Since business model is changed effected by internet online shopping development, from distributor to wholesaler, retailers and online stores do not buy from distributor or wholesaler in their country locally any more, specially affected by more and more Chinese wholesale business offered in China, such like DHgate and Aliexpress platforms offer wholesale products from China, nowadays, ebay, amanzon and online stores owners just simply have their product sourcing buy from Chinese wholesaler, we call this small quantity wholesale in China.
Small quantity wholesale in China has been developing very quickly, a lots of new companies has set up their online wholesale websites, China factories also see business opportunity due to their lack of big quantity orders, on the other side, factories affected by this reason has to shut down their factory, because only factories who can be responsible for their product quality, it need a good production management system to manage the company.
As we know that shipping by LCL or by air small lot will cost much for international freight, more small orders will takes more time, now, we will have an example of how international online store owner do this work. The important thing is they hire a sourcing agent in China.
1. Buyer prepares a product sourcing list, including, item pictures or link they found from internet and order quantity, etc.
2. All orders will be EXW terms with wholesale suppliers, but you need to plus transport cost to warehouse. If you ask the supplier to quote FOB, that is not smart, because the supplier will add the FOB cost to each unit item, usually, FOB cost for a shipment is $250-$500, because we handle export by ourselves with shipment consolidation, we will only pay one FOB cost for the whole container.
3. The sourcing agent order from wholesalers or retailers in China, represent buyers to communicate with wholesale suppliers for product details, negotiate prices, calculate China domestic freight to warehouse. Certainly, supplier evaluation is very important, sometimes need to ask samples from suppliers to check the quality before order.
4. A total delivery time must be scheduled for all orders, and a qualified warehouse will be needed, a shipment consolidate may contain a lot of suppliers; a bad warehouse management will have your parcels lost.
5. A delivery record for all orders has to be created to make sure which order has deliver to warehouse and cbm of each order.
6. Can we have the shipment consolidation go by LCL or FCL? We suggest the shipment to go by FCL even the container only reach to a cbm around 20cbm, because this will be easier for China custom clearance. If the goods export by LCL, you will need to apply custom for every kind of products, the more item you apply to custom, the more cost would be; if you send the goods by FCL, you can just have a container package clearance, that will be simple and save cost. Sometime, there is an occasion, which is some suppliers want the goods to apply to China custom to have tax refund and create export turnover, they will require their goods to apply custom. This will need you to confirm the term before order, by EXW term they will not apply custom, FOB term they can have their goods apply custom; if one of the goods in the container apply custom, all of the rest goods will need to apply custom too. In spite of this, we still can clear the custom for the container, will just increate the cost of custom clearance.