It doesn’t matter if you are a start up company or a multinational brand, China holds enormous business possibilities for everyone. You just need to select a trustworthy wholesale supplier in China to boost your business. When you are first looking for suppliers, you want to try and go with someone who is a bit smaller because they will be hungrier for your business and might be more open to doing something a bit different.
Locating low cost products in China is easy but finding quality products at an affordable price range is challenging. Sourcing agents solve that puzzle and easily identify manufacturing companies that offer standard product without charging high. Agents always try to strike a profitable deal for their clients.
At the time of sourcing a particular good or item from China, you’ll need to research the rules that you have to obey strictly. The number of regulations will depend on the type of product you’re purchasing. This is always a requisite for any sourcing of Chinese wholesale products. Not knowing the rules of sourcing products from China manufacturers is the basic difficulty most of the business owners find doing business with Chinese companies.
- Negotiate the right deal
- Accurately plan your import objectives
- Choose which method of transportation you are going to use
- Taxes and duties on imports
- Purchase Chinese items at a wholesale price
- Identify a good, legitimate and reliable supplier
- Declare your imports to HMRC
- Reduce risk by having a clear contract
There are two basic reasons that make wholesale suppliers of China capable of offering goods at a competitive price –
First– A lower standard of living, which allows companies in China to pay lower wages to workers.
Second– An exchange rate that is partially fixed to the dollar.
When importing from China, you need to go through a steep learning curve. You can’t claim success at the very first shot. It will take two to three shipments for a US importer to understand the process of sourcing products from Chinese wholesale suppliers. You need to have a proper guideline and a well-defined sourcing strategy.
Understand Tariffs for your Country–
Keep in mind that you have to pay import tax on the goods and items you are sourcing. A US importer may have to pay 0% to 17% tax (approximately). It is recommended that you have the right harmonizing code.
China sourcing experts are of the opinion that, before a true supplier strategy is considered, a thorough cost, product and service analysis should be initiated which will allow you to review all requirements. China is one of the world’s export powerhouse, going directly to a manufacturer is almost always the best approach, as you’ll have the most profit margin.