wholesale suppliers

8 powerful tips for finding a reliable Chinese wholesale suppliers

Every company is unique and has individual requirements. Therefore, the wholesale suppliers your business needs are also different due to your unique business model and the size of each period. Obviously, the way to find wholesale suppliers will also be different.

Over the years, more and more people want to import goods from China. To be honest, find 1-2 reliable wholesale suppliers from at least 100 Chinese wholesale suppliers. This is really a headache. I think it is necessary to write an article to share some of my personal experience and practical ways to find wholesale suppliers in China.

Finding wholesale suppliers in China is a big topic, so several parts are needed to discuss in detail. Read patiently, I promise you will be very surprised.

  1. Choose the right wholesale suppliers
  2. 6 types of Chinese wholesale suppliers
  3. Suppliers in wholesale markets or cities
  4. Looking for wholesale suppliers at China exhibitions
  5. Online search for Chinese wholesale suppliers
  6. Verify that the wholesale supplier is reliable
  7. Skills for dealing with wholesale suppliers
  8. Purchasing wholesales supplier resources

1. Choose the right wholesale suppliers

Looking for a wholesale supplier in China, you may have such a problem, either the MOQ cannot meet the requirements of the wholesale supplier, or the wholesale supplier’s quotation exceeds the budget. Even, because the quality of the goods is uneven, this directly affects the customer’s business and attracts a lot of negative reviews, which is simply a nightmare.

In order to reduce such similar situations, you must determine some important things before you start looking for wholesale suppliers. The first step should be to analyze your business model. Make sure you understand your product’s selling point, market, and your MOQ. Choosing a wholesale supplier that suits your business can accelerate your business development.

I divide importers into the following five categories, and give you practical suggestions for each category of importers:

  • The sellers of eBay, Shopify, Wish
  • Amazon Sellers
  • Importer who specializes in importing certain products, such as auto parts.
  • Importers who wish to develop products according to their own ideas.
  • Importers who have or plan to open local supermarket chains.
ebay of pillow suppliers

Smartphone with icons of social media. Ebay, Amazone and AliExpress application on screen. Applications for online shopping. Moscow, Russia – October 14, 2018

1.1 The sellers of eBay, Shopify, Wish

What these three e-commerce platforms have in common is the diversity of products. In other words, the seller’s store has a wide variety of goods and a large inventory.

Here, big sellers can easily buy and keep a large amount of product inventory. However, the order volume of small and medium sellers is not high, because in the initial stage sellers must test the water and evaluate the market response of the products they provide. Each product only needs a small amount of inventory to test the market. After a period of sales analysis, a large amount of inventory can be purchased for products with good response.

So, in this case, should you visit the manufacturer directly to buy the product? of course not! The best way is to contact some online wholesalers and buy a small amount of products to test the market. DHgate and Aliexpress are the perfect starting point.

Yes, the reason why Alibaba is not recommended is because the suppliers on Alibaba usually have a high MOQ. The purchase amount of the product is even more than $1,000. For example, if you only want to place an order worth US$300-500 or less, trust me, most Alibaba suppliers will not accept such a small order. Even if you meet some suppliers who are willing to cooperate with you, you will not get the quotation you want.

In addition, if you need some fulfillment services like Shopify, Alibaba is not a good choice, because this rather large B2B website will not provide such services. DHgate, AliExpress or some other independent distribution websites are your right choice.

1.2 Amazon Sellers

Amazon is committed to providing users with a good experience in terms of products and customer service. Therefore, if you want to be successful on Amazon, you must follow the following rules:

Good product + correct marketing strategy = good ranking

Therefore, for Amazon sellers, good products and a stable supply chain are essential to the start of your business. You should be more careful when looking for suppliers. If you are an Amazon seller and read this part of the content, I believe you will be deeply touched.

It is worth noting that if you are looking for suppliers on Alibaba, many of China’s suppliers will initially give you a large MOQ, even as high as several thousand US dollars. Don’t give up, continue to try to communicate with the supplier, usually, there is some leeway. You can get a smaller MOQ, but this means a higher price.

If the supplier is reliable and the quality of subsequent products is guaranteed, then I suggest not to pay too much attention to the starting price. Once the sales volume of the listing is stable, you can slowly increase the MOQ to reduce the unit cost and gradually increase your profit.

