (The US and UK are the world’s second and third largest e-commerce markets with China taking the top spot). 

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The rise of e-commerce in a Covid-19 world, we believe, underscores a broad shift to digital in the way we live, work and buy. Months on, the virus continues to affect economic and social activity. A return to the old ways of doing business seems impossible, at least any time soon. Hence, many sellers are looking to take their businesses online.

This blog explores what it takes to be an Amazon seller, with a focus on how a trustworthy sourcing agent can help make the experience a profitable and fulfilling one. If you are not a manufacturer of goods, you might be aware that sourcing the right product from the right place is key to being a successful seller on Amazon. This is where a sourcing agent like Sourcing Allies comes in, with our experience and expertise in sourcing a wide variety of products from China – the world’s factory. Read on.                       

Amazon, the world’s market 

Amazon is the world’s second largest retailer after Walmart, according to Forbes. It has 2.2 million active sellers, 742,000 of whom joined its platform this year, says e-commerce data analyst Marketplace Pulse. It consistently places near the top of consumer satisfaction rankings.  

Amazon sells just about everything, from home appliances, electronics, office supplies, books and toys to food, beauty products, shoes and apparel. Where does it sell this vast inventory? On Amazon.com and Amazon Marketplace, the two entities on the Amazon website that make one whole.

• Amazon.com: Products owned by Amazon are sold on amazon.com. It sources wholesale goods from distributors/manufacturers through the invitation-only programme Amazon Vendor Central. The first-party sellers sell their inventory in bulk and pass on ownership to Amazon. Products on this platform come with a “ships from and sold by Amazon.com” tag.    
• Amazon Marketplace: This is where third-party sellers sell their products (new and used) under their own brands to Amazon customers directly. They retain ownership of the goods but Amazon gets a share of the profits. Third-party sellers account for more than half of Amazon’s sales. Marketplace is open to individuals and companies through the Amazon Seller Central programme. Marketplace products are either Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM).
• Fulfilled by Amazon (FBA): The seller sends inventory to an Amazon fulfillment centre and the company handles packaging, shipping and customer communication. This saves the seller the hassle of logistics and makes their products eligible for Amazon Prime’s fast shipping benefits.        
• Fulfilled by Merchant (FBM): The seller takes care of packaging and shipping. The benefits include lower Amazon fees – no need to pay FBA storage/fulfilment charges – and higher profits. The seller also has immediate access to inventory and can respond quickly to customer complaints.                                                   

5 ways to sell on Amazon

• Drop shipping: A third party manufactures and ships the product on the seller’s behalf. Amazon’s drop shipping policy, however, requires that all packaging, invoices and communication carry the seller’s name.    
• Retail arbitrage: The seller buys goods on discount from a retail store and sells them at a profit on Amazon. Arbitrage is associated with low margins. The trick is to pick the right product.
• Selling wholesale: The seller buys wholesale goods in bulk and sells them on Amazon. This is the business model favored by a quarter of third-party sellers.      
• Selling private label products: The seller buys products made by a third-party company and sells these on Amazon after branding and marketing them as their own. 
• Manufacture and sell: The seller is the manufacturer too. The profit margin is higher and they have greater control over product quality, but they also incur manufacturing costs. Additionally, Amazon has an artisan-only community, Amazon Handmade, for handcrafted goods.       

Why Amazon?

• Household name: Everyone knows Amazon and trusts it.
• Huge market: Selling on Amazon means access to its 300 million active customer accounts.
• It’s easy: Joining Amazon is simpler than launching your own website. Amazon also does a lot of the heavy lifting for you (marketing, logistics).    
• Big savings: With FBA, Amazon stores your inventory, for a fee. But you’re still saved the expense of getting your own storage space.      
• Grow your business: If you’re not with Amazon, you might get left behind.  

But beware! Some drawbacks 

• Intense competition: This might compel you to sell at a lower price, especially if you sell a product sold by many. 
• Gaming the Amazon system: Unscrupulous sellers might hijack your sales listings to sell their products, which might be counterfeit. They might also deface your product listings and leave fake reviews to sabotage your business. Here’s how listings get hijacked.     
• High commissions: From storage to shipping, Amazon conveniences come for a price. This, and its insistence on free delivery, can narrow profit margins.

Getting started

If you are convinced Amazon is the way to go, the first thing to do is register:

• Go to https://services.amazon.com
• Pick a selling plan – Individual costs $0.99 per item sold, Professional comes for $39.99 a month. If you’re selling on a smaller scale (less than 40 items a month), Individual is right for you. 
• Next, set up your account. You’ll need to furnish some information – number, address, physical address, government ID, credit card and bank details, tax information, product specifications. Follow the steps, go through the verification process and you’re in.    

What it takes to be an Amazon seller

Setting up your Amazon seller account is easy. The difficult part comes before. You must complete two important tasks before you register. The first is to decide on a product you can make or acquire inexpensively and sell for a profit. The second is to source that product. 

1. Find a product

This requires some research of products, market trends, sales data and competitors. For those who don’t already have a product in mind, here are a few things to consider:

• Price: Don’t go too high or too low. A range of $10-$50 is considered ideal as it attracts impulse buys.
• Demand: A product that sells 10 units a day all year round is safe. Don’t go for seasonal products.     
• Competition: If there are many sellers of the same product and they’ve racked up some strong reviews, you might want to look for something else.
• Durability: Amazon sellers deal with more returns than other sellers. Make sure your product is sturdy.
• Weight: Pick something small and light to save on shipping, storage and return costs.                

Don’t worry. There are plenty of product research tools, paid and free, that can help you with the research. A few popular ones are:

• Amazon Best Sellers lists: Amazon has lists of the top 100 best-selling products in any category. Go through these to get a fair idea of what a good product is.    
• Amazon Best Sellers Rank (BSR): Each product on Amazon comes with a rank based on orders compared to other products in the same category. It is found in the product description section. The lower the BSR, the better it is.   
• Google Trends: A simple web search can tell you if your chosen product is in demand all year round.     
• AMZScout: This tool offers useful information such as BSR, monthly sales, profits, competitor levels.
• Keepa: This price tracker comes with comprehensive price history charts and price drop and availability alerts.

2. Source your product

• Make it yourself.
• Manufacture locally. This might be expensive, but your chances of getting a quality product quickly are high.
• Source it from overseas, especially China. This is where we – China sourcing agent Sourcing Allies – can be of help. More on that later. 

Why China?

China is a manufacturing powerhouse. In , it accounted for 28% of global manufacturing output. In second place, the US was more than 10 percentage points behind. The Asian giant is unlikely to be unseated from this dominant position despite recent setbacks, such as the US trade war and the backlash over the coronavirus, as well as changing conditions at home, including rising wage demands, a declining working-age population and stricter environmental laws. That’s because China has some well-established advantages over potential rivals such as Vietnam, India and Bangladesh:

• China has been the world’s largest exporting nation since . In , it exported $2.5 trillion worth of goods. 
• It’s industrial scale is unparalleled. It is home to diverse globally-competitive industries such as smartphones, clothes, computers and furniture.     
• A unique feature of China is the existence of clusters of factories producing the same product or related to the same industry in a single city or region. For example, Changsha is known for fireworks, Dongguan for electronics, Ningbo for injection moulds and Yangzhou for leather shoes. Clustering means efficiency in manufacturing and use of supply chains.         
• China’s supply chains are among the most developed.     
• China might be export-driven, but it has a huge domestic market. 
• To remain competitive, it has invested heavily in technology, infrastructure and skill development.
• It shows a dogged devotion to the economy. As the world was going under lockdown in March, factories in China were already reopening.                 

Where to look for China suppliers?

