A majority of small and medium businesses import their products from Chinese wholesale market. It really helps to import products as they are necessary for growing the business. This also helps in maintaining a good relationship with the dealers. Sourcing suppliers from China takes some amount of hard work but if you know which are those products that can fetch profit, you will be able to source more products. Here are some of the most important products that are sold all around the world after being sourced from China.
- Electrical machinery
- Electronic gadgets
- Sports and toy equipment
- Vehicles without Rails
- Iron and steel machinery
- Car accessories
- Plastic items
It has been found in different research studies that these items are mostly sourced from the Chinese wholesale market and sold online. However, there are others that are sourced and sold too. Now, if you are just starting to establish your business, you will obviously want to know which is the best product. It is not easy to find out which is the best seller. A lot of research work is required to know the answer. The biggest factor that impacts this consideration is the market condition. It is essential to know the market condition because that will help you to find out your profit margin. The profit margin also depends on finding out the product which has minimum risk in importing it. For instance, garments and small accessories have the lowest market risk.
Now, being a beginner if you think that you will get the best profit margin, that will not be possible. There are others in the market who are way better than you and more experienced and thus, they know about which product to sell to derive the best profit margin. He will have better contacts than you in this business. Freight forwarder and custom agents are absolutely important and having good relationship with these people help in establishing proper business. However, small and medium business entrepreneurs are following new business models to sell their products which they have sourced from China. These business models also help in sourcing new range of products to be sold.
Here are some of the points you should remember to do business properly with your Chinese wholesaling counterparts:
- Try to maintain a good rapport with those who are selling their products to you. Just by maintaining a good relationship with them, you will get the products at a much lower rate.
- Do some research work to gain a thorough knowledge about the market from which you are acquiring products. It will also help you in knowing the best seller.
- By doing this, you will also come to know about the market trends and the demand trends.
Single Out Yourself
If you are a small or medium entrepreneur, then you have to be very careful about choosing products that do not get into competition with the giants directly. Therefore, pick a small niche to sustain your business. The giants import at a much bigger rate from China; a rate which is staggering. Keep your product selection and your niche practical, only then will you be able to sell your products and also gain some profit. There are some niches like garments which are quite common and no matter which scale of retailer you are, you will be able to sell your products. Then there are niches like electronic gadgets for which you have to be a credible retailer to sell products and earn profits.
Picking Products that are Labor Intensive
China has the biggest manufacturing market because it has the largest supply of cheap labor. Products are manufactured by people instead of automated machines which leads to their price being half an expensive as the ones manufactured by machines. A majority of their products are manufactured by moderately skilled labors who are not paid highly by their employers. Thus, the price of these products are quite cheap. The biggest example are Chinese electronic gadgets. The price can be around 90% cheaper than that in the market of a Western country. That is incredible! But true.
Thus, choosing your products carefully from Chinese suppliers online goes a long way in turning your business venture into success. Knowing the market, the business process and also the products to be sourced will definitely help in finding your strong foothold in the world of buying and selling.