In addition to finding suppliers on Alibaba, you can also participate in some exhibitions in China. When visiting China, you can directly communicate with suppliers to negotiate better deals. You may also find some unique products that are not available on Alibaba.

1.3 Importer who specializes in importing certain products, such as auto parts.

This section focuses on importers who need specific types of industrial products (such as auto parts). Different from consumer products, such products need to understand various technical parameters, materials, etc. to assess quality. In addition to this, each product has several changes, which makes it more difficult to check the product only by looking at its appearance.

In this case, whether you choose to buy from an online supplier or hire a sour agent, experience and expertise in the product category are important. Here, I will explain in detail the advantages and disadvantages of the two purchase options so that you can make the right choice. continue reading.

You can choose to browse Alibaba to find relevant suppliers, or you can handle the shortlisted suppliers yourself. However, if you have many product lines, you will have to spend a lot of time looking for suppliers in all different product categories. This is really a tedious job. In this case, if you can find a reliable supplier through Alibaba, you can train him to become your purchasing agent. Let him help you purchase other related products. The advantage of using this strategy is that you will be able to take advantage of the services of industry professionals and use his network and resources. You can also save time in finding the products you need and their suppliers.

Hiring a purchasing agent is also a good choice. However, it is important to consider the agent’s understanding of the product category. In addition, you must also find a very professional and experienced purchasing agent in the industry. You can’t just find a purchasing agent who is mainly engaged in the purchase of daily consumer goods, because they will spend more time researching your products. In addition, the agent is also likely to find a supplier you are not satisfied with.

Both options have advantages and disadvantages. You can weigh them and determine the best option for you.

wholesale suppliers

 1.4 Importers who wish to develop products according to their own ideas.

Many people have their own product ideas. Of course, turning an idea into a tangible, marketable product is not as simple as printing a logo or changing product materials. I’m talking about innovation in product performance and appearance.

In the absence of product development and import experience, the normal state of mind is to go to Alibaba to find relevant product suppliers to learn more about them, and then directly come to China to visit suppliers that you think are doing well. Let them help you develop and implement your product ideas. The only disadvantage of this method is that it takes a lot of time to deal with the factory and all the things you need to do by yourself. If you are unlucky, the supplier will provide you with unreasonable product prices, or the product quality will not meet your expectations.

If you do not find a manufacturer that you are satisfied with, you can try to find a sourcing agent to help you. They will find suitable manufacturers from all over China according to your product design requirements and budget. The surprising fact is that agents can find suppliers that you can’t find on Alibaba or even at exhibitions.

more importantly? They personally take you to the factory, help you negotiate with the manufacturer and visit the latest product showroom. They act as negotiators, translators and supervisors to ensure that all your requirements are met.

Of course, some major exhibitions in China are also good places to find relevant suppliers. But in order to find these suppliers at exhibitions and exhibitions, you must visit China at a fixed time each year and participate in the exhibition.

1.5 Importers who have or plan to open local supermarket chains.

Importers who set up local supermarket chains usually provide tens of thousands of products. There are several products that can be purchased from their home country, but they need to buy a variety of products from China. However, importers without any experience in purchasing goods from China find themselves worried about many factors, such as finding suitable suppliers, compliance and transportation.

To be honest, you can find a supplier in China by yourself, but trust me, this is a very difficult task. You have to spend a lot of time looking for suppliers for various categories of products. The best way is to have only one source, so outsourcing is the best option.

In fact, most large retailers such as Wal-Mart, Costco, and Carrefour do not purchase domestically, but purchase them through trading companies or purchasing companies.

2. Six Major China Wholesale Suppliers

Now that you have read my detailed description of the best options for sourcing products from China based on your business model, I hope you are clear about the first step. So, let us go to the next level. In this chapter, I will explain in detail who these so-called Chinese suppliers are, what are their roles in the supply chain, and how different suppliers cooperate. First, I divide all Chinese suppliers into six categories, and then introduce them separately.