There are many routes you can take to find a China wholesale supplier:

1. B2B websites: Look for them on online marketplaces like Alibaba, Global Sources and Made in China. They provide customer reviews and have rating systems for manufacturers, which can help you select and shortlist.
2. Trade fairs: If you have the time, money and inclination, visit a trade fair in China or one that attracts Chinese manufacturers in another country. Direct interactions are great for fostering long-term relationships. China hosts several trade fairs every year, including the bi-annual Canton Fair, its largest.
3. Industry resources: Recommendations from trade bodies and fellow business owners is another way of finding China wholesale suppliers.
4. Sourcing agents: A China sourcing agent, such as Sourcing Allies, can help you find suppliers and guide you through the often complex sourcing process. Sourcing Allies has been helping businesses in the US and western Europe manufacture and source from China, India and eastern Europe since . When it comes to finding China wholesale manufacturers, Sourcing Allies has a distinct advantage over its competitors:

• We have a professional team in China with on-the-ground experience and know-how about the way the country functions.
• We can help you find an original equipment manufacturer (OEM) in China. An OEM is a manufacturing specialist that makes a product or component for another company – that would be you – that provides it with the product design and specifications. You can sell this product or component as it is or by adding value to it (assembling it with other components) under your brand on Amazon.
• We can help you select and shortlist suppliers by considering production process and product type. Then, our team will provide a quote based on that. In addition, we will carry out a supplier evaluation, which will give you finer details ranging from health, safety and environmental responsibility to production capability and capacity. 
• At all stages of production, we will clearly communicate your requirements to your chosen manufacturer, conduct quality control inspections, take care of documentation, shipping and transportation, draw up payment terms and troubleshoot any problems that arise. We also offer order financing.

Read our in-depth guide to finding a manufacturer in China.

Contact the most promising suppliers and tell them your requirements.

‍How to shortlist a supplier 

The next step is to shortlist, verify and finalise a China wholesale supplier. As a first step, we recommend you contact the most promising suppliers and tell them your requirements. These include:

• The raw materials and components you want for your product. Don’t forget to specify their quality. Some suppliers might use recycled material unless otherwise told, which could lead to problems down the road, depending on the product’s final intended use.
• The price per item you are willing to pay.
• Your minimum order quantity (MOQ).   
• Whether you want the supplier to help develop the product or come up with a prototype or product sample. Experience tells us that most China wholesale suppliers are not keen on development projects as these are time-consuming and costly. So, it is important to lay your cards on the table at the beginning.

To know if the supplier is up to the task, ask them a few questions:

• Do they specialise in making the product you require, or in that same production process?
• Do they export to your place of business?
• What MOQs do they usually work with?
• How long have they been in business?

Having a China sourcing agent walk you through this process can be helpful, especially if you are sourcing for the first timer. Sourcing Allies can help you: 

• Sniff out unreliable suppliers and scams
• Negotiate fair rates
• Make sense of language and cultural differences, which can be a source of unforeseen trouble      

Verification: Is the supplier legit? 

If the business of sourcing is like going to war, then information is your greatest weapon. A quote by the Chinese general and strategist Sun Tzu holds a lesson:

“If you know the enemy and yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

It is imperative to know if the supplier is who they say they are and has the capability and expertise to produce what you require. To verify their credentials: 

• Ask for and check their business licences, certifications, audited accounts and tax invoices
• Locate the local government office that has jurisdiction over the supplier/factory and check their records
• Find out if the factory has engineers or specialized workers with the expertise to produce the type of product you want
• Find out the factory’s location. Given China’s cluster system, a location is often an indication of whether the supplier is a manufacturer or a reseller
• Ask for a prototype or product sample before finalizing your order 
• Visit the factory in China or have your China sourcing agent do it for you. If you go through Sourcing Allies, you can expect multiple factory visits, in-process quality checks and in-person troubleshooting of any problems that might arise during production                 

Placing your order

Now that you’ve finalised your supplier, you’re ready to place your order. But there’s still a final checklist to cross off:

• Buy directly from a manufacturer. That’s the universal rule of sourcing. But sometimes, it makes sense to work with a reseller. For example, if your MOQ is modest, a large manufacturer might not give it the importance it deserves.  
• Be clear about pricing. Fix a price and the period it is valid for. If not, changes during the production stage – a rise in raw material costs or exchange rates – might leave you with a heftier bill. Be sure to communicate all requirements, packaging standards and quality standards with international specs in the quoting stage itself. Unspecified requirements and expectations that continue to grow through the sampling stage are the quickest ways to a price hike. Try to negotiate an overall bill with packaging, shipping, transport and customs clearance costs included. Never pay in full in advance. Read our tips on favourable payment terms here.                
• Check your supplier’s production schedule to make sure you haven’t been double-booked. Some China wholesale suppliers double book to avoid loss of business on the off chance that an order doesn’t go through or is delayed.    
• Don’t blindly leave the shipping to your supplier. They might not be inclined to get you the best freight rates. You can choose a carrier yourself or have your sourcing agent take care of it. When Sourcing Allies handles shipping, we offer the most time and cost-effective solutions. Let’s say, a client requests an urgent and unscheduled shipment of a portion of their goods. We arrange a quick air shipment to meet their immediate needs and send the rest of the goods by sea. We can also arrange priority shipping or have the client’s consignment first off the ship.  
• Pay attention to lead times (time from production initiation to delivery). Factor in the time it would take your China wholesale supplier to source raw materials, get them to the factory, manufacture the product and ship it. Be aware of potential delays caused by holidays (Chinese New Year, Golden Week) and shipping peak seasons.            
• Before the product leaves China, make sure it meets your country’s standards on safety and intellectual property, among others. Sending it back is almost always not a workable solution.

Shipping the product

After the products are ready, they have to be shipped – but to whom? If you are an FBA seller, you have two options (which would hold true even if Sourcing Allies were to handle shipping for you). 

1. China to Amazon FBA
The manufacturer/supplier ships your inventory directly to Amazon’s fulfilment centres.

Advantages

• The goods reach Amazon faster, so you can start selling that much quicker.
• If you’re on a tight budget, consolidated shipments from China can help you save on costs.

Disadvantages

• You have no way of inspecting the quality of the goods before they reach Amazon.
• You have no control over whether your supplier has fulfilled Amazon’s packaging, labelling, shipping and barcode requirements.
• Amazon might request that shipments be sent to different warehouses each time. 

2. Shipping to yourself/middleman
The manufacturer/supplier ships the goods to you or your nominated middleman. You, or the middleman, then send the goods to Amazon.  

Advantages

• You can inspect the goods to ensure they meet your quality requirements.
• You can make sure the shipment complies with Amazon’s packaging and shipping requirements, reducing the chance of it getting rejected.

Disadvantages

• Transit time is longer.
• Hiring a middleman means paying them.
• If you’re doing it yourself, it takes time and effort.

Made-in China: Can I trust the products?

There are numerous consequences to selling poor quality products on Amazon:

• Complaints and bad reviews
• Frequent returns and low sales
• Removal of products from sale
• Suspension/deactivation of Amazon account

When it comes to sourcing from China, there is a perception that made-in-China equals poor quality – though this is gradually changing. Some quality problems do crop up with goods sourced from China, along with other issues. Fortunately, most of them have simple solutions.

• Golden sample: The sample your supplier sends you is perfect but the rest of the products don’t match it. To avoid this, be very specific about product quality. Put it in writing, clearly and in detail. Of course, verifying your supplier before placing your order goes without saying.
• Cha Bu Duo: China sourcing agents dread this phrase, which translates into “close enough”. For example, the manufacturer delivers a product that clearly does not meet certain quality specifications but insists it’s close enough. Dealing with this cultural quirk is difficult. But an experienced sourcing agent can find a way around it.
• Quality snags: Some quality problems are unavoidable. But with the right collaboration between your sourcing agent and the manufacturer, even a seemingly impossible flaw can be fixed. Sourcing Allies encountered such a problem on a recent project involving die cast components. The component had an inconsistent surface finish whereas the client wanted a high surface finish. A design flaw – the parting line, where the two halves of the die cast mould meet, was on a visible surface – and the need for excessive polishing to correct that flaw had given the component a less than aesthetic finish. Luckily, we caught the problem at the sampling stage. To fix it, we modified the tool so the parting line would fall on a surface hidden from view. Result: We got the desired finish and the reduced polishing cost offset the cost of the tool change.
• Price change: Oftentimes, suppliers jack up the product price after signing the contract because they had not fully understood the buyer’s requirements, which might or might not have been clearly communicated to them. The answer, again, is to spell everything out in writing.       
• Cultural quirks: Dealing with a China wholesale supplier, as opposed to one in Europe or the US, is a vastly different experience. Their approach and attitudes are different. We’ve noticed that suppliers in Asia don’t like asking questions and informing clients about delays and problems. They think this reflects poorly on them. Letting your supplier know you welcome their questions can save you a lot of trouble later.
• Delays: Delays are a given in manufacturing. Make sure to send your supplier frequent reminders through your sourcing agent. At the same time, be reasonable about lead times and give the supplier adequate time to procure raw material, make or order components, manufacture or acquire the final product and ship it.  
• Packaging issues: A good product can amount to trash if not packed to withstand the long overseas journey. Before shipping, ensure your shipment is packed in export-appropriate boxes, secured with pallets and properly stacked in containers. With Sourcing Allies, you can count on your cargo being palletised.

