China has emerged as one of the major producers of many unique as well as inexpensive goods. You can always source any item in bulk from China and then sell it in your country or anywhere else. Chinese products can help you to increase your profitability and also help in the growth of your business by providing an opportunity to get high margins.
However, when the bulk items purchased from China you must learn how to buy any products from China in bulk. The following are the 7 steps that you must know.
- Understand your main role in the whole process
When you buy things from other countries, e.g. China, you are an importer. All you have to do is provide your supplier with your address and they will take care of the rest. DHL, FedEx, or UPS will most likely deliver the package.
Smaller, lower-value products will be delivered directly to your door. You need not have to go to the local shipping store for collecting your packages.
- Find good products
Chinese companies produce a lot of good products, but they also produce a lot of terrible ones. A large number of Chinese suppliers sell low-cost, low-quality goods. These products should be avoided, especially if you want to resale them to your clients.
Therefore, you should be able to distinguish between good and terrible items, as well as the distinctions between China and other Western countries.
- Usually, China has entirely different quality standards compared to Western countries.
- China has different norms about intellectual property, and you can find plenty of counterfeit products
- Prefer to buy only good quality products if you want to resell them in your own country.
- Check the importing rules of your country
Before you buy something from another country, be sure you can legally import it on your own. Certain products are subject to import restrictions in some countries. If you attempt to import any prohibited items, they may be returned to your shipper. You could be fined also by your government.
- Find the HS code of your product
Each item will be assigned with ten-digit tariff classification number. To compute the duty rate, which will be an import fee that you must pay, you will need the tariff classification number as well as the Certificate of Origin. A land cost calculation must also be completed.
Ensure your landed cost is determined before submitting your order to your supplier. The FOB rate is calculated by putting the product price, customs clearing fee, Chinese shipping charges, land transportation costs, and also duty and tax costs together.
- Locating your Chinese supplier
If you are clear about the bulk items purchased from China, then the next step will be to find your supplier who will supply your order. You must be sure of their shipping terms, particularly the delivery time.
If you have found your suppliers who appear good, then ask for an Invoice from them. This documentation will provide you with specific info about all your purchases, e.g. the weight, value, packed dimensions, and description of each product.
- Calculate your total shipping costs
There are many different fees needed for international shipments. Aside from your standard shipping costs, also you have the following fees:
- Container fees
- Packaging fees
- Broker fees
- Terminal handling fees
Sum up the cost for bulk items purchased from China by considering entire fees so that you are fully aware of what is going to be your shipping expenses. Also, you can know how to ship items to the US from China.
- Track the shipment
International shipments will take a much longer time to arrive. If you live on the Eastern Coast of the US and order something from China, the package will most likely take 30 days to arrive. If you live on the Western Coast, it will take approximately 14 days.
Save your bill of lading, packing list, and the commercial invoice, as well as any other freight documents relevant to the shipment. This material can help you understand the customs clearance process, which your shipment will face once it reaches your country.
Few common mistakes that you must avoid while buying any product from China in bulk quantity.
- Always importing any item that is very popular today
- Ignoring any low-value products
- Thinking that only highly consumed products will be good products
- Choosing large-sized products, and end up paying higher shipping costs
- Thinking that cooperating with any single factory will be the best solution
- Only preferring a supplier that offers the cheapest quote
- Only buying from Alibaba and ignore all other procurement channels
- Think all sourcing agents in China are nothing but scams
- Trusting too much on “Alibaba Verified Supplier”
- Trust too much on trade assurance
- Not doing any research before making a visit to China
- Not sourcing the product from the right places in China
- Visiting Canton Fair without finding out whether it is suitable for your business
- Believing that mass goods are going to be much better than the sample
- Not specifying a written detailed product requirements
- Communicating only through email and not using any other messaging tools
- Your best time may not be your supplier’s best time
- Not checking the holiday schedule of China while payment processing
- Not knowing the handling fee and/or arrival time of your common payment method.
- Not having clarity about different trade terms
- Not aware of how import duty and tax are levied
- Always preferring sea freight for volume shipments
The following are a few most profitable items that you can import from China this year:
- Hydrocolloid patches
- Tempered glass phone screen protectors
- Garlic presses
- Disposable face masks
- Cell-phone car mounts
- Jade facial roller tools
- Ring lights
- Water shoes
- Wireless phone chargers
- Wi-Fi extenders
- Lighted (LED) mirrors
- Gua-sha facial tools
- Memory foam pillows
- Security cameras
- Meat thermometers
- Air fryers
- Nail polish
- Cosmetic brush sets
- Mini tire inflators
Certainly, the potential for profit from bulk items purchased from China will be very high, however, this trade may not be as easy a task, particularly for beginners. Many rules and procedures need to be followed that may create costly delays in case they are overlooked. So, get yourself acquainted well to avoid any common mistakes.