  • Manufacturer
  • Trading company
  • Domestic wholesale market supplier
  • Purchasing agent or purchasing company
  • Small wholesalers or distributors
  • Backlog of wholesalers


1.1 Manufacturer

Manufacturers are the source of products for all different types of suppliers on the market. For you, a manufacturer is a supplier who provides you with products at the lowest price.

There are two types of manufacturers in China. The first is those who do not have their own English salesman. They usually cooperate with domestic trading companies and purchasing agents, which means these factories sell their goods to foreigners through trading companies and purchasing agents. The price of this kind of factory is the best.

The second type of manufacturers are those that have their own English-speaking salespersons​​. They usually participate in domestic and foreign exhibitions and also have their own online store on Alibaba. Some of these manufacturers also have their own independent online websites and are even addicted to online marketing.

You can search for them on Google. The price you get in this kind of factory is lower than that of the manufacturer that trades through a trading company. But at the same time, their rates are lower than the prices offered by trading companies. In addition, their MOQ is usually very low. So, if you find such a factory on Alibaba, you can expect their minimum order quantity to be under $1,000.

If you focus on certain products or want to develop your own products, the manufacturer is perfect for you. They usually give you a lot of advice on product design and will help you develop products at the lowest possible price.

In addition to some Amazon sellers who need product customization, many experienced importers also choose manufacturers to help them. For example, we have a customer from Venezuela. He started with a purchase of several thousand dollars and has so far purchased products worth hundreds of thousands of dollars. Because of our long-term cooperation, he believes that we will guarantee the quality of his products and devote more energy to marketing these products.

PT Pillow Manufacturing is a factory direct manufacturer of travel pillow and memory foam pillows, microbeads pillows, and cotton pillows. On this site you can enter the dimensions of any size cushion or pillow and CONTACT US online. Our customers include Brand, designers, decorators, hospitals, hotels, and department stores. We offer custom pillow option with which you can easily enter your dimensions choice.

1.2 Trading company

Trading companies are also known as middlemen, and they also help importers purchase products from China. There are many trading companies listed on Alibaba. You may also stumble upon that the factories on Alibaba are actually trading companies. However, most of the time you cannot be sure whether the supplier you are working with is a factory or a trading company, especially if this is your first time on Alibaba.

There are also some suppliers who will tell you directly that they are trading companies and can help you find good factories. This is real. Usually, trading companies cooperate with many factories, and it is not difficult for them to find a good factory. The trading company is committed to trade services and has its own English salesperson, making it easier to communicate with them.

In addition, due to the long-term cooperative relationship between the trading company and the factory, you can get a relatively small MOQ (usually USD 1,000-2,000 at the beginning).

1.3 Purchasing agent or purchasing company

These companies do not sell their own products; they are more focused on sourcing services. You can enjoy complete import services including finding suppliers, production tracking, quality inspection and transportation arrangements. Therefore, many Amazon sellers prefer the services of purchasing agents.

Compared with trading companies, purchasing agents are more flexible. They can help you find any product you want in China. Frankly speaking, the purchasing agent is your representative in China. You just need to tell them what you want and they will purchase products for you.

For those who need many different products from China, hiring a sourcing agent is the best choice. For example, if you need to buy three different products from China, you need to find a separate supplier for each product. In addition, you must compare at least five different suppliers for each product to find the best option. If you only deal with three different products, you must find 15 or more suppliers. Now, imagine if you sell dozens or hundreds of products, how many suppliers will you need to find and deal with?

Just like finding a reliable supplier, finding a good purchasing agent is also very important. An excellent and reliable purchasing agent can help your business achieve profitable and sustainable growth

1.4 Suppliers in China’s wholesale market

Planning to visit China in person and explore the wholesale market? Well, you might find the product at a better price compared to the price offered by the online supplier. In China, the main wholesale markets are Yiwu, Guangzhou and Shenzhen. Many large and small factories are also concentrated around these three cities.

Below you will learn about the main characteristics of the three wholesale markets and their main products, as well as some key skills that help to deal with these suppliers. I have a very detailed introduction in the following article:

  • Yiwu, China (small commodities and consumer goods).
  • Shenzhen market and Huaqiangbei (electronic products)
  • Guangzhou (main product category): apparel, luggage, beauty, adult products

Things to pay attention to when going to the Chinese wholesale market:

Most of the vendors in the market do not accept U.S. dollars, only RMB, and they cannot pay by wire transfer.