Read our detailed blog on sourcing from China.

You might need quality control inspections

Your goods arrive from China, you discover they are not up to the mark, but it’s too late to do anything about it. Quality control inspections before the goods leave China are the best way to avoid such a fate. You can do it yourself. Better yet, you can hire a company that specialises in it or have your sourcing agent do it for you. Most factories are open to quality checks. Avoid those that show resistance. While inspections add to your costs, they’re worth the expense because:

• Manufacturers might be tempted to use cheap, poor quality material if left unchecked
• It is cheaper and easier to fix a problem before the product has been shipped
• Remaking defective products is not viable for the supplier. Also, refunds are rare in China. The best you can hope for is credit on your next order, if you wish to continue working with the same supplier.   

There are three types of quality control inspections:

• Pre-production: The prototypes / samples are inspected.
• Production: The inspector reviews the first few finished products.
• Pre-shipment: The inspector visits the factory in China when the order is 80%-100% complete and ready to be shipped. This is the only option that offers a full inspection and is, naturally, the most expensive.

When a quality control inspector visits your chosen factory in China, they perform the following checks:

• Quantity: They verify the order quantity. They also ensure the quantity per carton in your shipment is uniform and complies with Amazon’s packaging and prep requirements. For example, if there are 500 pieces of the same product and five cartons, each carton should hold 100 pieces.
• Conformity: The inspector verifies product style and colour as per your specifications. They also check for compliance with labelling, packaging, shipping requirements. For example, Amazon requires readable, scannable labels with white backgrounds. It also demands carton drop tests to determine if the shipment can withstand rough handling during shipping. 
• Workmanship: The inspector checks the appearance and basic function of the product. 
• Function: A more detailed review of the product’s function is done.
• Others: More checks might be required based on product type. You can provide your quality control inspector with a detailed list of checks.

When Sourcing Allies handles quality control inspections, there are two ways we go about it:

• Our team in China handles it. First, we recommend that the checks be performed during the sampling stage, which is the best time to catch inadequacies and fix them. Also, our checks are done to specification, so we require our clients to provide us with clear specifications.
• In some cases – when the factory is too far from our office, for instance – we delegate the inspection to a trusted, verified third-party inspection company, whom we have been working with for many years.

Order financing

Sourcing a product from China or anywhere else, expanding your inventory and growing your business, all of it requires money. Most Amazon sellers start off small and don’t have a pile of cash lying around. Times are particularly hard these days. They could take the classic route to raising capital – a bank loan. However, we’ve noticed that traditional banks are reluctant to lend to small businesses. Thankfully, there are still lending options available:

• Amazon Lending: Since , Amazon has lent small businesses amounts ranging from $1,000 to $75,000 through this invitation-only programme. To receive an invitation on your Seller Central account, you need decent sales and reviews for at least 12 months. Amazon charges an interest rate of up to 16% on such loans and the repayment period is 12 months, according to borrowers. The application process is easy and entirely digital. 
• Line of credit: A line of credit works like a credit card. There is no lump sum disbursal as in a loan. Instead, you receive a revolving line of credit. When you pay back an amount, it is available for withdrawal again. Amazon sellers can raise between $5,000 and $5 million from such lines of credit. Lenders might charge an annual fee apart from interest. One such line of credit comes from Amazon’s own stables, in partnership with Goldman Sachs. The Marcus credit line, as it is called, offers up to $1 million at interest rates of 6.99% to 20.99%.
• Merchant cash advance: This is a cash advance against future sales, suitable for businesses with large credit card sale volumes. The lender charges a fixed fee and no interest, instead taking a percentage of daily or weekly sales as repayment. Sellers can borrow up to $250,000. The repayment period is usually 18 months or less.
• Peer-to-peer lending: You receive a loan not from a bank but from individuals you are matched with on a peer-to-peer (P2P) lending platform. Once you post the amount you want and the interest you are willing to pay on the lender’s website, potential investors will bid on your loan. A P2P loan is more expensive than a regular loan and requires a high credit score.
• Factoring: You raise funds by selling your invoices to a factoring company, which then collects payments from your customers. This is an easy way to get money quickly. Most firms charge an overall factoring fee but some may also charge for money transfers and operational costs.
• Sourcing Allies loans: We offer short-term loans (30 to 60 day terms) to customers on a customised, case-by case basis.  

Custom branding

Once your cash flow needs are settled and you’ve started selling regularly on Amazon, you might want to level up and build your own brand with a brand name, logo and specially designed packaging. A successful brand is all about providing an enhanced shopping experience and achieving better sales as a result. There are two ways to having a branded presence on Amazon:

Amazon Brand Registry

This programme allows eligible brand owners with a trademark registration number to enroll their brands on Amazon. The registration process is simple. The benefits include:

• Greater access to and control over product listings, so your customers always see accurate product information
• Protection for product listings from other sellers. Brand Registry is a countermeasure against counterfeiting and sabotage
• Enhanced brand content, or the ability to offer your customers more details about your products in a visually appealing way (through images and text)   
• Higher conversion rate, with more customers converting visits to the website into actual sales
• Swift approval of advertisements by Amazon

Amazon Store

Any seller registered with Brand Registry can open an Amazon Store. This is a self-service product that allows brand owners to design, curate and create multi-page stores for their brands and products on Amazon free of charge. There are many benefits to being a Store owner:

• Introducing your brand to shoppers through customised images, videos, texts
• Building brand awareness with your own web address (amazon.com/YOUR BRAND) and customised store
• Offering customers an enhanced shopping experience on mobile and desktop
• Sending shoppers to your Store through sponsored brands and ad campaigns 
• Optimising your ads using valuable information (sales, visits, page views) from the Stores insights dashboard
• Designing your own Store is easy and requires no knowledge of coding    

So there you have it, all the information you need on what it takes to be an Amazon seller and to source your goods from China.   

Sourcing Allies: Your guide to sourcing from China

To sum it all up, here’s what we can do to help you source quality products inexpensively from China:

• Shortlist, select, evaluate original equipment manufacturers (OEMs) and suppliers for the product you intend to sell
• Provide quotes, negotiate fair rates and payment terms
• Offer order financing
• Clearly communicate your requirements to your chosen supplier
• Conduct quality checks at various stages of production
• Ship your goods to your desired destination, offer shipping and tariff solutions 
• Take care of documentation at all stages of the sourcing process 
• Guide you through difficulties posed by cultural, language differences 
• Troubleshoot any problems that might arise

Sourcing Allies is a team of expert China sourcing agents that has helped western customers manufacture and source products from low-cost regions since .

When it comes to finding products to sell online, your profit margins are amplified by how low you can drive your sourcing costs down.

For example, the typical retail markup for an online store is 4X. As a result, for every dollar it costs you to source an item, you need to charge 4 dollars!

On the flip side if you can shave a dollar off your costs, then you can potentially mark down your prices by 4 dollars or pocket the extra profit!

Because labor is an order of magnitude cheaper in China, it’s in your best interests to find China wholesale suppliers and import direct from Chinese factories.

Today, I will teach you where to find China wholesale suppliers and what to expect when importing direct from Chinese factories.

This post will be broken down into 3 sections

• Where To Find China Wholesale Suppliers
• What To Expect When Importing From China
• How To Prepare Your First Shipment

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Top Chinese Wholesale Websites Comparison

To save you time, I compiled a table of all of the China wholesale suppliers for your review.

