Do you want to learn about the best China wholesale suppliers?
Are you planning to buy wholesale products for your business?
The reason a lot of people move towards buying wholesale products from China is that they get a large variety of options. There are thousands of wholesale suppliers in China whom you can work with to import products. But the real challenge is to find the best wholesale supplier who will support your business growth for the long term.
It is very important for your business to work with the best supplier from China. It takes a lot of time and effort as well as trial and error to finally find the right person to work with. You should know what kind of suppliers are there, what makes a supplier reliable and where to find the right supplier.
This blog includes the answers to all these questions. Let’s read.
Chapter 1: Why you should work with a China Wholesale Supplier
Now that we have given you a sense of idea about what is the article about, let’s move towards why you should work with a Chinese wholesale supplier.
1. Cheaper Price by China Wholesale Suppliers
The first advantage of working with Chinese wholesale suppliers is that you get an optimum price for the product. The product does not affect your pocket, making Chinese wholesalers perfect for people who are starting a new business and are on a budget.
The reason for this cheap price is that China has a low average wage. Plus, the Chinese government tax reforms also lead towards lower product prices. The combination makes it economical for international buyers to get a “Made in China” product as it helps in making higher profit margins.
2. More product’s variety
Talking about the second advantage, Chinese Wholesalers have a wide variety of products available as they are dealing with multiple manufacturers.
For instance, if you are dealing with a phone covers wholesaler, you will availability of covers for different models, colors, sizes, and designs. That is also fruitful for you because then you can list multiple varieties on your selling page.
3. Knows the local culture and language
Moving towards the third point, it is that wholesale suppliers from China and that means they know the ins and outs of the country.
These suppliers have an idea about how to deal with the manufacturer in terms of lowering the price, customizing the design, etc. In addition, these suppliers know the local language and that saves you from the issue of the language barrier.
4. Large production capacity in China resulting in lower cost
Suppliers from China are working with multiple buyers at the same time. And to help in fulfilling the demand, they have set up large factories capable of producing items in bulk. Now, the advantage of that is you can get a lower price per unit if you place the order in large quantity because of the rule ‘larger quantity, lower price’.
5. Get Stable product quality in long term by Chinese Suppliers
Like the lower price advantage, another factor that contributes here is the stable product quality. With Chinese suppliers, you won’t face issues like “out of 10,000 water bottles, 4,000 are of different quality”. Every piece of equipment will have the same quality and durability.
6. More experienced and provides on the ground expertise
Lastly, one of the greatest advantages is that Chinese Wholesale suppliers know exactly what you are looking for. That is because these people have trained experience in this business. Furthermore, you can also use their expertise in designing a new product.
Chapter 2: What kind of China Wholesale Suppliers you should work with?
There are plenty of wholesale Chinese suppliers available out there in China. The question is what kind of suppliers should you work with? We have categorized these suppliers that will help you in understanding the situation better.
1. Buying wholesale Directly with manufacturers
The difference between manufacturers and suppliers is that suppliers take the product from manufacturers and then supply it to the concerned parties. With manufacturers, it is confirmed that you will get the cheapest price. Plus, you will also get more options to customize your product.
The disadvantage of working directly with Chinese manufacturers is the language barrier. With that, there is a chance your manufacturer will not be able to understand your requirement and that will result in a product that you weren’t looking for.
2. Buying from Wholesalers
The reason wholesale suppliers take a lead over the Chinese manufacturers is that they have multiple varieties of the product because they are working with multiple manufacturers. That will help you in filling your brand’s page with different products.
Another advantage of using wholesale suppliers is that they offer a lower price when you order in bulk. Moreover, they know how to communicate with Chinese manufacturers and develop the product that you are looking for.
The downside of this perk is they don’t offer the functionality of customization. Yes, minimal customization can be done. For instance color scheme, logo printing, etc. But, if you are looking for something that is completely out of the league of suppliers, wholesale suppliers are not the best option.
3. Hiring a Trading Company
The last option is if you are looking for something that is permanent and that is working with a trading company or also known as a sourcing company. A Chinese trading company like EJET Sourcing is operating from China and connecting businesses all over the world with local Chinese suppliers and manufacturers.