Find a competent interpreter in advance to help you communicate with your suppliers.

Look for freight forwarders in advance to help you arrange shipments in time. You can also consult them about import matters.

Or forget the first three points, find a local purchasing agent to help you complete the purchase in the wholesale market, and then arrange the shipment to your country.

1.5 Small wholesalers or distributors

Distribution platforms such as DHgate and AliExpress generally have small wholesalers. Usually, the wholesale MOQ here is relatively small, with dozens of units.

Dropshippers provide a retail fulfillment method in which stores do not keep inventory of the products they sell. Conversely, when your store sells products, it purchases products from third parties such as Shopify and ships them directly to customers. Therefore, you will never see or handle the product with your own eyes.

If your customers have higher requirements for product quality, I do not recommend that you find a small wholesaler or deliver goods on behalf of you, because you cannot guarantee the consistency of product quality. These small wholesalers at these sites do not buy many things from manufacturers, but often buy from different factories. Therefore, it is difficult to ensure that the quality of the product is the same every time. You can test the market in this way at the beginning of your online business, but it is definitely not a long-term solution.

1.6 Wholesalers of overstocks

Overstock products are products that are overstocked by manufacturers and wholesalers. Products that have some minor defects but can be used are also considered backlog products. Since wholesalers need to get rid of these products, they are usually sold at low prices.

In the backlog market, you can buy a pair of jeans for less than a dollar. You can buy a toothbrush for a few cents. If this is not surprising, please consider buying these products and selling them back in the local market in your country. Every year, tens of thousands of people from different countries come to China’s overstocked market. So, you are not alone here.

The two largest backlogs in China are Guangzhou and Yiwu. If you want to buy clothes backlog, go to Guangzhou, if you want to buy daily consumer goods, then go to Yiwu. There are two backlog markets in Yiwu, Wuai and Jinfuyuan.

Note: If you buy a backlog in China, you must pay attention to the logo on the product to see if there is any trademark infringement. When you buy backlogs, you will always find some products with Disney, Nike or Gucci logos. Even if some trademarks are other people’s own brands, you should be careful because the customs clearance of trademarked products is not always so smooth. Therefore, the best way is to avoid buying products with trademarks or let your supplier remove the logo for you.

3. China Wholesale Markets or Provinces Where You Can Find Suppliers

Yiwu, Guangzhou, and Shenzhen are the three major commercial cities in China. Each wholesale market in these trading cities attracts suppliers from surrounding industrial belts. For example, in the Yiwu market, you will find suppliers from the southeast coast (Yiwu is a city on the southeast coast of China).

Let me introduce you to the distribution of products in these wholesale markets:


Yiwu has the world’s largest wholesale market with more than 70,000 stalls. Yiwu wholesale market has five main areas, each area has 3-4 floors. All areas are connected and the layout of all shops is very standard.

For example, if you want to purchase toys, all toy suppliers are gathered in one area. You can easily compare the price and quality of products from multiple suppliers.


Shenzhen is a magical place, where you can find all kinds of electronic products. Many fashionable and cheap electronic products come from Shenzhen and surrounding cities. For example, after the release of Apple’s new product iWatch, many smart watches with similar functions to this iWatch went on the market in Shenzhen instantly.

Shenzhen’s Huaqiangbei (Huaqiangbei Huaqiangbei) is China’s leading electronics center. The electronic wholesale market is distributed in these different buildings. Seg Square is one of the most popular electronic markets.

But it has to be said that the layout of the Shenzhen electronics wholesale market is not as regulated as the Yiwu market. Stores for the same product do not cluster together, so you may find it challenging and time-consuming to search for different suppliers and compare their products. In addition, some Shenzhen suppliers are unstable. After working with them once, you may not find them easily.


If you buy or sell clothing, bags or suitcases, please come to Guangzhou. Guangzhou has China’s largest wholesale market for clothing and luggage, similar to the wholesale market for electronic products in Shenzhen. Guangzhou’s wholesale markets are also all over Guangzhou. Below, I have organized 1-2 representative wholesale markets under each product category.

