How to find the best wholesale prices

Internet has growed for so many years, all prices is transparent when you send a inquiry to a supplier.
why? because from internet, you can send one inquiry for one products up to 10 suppliers or more, finally, you will get the lowest price,
and then you compared to pick a reasonable price with better quality.

Now it is not a price world, it is market research world.
what you need to do is simply to research the market to find out the best selling item or test selling,
calculate if it has profit, if it has profit, sell it, if not, no need to sell and no need to find better price.
if you are a smart business man, you will do like this.

How do I consolidate shipments from multiple suppliers? — Aliexpress consolidate shipment service

Consolidate shipment is Third party or person to receive parcels from different sellers, pack all parcel into one big parcel, or put all parcels to ship as one shipment to buyer.  This service is existing to save the cost and save time for buyer.

With business of internet grows so fast, international wholesalers and retails looking for the source of importing from china, when they want to place orders with multiple suppliers from China, but don’t want to pay for separate shipments. it will require to combine them into one shipment in order to save on costs. How exactly can I do that?

There is an example from aliexpress(wholesale and retail website under alibaba):  Buyer find many items from different sellers on aliexpress, all sellers there offer only free shipping for China post registered mail, which will takes several months to wait to receive them, mean while, parcels from each sellers have to be under 2kgs to meet the requirement allowed by registered mail, more quantity of items would need to separate to more parcels. As there are so many sellers, buyers need to follow up the order with different sellers, when they will ship and what quality the item would be, etc. all these takes most of buyer’s time and may cause some troubles to his business.

Now, Aliexpress consolidate shipment would save all these work for buyers, buyer can also get extra quality control service before shipment in China, that is really great for business, and stable supplying chain source for buyers. Will it be will more cheap Shipping your items using consolidation services than using aliexpress?

Consolidation service is obvious saving you money. For example, 10 sellers each 1kgs, which cost you $40 by DHL, total would be 10 kgs from 10 sellers, cost $400.
when you use consolidation service, this cost can almost allow you to ship 20kgs of goods, and 20kgs cost you $350 by DHL.
so, you can see how much it save now?

The rules are: the more you buy to consolidate the more you will save.

Shipping from China to US by sea

when you deal with a supplier or manufacturer, when they quote you a Ocean Shipping cost, is that mean it including all cost to your port or to your door?  the answer is no.

First, you can check with your supplier whether this cost  is with US  port cost or not.  But I believe is just a FOB port cost and the freight cost  on sea, not including any cost when the vessel arrive your port.

there will be lots of other cost need you to pay when the goods arrive your port, such like handling fee, custom, etc.

Second, regarding this case, you should not ask the supplier to handle the shipping, you should find a US shipping company(forwarder) handle your goods from China port to your door. ask the forwarder to quote you freight including US site cost till deliver to your door, as well as tax, etc.  make sure there is no hidden cost when goods delivered to your door.

Last, just ask your supplier to book shipping space with the forwarer you have confirmed.

 

Ship cartons from China using sea mail with China Post, cheap?

That will be too expensive, you need to have a good business plan.

 

here are some of my recommendation for your business:

 

1. if you import heavy and big size products, it is better you buy more items to mix in a container and ship it by sea.

maybe you thought too much for you, actually, it is not a big business,  such like a 20ft container, you can mix up to 20-100 kind of items if they are big and heavy, very small quantity to each model. this don’t cost you much to each item, then you will have competitve products in your market.

2. If you want to import small and light weight products, it is cheap to send just like EMS or Express for several cartons of goods, because you don’t need to pay for custom fee, port cost, other related cost, etc.

3. Regarding your question for sea china post, it is not cheap too if they are big or heavy.

 

 

*This is a case from our customer

How to custom make your design or protect your new item?

To make your design produced, this is concerning about a partner manufacturer.

1.Sign NDA(non-disclosure agreement )with supplier not to disclose of your design.
2.Requiring samples from the supplier that make items similar with your design to make sure they can do a good work for your production. You need to check quality or workmanship of the items from the suppliers. You can asking from 2-3 suppliers and see which one is best.
3.More things need to considering bassed on what items you are going to manufacture.
4.Have an inspection after goods ready, if possible, have a list like report of the item, as well as the percentage of defectives, so, from the first trial order, you can check if this supplier is able to cooperate with you.