PlatformDescriptionProduct QualityDropshippingReputation (Sitejabber)FoundedAlibabaB2B platform connecting global buyers with Chinese suppliersVariesYes4.5 starsGlobal SourcesTrade platform linking global buyers with Chinese verified suppliersHigherYes1.14 starsMade In ChinaB2B platform showcasing Chinese products and suppliersVariesUnknown3.94 starsYiwugoB2B platform for the Yiwu wholesale marketVariesNoNo rating.comChinese domestic version of AlibabaVariesYesNot enough reviewsAliExpressB2C Retail sister platform of Alibaba for international buyersVariesYes2.96 starsDHGateB2B and B2C platform for Chinese suppliers selling globallyVariesYes3.47 starsChinaBrandsWholesale and dropshipping platformVariesYes2.54 starsChinavasionElectronics wholesaler from ChinaGoodYes3.99 starsBanggoodB2C retail platform offering a variety of products, mostly electronics and lifestyleVariesYes4.52 starsGearbest—GoodYes4.43 starsDIYTradeGlobal B2B trading platform with diverse productsVariesNo1.8 starsTomTopRetail options that focus on fashion and electronicsVariesYes3.75 starsLightintheBox—GoodYes3.88 starsYaakuWholesale platform specializing in fashionGoodNoNot enough reviewsUnknown

Use A China Wholesale Directory

A China wholesale directory is database of suppliers and factories that you can look up to manufacture your products.

If you are unable to travel to China or Hong Kong to attend a trade show, the next best way to find Chinese vendors is to use an online directory.

The best China wholesale directories are…

• Alibaba
• Global Sources
• Made In China
• Yiwugo
• .com

Alibaba

Alibaba is a search engine for Chinese suppliers that allows you to access tens of thousands of vendors from your home computer.

Here’s how easy it is to find a vendor using Alibaba.

Simply type in what you are looking for in the search bar and Alibaba will return a bunch of suppliers, prices and minimum order quantities.

By clicking a button, you can then send the vendor a message and establish contact. Here’s an example script that I use when contacting suppliers for the first time.

Hi “vendor name”,

My name is “name” and I’m a buyer for “store name”, a store in “your country” that sells “the products you want to carry”. We are interested in carrying many of the items that you have to offer.

Specifically, I would like to get pricing and availability for the following items

“list the items…provide photos if you have them”

“list the items…provide photos if you have them”

“list the items…provide photos if you have them”

If you could send us more info as well as your product catalogs and MOQ requirements we would greatly appreciate it.

Thank you,
“your name”

Once you’ve established contact, you can ask for samples, place orders etc…

In addition, Alibaba offers a service called trade assurance which acts like an escrow service so you don’t ever get scammed.

If your order hasn’t been shipped, is missing, or damaged, you can apply for a refund within 30 or 60 days from the delivery date. You’ll have to negotiate with the seller first, and if they don’t respond or both of you are unable to reach a consensus, Alibaba will mediate your dispute.

Vendors on Alibaba can use Alipay, Paypal, credit cards, bank transfers, wire transfers, Western Union, and more.

Products from Alibaba can be shipped using either air or ocean freight, utilizing carriers like UPS, DHL, GLS, and DPD. However orders sent via sea freight can be expected to arrive in 30-60 days.

The only downside of using Alibaba is that the process of communicating back and forth with suppliers can take a long time.

For example, it can take weeks to get samples and negotiate pricing after initial contact has been made.

In addition, the language barrier can make communication challenging because you must describe exactly what you want to manufacture via and live chat.

The other key difference between using a directory like Alibaba versus going to a trade show is that services like Alibaba tend to contain a lot of middlemen.

Because there is such a low signal to noise ratio for vendors on Alibaba, many of the higher quality suppliers don’t list themselves in the directories.

For example, none of our primary vendors advertise on Alibaba or Global Sources.

But that being said, as long you can make a profit with your suppliers, then that’s all that matters!

For more information, read my guide on how to buy from Alibaba safely.

Global Sources

Global Sources is a directory of China wholesale manufacturers that you can browse to quickly find suppliers online. You can find vendors here that offer a wide array of products such as gadgets, hardware, fashion, furniture, and so on.

Global Sources is very similar to Alibaba and they are the two biggest online directories for Chinese suppliers. But there are some key differences.

First off, Alibaba has many more supplier listings than Global Sources but it comes at the cost of quality. There are more middlemen and smaller merchants on Alibaba.

In general, Global Sources has a more involved vetting process which allows them to attract higher quality vendors.

In addition, the MOQs (minimum order quantities) for Global Sources vendors tend to be much higher than Alibaba as well.

However, your buying experience will depend on what you want to sell.

Global Sources accepts payments through Paypal, credit and debit cards, wire transfer, Western Union, and letter of credit.

Global Sources allows sellers to have their own return policies. However, buyers can request a refund if they haven’t received their package, if the product doesn’t match the production description, if they didn’t authorize a transaction, or if there’s a billing error.

Give both services a try and see where it takes you!

Made In China

Made In China is a B2B China wholesale directory that specializes in machinery, electronics, textiles, arts and crafts.

Outside of Alibaba and Global Sources, Made In China is the 3rd largest B2B platform in China.

By performing a search for any product, the Made In China website will connect you directly to a suitable manufacturer.

Most of the suppliers on Made in China are verified for quality and you can view a Supplier Audit Report to get more information about the vendor.

On the website, you’ll also find minimum order quantities and pricing for your products.

Overall, Alibaba and Global Sources are bigger and more well known, but Made in China is an excellent third option to find China wholesale suppliers.

Yiwugo

Yiwugo is the official directory of the Yiwu market, which is one of the largest China wholesale markets in the world.

Yiwugo specializes in jewelry, toys, clothing, shoes, bags, office suppliers and other trinkets that have a low dollar value.

Basically, anything that can be found in the Yiwu marketplace can be found on Yiwugo.com.

The minimum order quantity for most products is around 10 pieces and the price will vary depending on the number of units purchased.

It’s important to note that Yiwugo is just a directory like Alibaba and you are responsible for shipping and negotiating with your supplier.

In general, each shipment takes about five working days. Yiwugo also states that if vendors ship damaged goods or incorrect items, the buyer will receive a full refund and the vendor is responsible for all shipping costs.

In addition, most suppliers on Yiwugo do not speak English fluently and some may only accept payment in RMB.

.com

.com is a China wholesale supplier directory that is owned by Alibaba Group. In fact, .com is almost exactly the same as Alibaba.com except that .com primarily caters to Chinese businesses.

In fact, the entire website is in Chinese and you have to use Google translate or find someone who can read Chinese to help you find suppliers on their website.

Why use if it’s in Chinese?

The reason is because Chinese vendors have inherent biases towards Americans, Europeans and other foreigners when they provide their price quotes on Alibaba.

In other words, sometimes identical vendors that you find on Alibaba and .com will offer higher prices to foreign businesses.

Here’s what you can do to make sure that you are getting the lowest price.

Whenever you are done negotiating on price for a vendor on Alibaba, you should also contact that same vendor via .com with a different address to see if the quote is any different.

If the prices are similar, then it’s all good. But if the pricing is drastically different, then you should find out exactly why there is a discrepancy.

Overall, you can use a site like .com in conjunction with Alibaba to help you get the lowest price.

Buy From A China Wholesale Marketplace

A China wholesale marketplace is a platform where shoppers can easily buy a variety of products from different wholesale suppliers in Asia.

All products are purchased directly on the marketplace website and you can have your goods delivered straight to the end customer.

Some of the most popular China wholesale marketplaces include…

• AliExpress
• DHGate
• ChinaBrands
• Chinavasion
• Banggood
• Gearbest
• DIYTrade
• LightInTheBox
• TomTop
• Yaaku

Overall, the prices that you find on a China wholesale marketplace will tend to be higher than sourcing direct from a manufacturer.

But the main advantage is that the MOQ will be much lower.

By shopping on a marketplace, you can often buy products in single unit quantities which is ideal for testing out new markets before committing to a bulk purchase.

Most wholesale marketplaces also offer a refund guarantee on all purchases.

Here’s a list of the best China wholesale marketplaces to source from.

AliExpress

AliExpress is a marketplace that allows independent small businesses and factories in China to sell direct to individual customers worldwide.

AliExpress is like the Ebay of China and you’ll find individual merchants selling a wide variety of products in single unit quantities such as men and women’s fashion, gadgets, electronics, toys, beauty products, tools, and more.

However, you can not private label goods bought from AliExpress. All products are premade and you can not add your brand or make modifications to the merchandise.

