Business

Mistakes to Avoid When Buying Wholesale from China

Finding the best Asian wholesale agents would not be such a hassle if it wasn’t so important.

Why? Because wholesale suppliers can be your business partners. A good one can help you achieve success. However, a bad one can cause significant headaches.

We’ll be showing you five methods to find the best wholesalers. We will also tell you how to avoid bad apples. Let’s get to the point.

 1)  Correctly Negotiate Price

Amazon sellers charge 7x-8x more for their products than they would if they were sourcing them from China. Once you have established your margins, you should not bargain too hard on price. The following are some reasons why this could be a problem:

Be reasonable with your Asian wholesale agents. Ideally, you will keep in business as long as they are in business. Amazon sellers could be at risk if they tried to lower prices and make more profit for the manufacturers.

What is the best way to negotiate? For large orders, you can negotiate a fair price and promise long-term commitment. You should ask for concessions if you are satisfied with the product and want to purchase more than the MOQ. A $0.10 price hike won’t affect your profits, but a Y= 0.68 change in Chinese currency can impact the bottom line of the supplier.

A manufacturer who specializes in your product may quote you a high price. How can you convey to the market that you are knowledgeable enough to know that there is a better price elsewhere? Do your research. This is the best way to get a competitive rate or a better rate for larger orders.

 2) Request A Sample To Be Sure You Know What You Are Getting Into

The manufacturer’s ability to produce the sample is proven. Order samples from each manufacturer to determine which factory is the best value for money and quality. These tips will assist you when placing your order.

You want to sell a variant of a product on Amazon. Request the Asian wholesale agents to send you a sample with all your specifications, including changes in colour, size and other features. The Asian wholesale agents will charge a one-time fee for creating a logo, which will be added to your next order.

It can take some time to create a custom sample. You should order a sample from the supplier if you want it to arrive within 3-7 business days. Please provide details to ensure that the supplier sends you a very similar sample to what you are looking for.

It is possible to get a free sample and pay only for shipping. You can decide whether each sample should be shipped separately or pay $30-60 for shipping. You can also use a freight forwarder for all your samples bundled and shipped in one box.

 3) Participate In Quality Control

Partnering with the right factory is the most important rule for sourcing from China. It is important to have faith that you will get what you pay for, and these tips will help you avoid disappointment.

  • Give clear specifications and drawings to the supplier. Don’t forget anything, and never assume the factory can figure it out.
  • Ask the manufacturer any questions. Respectfully insist that the manufacturer has understood your requirements. Be polite and use the right words to convey your message. Mandarin proficiency will prove to be a benefit.

Products must not be shipped out of the factory damaged or unsatisfactory. Before products can be shipped to you, quality control must occur at the factory. Factory inspections should include visual checks for color, shape, appearance and dimensions. Also, they must outline the internal checks that were made.

These are the three most common quality issues that can arise:

  1. Mass-produced goods are not comparable to the samples
  2. There are many batches with inconsistent quality
  3. It’s not clear who to contact for quality-related instructions

These two problems can be resolved by adding more quality control steps or having a representative inspect the raw material and oversee production at various stages. A sourcing agent can provide this service who will watch over quality and keep the factory in check.

Chinese suppliers create products that meet market expectations.

It is impossible to hold Chinese factories to the same Western manufacturing facilities standards. China was once poor and isolated. The Chinese might not immediately grasp the same quality standards that Westerners expect. Chinese factories can provide a product that is reliable and cost-effective. If you are looking for unmatched quality and distinction in your product category, then China factories might be the best option.

Instead of using subjective terms such as “top quality”, specify which type of raw material and how the product should perform in a stress test. Although it may take some back and forth once you have received the sample, a supplier agent can help you to state your requirements as accurately as possible and ensure that your supplier has all the information they need to make your product to your specifications.

 4) Pay Attention to The Pros and Cons of Each Payment Method

There are many options for payment methods to suppliers. You can partner with a supplier through Alibaba to get a Trade Assurance. This reduces risk and guarantees your money back if your supplier fails to meet your order terms. You are eligible to receive a refund if your product is not shipped on the due date as stated in your contract. Trade Assurance is not available to all suppliers.

Chinese suppliers will accept credit card payments. Credit card companies will usually refund money if the supplier does not ship your order or the quality is significantly different from what you ordered. The credit card company will investigate and refund the money within 2-3 months. There is a possibility that they will try to pass on processing fees, which are approximately 3% of the transaction amount.

PayPal is a popular method to pay Chinese suppliers. However, some people are cautious about the possibility of buyer chargeback. The second currency exchange fee must also be included, which can be up to 7% of the total transaction cost.

 Conclusion:

Many wholesale sellers make errors when purchasing products from China. Sometimes this happens because they are newbies in the business. However, it can also happen to people who have been in business for a while but cannot handle some of these challenges. We hope you have been able to identify some common mistakes and avoid them.

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