Buy directly from China
Buy directly from China at factory price
Buying direct from China at factory prices: why you should do it
If you have a company that sells products online or you have a small business, you can make your business more competitive if you decide to buy directly from China at factory prices. Alternatively, if you already manufacture your own products, you may purchase packaging, parts or raw materials from China, which can be very convenient for your business.
Until recently, only large companies could have a sales office that could import and supply products abroad. But today, thanks to technological advances, they are all available online and there is no need to go to China, organize expensive and difficult business trips, visit Chinese factories and contact suppliers.
Obviously, e-commerce has its pros and cons because although it can be fast and cheap, sometimes you can be in for some nasty surprises. That's why we decided to write a short guide with some useful tips on how to buy direct from China
Buying directly from China: useful tips
If you decide to import Chinese products, you should first note that the quantity plays a very important role. If 50, 1,000 or 10,000 pieces are requested, as well as the shipping method used, the supplier's price will change. In fact, it is possible to send small quantities of products by air, this is not possible for larger quantities
Typically, buying in bulk is the best strategy to save money. This system is very easy and depends on the market logic that exists between the Chinese supplier and their manufacturers. Both manufacturers and suppliers must follow a minimum order quantity (MOQ) to produce goods, if the MOQ is not met, they cannot accept your orders.
Therefore, those who decide to import products from China should know that each seller must respect a certain MOQ, below which the wholesaler cannot sell the requested product, if this limit is exceeded, the wholesaler can accept. Because he will be able to make a profit, albeit minimal (just think that Chinese suppliers have very small profit margins, ranging from 2 to 4%!)
How to deal with Chinese suppliers
Keep in mind that production and delivery times are also important. In fact, when you decide to buy from China, you should consider finalizing your order in advance, as it could be months before you receive your items. Just think that one shipment takes about 45 days
Therefore, it is a good practice to explain clearly and precisely what you want, the quantities and the timing in which you want your goods delivered.
Many companies often start their relationship with Chinese suppliers by providing vague information, for example, they ask for unit prices and do not provide totals or timeframes. Although this behavior may seem reasonable, this attitude often works against you, as it increases the order time and annoys your supplier.
Just keep a few things in mind
A supplier, even a committed supplier, cannot give you a single price for the item because the price varies greatly depending on the quantity.
A quote means a lot of work and the supplier changes drastically depending on the production time, so if you constantly change your requests, you can become an unhappy customer.
Chinese suppliers receive thousands of requests every day and are not afraid to lose you as a customer, especially if you request a small amount of products.
Therefore, what we recommend is that you decide what you want: what products you want to buy and how long you need them. In this way, you will be able to send very clear and precise information to the supplier. Always remember that a quote is free and non-binding. Clear communication speeds up turnaround times and makes you a customer-friendly supplier, and it also limits the misunderstandings that can arise when constantly changing your requests to supplies with limited knowledge of the English language.
How to find the right supplier
Another issue that needs to be addressed is how to search for suppliers. If you look for them online, on websites like Alibaba, you will find that there are thousands of suppliers for the same product: how do we decide which one is the best?
Write a price request with the quantities and times you need the products and send them to several suppliers
Ask if such products have been sold in the EU or US in the past
Request certificates to sell the mentioned products in the European Union
Ask specifically if the supplier can arrange shipping and what type of method is included in the quote.
Carefully read and check the reviews of that supplier and how long he has been active (the longer he has been active, the safer your investment will be)
Customs and duties
It's also a good idea to check in advance what the custom duties are on the products you want to import, because
Customs duties vary depending on the imported products and can greatly affect the final price of the goods
While VAT can vary, custom duty is the same for all EU countries and cannot be waived, so it must be factored into product costs.
Buy directly from China without any problems
If you have researched online, you may have noticed that the minimum order quantity on websites like Alibaba is very high
However, if one has a small company, high MOQs can be problematic. In fact, importing large quantities of products from China is difficult for small companies that do not have the budget or space to store the ordered products.
How to buy directly from China at factory price in small quantities?