AliExpress Pros

• No minimum order quantities on products
• Buyer protection program insures all purchases
• Great for dropshipping
• Huge variety of products to choose from
• Cheap shipping

AliExpress Cons

• Quality control is not good
• Unreliable or slow shipping from China
• Merchandise is cheap

AliExpress accepts Alipay, debit and credit cards, PayPal, bank transfers, and Western Union.

AliExpress provides a range of shipping options, including standard (15-45 days), expedited (7-15 days), and premium (3-7 days). They offer free shipping, though delivery times can be inconsistent and have limited tracking.

If you’re not satisfied with your purchase or you don’t need the products anymore, AliExpress permits free returns initiated within 15 days of receiving the product, up to three times a month.

AliExpress’s current ratings stand at 2.96 stars on Sitejabber and 2.6 on Trustpilot. The most common complaints revolve around incorrect item delivery and lack of communication from both sellers and their customer service.

For more information, read my AliExpress reviews and how to get fast AliExpress shipping.

DHGate

DHGate is a China wholesale marketplace that allows small businesses in China to sell direct to consumers and ecommerce business owners worldwide.

You can find a wide variety of products here, from gadgets and electronics, fashion and other accessories, to home and garden essentials.

Most of the sellers on DHGate are individual Chinese businesses and not factories. And similar to AliExpress, DHGate is not a good place to find private label manufacturers or steady suppliers of product.

However, you can use DHGate to test your market before placing a bulk order.

DHGate Pros

• No minimum order quantities on products
• Buyer protection program insures all purchases
• End to end tracking for shipments
• Huge variety of products to choose from
• Offers dropshipping

DHGate Cons

• Quality control is not good
• Merchandise is cheap

DHGate accepts PayPal, credit cards, wire transfers, and Western Union. They offer the following shipping methods, along with their average delivery times:

• China Post (4-6 weeks)
• DHL (1-2 days, occasionally up to three weeks)
• EMS (4-15 days)
• FedEx (1-7 days)
• Hong Kong Post/Singapore Post (10-27 days)
• UPS (3-14 days)
• TNT (2-9 days)

DHGate also processes returns and refunds your money anytime customers aren’t satisfied with their purchase. However, customers will still be responsible for shipping costs for any returns.

DHgate currently has a rating of 3.47 stars from Sitejabber and 1.7 stars from Trustpilot. Most complaints are about lack of resolution on their disputes, refunds, and returns.

For more information, read my post on DHGate.

Chinabrands

Chinabrands is a leading online China wholesale marketplace that specializes in dropshipping and light bulk sourcing.

Unlike other marketplaces, Chinabrands does not include any invoices in the packaging for delivery. In addition, their shipping boxes are blank with no logos whatsoever.

They also have physical warehouses in China, Europe and North America for faster delivery depending on your home country.

Overall, ChinaBrands offers over 1 million products in popular categories such as jewelry, clothing, and auto parts.

Chinabrands Pros

• No minimum order quantities on products
• Best China wholesale marketplace for dropshipping
• Huge variety of products to choose from
• Cheap shipping
• Options for product customization

Chinabrands Cons

• Shipping from China is slow
• Merchandise is unbranded and can be poor quality

For more information, read my post on the best dropshipping suppliers.

Chinavasion

Chinavasion is a China wholesale marketplace that specializes in selling electronics, cell phones, gadgets, toys and apparel.

Unlike other marketplaces, Chinavasion also offers name brand merchandise from Chinese companies like Huawei and Xiaomi. They also have a quality control team to ensure that products are in working order before they are shipped.

Similar to AliExpress, products can be purchased directly from the Chinavasion website. You also have the option to pay by Paypal or credit card and Chinavasion supports most major shipping carriers like FedEx, EMS and UPS.

Chinavasion Pros

• No minimum order quantities on products
• Huge variety of electronic products to choose from
• 1 year warranty on products
• Offers dropshipping

Chinavasion Cons

• Shipping is expensive
• No good shipping options for bulk orders

All Chinavasion products, except for accessories of main products, are under warranty for 3 months after you’ve received your products. If your items are faulty, poor quality, or you received the wrong item, they will replace the item or try to repair the product and ship it back to you for free. However, customers are responsible for the shipping costs of sending back any returned items.

Chinavasion provides multiple shipping options. Standard shipping typically spans 20-35 days, with orders under 2 kilos qualifying for free shipping. For faster delivery, they offer expedited or express services such as DHL, which take approximately 3-7 days.

Chinavasion currently has 3.99 stars in Sitejabber and 1.6 stars in Trustpilot, with most complaints mentioning issues on refunds, returns, or replies from customer service.

Banggood

Banggood is a leading online store for gadgets and electronics from China. However, unlike AliExpress and DHgate, Banggood does not allow 3rd party sellers to sell products on their website.

Instead, they source their own products from a network of suppliers and factories across China. As a result, Banggood performs their own quality control and their quality is generally better than a typical China wholesale marketplace.

When you buy from Banggood, they are responsible for entire transaction and shipping of your product. Most products are shipped from China which can take a long time.

Banggood Pros

• No minimum order quantities on products
• Huge variety of electronic products to choose from
• Banggood sources all of their own products
• 30 day refund policy
• Offers dropshipping

Banggood Cons

• Shipping is slow
• Electronics from no name brands may be of poor quality

Banggood accepts BGPay, PayPal, Visa and Mastercard credit and debit cards, Webmoney, and cash on delivery for certain countries.

Banggood offers a variety of shipping methods depending on your location. If you want your products shipped to the US, they offer the following methods:

Shipping MethodEstimated Delivery TimeEconomic Shipping (Special)20-65 business daysEconomic Shipping30-40 business daysStandard Shipping20-30 business daysBanggood Priority Shipping13-20 business daysBanggood Expedited Shipping8-12 business daysBanggood Express17-25 business daysExpress Shipping10-17 business daysAir Parcel Register20-25 business days

If your products are defective or you’re generally unsatisfied with your purchase, you can return the products and they will either release a partial refund or replace the item. Some products such as underwear, earrings, and other hygiene products are not covered by their return policies.

Banggood currently has 4.52 stars from Sitejabber and 3.8 stars from Trustpilot. Most customers are satisfied with the quality of their products and cheap prices.

Gearbest

GearBest is a China wholesale supplier that specializes in electronics, appliances, apparel, and accessories.

Even though they sell clothing and jewelry, Gearbest is best known for its low prices on wholesale electronics such as phones, laptops, watches, computers and more.

Unlike other marketplaces, Gearbest offers name brand electronic merchandise from companies like Xiaomi, Huawei, Samsung and Lenovo.

Gearbest Pros

• No minimum order quantities on products
• Huge variety of electronic products to choose from
• Name brand electronic merchandise
• Offers dropshipping

Gearbest Cons

• Shipping is slow
• Poor customer service

Gearbest accepts various payment methods including PayPal, Visa, American Express, credit and debit cards. They also allow customers to make payments over time in multiple installments.

They offer four shipping methods:

The company is the world’s best china tools wholesaler supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

• Unregistered
• Registered air mail
• Priority line
• Expedited shipping

If your products are from their warehouse in China, shipping from China to the US will take 16-30 days. If it’s from their US warehouse, delivery will take 3-7 days.

Gearbest offers various guarantees and returns depending on the reason and the product. If your item is defective or damaged, contact them within 7 days of receiving the item and they will send you a new one free of charge or reimburse you for the full amount.

If you simply don’t want your item anymore, they also have a 30-day refund guarantee. However, customers are responsible for the shipping costs and the product must be unopened and unused.

Gearbest currently has a rating of 4.43 stars on Sitejabber. Most customers praise Gearbest’s customer service, good-quality products, and quick shipping. You can reach them through their address.

DIYTrade

DIYTrade, known previously as eBigChina, is a prominent China product directory and trading platform that presents over 5 million various products. It caters to a global market, offering items ranging from electronics, apparel, home goods, machinery, to nearly every conceivable product category tailored for retailers and wholesalers.

DIYTrade has a comprehensive directory of suppliers and products and also does online trade shows and buyer-seller matching. You can find unmarked goods where you can place your own brand or logo.

LightinTheBox

LightInTheBox is a global online retail company that sells a wide range of products, including clothing, home and garden essentials, electronics, and more. They cut out the middleman, letting you reach manufacturers directly. They stock new products every day and also offer dropshipping.

