Get Yourself Ready to Sourcing from China
Compared with domestic product sourcing, international sourcing (refers to Asian countries like China, India where the cost of production is generally much lower) allows you to take advantage of low labor costs and obtain higher profit margins.
China is known as the world factory due to low production costs and a complete industrial foundation in the world, lots of small business owners can make their business high-profit margin when they import from China.
There are many one-stop procurement platforms such as Alibaba that can significantly reduce the difficulty of overseas sourcing procurement.
More advantages below for your reference:
- Get a small order done easily
- A high number of suppliers to choose from
- Trending products could be got from China wholesale market easily
Product Sourcing Tools
More than 8 million gold suppliers on Alibaba covers almost all industries from pencil to agriculture machine, all your products could be found here.
The most important things you should know about Alibaba.com
The free version is no longer provided, there is a membership fee must be paid by Alibaba seller (4650 USD/year at least). But it doesn’t mean you will never be scammed in Alibaba.com. In all, Alibaba.com is a good platform for product sourcing. Here are 7000+ reviews about Alibaba.com
Minimum Order Quantity (AKA: MOQ)
Minimum Order Quantity (MOQ) is the quantity of the order that the supplier is willing to accept.
Most suppliers’ MOQ is negotiable, so don’t be discouraged if your quantity is not matched. And telling the suppliers that you must place a trial order to test the target market before a decent order, most suppliers will support you if you are willing to accept a reasonable extra fee.
Bringing The Conversation Out of Alibaba System
Why? The suppliers could find your activities in Alibaba.com, such as what are the products you have searched for? How many inquiries you have sent before? Your IP address and more. Disadvantages are obvious, suppliers will know too much about you and quote the price accordingly.
So, I am not going to teach you how to use a contact form or trademanager. You should conduct product souring on the Alibaba and bring the conversation out of it. Many tips about contact suppliers will be provided here!
Do Not Confirm The Price Too Quickly
During negotiating with suppliers, give it time to waiting for the best price from each of them. Make yourself outstanding by being a professional buyer (at least trying to be) will let suppliers value your inquiries since there are a lot of inquiries that will go to suppliers’ inbox.
NEVER Pay 100% Up Front
Negotiate 20/80% or 50/50% payment terms with suppliers. Hire 3rd party inspection company on your own before shipping.
Well, Alibaba.com has such a feature called “Onsite Check” (The supplier will be checked by the 3rd inspection company) – it could only give you a rough impression on this supplier. Conducting a background investigation is necessary by Google.
Made-in-China.com (As known as MIC), is less well-known than Alibaba and owns less market share in China. MIC is specialized in industrial products. MIC has two kinds of memberships, Gold supplier (4700 USD/year) and Diamond supplier (9500 USD/year).
Global Sources is a mature multi-channel B2B foreign trade platform. Suppliers to be provided with offline exhibitions, business publications, and sales industry advisory reports. And the major strengths of Global Sources are electronics and gifts. Promoting international trade through media is its core business.
Hktdc is running directly by the Hong Kong Government and dedicated to promoting the Hong Kong trade.
There are many products could be found through Hktdc such as lighting products, gifts, accessories, and toys. According to the feedback from existing clients of our company that these goods are well-doing. On the other hand, the industrial goods are not Hktdc’s strength.
Online Shopping and Wholesale Platforms: DHgate, AliExpress, and GearBest
At present, many Chinese suppliers are developing multi-channel sales. As one of the means of cross-border e-commerce, it is also a form of sales that Chinese suppliers focus on, so there are also manufacturers, trading companies, etc.
DHgate is founded in 2004 and the CEO of DHgate is as know as the former CEO of Amazon.cn. Major products of DHgate are tablet computers, cell phones, electronics and wedding dresses.
AliExpress is the branch of Alibaba.com. The main visitors of AliExpress are from Russia (23%) who shopping for products such as electronics, fashion, phone accessories, computer electronics, and toys.
GearBest is mainly doing online shopping and it is a brand of Shenzhen Globalegrow E-commerce Co., Ltd. which owns china brands for dropshipping. – Not good since the company uses a grey hat SEO to improve their ranking of the website. And the service is not good as well.
1688.com (Secret Weapon)
1688.com is a domestic B2B platform website in China for wholesale and drop shipping. It is a Chinese version of Alibaba.com, companies in China will buy or wholesale products from it and trading companies will sourcing products for their clients.
A typical sourcing process through 1688.com