Long lead times and high MOQs are 2 major hurdles of importing products from China. These are especially problematic for start-ups who deal with scarcity of cash. Sourcing customized products from China is not easy and it takes months to even get a sample before entering into a business transaction with them. Now, if you can skip working with a factory and find out a wholesaler for yourself, you will be saved from MOQs. However, life is not a bed of roses and getting wholesaler suppliers from China according to your wish list is next to impossible.
Still if you have a small business, it is feasible to get wholesale products from China at low price. But do research on whether they are capable of taking your order and doing business with you. Here are some points to look into:
- Visit Yiwu- China is full of wholesalers but Yiwu in particular is geared towards exporting goods to foreign customers. This is an old city which offers loads of wholesale products for the purpose of export. There is a wide range of medium and small wholesalers selling products to foreign companies for business purpose. The infrastructure is well developed in this part of China and hence finding local product sourcing agents in China is easier here.
- Lower MOQs- Small business owners are interested to buy wholesale goods instead of private customized buying due to several reasons. The first being that the customer can check the wholesale website online. You can check the sample and then pay for your products. MOQ or Minimum Order Quantity can be provided by wholesalers but not by manufacturers. Buying wholesale is more viable for small business owners because they can order few pieces.
- Lack of Export License- Some wholesalers actually lack export licenses and this is a negative point in doing business with them. When they lack in export license, the wholesalers are not even eligible to sell products outside country. The foremost reason for this is that majority of Chinese buyers do not manufacture for exporting products; they mostly prepare it for domestic markets. Luckily, there are legal ways to export products even without an export license. However, that is a problem with many sellers because it causes hassles.
- Compliance Issues- Products manufactured for domestic Chinese market sometimes face compliance issues with overseas market. Some of the regulations are restrictions on heavy metals and chemicals, technical standards and safety standards. China has different set of regulations for exporting products which do not correspond with other countries. Wholesale is not an option for kitchen utensils, watches and jewelry, electronics, machinery, toys and children’s products.
- Labeling Compliance Issues- Clothes being manufactured in China are not eligible for labeling in foreign countries. Some countries set labeling requirements which is particularly eligible for developing markets in Asia, Africa and America.
- No Branding- Branding wholesale product is not an option. There are no brands for wholesale products and therefore building a sustainable business on it is difficult.
Finding wholesale suppliers from China can be done following these tips. They provide an overall view with the positives and negatives of locating Chinese wholesale suppliers which is definitely of help to the small and medium sized business owners around the world.