Trade Resources Market View 20 Mistakes That You Must Avoid When Ordering Wholesale Goods From China

20 Mistakes That You Must Avoid When Ordering Wholesale Goods From China

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Tags: Wholesale

Are you considering ordering goods in bulk from a Chinese supplier? If yes, then you must try your best to avoid some of the most common pitfalls buyers experience when purchasing Chinese goods wholesale. Here are 20 tips that you will find useful.

1. Only sourcing products that are trending on social media.

Many people think that sourcing trending products is a surefire way to bring in the big bucks. However, by the time you receive your products, then trend could be long over. Simply purchasing a product because it is trending on social media isn’t enough to guarantee you profits. Take for example the famous fidget spinner. Many people saw the opportunity before the trend surpassed, however many people also have thousands of Chinese made fidget spinners sitting in their warehouse. This is a perfect example that explains the importance of sourcing products that are not just trending, but also up and coming. You can discover new trends before they peak by using free resources like Google Trend, and other paid resources on the web.

2. Don't underestimate the power of low cost items.

Low cost items are often forgotten about and overlooked. However, many low cost items can provide great margins if distributed properly. Take for example Female Double Chain Choker Necklaces that wholesale for about 0.46 USD each. At a retail price of $2.50 usd, that is over a 400% profit margin. There are many amazing products that will provide you with amazing profit margins similar to this. The trick is to not overlook something just because it is a low cost item. At a 400% return on investment, it is hard not to understand how low value items can bring in some great profits.

3. Assuming that highly used consumer goods make great products to resell

It might seem logical that a highly consumed product like tissue paper, or toothpaste equals a great product to resell. However, there are many other variables that you should take into consideration when considering what makes a good product. Variables like market penetration, competition, profit margins, trade regulations, and other factors need to be evaluated. Looking at the full picture and not just consumer purchasing habits will give you a better idea on if a product will provide a great opportunity for you.

4. Reselling large items with high shipping costs

Unfortunately, large products also equal large shipping costs. Huge shipping costs can eat into your profits and ruin your chance to build a successful empire. Although you may get a great deal on products like child electric cars from websites like, the overseas shipping cost will significantly cause that total cost to rise out of control. The best way to keep your profit margins high is to source products that have lowered shipping costs. If you have no choice but to procure large items that fetch high shipping costs, consider purchasing the space in an entire cargo container. Shipping goods in massive bulk shipments will help to significantly lower your per item shipping costs.

5. Thinking that you only have to deal with Chinese manufacturing factories.

Chinese factories aren’t the only place that you can negotiate great deals with. There are many types of Chinese suppliers that you can find on Chinese wholesale websites. Among those types are trading companies, manufactures, and sourcing companies. Depending on your specific needs, you can decide on who you want to talk with. Only speaking with manufactures is a great way to eliminate any potential savings from dealing with other types of Chinese suppliers.

6. Searching for Chinese suppliers with the cheapest quote.

If you are only interested in finding the cheapest quote from Chinese suppliers, you will be setting yourself up to receive a low quality of products. Ultimately, the cheapest supplier will not have the greatest standards of quality and manufacturing processes that you want. Don't be afraid to spend a few extra dollars to ensure you receive the quality of products you desire. A great way to make sure you receive the best quality possible is to hire a Chinese quality assurance service to approve the quality of your order before it leaves the warehouse.

7. Trusting Chinese suppliers too much

While trust is a great attribute to have between you and your Chinese supplier. Trusting suppliers too much can set you up for failure. In business, the only thing that should be trusted is the end result. Placing trust that any supplier will verbally agree to your demands is a great way to be taken advantage of. It is best to get agreements regarding large orders in writing, and use payment processes that are verifiable and offer protection for both the buyer and the seller.

8. Blindly trusting smaller importers to manage your shipment

While it is an importers job to safely, securely, and rapidly import your shipment into your country of origin, you should always stay in close communication with them at every step of the way. Often times, importers can overpromise and under deliver. Therefore, it is best to work with a well-known and well-reviewed importer. This is the best way to ensure that your products arrive on time, and in the best condition possible.

9. Not doing any shipping research before you purchase your products.

The more research you do ahead of time will determine how prepared you are in the event of an emergency. A lot can go wrong when shipping products internationally. Taking into consideration every variable before you begin shipping your products will allow you to maneuver the landscape more efficiently. Take for example problems with shipping delays, customs regulations, import duties and other unforeseeable accidents. These instances will require your attention and understanding. Knowing how to handle situations like this before they arise will greatly impact your profit margin and overall happiness.