They know exactly what you are looking for and from where they can get that product. Sourcing companies also know what requirements (certifications, tax requirements, rules/regulations) does countries ask when exporting the products.
Their expertise will help you in starting the business and taking it to the next level.
But, these Chinese Sourcing agencies operate on a fixed percentage that entirely depends on what you are asking for and where you want to import to. That can be a downside for sellers who have a limited budget. Other than that, these agencies are perfect to work with.
Chapter 3: Tips to Find the Best and Reliable China Wholesale, Supplier
Now that you have an idea about what wholesale suppliers are, let’s talk about the most daunting thing that sellers face. And that is finding the best Chinese supplier. We have mentioned these tips that will help you in getting along.
1. Attend Trade Fairs and meet with the suppliers face to face
Every year China held trade shows called the Canton Fair. Here, almost every supplier or has a reserved booth where they showcase their products.
People who are looking to start a new business have a perfect opportunity to attend these and meet the suppliers face to face. They can check the quality, discuss features of the product, and can talk about extra requirements.
2. Check out online platforms like Alibaba, 1688, DHgate, and more to find Wholesale Suppliers
The second option when looking for wholesale suppliers from China is visiting famous B2B/B2C sites. Now, there are plenty of options for you here.
The most famous one is Alibaba.com, Alibaba holds the largest inventory of wholesale suppliers in China. The advantage of using Alibaba is you will get your hands on your desired product. Plus, due to Alibaba Trade Assurance, you will have a safer way of transaction. Other sites like AliExpress, Taobao, and DHgate are also the option.
3. Get Referrals from friends who are already working with the best China wholesale suppliers.
This tip does not work for everyone. But, for some people, it can be useful. Let’s assume that you have taken the idea of Amazon FBA selling from a friend who is already working in this business. What you can do is contact him/her and can ask for any well-known suppliers.
For instance, they are doing a canvas shoe business and you are planning to start a leather shoe business. Now, they can recommend you a supplier or have a contact who knows wholesale leather shoe suppliers in China.
4. Hire a 3rd party Sourcing Company that has a large network of best wholesale suppliers
In the above chapter, we mentioned sourcing agencies and their advantages. Well, it is a perfect trip if you are looking for Wholesale suppliers in China. Sourcing agencies have a wide network that consists of millions of suppliers and manufacturers.
You can tell them the requirement of your product and they will compare it with their directory of suppliers and contact the one that matches the parameters. The best thing here is you don’t have to do the hassle of searching for a supplier and contacting one. So, it is a win-win situation for everyone.
Chapter 4: Must Include Points in the contract when working with China Wholesale Suppliers
Let’s assume that you have found some potential suppliers. Do you have any idea about what to talk about or what to discuss? We are taking the reference that you are a new startup because professionals in this field know what to talk about. Here are some points that are crucial for you to discuss with your supplier.
1.China Wholesale Suppliers Payment Terms
The first and most important point to remember is payment terms. Terms here include trade and incoterms like FOB, EXW, FCA, or DDP. Plus, the factors like percentage of deposit are also in this chapter. Don’t worry, we will discuss these terms in detail so that you can have a clear idea.
FOB (Free on-board)
FOB is a term that defines shows the shared responsibility between the buyer and the seller. To help you understand, FOB arrangement means that “the responsibility of the product remains with the seller till they are moved to the selected port of shipping.”
EXW (Ex Works)
With some suppliers, you will get around the term called EXW. EXW basically defines that “a buyer will pick up the goods from the manufacturer/supplier and arrange the commute for it. Plus, he/she will also handle all the necessary paperwork.”
DDP (Delivery Duty Paid)
In DDP, the maximum load is on the seller rather than the buyer. DDP contract states that “the seller will deliver the goods to the address provided by the seller and will pay the import duties and fee for transportation from the import point to the buyer’s address.”
FCA (Free Carrier)
In the FCA arrangement, it is the obligation of the seller to arrange the transit to the pickup point. Then after that, the risks and costs are transferred to the buyer.
When discussing terms with the supplier, make sure that you understand when intro terms is he/she using. That will save you a lot of hassle and money when getting your hands on the goods.
