China is one of the most popular countries when it comes to wholesaling and bulk imports. The likes of Alibaba and AliExpress are just some of the proofs that this nation is far from the usual knock-off stereotype. Many wholesalers around the world purchase their goods from China due to the low price and undeniable quality. But there is one question that is pressing to be answered: how much money should I have to buy wholesale directly from China?
Well, one thing is for sure, it’s not that hefty but it’s not too cheap either if you’re looking for quality and big inventories. Some could be a meager $500 while others can soar up to thousands of dollars. At the end of the day, it all depends on the minimum order quantity and the products you’re buying.
Like what I said earlier, Alibaba is one of the easiest ways to purchase your goods directly from China. They have a massive directory of suppliers that you can contact. The great thing about China is that they have low MOQs for most products, a good thing for starters. However, those who are in Europe or U.S. might encounter compliance issues if the goods are initially made for China’s local market.
How much should be the capital?
The actual price depends on a variety of products. Nevertheless, it will surely include the cost for port loading in China, export clearance, freight charges, documents, local charges of the product destination, and local transport. China follows the Incoterms or International Commercial Terms in quoting the overall price of your imports. Aside from that, taxes and tariffs should also be factored in.
How much money should I have to buy wholesale directly from China? The key here is landing a supplier and asking for a quote. Most of the time, they will include all the expenses your goods would need to finally reach your warehouse. Avoid focusing on the product price alone if you’re importing from China as an unpleasant surprise of extra fees isn’t adorable for someone working on a budget.
Knowing the landed cost is the most important thing before putting your money on the table. There are many variables included in the pricing especially if you’re going to choose FOB. The supplier will transport the products up to the airport and you will deal with a freight mover until it arrives at your doorstep.
Once you have a solid idea of what you’re going to pay, allow another 3% on top of the quoted price. Custom charges can be unpredictable and it’s best that you are prepared.
For freight costs, you should allow about $1,000 to $5,000 depending on the cost of your goods. If you’re confused as to how to come up with an approximation, here’s a simple formula to find out how much money should I have to buy wholesale directly from China?:
Add the following:
Value of shipment based on supplier’s quote
Freight cost quoted by your company of choice
Duties and Taxes
Are China imports worthy?
China products are good options because they are relatively cheap and you have the chance to gain more profit. Sourcing products from this country is a common practice among wholesalers in the U.S. and other nations. However, always keep a close watch on defective products. Choosing a platform with a buyer protection program would be an advantage on your part.
But here’s the deal. Importing from China might not be a good option for those in the U.S. and Europe. Some newbie wholesalers don’t take time to inspect the goods before placing inventory purchases. Upon the arrival of the shipment, they will be mired in compliance issues, defects, safety concerns, and other problems.
Always make sure that the products you purchased have an English label. Otherwise, it won’t be feasible for selling to the U.S. or Europe. Yiwu is one of the best options if you’re looking for a supplier in China. It’s located in Zhejiang province where hundreds of traders and wholesalers are located. You can contact many of them online.
Things To Remember
Before you plan to import from China, there are some points you have to remember. Here are some of it that you should keep in mind aside from how much money should I have to buy wholesale directly from China:
1. Never place high expectations
Websites of Chinese suppliers are often than not outdated. There are products that may or may not be available or far from the actual look. It’s best to ask for an inspection especially if you’re buying large inventories. Anyway, some do real work to maintain their website directories. Also, the products you’ll receive may not be what you expected which could happen most of the time.
2. Act big
Substituting “I” to “We” on your emails would make a big difference when you’re importing in China. This will make you look bigger as a buyer and the supplier would take time to accommodate you as you’re sending a message of belonging.
3. Inspect and ask for specifics
There are tons of products in China and the least that you can do is to look for specifics. If you’re importing clothes, make sure that you include the colors, sizes, designs, and fabric. Make sure that the information you provided won’t confuse the supplier.
4. Bear with their English
Some (not all) suppliers from this country would have difficulty communicating in English. Their written and verbal messages might be a little darn to understand but it’s just a small thing for the products you’re purchasing.
5. Pay using wire transfers
It could either be Western Union or PayPal if you want to skip the hassle of other payment methods. Many suppliers have PayPal accounts that are the best option due to their buyer’s protection program. Western Union works smoothly too but you have no way of getting your money back in case of a fraudulent transaction.
So you ask, how much money should I have to buy wholesale directly from China? The points I discussed here would surely help you calculate and come up with estimation.