Importing from China — Forwarder

If you are going to import from china, there would be cost at your port, usually they are shipping cost,VAT,duty, port cost, handling fee, unloading fee, etc.

This is because you use a China local forwarder to ship the goods to you, I am sure the forwarder is arranged by your supplier, if by CIF terms, it is just costing them 1-10$ per cbm, some even give free freight to the supplier, and forwarder just put those fee into the debit of buyers(destination port).

The best solution is you search a forwarder locally, in this way the local charge will be much cheaper, certainly, before you working with them, ask them to send you a quote for LCL and FCL, then you just need to  give contact to supplier for booking shipping space for shipment, or ask forwarder to contact supplier, you can even ask the forwarder to pick up goods from the supplier and ship to you.

For me, sometime my clients do not have a forwarder for shipping, I will use my cooperated forwarder, but besides asking price of freight, I also ask them to quote the destination port cost, this will avoid them charge too much to my clients.

How to buy from different manufacturers in china and consolidate into one container?

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.

How do you know if you can trust the company to send the products

Step by step, be patient to work out a reliable supplier.

Small orders to start with supplier, make sure everything is fine, as it is small amount, it should be ok for you, business has risk itself. There is no 100% guarantee that they are scammer, including other factor, factory  shut down, they gone with money(even all license and company is there when you visit them).

Sometimes, there is big order but we have leadtime and need to place order as scheduled. then, what should we do?
1. Try to look for a supplier that is verified by a third party and  years’ registered member, for example, a 4-7 years registered member, and has some business record displayed there.

2.Verify company details and address info, company large or small, check if all the info is same, etc. (certainly, only a Chinese can do well for this part)

3. Visit factory to see check meet them.

4. Search from internet to see if there is any black report to this company.

5. Hire an agent to take care of the order for you even the company is licensed, you still need quality control before shipment.

Retailer, wholesaler buying product from china — Aliexpress

Today,  the internet business developing so fast, from B2B to B2C, more and more oversea retailer, wholesalers changed their purchasing resource from local distributor/importer to buying directly from China to save their cost.

In deed, this way can save the middleman cost, but there are more and more complaint and faulty products happened during these direct transaction, because their is no third party(middleman) to control the goods. For example, a retailer or wholesaler buying machines from China on aliexpress, if the seller on aliexpress is reliable, certainly, everything goes fine, but once you meet an unprofessional one that have never export to your country, then faulty goods may happened. for machines, there are more specification to meet each countries’ standard, that means this machine only suitable for certain countries.  So, this kind of products you should buy from local distributor, because they have test the machine to meet your countries’ standard with samples and then custom production.  you should know that 90% of China products are custom made for worldwide importers.   

I do not suggest any people to buy machine or something similar by retail or wholesale from China, a professional importer is needed, what is professional importer?

It is importers buy sample from the supplier to test in his country, if everything goes well, then they place order for bulk production according to the sample.

Buying from China sometimes is cheap, but be careful that it is not for everything.

For this kind of item, you can buy from your local distributor or wholesaler, and that is real warranty. Some seller give warranty on the listings, but they are heavy items and impossible to return to China. So, real warranty will not be executed.

Shipping basics for newbie

it depends on the quantity your buy and how would you like to ship them, by air or by sea.

But to have another company arranging these things will be better ,  usually, you can send an inquiry to supplier to get a rough cost for both. if by air express, if their price is ok, then you can just ask the supplier to ship for you. From my experience, most of suppliers do not have good resource of good rates, certainly, there are some supplier also offer great rate.

When you need your goods shipping by sea, you must not ask the supplier to ship for you, because the china forwarder will forward all the cost to your destination port, and they quote very cheap price to China suppliers. The best way is you find a forwarder at your end, ask the supplier to quote product price by FOB terms, give contact of your fowarder to the supplier to ship the goods.

If you want to save your work, you can pay for a little service fee to a sourcing agent for handling all these work. they can offer the service like Sourcing products, place orders, inspect the goods, arrange goods with supplier to warehouse, consolidate shipment, handling export, documentations, etc.