% of deposit payment
Another thing to discuss is the percentage of the deposit. Suppliers from China always require you to deposit a certain amount of money. They use that money to arrange the raw materials for your goods or sometimes the goods themselves.
For them, this deposit includes the cost of operating the machine, cost of transporting goods from the manufacturer to their warehouse.
You can always use negotiation skills to lower this percentage so that it does not affect your pocket.
2. Delivery Address
The second point to talk about is the delivery address. It is important for you to tell the supplier the address where the goods will be delivered. That is because the seller then states the incoterms according to the delivery address you have provided. And, incoterms are related to the shipping fee and other costs.
3. Delivery Time
Like the delivery address, make sure that you have discussed the delivery time. That is because if you are buying something that is a seasonal product (like jackets, Christmas lights), your customers will want them in that season. So, for example, tell clearly that you want those jackets before the start of the winter season.
4. Quality Standard
This is another important point in the list. To help create awareness of your product/brand, it is important for you to deliver a quality product. So, ask the supplier whether he will be using A-class raw material or B-class material. Plus, it will also help you in checking whether the supplier has followed the material requirements that you mentioned.
5. Certifications required by Customs
Regions like UK, USA, and Europe require certain certifications when you are importing a product. These certifications are related to the quality of the product, the standard of the materials, etc. If you are not able to provide them with that, they can seize your products. Discuss that with your supplier and ask them to provide them with these documents upon sending the goods.
6. Packaging of the goods
When talking with the supplier, if you are ordering something that is fragile, make sure to tell them to wrap the material so that it does not break during the shipping process. Similarly, if you are also looking for a specific packing (logo, color), write that when talking with the seller.
7. After-Sales Warranty
An After-sales warranty is the one that will keep you from losing your money. It is a contract that defines that if certain parts of a product break, you will get a refund or a replacement. So, get that in front of the supplier.
8. Terms and Conditions
Lastly, discuss the terms and conditions that include you getting the hold of the product and its branding, time for depositing remaining payment, and the hold of the mold with the supplier so that both parties can make a clear transaction.
Chapter 5: 10 Most Useful Websites to find Best China Wholesale Suppliers
Here are some of the best sites that will help you in finding the Wholesale Chinese Supplier.
Founded in 1997, Alibaba houses the largest inventory of suppliers and manufacturers. These suppliers offer millions of products in different sizes and colors. The sites make it a perfect stop-shop for online selling businesses.
AliExpress is the sister website of Alibaba that mainly deals in B2C transactions. But, the sites also contain a large variety of items ranging from clothes to electronics, phone accessories to household accessories, machinery items, and more.
On the third comes Dhgate.com. DHgate has gained the title of the best dropshipping company and it is catering to local wholesale suppliers as well as international suppliers. Here, you can find food items, jewelry, and fashion accessories.
This Alibaba-owned site mainly deals in C2C business transactions. Here both sellers and buyers are individuals and no third party is dealing with them. It is for people who want to buy items in small quantities.
Tmall has two faces. One contains local Chinese suppliers and the other is the global version where international suppliers are available. A lot of famous international and local brands are working here. If you want items from brands like Nike, Addidas, Lacoste then this is the site for you.
Global Sources is a Hong Kong-based business-to-business (B2B) website that is operating since 1971. This site and Alibaba have the same business model and features millions of Wholesale suppliers from China. It is a wide range of products that include consumer electronics, auto parts, hardware, and many more.
Madeinchina is another option for new business owners who are looking to buy items in bulk at cheap prices. The site has been connecting local manufactures with international buyers with amazing efficiency. Plus, it offers different types of guarantees so that buyer’s money is safe.
China brands have been rated number 1 in the USA when talking about the best Wholesale suppliers’ website. The site provides the option of dropshipping services that include product sourcing, shipping, and publishing. The site also has an integration with eBay, Amazon, Lazada, and AliExpress.
Banggood was founded as the supplier of computers and technology. But, later the company shifted to e-commerce services. The company is known for cheaply priced items and amazing quality. They are known for fashion items, clothes, gardening tools, electronics, and mobile phone accessories.
Chapter 6: Tips for buying from China wholesale suppliers
When buying from the supplier, make sure that you are doing efficient buying. But, how to do that? Here is the answer.
