Buying Merchandise Directly From China

Buying Merchandise Directly From ChinaChina is one of the world’s largest producers, greatly due to its low-cost merchandise. If you buy directly from China, you can skip the middleman and keep your prices low for your customers. Individuals can easily access websites of direct Chinese suppliers. Here’s how you start.

  • First, you must find a manufacturer, product, or supplier. There are many different ways to do it. Here are a few different ways
    1. Referrals, Introductions, or Word-of-Mouth
      Approaches for the process are much like those you use if you’re looking for a job. When you look for a job, you rely on referrals, introductions and word-of-mouth information. It is a very successful way to find a good supplier.  Research the material as much as you can, talk to others you know, and ask them if they have reliable connections in China and who are doing.
    2. Websites
      Online search engines will help you find the product or supplier you want. Chinese suppliers reach their global market by advertising their businesses and products on websites. Most often, when you find a supplier you like online, you will find instructions about its order process. This will help your transactions with China go smoothly.
    3. Written and/or Telephone
      Contact your supplier through mail, email or by phone. If you don’t speak Chinese, and you still want to speak to the supplier, most of the suppliers have their staffs to deal with the language problem. If not, you can find someone to translate for you.
    4. Trade Shows
      There are many trade shows you can attend. The Canton Fair is China’s largest trade show. It is held in three phases in the city of Guangzhou. Hundreds or even thousands of Chinese suppliers from all industries bring products to the Canton Fair for demonstration to international buyers. This is an opportunity to find out how to buy from the seller you want, and to see their products and supplies first hand. If you’re looking for a manufacturers or agents who is reliable and seriously dedicated to their business, the Canton Fair is an excellent place to find them. You usually won’t go wrong if you find your supplier there.
  • After you’ve selected a few suppliers you feel meet your needs, you should visit the suppliers you like in China. This may not be a possible if you’re an individual buyer, but most corporate buyers usually prefer this step. It allows you to meet suppliers in person, see and test potential products, and negotiate pricing in person. A face-to-face meeting with the supplier can greatly assist you to build a relationship with the Chinese supplier.
  • After the supplier has been selected, and you’ve seen and tested the product, you’re ready to make your purchase. Online purchases are simple. You just follow the on-screen instructions as you would with most American retail websites. For purchases from suppliers, just enter your orders as they instruct. If you are business buying in bulk, however, this may need a face-to-face negotiation with the Chinese. It will be beneficial to you to research the Chinese culture and ways of doing business first to make the transaction go smoothly.

You can greatly benefit from import/export with China. Make sure you follow these few simple guidelines, and you will be starting your journey to success in the import/export trade.

How To Accept Credit On Your Website

How To Accept Credit On Your WebsiteIf you’re opening an import/export business, you’re probably going to be selling products on the internet. This means you will also need some way in which you can accept credit cards on your site. Accepting credit allows you to take advantage of impulse buyers and international customers. It is extremely convenient for your customer, which will mean more sales for you.

There are two methods of accepting credit card payments on your site. They are:

  • Merchant Accounts— This must be opened from a bank. Requirements vary from country to country. You can get information from your local banks about setting one up.
  • Third Party Merchants— If you check, you will find There are numerous companies around that are willing to accept credit cards payments on your behalf in exchange for various fees and percentages. These are also known as "payment gateways".

You should determine which account works best for you. The initial costs of opening a merchant account is normally higher than using a third party merchant. Some third party merchants actually have no setup fee. The transaction fee, however, is much higher. This means you pay more per sale. Merchant accounts lower your transaction costs, but you have to be careful to minimize your credit card risks. You’ll be processing the credit card payments yourself.

When starting your business, when you’re unsure of the success of your product and you just want to test the market, a third party merchant is convenient to use. The merchant takes care of things for you, leaving you time to focus on the business. You get a check at the end of the month for your sales.