LightinTheBox accepts PayPal, most major credit and debit cards, as well as Apple and Google Pay (mobile). They also offer installments and buy now, pay later options with Klarna, Sofort, and Afterpay.

They offer shipping through postal services, expedited postal, priority line shipping, and expedited express. If your package is set to a US address, delivery will take about 10-20 days via postal services, 5-8 days via expedited postal, 4-7 days via priority line, and 3-5 days via expedited express.

LightInTheBox provides refunds, returns, or exchanges in cases of faulty or damaged items, incorrect deliveries, and products under warranty.

Additionally, they offer a convenient 7-day no-questions-asked return policy for items you change your mind about. However, for a return to be accepted, products must be in their original condition, unopened, and with all tags intact. Some exclusions apply, including made-to-order items, swimwear, certain accessories, lingerie, shapewear, and other hygiene-sensitive products.

LightintheBox currently has 3.9 stars in Sitejabber and 4.2 stars in Trustpilot. Most customers praise the high-quality and affordable products, helpful customer service, and fast shipping.

TomTop

TomTop is another Chinese wholesale supplier that offers a wide array of products, including electronics, clothing, home and garden, and toys and games. They offer both wholesale and dropshipping. TomTop has membership levels wherein the higher your level, the more benefits you’ll have. This could be discounts, lower MOQs, free shipping, dedicated customer service, and more.

TomTop accepts Paypal, credit cards, wire transfers, BOLETO, and QIWI.

Shipping will vary depending on where your products will be shipped from:

From their Chinese warehouse:

• Airmail: 7-15 days to the US
• EMS: 6-8 days
• DHL (expedited shipping): 3-7 days

From a US warehouse:

• USPS: 3-6 days
• UPS: 2-5 days

Every product from TomTop is backed by a 12-month quality guarantee. If you receive an item that’s damaged upon arrival or becomes defective within the warranty period, you’ll either receive a refund or a replacement. However, the buyer is responsible for the shipping costs associated with returning the item.

TomTop currently has a rating of 3.75 stars on Sitejabber and 4.0 stars on Trustpilot, with most customers praising the fast and free shipping and quality of products.

Yaaku

Yaaku is a wholesale clothing supplier that buys different types of clothing from assorted manufacturers and sells them at competitive rates to individuals and resellers.

Yaaku Wholesale offers a wide range of clothing items, including dresses, skirts, leggings, jackets and coats, tops and sweaters, and undergarments.

You’ll need to spend at least $1,000 to qualify for wholesale terms of purchase. They accept Paypal, Western Union, MoneyGram, and bank transfers. Yaaku also offers a variety of shipping options, including expedited shipping and international shipping using DHL, EMS, FedEx. Average delivery times go from 15-30 days.

Yaaku allows returns and exchanges within 7 days of purchase, as long as the products have their original tags and packaging. Shipping costs to return the items are at the buyer’s expense. You can reach their customer service via live chat, , , or Skype.

Honorable Mentions

Here are other Chinese wholesale websites that are less known or more niche, but still may be worth looking into.

WebsiteKnown forTaobao LiveLive streaming platform for diverse product showcases.HTDCHong Kong Trade Development Council’s platform for a wide range of products, especially linking Hong Kong and mainland China suppliers.Trade KeyGlobal B2B marketplace with a strong presence of Chinese suppliers.TradeEasyComprehensive platform for various products, ensuring manufacturer certifications.SheinTrendy and affordable fashion-focused wholesaler.ZafulFashion-forward clothing and accessories wholesaler.TinyDealAnother popular site for electronics, gadgets, and various other products.RomweFashion-centric platform known for affordable trendy wear.PandaHallFocused on jewelry beads, findings and gems.TVCMallElectronics and mobile accessories wholesaler.SunskyWholesale supplier for electronics, especially smartphone accessories.

Search The Ocean Import Records

Every single shipment imported by sea is documented on the public record. And if you search this public record, you can easily find out where companies are sourcing their products from.

There are 3 main companies that allow you to conduct import searches for a monthly fee.

• Panjiva
• Import Genius
• Jungle Scout

Panjiva

Panjiva is a service that provides insight to the entire supply chain of any company.

By typing in a business name, Panjiva will tell you every single sea shipment that company has made, where the shipment originated from and the manufacturer.

For example, here’s a sample bill of lading from The North Face that I obtained from Panjiva for free.

If you see a product online and you want to make something similar, you can easily find out where it was made and reach out to the exact same manufacturer!

Import Genius

Import Genius is a service that tracks shipping activity all over the world and provides real time shipment records for any company in the US, India and 15 other countries.

Similar to Panjiva, you can use Import Genius to find out the exact factories that other brands are using to source their products.

Simply enter the name of the competitor you want to research and Import Genius will provide information about all recent import/export activity for that company.

Jungle Scout Supplier Database

While Panjiva and Import Genius were the first companies to offer the ability to search the US import database, Jungle Scout now allows you to search the public record at a far cheaper price.

What’s nice about the Jungle Scout Supplier Database is that with a few clicks of the mouse, you can easily figure out where your Amazon competitors are sourcing their products from.

In addition, you can see exactly what they are importing and at what quantity as well.

Below is a video that I created which provides a demo on how to use the Jungle Scout Supplier Database.

If you want to follow along with this tutorial step by step, Click here to sign up for Jungle Scout and save 30%

Attend A China Wholesale Supplier Trade Show

A wholesale trade show is an exhibition event that brings thousands of China wholesale suppliers together to demonstrate and show off their latest products and services.

The key benefit of going to a trade show is that it allows you to make face to face contact with a large number of wholesale vendors and establish real relationships.

By going to China wholesale trade show, you can easily meet hundreds of factory owners in just a few days.

Many China wholesale vendors who attend trade shows do not have a web presence so it’s next to impossible to find them otherwise.

Here are the top China wholesale trade shows to attend.

Canton Fair

The Canton Import And Export Fair is the one of the largest wholesale trade shows in the world that is held twice a year in Guangzhou China.

The Canton Fair easily trumps any trade show in the US and it’s so large that they have to split it into 3 phases.

• Phase 1: Electronics, household electrical appliances, machinery, lighting equipment, hardware and tools, vehicles and spare parts, building materials, chemical products.
• Phase 2: Consumer products, decorations and gifts.
• Phase 3: Textiles & garments, shoes, office supplies, cases & bags, recreation products, medicines, medical devices and health products

To give you an idea of the magnitude of the fairgrounds, the Canton Fair is equivalent in size to 218 football fields.

Normally finding a Chinese supplier is an extremely tedious process.

There are many companies to go through and it’s hard to gauge product quality by just looking at photos online.

In addition, language and cultural barriers can make communication challenging over and text.

But the Canton Fair is a place where suppliers and factory owners from all over Asia congregate and you can easily find a vendor that either carries what you want to sell or can make what you want to sell.

In addition, all of the vendors bring in samples of what they make so you can touch and feel all of the merchandise first hand before committing to a purchase.

Most of the suppliers at the fair are used to dealing with American and European companies so they have the experience and infrastructure to export products to wherever you live.

Most China wholesale suppliers speak English…not good English mind you, but enough to communicate at a basic level.

If you require an interpreter, you can easily hire one for a very reasonable price (100 yuan = 15 bucks for the day).

Going to the Canton Fair sounds intimidating but it’s actually not that bad and it doesn’t cost nearly as much as you think.

First off, the Canton Fair is free to attend and the cost of living is much lower in China than in the US.

Second of all, I’ve published my full itinerary and a complete guide to the Canton Fair below. If you plan on going, you can simply copy my travel plans.

• My Guide To The Canton Fair – China’s Largest Wholesale Supplier Trade Show

Here’s a podcast that I recorded about my last trip to the Canton Fair.

Here’s an in depth video about the Canton Fair.

Global Sources Trade Show

The Global Sources Trade Show is an exhibition in Hong Kong that offers buyers a comprehensive set of products from verified wholesale suppliers in China and Asia.

Similar to the Canton Fair, Global Sources is a gigantic convention where factory owners from all over the world congregate twice per year.

What’s nice about the Global Sources Trade Show is that it takes place just BEFORE the Canton Fair in Hong Kong so you can easily hit both shows during the same trip!