10. Sourcing your Chinese Goods from the wrong territory.

There are many places to ship products from in China. In fact, certain areas in China are responsible for manufacturing certain goods. Electronics are manufactured in one region, textiles are manufactured in another region and food grade products are manufactured in yet another region. Therefore, knowing which region is responsible for producing the products you want will allow you to secure the best possible quality.

11. Not having a retail game plan before you purchase Chinese wholesale goods.

Before you purchase your Chinese goods, you should have an idea on how you plan to sell them. Blindly purchasing products without any suggested strategy is a great way to lose money. Whether you were planning on building an e-commerce brand or opening a retail store, you must have these plans in place before you purchase products from China.

12. Thinking that the finished products will be better than the sample.

Often times, Chinese suppliers will offer you a sample to ascertain their quality of the products. When the sample that you requested arrives below the level of your standards, move on to another supplier. Thinking that the mass produced products will be in better condition than the sample is a mistake that many buyers fall into. The truth is that if the Chinese supplier could not even send you an appropriate sample, their mass produced products will be of even lesser quality.

13. Talk with your Chinese suppliers about the specifics of your product patent and other details.

When you are manufacturing your product patent inside of China, it is important to discuss the finer details of that patent or product details with your manufacturer. Thinking that the manufacturer will automatically understand how you want your product to be designed is the wrong way to look at it. Often times, if you are manufacturing a product in China, it helps to be there in person to oversee its mass production. This will give you the greatest power behind the production of your products, and allow for the highest quality of merchandise possible

14. Putting too much faith in email, and none in instant messaging apps.

In today’s fast-paced digital society, email falls well behind instant messaging platforms. In order to maintain proper communication with your Chinese suppliers, it is recommended that you use or learn how to use instant messaging platforms like WhatsApp, weChat and others. Simply relying on email will take too long for important details to be conveyed back-and-forth.

15. Chinese suppliers operate in a time zone opposite of yours.

It you are in the initial stages of finding a Chinese supplier, then you must realize that they are on a completely different side of the world than you. This just means that the most convenient time to speak for you is not their most convenient time to speak. Therefore, planning the appropriate time to contact a Chinese supplier will secure you the best possible opportunity to receive a response. If that means you have to wake up at 2 o’clock in the morning to respond to instant messages that is what you have to do.

16. Take into consideration how holiday times can impact payment processing.

As many of us know, payment processing is affected by holiday schedules. Banks often operate on holiday schedules which inhibit the processing of certain payments in a timely manner. When you do not take into consideration things like Chinese New Year, and other Chinese holidays,  your shipment and payments can be delayed. Therefore, it is important for you to remember that during holiday times things in China will run slower than normal. Take this into consideration when purchasing any products from a Chinese supplier.

17. Don’t overlook additional fees.

You should always ask upfront what other fees are associated with your total cost. Often times there will be fees like handling fees, commissions and other minor fees that you must take into consideration. Overlooking these fees is a great way to underestimate your actual true cost. In business, like anything else, numbers should always be exact. Therefore, ask your Chinese supplier once, twice, and even three times to verify the total cost before you make any payment.

18. Never assume that shipping by sea will be the cheapest option.

The logistics industry of today is highly modernized and capable of delivering goods over vast distances. Therefore, you never know what type of shipping is going to be best until you ask. Automatically assuming that shipping by sea will be your best and lowest cost option is not true. Often times, small volume shipments can have a lower cost via air if the weight is under a certain limit. Do your due diligence and always double check different shipping vendors to verify the lowest rate for your exact products.

19. Don’t try to save money by undervaluing your cargo with customs.

In order to pay lower duties and customs fees, shippers often times under value the total cost of their cargo. For example, if you have a shipment worth a retail value of $2000, it is not advisable that you declare $1000 to customs officials. Sometimes this may work to your advantage, and other times your shipment will be delayed and fines may be imposed. Therefore, it is always best to declare the exact value of your cargo to avoid any penalties or additional fees

20. Avoid the shipping rush at all costs.

Chinese wholesale products are shipped all over the world, 24 hours a day, seven days a week, 365 days a year. With that being said, there are certain times when the shipping is at its highest. Times like Christmas holidays, and Chinese New Year are known for being some of the busiest times for Chinese manufacturers. Therefore, doing your best to avoid the shipping rush will allow you to pay lower shipping cost and receive your goods faster. Shipping your items during this peak time is guaranteed to cost you more money and a longer wait time.

Take these 20 tips into consideration in your next order of Chinese wholesale goods. They will definitely save you money.

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