China is one of the first locations small businesses visit when looking for low-cost labour for their store because manufacturing expenses are lower than in Western countries. It is important to know everything when planning to buy from China factories directly. You must take time to locate reliable suppliers, fully comprehend the manufacturing process, and be aware of the logistics of shipping, customs clearance, and delivery.
Only large businesses could afford to maintain a sales office that could take part in significant and international product procurement. It is no longer essential to travel to China, arrange time-consuming and expensive business trips, visit Chinese factories, and contact suppliers because everything is presently available online. Thus, even if you want to buy from China factories directly, you can still follow some steps and make your procurement process quite simple.
Tips to Buy Directly From China Factories
Search Suppliers in Trade Fairs
Canton is one of the largest trade fairs in the world and is held twice a year in Guangzhou, usually in April/May and again in November. The Global Sources Trade Show, which takes place every year in Hong Kong, is comparable to the Canton Fair and has many of the same exhibitors.
Search Suppliers Online
Online directories are the next best option for small firms to order wholesale goods directly from China if they lack the funds to fly there. Thousands of Chinese suppliers are available at your fingertips in business-to-business directories. Main directories include:
- Global Sources
- Gate DH
Search Suppliers in Wholesale Market
It is worthwhile to go to the wholesale market in China, where you can look through a wide range of items at extremely low costs. The world’s largest wholesale market is Yiwu Market.
Audit the Manufacturer
You need to confirm your manufacturer’s authenticity. On Alibaba, it is a good idea to check the credentials of gold suppliers, certified suppliers, and trade assurance providers. You can examine your Chinese suppliers as well. Request a sample of the products that you’re interested in.
Most vendors will provide you with free prints of their goods or products by email, but it might be difficult to judge the accuracy of the information from a print. You will have to request a test sample of the product to certify its quality. Samples may cost money, but it usually gives you peace of mind.
Make sure the terms of payment are clearly stated in your order. There is frequently some room for price negotiation when working with Chinese suppliers. But ensure that the agreed-upon price is documented in writing.
It is a good idea to research in advance the customs fees for the products you intend to import for the following reasons:
- Customs fees vary based on the imported items and have a significant impact on the final cost of the commodities.
- While VAT rates can vary, customs taxes are uniform throughout all EU nations and cannot be avoided, as a result, they must be added to the price of the product.
Every sale must adhere to a specific MOQ, below which wholesalers will not be able to sell the desired items, thus those who choose to buy from China factories directly must be aware of this requirement. The best way to save money is to purchase in huge amounts. To produce the items, both manufacturing businesses and suppliers are required to adhere to a minimum order quantity (MOQ). If the MOQ is not upheld, they will be unable to accept your orders.
Utilizing a sourcing agent is the best approach to buy from China factories directly. Other options for speaking with vendors directly include the Internet, trade shows, etc. However, your greatest alternative will be to use a sourcing agent who has long-lasting relationship with suppliers.