While the Global Sources show is not as large as the Canton Fair, there are a few key differences that make the Global Sources show a must attend event.

First off, there is very little overlap with the Canton Fair in terms of suppliers and many of the vendors that attend the Global Sources trade show are unique.

Because Global Sources is a search engine for Chinese vendors like Alibaba, they also have a gigantic searchable database of manufacturers that you can establish contact with prior to attending the event.

In addition, Global Sources contains a much larger contingent of suppliers in certain key categories such as electronics and fashion accessories. So if you plan on selling anything electronic, Global Sources is the best show to attend.

The other key difference is that Global Sources provides a strong focus on education. During their show, they simultaneously run a conference that teaches you how to run a successful importing business.

The content of the event is fantastic and they invite successful ecommerce entrepreneurs from all over the world to speak.

But perhaps the best part about the Global Sources trade show is that there’s no language barrier!

Unlike China, everyone speaks English in Hong Kong and it’s generally much easier to get around as a result.

My advice if you decide to travel all the way to Asia is to attend both the Global Sources show and the Canton Fair during the same trip. Canton is only a 2 hour train ride away and it costs $30.

Below is an interview that I conducted with the CIO of Global Sources

Yiwu Wholesale Marketplace

The Yiwu wholesale market is one of the largest wholesale markets in China where you can find a variety of different products at really low prices.

Unlike China wholesale trade shows like the Canton Fair or Global Sources which only occur twice per year, the Yiwu market is open everyday of the year except for certain Chinese holidays.

What’s also different is that the Yiwu marketplace is literally a place where you can physically walk away with goods that are ready to sell or have them shipped directly to your warehouse in bulk.

In other words, many of the goods are off the shelf and ready for sale.

In terms of products, you’ll find a bunch of suppliers that sell everyday goods like handbags, textiles, accessories and watches. Basically, you can buy commodity products that complement the goods you already carry in your shop at really low prices.

It’s also important to note that the wholesalers at the Yiwu market are not manufacturers. Instead, most merchants in the market are trading companies or small retailers.

You should also be aware of fake or knock-off brands at the Yiwu market. In general, none of the products at Yiwu will have a brand and any “well known brand name” that you see there will likely be inauthentic.

Overall, the products at Yiwu tend to be cheap, commonplace items that you can use as upsells or cross sells for your existing portfolio. They also make great items for a free plus ship offer or a giveaway.

East China Fair

The East China Fair, also known as the East China Import and Export Commodity Fair, ranks as the second-largest regional trade event in terms of scale and impact.

With plenty of traders, a diverse array of products, and the most onsite deals, it’s a prominent business platform in the region. The fair is not only the most significant amongst regional fairs but also draws buyers from nearly 100 countries globally.

If you’re looking to buy Chinese garments, home textiles, consumer goods, and art deco gifts, East China Fair is a good place to start.

The Ministry of Commerce of China officially backs the East China Import and Export Commodity Fair. Additionally, nine provinces and cities jointly co-sponsor this influential exhibition.

This 4-day annual fair takes place at the Shanghai New International Expo Center, located in Century Park, Pudong, China. The event has around 20,000 attendees annually.

What To Expect When Importing And Manufacturing Your Goods In China

While importing your goods from overseas is the best way to obtain quality products at rock bottom prices, there are several logistical issues you have to work out in order to be successful.

Below is a brief overview of what to expect when importing goods from overseas along with some tips on getting your goods to your warehouse.

First off, here’s what you should expect…

Long Lead Times

Most overseas vendors won’t even begin making your products until you actually place an order and put down a small down payment to cover the cost of materials.

Depending on the nature of your items, expect to wait anywhere from one to four months to get your products manufactured.

Most vendors do not carry inventory and goods are made to order so you must plan ahead.

When we order goods for our online store, the lead times are typically 3 months long so we always have to predict our demand way in advance.

A Large Minimum Order

If you are ordering products to be manufactured overseas, expect to place a fairly large minimum order. Every manufacturer will have their own MOQs(minimum order quantity) but don’t be embarrassed to ask before ordering.

If you are just starting out, make sure that you obtain samples first and validate that your product will actually sell BEFORE you place a large order.

These days, I rarely purchase less than 300 pieces of any new product but you can often negotiate lower minimum order quantities if the vendor believes that you are a serious customer.

Be sure to check out my free guide on how to negotiate MOQ with your supplier.

Payment Terms

Most manufacturers expect to be paid by wire transfer. Also, you usually have to put down some money upfront(usually 30%) to cover the initial costs and then pay the balance once the items are ready to be shipped.

If you are worried about fraud, there are escrow services like Alibaba trade assurance that will facilitate the exchange of goods and services.

But in general, transactions go much faster when there’s mutual trust between you and your vendor.

For example, we pay for all of our orders via wire transfer and our vendors don’t make us put up the initial 30% down payment.

However if you are just starting out, don’t be afraid of wire transfers. If you are apprehensive about sending your money overseas, consider asking to pay by Paypal instead.

Some vendors will accept Paypal if you cover all the fees but don’t count on it.

Quality Control

Quality control will often be an issue and you have to be very specific in telling the vendor EXACTLY what you want. In general, it ALWAYS pays to hire an inspector to inspect your goods at the factory.

After all, once your products get shipped to you, there’s not much you can do if you receive defective merchandise.

For the price of around $300, you can get a statistical sampling of your shipment directly at the factory and know what percentage of your goods are defective.

Catching manufacturing issues at the source will save you lots of headaches. It also keeps your vendors honest.

Below are some of the more popular inspection companies.

• QIMA (The one I use)
• ProQC
• QualityInspection.org
• KRTInspect

What To Expect When Communicating With Asian Suppliers

Working with Asians is a lot different than working with Americans or Europeans. Here’s a short list of what you need to be aware of when dealing with Asian suppliers.

Expect A Language Barrier

The key thing to keep in mind when communicating with Chinese suppliers is that they probably studied English in school.

They might not be able to speak or understand English that well, but they can probably read it much better than they can listen.

So when you are visiting your vendors, it helps to have everything written down or typed in English. If you go in there and start blabbing away, chances are that the vendor will only be able to pick up bits and pieces of the conversation.

They might nod and go “uh huh”, but in reality they probably have no clue what you are talking about.

The same goes for taxi drivers and directions. Have someone write everything down in Chinese if possible and if you have to speak, speak slowly and enunciate every word.

Expect Cultural Differences

One of the main cultural differences between the US and China is that Chinese people tend to be non-confrontational.

For example, Chinese vendors will rarely correct you, interrupt you, or let you know that they don’t completely understand you.

It is part of their culture to be polite and accepting. But if you are not careful, this one simple cultural difference can cause you a ton of grief when placing orders.

The biggest obstacle to overcome is that you might think you are communicating when in fact you are not.

For example, I could be discussing something with my vendor and they might be nodding and acknowledging everything that I’m saying but then turn around and do the complete opposite once the conversation is done.

The key is to ask direct questions and make sure that there is no misunderstanding. Ask, clarify and reiterate all of your points as many times as necessary and be sure to write everything down as well.

The important thing to realize is that your vendor is just trying to be polite so you can never assume that anything is clear unless it has been thoroughly discussed.

Contracts Are Not Final

In the United States, contracts are considered final. After a series of negotiations, the final contract is supposed to represent an agreement and acknowledgment of terms.

In Asia however, a contract is almost meaningless. When I deal with Chinese vendors, drafting an official agreement can often seem like a waste of time.

We might spend a day negotiating and agreeing on terms and pricing only to have everything change the very next day.

For example, one time we drafted a written agreement for a large handkerchief order only to have the supplier contact us a week later to tell us that they couldn’t manufacture some of the items we requested.

On another occasion, a supplier tried to raise prices on us after the fact even though we agreed on pricing long ago.

The key takeaway here is that the definition of a contract is different in Asia than it is in the US.

Don’t expect a written document to be the end all and be all of your negotiations. In fact, I would argue that drafting an agreement is just the beginning.

Don’t Make Assumptions – Be Specific

Here’s a general rule of thumb that needs to be ingrained into your head when importing from China. Never assume that the vendor knows what you want.

If it’s not spelled out in a document, then your vendor will get it wrong or cut corners.

