Buy directly from China at factory prices: why you should do it
If you have a company that sells products online or a small enterprise, you could make your business more competitive if you decide to buy directly from China at factory prices. If you, on the other hand, already produce your very own products, you might consider buying packaging, components or raw materials from China, which could be very convenient for your business.
Until very recently, only big companies could afford to keep a sales office which could engage in imports and in the sourcing of products abroad. Nowadays, however, thanks to the technological developments, it is all available online and it is no longer necessary to go to China, to organize hard and expensive business trips, to visit Chinese factories and to contact suppliers.
Obviously, eCommerce has got its pros and cons because even though it can be fast and cheap, you could also sometimes incur in nasty surprises. This is the reason why we decided to write down a short guide with some useful advice on how to buy directly from China.
Buy directly from China: useful tips
If you decided to import Chinese products, firstly you must be aware that the quantities play a very important role. The suppliers’ quote will change if you request 50, 1000 or 10000 pieces, and also the shipping method used. In fact, it is possible to ship small quantities of products via plane, it is not possible to do the same for larger quantities.
Normally, buying large quantities is the best strategy to save up some money. The system is quite easy and it depends on the market logics which incur between the Chinese supplier and their manufacturers. Both the manufacturing companies and the suppliers have to follow a minimum order quantity (MOQ) for the production of the goods, if the MOQ is not respected, they will not be able to accept your orders.
Therefore, those who decide to import products from China must know that each sale has got to respect a certain MOQ, below which the wholesalers will not be able to sell the requested goods, if this limit is exceeded, the wholesaler will be able to accept the order because he will be able to make a profit, although minimal (just think that Chinese suppliers have a very small profit margin, which varies from 2 to 4%!).
How to approach Chinese suppliers
Keep in mind that production and delivery times are also important. In fact, when you decide to buy from China, you have to keep in mind to finalize your order in advance, as months could go by before you get your items. Just think that a freight shipment has got a time frame of around 45 days.
A good practice is, therefore, to explain clearly and precisely what you want, the quantities and the timing within which you want your goods delivered.
Many companies often begin their relations with Chinese suppliers by giving unclear information, for example, they require the unit price of the goods and do not give the total or time frames. While it might sound sensible to act in such a way, this attitude will often work against you, because it lengthens the times of the order and irritates your supplier.
Bear in mind just a couple of things:
- The supplier, even a committed one, will not be able to give you a unit price for the goods because the price varies immensely depending on the quantity;
- A quote implies a load of work and the supplier changes radically depending on the production times, therefore if you change continuously your requests you could become an unpleasant client;
- Chinese suppliers receive thousands of requests every day and they are not afraid of losing you as a client, especially if you request small quantities of products.
Therefore, what we recommend is to make up your mind on what you want ahead: what products you want to buy and by what time you need them. In this way, you will be able to send to the supplier very clear and detailed information. Always remember that a quotation is free and it is not binding. The clear communication will make the time frames quicker and will make you a welcome client to suppliers, moreover, it will limit the misunderstandings which could happen when you continuously change your requests to supplies who have limited knowledge of the English language.
How to find the right supplier
Another matter to be addressed is how to search for suppliers. If you are looking for them online, on websites like Alibaba, you will notice that for one product there will be thousands of suppliers: how to decide which one is the best?
- Write down a quotation request with the quantities and the timings by which you need the products and send them to several suppliers
- Ask if such products were sold in the EU or the US in the past
- Request the certificates to sell said products in the EU
- Ask specifically if the supplier can arrange the shipping and what type of method was considered in the quotation
- Read and check out carefully the reviews on that supplier and on the length of his activity (the longer his activity is, the safer your investment you will be).
Customs and Duties
It is also a good idea to check out beforehand what are the custom duties on the products which you want to import, because:
- Custom duties change depending on the imported products and can weight enormously on the final price of the goods;
- while VAT can differ, Custom duties are the same for all EU Countries and cannot be waived, therefore they must be included in the product costs.
Buy directly from China without a single problem
If you have done some research online you might have noticed that the minimum order quantities on websites like Alibaba are quite high.
If one has got a small company, however, high MOQs can be a problem. Indeed, to import big quantities of products from China is difficult for small companies which do not have the necessary funds or the space to stock the ordered products.
How can you buy directly from China at factory prices in small quantities?
Buying with wholesale prices directly from China is very convenient because you can cut down on prices, but it is also true that it is hard to find the right supplier, to arrange the shipping, the customs clearance and most importantly to have a concise and clear quotation.
The answer to your problems is Yakkyofy, the only online platform that allows you to import products from China, swiftly and easily!
Yakkyofy allows you to:
- share the specifications of your order in English
- have direct contact with the company
- have small MOQs
- be sure to buy from certified suppliers
- have full control over the quality of the products
- have a clear quotation which will give you the information on shipping costs and custom clearance
- get your goods delivered at your doorstep
The secret to saving up money is Yakkyofy!