Blunders To Avoid Before Purchasing Bulk Products from China
The concept of purchasing customised goods directly from Chinese suppliers is perfect for companies that desire low prices at low quality for the goods they purchase. When it comes to clothing, plastics, and electronics most of the products we see on the market today are manufactured in China.
For those who work in the retail or e-commerce industries, purchasing goods from China is already a tried-and-tested technique. Finding contacts for manufacturers and suppliers who are headquartered in China isn’t difficult to do because they can be reached via their websites and are only a Google or Alibaba search away.
The difficult part, however, is determining whether the goods you’re buying are of the highest quality, genuine, and custom created. Shopping directly from China doesn’t guarantee that you’ll receive the items you requested. Make sure you are aware of the most prevalent traps and trading techniques.
Otherwise, it is always wise to hire a sourcing agent when you have ordered bulk products from China. They work as a bridge between the buyer and seller. Hiring a Chinese sourcing agent is more beneficial as they understand the common language which makes communication much easier. Business owners can simply tell them the products they’re looking for, their price, and other requirements and leave the rest to them. It is the sourcing agents’ job to match all requirements accordingly by finding the most suitable supplier in China.
Numerous businesses throughout the world acquire wholesale goods from China to boost their sales. This seems straightforward and effective to many start-ups in the industry. However, the reality is that many people fail to avoid some of the common problems. That’s why we have pointed out mistakes to avoid when buying bulk products from China.
Mistakes to Avoid When Buying Goods from China
Paying Full Deposit
This is a common error that novices in a wholesale industry frequently make. Paying in advance is always a good idea. The share will increase to one-third of the whole amount of your order. The balance should be paid once you’ve examined the Chinese goods you receive. If you’re good at negotiating in the marketplace, you might be able to reduce this first portion of the deposit. Therefore, make sure your deposit is as small as possible until you inspect the quality of the things you ordered. Only then can you pay the balance.
Adequate License and Certificate
One of the biggest mistakes you can make when buying bulk products from China is not verifying the country’s laws. Different countries have various laws when it comes to the quality of raw materials. You should be aware of the applicable legislation in your country, so you may compel Chinese suppliers to provide the necessary certificates. It is crucial to strive to do this since, without these certificates, you would not be able to find employment. Additionally, without certain certificates, you might not be allowed to import a specific product from China, which means you can anticipate suffering a greater loss. Therefore, be sure to request from Chinese vendors all the necessary certificates.
Chasing Lowest Price
Several Chinese vendors can be found in the wholesale market nowadays. Naturally, where there is fierce rivalry, providers will apply a variety of tactics to get your attention. Price is one of the first things you consider when purchasing something. Some suppliers offer you the lowest prices, and you believe them instantly. Once you make a deposit, you run into problems like changing the product’s starting price.
Suppliers can offer a variety of justifications, such as the fact that raw materials are now more expensive or that shipping costs have skyrocketed. Since you previously paid the deposit, the difference in the value at which you must have earned is no longer the same. Consequently, the cheapest offers usually don’t stick around since they’re not feasible. Therefore, do business with reputable Chinese suppliers instead, even if they are slightly more expensive, as it will ultimately be beneficial.
Large Products Have Shipping Problems
Avoid choosing large-sized items when making direct purchases from Chinese companies since you will end up spending more on transportation and shipping costs than the actual value of such items. Imagine purchasing Chinese-made wood cabinets to sell them abroad. Customers soon realise it is too expensive to acquire since the costs of moving and shipping these items are too high to add to their selling price.
Therefore, it could as well be large and hefty if you have time to wait for a container and a high-quality product and you plan. Since many people shy away from trading with larger products, it is frequently even more profitable. Just more knowledge and preparation are required.
Do Not Fall for Trends
Many businesses have fully developed to succeed only by promoting the right products for a long time, and it has been mostly because of the right timing. The biggest problem, though, is that there is no longer a trending item that can be sold without creating a commotion. When purchasing directly from Chinese manufacturing companies, don’t allow the trend to decide what you should purchase.
Constantly plan to run a long business and profit from customer retention with your products. relying on trends restricts your firm in terms of temporal layout, and it would be difficult to establish a store’s personality. Always assume when buying products from China that it’s not because they’re a part of the current trend, but rather that it’s a long-term investment.
Every step that you take while placing an order for bulk products from China will include hurdles. Being a foreign buyer, you will have to inspect, audit, and stay in touch with your supplier regularly. However, not all buyers are always available, and the process is also time taking. If you want to avoid the above-mentioned mistakes ever in your business journey, then appointing a sourcing agent may solve many of your problems.
Implement these tips in your business routing and hire a sourcing agent. Your business will run smoothly, and the sourcing agent will help you with all your mid-process troubles until the product reaches optimum quality to its destination.