It is the most effective way to save your cost while increase profits if you import directly from China. Then choosing a good wholesale supplier will help you simplify the matters. You can do it by yourself or have a local trading agent to help you deal with all process. Whether you’d like to do it by yourself or with the of a trading agent here are some tips for your business and best practices for entering into agreements with Chinese wholesalers.
- The Wholesale Business
The wholesale industry is large and highly fragmented, with 50 of the largest distributors generating 25 percent of industry revenue in the US. Wholesalers serve retailers and other service businesses through a variety of distribution channels and supply chains. At the top of the chain are manufacturers (including importers or exclusive distributors – who also sell to wholesalers). Next are wholesalers or regional distributors (who distribute the goods locally) and brokers/jobbers (who deliver goods to local small businesses such as independent produce stores).
- It’s All About Volume
The wholesale business is volume-centric. The more you can buy, the lower wholesale prices become, and the higher your profits are as a result. So as a new small business, it’s unlikely that you’ll be able to negotiate relationships from a high-volume wholesaler, simply because your sales volume won’t yet support buying in any kind of bulk. Smaller wholesalers will sell and ship to small businesses, and as you move forward and your sales increase, you’ll be able to graduate up the supply chain to negotiate higher volumes and lower rates.
Finding a trading agent may help you with your volume issue. Normally trading companies have their cooperating suppliers, so that you can purchase from their cooperating suppliers with both quality and price guaranteed.
- Researching and Finding Wholesalers
Finding wholesalers takes time, but there are a number of best practices you can use to help your research efforts:
Search the Internet –Search for wholesalers by product to help you pinpoint local suppliers (this will bring up nationwide suppliers). You can also search such asAliexpress.com and online associations, trade directories, or wholesale directories such as Wholesale Central or Wholesale Network.
Trade Shows – Trade shows are great venues for finding wholesalers if you’ve got the budget and the time. Trade show directories such as TSNN and 10times can help you pinpoint events by industry and location.
Talk to Brand Manufacturers – Brand manufacturers sometimes sell wholesale, but usually only in high volume. However, they might be able to refer you to wholesalers or distributors that will sell to small businesses.
Ask the trading agents for help. Trading agents always help their clients import from China, therefore they are quite sure who is factory who is middle man. Furthermore choosing a reliable trading cloud also help you with quality control and shipping.