Buying wholesale direct from China is very convenient because you can cut prices, but it is also true that finding the right supplier, arranging shipping , clearing customs and most importantly being concise and transparent is difficult.
Buy without middlemen from China
Buy from China without intermediaries
Flip through almost any product these days and you're likely to find a "Made in China" label. At
While it is easy to find a "supplier" in China, this article aims to help buyers avoid the middlemen in China and go directly to the factory
Definition of intermediary
An intermediary is someone who provides little value in the supply chain, perhaps just rolling and making a margin. On the face of it, they may claim to have a close relationship with the factory for added value, but if they don't allow you to communicate directly with the factory, then you're dealing with a middleman. If intermediaries provide legitimate value (e.g. logistics, project management or quality inspection), there may be a place for them in the supply chain. But if the intermediary isn't transparent about where their margin lies, it's likely that the actual value of their inspection or project management services is greatly inflated. Before you sign up with a broker, simply ask them to separate their "service" fees from their "production fees." If they do not deal with this issue, you will realize that their role in the transaction has no value
Why go directly to the factory?
There are four reasons why a buyer should avoid intermediaries as much as possible
Costs: Additional layers increase costs
Quality: If the Chinese middleman makes his profit margin by adding a mark to the product, then he has an incentive to push the buyer to the supplier, where he can make the highest margin, which is often the cheapest and lowest quality option. He is, add. The interest of the intermediary is not aligned with the interest of the buyer to find the best price/quality ratio
Security (intellectual property rights): If the intermediary does not disclose the actual location of production, the buyer has no way of knowing who has access to the sensitive design and branding. The use of middlemen is the #1 reason that counterfeits are so common in China, as many buyers don't know who actually makes their product. If you don't know who makes it, you can't control your product. Furthermore, unlike a factory with actual workers, equipment, and facilities, intermediaries have few physical assets and can disappear into the dust of Zhejiang or Dongguan if something goes wrong, such as an intellectual property infringement lawsuit or quality recall.
Communication: In order to prevent the buyer from removing the intermediary, the intermediary will make every effort to prevent the buyer from identifying the true identity of the manufacturer. This extra layer increases communication time and prevents the buyer from speaking directly to the people who have the most knowledge about the product - the production line engineers. This muddy line of communication becomes particularly troublesome when technical problems arise in production and the factory engineering team and the buyer must communicate through a Chinese intermediary who may not have the technical understanding to properly explain the issues.
How to recognize an intermediary
Assume all potential suppliers are intermediaries until proven otherwise! The most common thing you'll hear from middlemen is that "they use their overall buying power to help you get the best price with the factories they've already set." 99% of the time this is not true and is just a soft sell message to make the buyer feel safe and keep you away from the factory. Chinese middlemen may even say that they "own the factory", but when it comes to visiting the factory, you will hear excuses like "the power is out" or "let's just meet at the sales office". The hope that you'd never see production was at least ethical if the middlemen above simply claimed to be foreign sales representatives.
China has a vast manufacturing base and in most cases there is no need to use an intermediary because there is a factory there that has the right combination of price, quality, service and time for your specific sourcing program. It is my strong belief that the vast majority of China supplier intermediaries provide little or no value to your supply chain.
Avoid factories that refuse to mention the name or location of their manufacturing facility
Focus on those factories that can clearly demonstrate manufacturing experience with your particular product or manufacturing method. If they are a real factory, they should have quality samples and documentation readily available
If you can arrange a factory visit
Does your contact's business card match the factory staff's information? If the cards don't match in name, color, and address, your contact is probably a Chinese middleman
Do the factory people clearly know your target audience, or do they give you business cards to the factory workers when you visit "your factory"? At worst, it might be his first time working with the factory and you can build your relationship without him.
Note that polished English skills do not indicate production skills. Often the most polished websites are run by commercial companies. Look for clear information about operation size, equipment and staff. If they offer a wide range of products, be careful. Ask for factory ownership documents. Be clear that the place of production may be inspected by you personally and that this place cannot be changed without the approval of the buyer. (You'd be surprised how many middlemen take a buyer to visit a factory, only to switch to a cheaper, lower-quality option after the buyer leaves