Of course, China is a labor-intensive production country. The above three cities are only the most popular trade cities in the industrial belts. Different regions have different advantages, so each industry has its own industrial cluster. Below I will put the industrial clusters of each product industry on a table for your reference.

canton fair

4. Finding Suppliers at China’s Fairs

There are two types of exhibitions in China, comprehensive exhibitions and professional exhibitions.

The comprehensive exhibits are clear at a glance. The well-known Canton Fair is one of the most famous comprehensive exhibitions in China. You will find a wide range of product categories at the show.

Professional exhibitions only display single-category products. The advantage is that the supplier resources of a certain category are very concentrated. For example, in the business of feeding bottles, going to CBME is more appropriate than going to the Canton Fair.

5. Source China wholesale suppliers online

There are many e-commerce platforms where you can find suppliers, such as Alibaba, Global Sources, Made in China, DHgate, AliExpress, etc.

In fact, the method of finding suppliers online is similar. You need to remember the tips I shared with you, the rest is to spend time looking for suppliers. This is the same for anyone, there is no shortcut.


There are several different types of products on Alibaba, and there are more suppliers than any other B2B website. Many people always want to find a way to identify whether a supplier is a trading company or a manufacturer. I suggest you don’t spend too much energy on it at the beginning. All you have to do is to strike a balance between product quality and price.

As your business model matures, you will gain more and more experience in dealing with suppliers, and then you will meet more cost-effective suppliers.

Alibaba is indeed a good place to find suppliers, but there are a few misunderstandings you should pay attention to.

♦ When looking for suppliers on Alibaba, those marked as “gold suppliers” are not necessarily good suppliers. The fact is, as long as you pay an annual fee of about $4,000 , you are a gold supplier. Therefore, almost everyone on Alibaba is a gold supplier. You are wrong to use it as a criterion for judging a good supplier.

♦ Alibaba’s search ranking mechanism is different from Google. When you search for a supplier of a product, the top-ranked supplier may not always be a good supplier. Its good ranking is usually based on expensive advertising rates.

Global Sources and Made in China

If too many suppliers on Alibaba give you headaches and drive you crazy, then Global Sources and Made in China are better choices. Here, you will not find so many suppliers, and the chances of finding reliable suppliers are higher. why?

These two websites have much higher standards and fees for member review. Therefore, in addition to being able to screen some of the most reliable wholesale suppliers in the market; the probability of finding direct factories on Global Sources and Made in China is also higher. At the same time, the MOQ of these two platforms is also higher than that of Alibaba. If you deal with mechanical or electronic products, I suggest you go to Global Sources and Made in China.

For example, if you want to develop a Bluetooth headset of your own design, it is more efficient to find a supplier on two websites, and the supplier is more professional. But keep in mind that the MOQ on these sites is also higher than Alibaba.

AliExpress & DHgate

The minimum order quantity for these two sites is very small. You can place an order for only a few hundred dollars. But the disadvantage of Aliexpress and DHgate is that when you reorder from the same supplier, the product quality may be different from your first order.

Don’t be surprised! Suppliers at the two sites go to many different factories to buy the same product. Therefore, they cannot guarantee consistent quality every time. Therefore, if you are a long-term business or an Amazon seller, I would not recommend you to buy from these two websites.

Many suppliers on AliExpress and DHgate also sell their own branded products, and they value the quality of their products more than other suppliers. However, the problem is that if you buy these brands from them, others will also buy them. Therefore, it is difficult to distinguish oneself from other competitors.

6. How to Verify a Chinese Supplier Worthy of Long-Term Business

6.1 Some tips for overcoming scams

iPhone X $100? This is too good to believe that this proposal is undoubtedly a hoax. If there is anything that does not conform to market logic, you have to be more careful. In the purchase of daily necessities, you usually do not encounter such absurd things. For example, you paid a supplier but did not receive the goods. do not worry! Most Chinese wholesale suppliers are now doing legal business.

Generally speaking, manufacturers on Alibaba have invention patent certificates for their products. If the trading company resells the factory’s existing branded products, they will obtain the factory’s authorization letter.

The trouble encountered by many importers is that the quality of mass-produced products does not match the samples. I will give you some suggestions on overcoming this problem.

Before placing an order, in addition to letting them send you samples, you should also test the supplier from all aspects. Although the risk cannot be completely avoided, some troubles must be avoided as much as possible.