1. Focusing on products that would sustain a long-term business
The first and foremost thing to do when buying from a Chinese wholesale supplier is getting hands-on items that will provide long-term profits. For instance, take a look at the example of yoyo toys.
It is pretty popular back in the day and a lot of people made profits from this item. But, now, there is no sign of yoyo. This is because the yoyo toy is not a stable item.
Another example is Christmas lights. These lights are only sold in the season of Christmas. For the rest of the year, they will be lying on the stock self. So, the idea is to buy the items that are running all the year.
2. Don’t trust the supplier 100% while buying
Chinese suppliers, at first, give out an impression that there no one more trustworthy than them. So, there is no point in fully trusting them. The reason for that is at the start some suppliers will give you a high-quality product. But, after you start trusting them, they decrease the quality of raw materials used, hence you will be getting a low-quality product.
3. Watch out for the scammers
There is a chance that you will get a deal with a scammer. Yes, a lot of people have witnessed this issue. Chinese suppliers can scam you by showing you a high-end product.
And, when you order from them, they send you a lower quality item. To avoid that, what you can do is read the reviews and consider going to the factory by yourself.
4. Ask for samples before ordering
It is the best practice to ask for samples before placing the bulk order with Chinese Wholesale suppliers. That is because then you will get the idea about what quality the supplier is offering. Consider asking for 5-6 samples so that you can inspect the item completely.
5. Negotiate for a better price
Negotiation is important when buying from China wholesale suppliers. That is because it defines your profit margins. Consider talking about lowering MOQs, price per unit, and negotiating about the quality of the materials used in the price you are offering.
6. Ensure product compliance and quality
When you order samples from the supplier, make sure that they are meeting the regulations defined by your country and are matching the compliance rules. Because it not, it can lead to the customs department seizing your items.
7. Use legal payment methods
When you are done getting the quote and it is time for paying the China wholesale supplier, use legal payment methods like Alipay. The advantage of legal methods is that you have proof. The second perk is that AliExpress offers Alipay that has trade assurance. It will help you in getting your money back in case of a scam.
8. Use a 3rd party inspection company to inspect the goods
If you cannot make a trip to China and check the product by yourself. What you can do is hire an inspecting agency like EJET that will check the product. The agency will match the specs sheet with the product and will confirm that the product is according to the requirements.
Chapter 7: Frequently Asked Questions About China Wholesale Suppliers
1. Are suppliers in China Legit?
Yes, most of the Chinese suppliers that are working from China are legit. There is a slight chance that you will face any scammers. Apart from that sites like Alibaba always perform detailed checks on all of the suppliers so that you don’t have to deal with any scammers.
2. How do I find legitimate wholesale suppliers?
Here are some of the things that you can do when finding a legitimate Chinese supplier.
Visit trade shows and Canton Fairs.
Search for the potential Chinese supplier on sites like Alibaba or AliExpress.
Get a recommendation from a friend.
Hire a sourcing agency that will find the supplier for you.
3. How to negotiate to get the best price from China wholesale suppliers?
When negotiating with the Chinese suppliers, you can follow these points mentioned below:
Offer the supplier to pay the machine starting fee.
Consider the supplier’s margin.
Don’t tell the supplier that you have a limited budget.
Give an impression that you will walk away.
4. What qualities make a China wholesale supplier reliable?
If a Chinese supplier has these qualities, then don’t take a second in hiring that supplier.
Offers a wide range of product variety.
Has a larger product manufacturing capacity.
Is offering the same quality as discussed.
Is offering his/her expertise in finding/making your product.
Starting an online selling business can be a headache if proper work is not done. And the main factor that contributes to this business is finding good China wholesale suppliers.
But the thing comes when you have to find the one from millions of China wholesale suppliers. In order to do that, there is a lot of work to be done. For instance, you have to visits websites, enter trade shows, and whatnot. For some people, it can be a daunting task.
So, to help you with this situation, EJET Sourcing has compiled the guide that is diverted towards the China Wholesale suppliers. The guide contains important information on how to find them, what to look for when searching for them, and tips to follow. We hope that this guide will help you in starting your own business.