How to build a business selling goods from China

14 october 2021

Chinese goods have spread all over the world and occupied the niche of the cheapest, but necessary products. Not in every country people can afford to buy products even from domestic manufacturers. For many residents, only Chinese counterparts are attractive, and this is not surprising: these products are the most affordable, and their quality has already significantly increased.

If you decide to build a business selling goods from China, you need to consider that this area has its own peculiarities. The following pluses are worth noting:

  • purchase from suppliers directly without overpayments;
  • wide range of goods;
  • good quality of products;
  • simple scheme of work.

Among the disadvantages of trading in Chinese goods are some of the risks of direct cooperation. To avoid this, you need to know at the initial stage the specifics of the work and the specifics of this market. Next, we will consider how to organize a business in practice, taking into account all the circumstances.


Business selling goods from China


Product specialization determines the categories of goods for trade

China's production is divided into regions, each of which produces goods of certain industries:

  • Guangdong produces appliances and electronics;
  • auto parts are produced in Hubei, Shandong, Jiangsu;
  • Dongguan manufactures plastics, footwear and women's clothing;
  • sports and textile goods are produced in Yabaolu;
  • clothes, furniture, electronics are produced in Beijing, Guangzhou, Zhuhai.

It is important to check in advance the suppliers you plan to work with, because there are resellers in the Chinese market too. They buy products from manufacturers and resell them at a much higher price. To avoid such problems, it is necessary to determine the direction of the goods, study their specifics and research the areas in which these products are manufactured. It is worth looking for suppliers directly in these regions. Be sure to study the prices and compare the prices of several companies.


The price of the product depends on the batch produced

Pricing in China is specific and differs from our usual understanding. If the price list initially indicates the cost of one unit of production, then when purchasing in the invoice, this price may differ. This is due to the fact that the cost of one item depends on the batch released: the number of units produced, quality, features.

For example, wholesalers sell large quantities of goods in parts. It can be products manufactured in a batch of 500 units or more. Retailers are dealing with a product that is produced in smaller volumes - several tens of units per batch. In this case, the prices for products depend on the volume and the order of a different number of products.

To make the pricing policy clear for you, it is necessary to discuss all the nuances with the supplier in advance. Specify the unit cost, batch size, price for the amount of goods that you plan to order, additional costs. Place an order only after clarifying all the details.


Reliable suppliers can be found at events

When choosing suppliers, it is important to study the market well. It will be great if you can first go to China and get to know everything there personally. If this is not possible, you need to study in detail the ratings and reviews of the suppliers you plan to work with. However, there are other options as well.

Representatives of enterprises for the production of goods often participate in all kinds of forums, conferences and exhibitions. They talk about the manufactured goods and present them. Only trusted suppliers undergoing a rigorous selection are allowed to such events. If you are unable to attend such exhibitions, you can find information about suppliers and company representatives on the forums website. This will confirm the reliability of the manufacturers of the goods.


First you can order a trial batch of goods

You will not learn anything about the quality of goods and the effectiveness of the work scheme until you order the first batch of products from China. Let it be a small amount of goods. You can familiarize yourself with the products, see delivery times and evaluate the work of suppliers.

There is high competition in the Chinese market now. Manufacturers are trying to eliminate rivals not only with affordable prices, but also with high-quality products. To maintain their image, they openly discuss all conditions with partners:

  • volume of purchases of products;
  • conditions for the return of products;
  • delivery times;
  • additional wishes.

Many Chinese suppliers are working to improve the quality of service for partners, customers, promptly answer all questions, help with the choice of goods.

Unscrupulous sellers are easy to spot. If the supplier rarely gets in touch, does not answer your questions, does not discuss the terms of the order, payment, and delivery is delayed, then this is an unreliable reseller. Working with such partners can negatively affect your business. Moreover, you may wait too long for products, and the start of sales will be postponed indefinitely.


Features selling goods from China


Features of the delivery of Chinese products

If you are considering options for shipping goods from China, do not rush to choose the traditional or the cheapest ways. This choice depends on the characteristics of the product:

  • bulky goods are best delivered by sea;
  • valuable cargo and perishable products should preferably be delivered by air;
  • products with a long shelf life and regular price can be transported by road and by rail.

When you figure out which categories of goods are the best and cheaper to transport, you can save money on transportation. Be sure to discuss shipping arrangements with your supplier before placing an order for products. It is possible that the partner already has working transport options that are beneficial to him and to you.


Benefits of selling goods from China

Nowadays, many people trade in goods from China, but this is not yet a widespread phenomenon. You can decide on the product categories and start selling Chinese products in your country. China has developed favorable purchasing conditions not only for domestic sellers, but also for foreign ones. You can now take advantage of these opportunities and build a successful business based on the above tips.


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