For example, ask if your supplier can trade through Alibaba’s trade guarantee instead of Paypal. Although you can apply for a refund in this way, the process is very complicated. If your product does have quality problems, you may not be able to get a refund.

Even so, why use this method? Because the supplier promises you to use this method, it shows that the supplier has confidence in the quality of its products.

If your supplier is not on Alibaba, then you have to be more careful. Check their business licenses and the certificates of their products exported to other countries, which are under their company’s name. If so, it proves that the supplier has been selling the product for a long time.

6.2 Four key points of excellent wholesale suppliers worthy of long-term cooperation

No matter where you are looking for wholesale suppliers, all good wholesale suppliers from Alibaba, Google or some exhibitions will have the following 4 characteristics:

a. The right balance between quality and price

You will always find cheap products on the market. But I bet you won’t buy a product from a supplier that is 15% cheaper than the lowest price in the industry. In business, you get what you pay for. Adjust your budget on the premise of ensuring product quality. The lowest price may be accompanied by poor quality and sometimes fraud.

b.Professional knowledge of the supplier’s sales staff

I think a qualified salesperson should be very familiar with the products he sells. He knows its material, the price difference of different materials, the advantages and disadvantages, and the relevant documents required for import and export. You ask a question, a good salesperson will give you multiple choices, let you choose the best one, saving you time. But a bad salesman may have difficulty answering your questions clearly.

What about the sales staff of China Trading Company? Most of them are college students, and they don’t have a long time to graduate, so they can communicate with foreigners in some basic English. They don’t have much experience in international trade. If a product is more complex, such as some chemical or engineering products, they may not be as professional as you.

If you think that the product quality and price of a certain supplier are not bad, but it is difficult to communicate with the salesperson, you can directly write an email to the company boss and ask him to give you a better and more professional salesperson.

The salesperson assigned to you by the supplier is random, whether in Alibaba or at an exhibition. Once you indicate to them that you are a big buyer from the start, they will send a salesperson who has worked in the company for a long time to serve you.

C. Communication efficiency

Time is money, so effective communication is essential. In international trade, communication mainly relies on e-mail. There is a long time difference in parts of Europe and America, which may cause delays in response. Use common chat tools to solve this problem. Some Chinese wholesale suppliers may use Whatsapp or Skype, but they may not check messages on time, and some wholesale suppliers do not use them at all.

I suggest you install a Chinese application like WeChat on your phone. In Europe and America, not everyone uses Facebook to communicate, but in China, everyone uses WeChat in their daily lives. They will get back to you at any time, even on weekends. The Chinese have worked hard.

If the salesperson does not respond to emails after get off work, you can consider changing salespersons or suppliers. Timely communication can solve most of your worries and make the process smoother.

d. Responsibility-attitude and solution to the problem

Responsible wholesale suppliers treat all orders equally, regardless of the size of the order. However, many wholesale suppliers on Alibaba treat small orders (just reached MOQ, or below MOQ) because they are interested in doing business with you. Therefore, they will provide you with higher prices and will not care too much about your order.

Buying existing branded products or customized products from China, especially bulk products, can be a complicated and time-consuming process from production to import to your country/region. There are various challenges in this process, especially if you are importing from China for the first time. This is why choosing a responsible supplier becomes more important.

In addition, some small challenges and obstacles will inevitably appear in the production process. For example, the logo is printed in the wrong place, or the requested change has not been changed, etc. Here, the key to ensuring everything goes smoothly is the supplier’s attitude in dealing with these issues. If the supplier evades responsibility when there is a problem with the product, or does not fix the problem to make up for the problem, then he is definitely not a good supplier.

A good supplier understands the principle of win-win, and is willing to take responsibility for his mistakes. He can make himself unprofitable because of some unexpected problems in the order, but he will not let you suffer unreasonable losses. Regardless of whether it is a big or a small one, he will maintain a positive attitude, because he wants to establish a long-term cooperative relationship with you.