For example, we import plain white handkerchiefs and you would think that it would be straightforward to describe.

After all, it’s just a piece of fabric right? But one time we negotiated a lower price and the vendor sent us handkerchiefs with paper thin fabric.

Because we didn’t specify the exact thickness of the material, the vendor met our price by cutting corners on the fabric.

Bottom line, go through your samples and specify every last detail of what you want. Assume that any aspect that is not explicitly spelled out will be made incorrectly.

Preparing For Your Shipment

Once you’ve ordered your products and they are ready to be shipped, there are two main ways to get your goods into your home country, by air and by sea.

But before you initiate your shipment, make sure you ask for the following documents from your vendor. These will be required in order to clear customs.

• A Commercial Invoice – The declared value of the items
• A Packing List – What you are importing
• A Detail Sheet – Outlines how the products are manufactured so customs can determine the duty classification
• Bill of Lading – A legal document between the shipper of goods and the carrier detailing the type, quantity and destination of the goods being carried.

Note: Are you unsure which shipping method to use and how much it will cost? Do you want a good estimate of your real landed cost of goods? Click here to use my free import calculator

Shipping By Air

Shipping your items by air is by far the easiest option but also the most expensive. Expect to pay between 5-6x more to ship by air versus shipping by sea.

Personally, we use DHL for all of our international air shipments. Our vendors all have accounts with DHL and shipping with them is a breeze because they take care of everything.

Basically, the vendor provides DHL with all of the materials mentioned above and then DHL transports all of your goods directly to the address that you specify. You do NOT need a customs agent!

If this is your first time importing goods from overseas, you will be contacted by customs to provide your social security card or a company id number. Have this information handy once your goods have shipped and you are all set.

DHL will also send you a customs bill so that you can pay any and all duties associated with your imported goods.

Shipping By Sea

Shipping by sea is a much bigger headache but totally worth it if you are importing a large volume of goods. As mentioned before you can easily save between 5-6x compared to shipping by air.

The key to accepting shipments by sea is to hire a good customs agent. This is absolutely required especially if this is your first time importing by sea.

Do not try and do things on your own unless you know exactly what you are doing. This is what the customs agent will take care of for you.

• Customs Documentation – They will take care of any and all documentation required in the entire process
• Customs Entry – They will take care of getting your goods from the port directly to your office
• Customs Duty – They will take care of calculating and billing you for any duties associated with your goods.
• Customs Entry Bond – You are required to buy a bond that acts as insurance with Customs in the event you should default on the customs duties. Your customs agent will take care of this for you .

Of course all of these services come at a cost. Right now, we are using a company called Toll Forwarding as our freight forwarder and customs agent.

For our last sea shipment, we paid about dollars to transport over pounds worth of goods to our warehouse and the whole process took about 3 weeks.

To give you an idea of the difference in price, shipping a 35 pound box via air courier costs about $170 which makes it cost prohibitive for large shipments.

In general, it makes sense to ship your products by sea if your shipment exceeds 200lbs in weight. The tradeoff of course is time.

Whereas sea shipments can take over 3 weeks to arrive, shipping by air typically takes 3-5 days.

Should You Source From China Wholesale Suppliers?

Because the cost of manpower is so much cheaper in developing countries like China, Thailand and Vietnam, it makes sense to source most goods from Asia.

Any product that requires a lot of labor to assemble like textiles and electronics can often be purchased at a fraction of the price.

As a result, you should definitely consider importing from China as a sourcing strategy. With higher margins, you can focus more of your dollars towards marketing and customer service.

China Wholesale Websites Versus Domestic Wholesalers

The table below outlines the advantages and disadvantages of using China wholesalers vs. domestic suppliers.

FactorChina WholesalersUS WholesalersCostTypically offer products at a lower cost due to the economies of scale and lower labor costs. Potential hidden fees, such as import duties and shipping charges.Often have higher costs due to stricter regulations, higher wages, and other overhead expenses. Transparent pricing, often inclusive of taxes and shipping.Shipping & Lead TimeLonger shipping times and potential for customs delays. Products may take weeks to months to arrive.Faster shipping times, especially with less potential for customs delays.Quality AssuranceInconsistent product quality. Due diligence required to ensure product meets desired specifications.Often more stringent quality control measures, especially in regulated markets.CommunicationLanguage barriers, time zone differences, and potential for misunderstandings.Easier communication with minimal time zone challenges.Minimum Order Quantity (MOQ)There may be some flexibility with MOQ, allowing for bulk purchases at discounted rates.Many domestic suppliers might have higher MOQs due to limited scale.Product VarietyExtensive variety of products due to the large manufacturing base.Limited to what’s available within the country.Intellectual PropertyPotential risks related to counterfeits or IP infringements.Generally more respect for and adherence to intellectual property laws and regulations.Payment SecurityPotential risks with unsecured payment methods or fraudulent sellers.More established payment infrastructures and generally more trustworthy transaction methods.

What Precautions Should Buyers Take When Sourcing Products From Chinese Wholesale Websites?

Sourcing products from Chinese websites presents many opportunities, but it also comes with its share of challenges. Here are some precautions buyers should consider:

1. Research the supplier. Investigate the supplier’s history, credibility, and reputation. Use platforms like Alibaba’s Gold Supplier feature, which offers background checks for suppliers. Go through reviews and feedback from other customers, particularly Western buyers if possible.

2. Use secure payment methods. Opt for platforms that provide an escrow service (like Alibaba’s Trade Assurance) or use PayPal. Avoid wire transfers to unknown suppliers.

3. Check compliance and certifications. Ensure that the products comply with regulations, standards, and certifications required in your home country. For specific industries (like electronics), check if the manufacturer has necessary certifications.

4. Understand tariffs and duties. Familiarize yourself with import regulations, duties, and tariffs for your country to avoid unexpected costs.

5. Diversify suppliers. Avoid relying on a single supplier. Having multiple suppliers can mitigate risks if issues arise with one of them.

6. Avoid too-good-to-be-true deals. If a deal appears too good to be true, it probably is. Extremely low prices can be a red flag for scams or substandard products.

7. Intellectual property (IP) protection. Be cautious about sharing IP without safeguards in place. Consider using non-disclosure agreements when discussing product designs.

8. Plan for shipping and logistics. Determine the mode of transportation (air, sea, rail) and understand potential delays, especially during peak times like the Chinese New Year. Consider using reputable logistics companies and familiarize yourself with shipping terms like FOB, CIF, and EXW.

9. Establish a clear returns policy. Clearly define terms for product returns or refunds in the event of defective or incorrect products. If the supplier already has their own policy, review it to make sure you’re not getting the short end of the stick.

Frequently Asked Questions About Buying Wholesale From China

What Is The Best Website To Buy Wholesale From China?

The best, most complete website to buy wholesale from China is Alibaba. However, Global Sources is also a great resource if you plan on sourcing electronics. You can also use tools like the Jungle Scout Supplier Database to look up suppliers of existing products being sold online.

How Can I Buy Goods From China?

The easiest way to buy goods from China is to first identify a supplier. Then, you should purchase a sample and iterate with your supplier until you are happy with the overall design of your product. Finally, when it comes to buying in bulk, you should enlist the help of a freight forwarder to help you import your goods to your home country.

What Is The Best Item To Import From China?

Because the wages in China are much cheaper than anywhere else, it's to your advantage to import goods that require a high amount of labor to produce. For example, clothing, textiles, embroidery are ideal to import from China because the material costs are low and the fabrication process is manual. There are many types of products that fall into this category.

Do I Have To Pay Import Duty From China?

The answer is yes unless the value of your shipment is less than $800.

How Do You Buy Goods Directly From A Manufacturer?

Directories like Alibaba and Global Sources contain a large list of Chinese factories and manufacturers. Alternatively, you can find a sourcing agent to help you find suppliers for the products you want to sell.

Do I Need A License To Import From China?

There are no permits required for importing products from China unless you are bringing in hazardous or restricted materials. You will however, have to pay import duties depending on the types of products you sell

How Are Customs Duties Calculated?

The value of your shipment determines how much duty or taxes are assessed on your shipment. In general, duties and VAT are calculated as a percentage of the customs value of your goods. If there are any tariffs involved with your HS codes, they will be directly added on your duties.

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About Steve Chou