There are several reputable third party merchants to choose from. Below is an alphabetical list and brief description of a few of these services:

  • CCBill— With this merchant there is no setup fee. Transaction fees are different depending on the volume of sales in each accounting period. The website states fees are not more than 13.5% for CWIE hosting clients and 14.5% for non-hosting clients.
  • Google Checkout Google has its own payment system which is available for US and UK sellers. You can use it if you are selling tangible and digital goods mainly, however, you can also use it to charge for services and subscriptions. Charges range from 1.9% + $0.30 USD to 2.9% + $0.30 USD per transaction. It depends on the volume of sales in the prior month. If you make a sale to a buyer that is not from your country, there is also another 1% processing fee.
  • Kagi Their fees seem to vary. To determine your fee, they look at order size, type of item sold and the type of payment used by your customer.
  • PayPal This is a popular, well-known service. It allows you to set up a Premier or Business account. The charges range between 1.9% + $0.30 USD to 2.9% + $0.30 USD for each transaction if you are in the US. If you are a user from another country, are charged different amounts according to the country.
  • ProPay This is a new service and a competitor for PayPal. Currently, it is only available to US residents. They charge you an annual fee, starting at $34.95, which depends on the type of account you sign up for. You also have to pay transaction fees of 3.5% + $0.35 USD.

It is easy to set up your website to accept payment. Once you have signed up the vendor you want, you will be able to put an order form or shopping cart on your site. Each vendor is different, but the instructions are rather simple. Once you complete it, your business can accept orders from anywhere in the global market.

How China Produces Wholesale Products

How China Produces Wholesale ProductsUndoubtedly, as buyers around the world continue to order products from China at low-cost prices, China has become the world’s factory. Chinese wholesalers provide good profit margins on a wide variety of products, manufacturers produce goods at prices you won’t find anywhere else. Retailers, therefore, can quickly dominate their particular niche when buying from China.

Although the economy worldwide is struggling economically, a lot of Chinese factories still have a growth in exporting revenue. This is especially seen in small size trade. Any small retailer worldwide, can directly order a large variety of items from China at bargain prices. You receive the products in a week, flip them immediately, and buy more. Over the past few years, global fast trading market has grown rapidly.

The question everyone wants to know is, “How do they do it?” How can they produce quality merchandise at prices lower than just about anyone else in the world? When combined, there are several factors that have turned out to be a winning combination for China.

  1. Lenient Environmental Laws–The environmental laws are more lenient in China than those the US. This has caused heavy industry to move from the US to China. This could be a result of  the strict environmental laws which were enacted in the last half of the 20th century. The strict laws require expensive environmental protection actions, processes and equipment. Without that expense, it makes sense that you can have a greater profit. Businesses can have products manufactured cheaper in countries like China which have fewer, lenient environmental regulations.
  2. Lack of Minimum Wage–There is no minimum wage law in China. Because of this, workers can be replaced by Chinese workers who may cost a lot less. The average monthly wage at a Chinese factory is less than a weekly wage of an employee in the US. Ironically the goods that Chinese workers make are considerably more expensive in China than the U.S.  
  3. Factory Growth/Expansion–Factories in China are constructed and retooled for new products at an extremely impressive speed. Combined with the low monthly wages, this is an important element of the Chinese.
  4. The Consumer Allows It–The Chinese manufacturing process has added an average of $1,000 per year to the American budget. As long as all countries continue to benefit from the lower prices, the manufacturing industry in China will grow.

The combination of these three areas definitely works together to result in an overall product that is much cheaper. Any  Item which is made in China can be obtained by a manufacturer or distributor for much lower prices than the same item being manufactured in the US. Then, the US retailer can sell the product for a price comparable to items made in America. Even though they sell it for a lower price, the results is still a much higher profit margin for the manufacturer.

There are very few homes in the world that don’t have “Made in China” on the at least a few labels. To the average consumer, those have become synonyms for “Great Deal!”

Facebook Twitter Youtube