7. Four Tips for Dealing with Chinese wholesale Suppliers to Make Your Business Grow Fast

In business, you should always try your best to create favorable conditions for your business to flourish. Here, I would like to share with you some of the skills derived from the experience of dealing with wholesale suppliers over the years.

a. Provide better payment terms

Due to stable cash flow, some importers with important expertise tend to grow rapidly every year. Whether it is a large or small business, cash flow is king. This is especially true for e-commerce companies such as Amazon and Shopify. Now, let us roughly calculate the capital turnover cycle.

In the case of Amazon, you pay in full when you place the order. Suppose it takes 1-1.5 months for transportation, and the goods tend to be sold out in about 2 months, after which Amazon will release the money (assuming 30 days). If all goes well, your return on investment will take at least 4 months. If you don’t get other people’s investment or borrow money from the bank, your annual business growth is limited.

If you want to grow your business from US$100,000 to US$1 million per year, whether the supplier can provide you with financial support is critical. It will be more challenging to get their support at the beginning. However, if you reorder the same product more than 3 times, you can try to communicate with your supplier and strive for a good payment deadline.

A good supplier can provide you with better payment terms. Generally, there are three types of payment terms:

  • Wire transfer (30% deposit before production, 70% balance before shipment)
  • Wire transfer (30% deposit is paid before production, 70% balance is paid before the goods arrive at the port of your country)
  • LC and OA (Letter of Credit and Account Opening)
Wire transfer 30% 70% (before shipment)

In this way, the supplier requires you to pay a 30% deposit when placing the order, and the remaining 70% can be paid before shipment. The supplier will then arrange delivery to your country. Most wholesale suppliers use this payment method, but it does not help your cash flow much.

Wire transfer 30% 70% (before arrival at the port)

This method also requires you to pay a 30% deposit, and before your goods reach your national port, you need to pay the supplier 70% of the balance. Then you take the bill of lading given to you by the supplier to pick up the goods at the port. If your product is shipped to the West Coast of the United States, it means you have won at least one month of shipping time.

LC and OA

In short, LC is a payment commitment to the supplier’s designated bank, which is issued by the importer’s bank in accordance with its requirements. In other words, the importer promises to pay the supplier at some time in the future, so LC has the potential role of financing guarantee.

OA has high requirements on the flow of funds of wholesale suppliers and the credit of importers, which means that you should have a good import record and your wholesale suppliers should also have strong financial strength. Wal-Mart generally adopts OA.

Therefore, this method provides most importers with the second option of 30% 70% wire transfer (before arrival at the port).

b. Exchange rate

Exchange rate is dynamic data that changes in real time. It is normal for a change of 5%-10% in half a year or a year. If the fluctuation is small, you don’t need to worry, because the wholesale suppliers will not adjust the product price due to slight changes in the exchange rate.

For example, if the rate drops from 6.5 to 6.2, it won’t have much impact on your product price. However, if the exchange rate drops sharply and your product value is high, in this case, you can negotiate with the supplier to update the product price. For example, one day, the exchange rate was 6.9 and then fell back to 6.2. At this time, the wholesale suppliers will adjust the price for you.

C. When you want to purchase a new product, please ask the old supplier first

Reliable long-term cooperative wholesale suppliers are also your resources; you should make good use of them. When you want to buy a new product, you can consult your old supplier. You can ask him to buy it for you. It not only saves time, but also reduces potential risks. If you can get some information about the supplier of the product from your old wholesale suppliers, even if you buy it yourself, it will be of great help to you.

d. Ask your supplier to recommend new designs or new products

In business, timely and accurate information is priceless. If you are in a fashion product business, you should always pay attention to trends and products sold by competitors. You should also take the initiative to ask your wholesale supplier what the latest product this quarter is. You must get the most popular products the first time to sell and make more money first.

Wholesale suppliers will continue to improve products based on customer feedback. For example, many customers of the supplier require the use of leather on the bottom of a canvas diaper bag. At this time, you can also consider whether you need to upgrade your products.

All in all, information from wholesale suppliers is also important to your product ideas.

Now it is your turn

Thank you for coming here with me.

I hope this article showed you all the information about finding quality wholesale suppliers in China, which you didn’t know before.

Now I want to hear your opinion:

Which idea are you going to try first?

Do you want to start your journey of purchasing goods in China?


Maybe some of the points in this article confuse you.

Either way, please let me know in the comments section below.

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