Sometimes, it can be complicated to buy wholesale from China. The process requires a certain level of expertise, and it can be time-consuming as well. An ignorant mistake can make things go awry and cause financial losses.
If you are a businessman or woman who buys wholesale from China, it’s important for you to avoid mistakes when purchasing wholesale products from China. Newbie traders make these mistakes and suffer huge losses. Avoiding these mistakes will save you a whole lot of money and reduce your stress. In this guide, you will learn how to avoid mistakes that most traders make when buying wholesale goods in China.
Buying From Popular Wholesale Markets Rather Than The Factory’s Location
This is a common mistake that traders when researching the market to buy wholesale. Some traders don’t research at all and become confused about the right marketplace to buy goods. It’s to know the city in which your product’s factory is. Prices are cheaper in cities where the factories are.
Most traders would go to the wholesale market and buy from sellers that buy from the factory. Traders will benefit more if they buy from the factory or the cities where the factories are because the prices are usually cheaper. Yiwu and Guangzhou are one of the popular cities in China that give a fair price for wholesale. With good negotiating power, you can get goods at the best price.
Refusing Or Forgetting To Collect Manufacturer Or Supplier’s Contact Details
Some traders go into the market, get reliable suppliers or product manufacturers, get a good deal and then forget to collect their contact details. This can cause losses for them, especially when they can’t reach these suppliers. As a business person, it’s important for you to get the contact of your supplier. Emails, phone numbers, or even skype ID are contact details. Get their contact details and save your business from losing good deals.
Getting Wholesale From Random And Unreliable Suppliers
Some traders, especially new traders go into the market without doing background checks on their suppliers. This can make them prone to getting erratic suppliers.
It can be stressful and time-consuming working with these kinds of suppliers. You can get a more reliable supplier by putting effort to create written contracts. Also, perform supplier audits, and improve on your communication skills. You can also get another supplier if you are not okay with the deal. A business license will give you valid details and help you know who your supplier is.
Not Being Able To Differentiate Manufacturers From Distributors
Businesspersons need to know who sells wholesale to them. Buying from the manufacturer means buying directly from the maker of the product. Buying from the distributor means buying from a middle man. Although distributors usually give discounts on the product, the price will still be higher than buying from the manufacturer because the distributor will add his profit. Traders should know all the processes involved in buying wholesale including product specification, payment, and product delivery. This will help the trader prevent losses.
Paying For Goods Fully Without Inspection
Paying 100% is one of the common mistakes that new buyers make when buying from China. This can result in financial losses when the supplier can’t meet up to his end of the deal. It’s better to make some payment when starting the transaction and complete the payment after the goods are inspected.
Choosing Suppliers That Offer The Cheapest Prices
Most traders would jump once they see cheap products. They would rush to get these products so they can make more profits. We are not saying traders shouldn’t buy products at cheap prices, but when something seems too good to be true, then it probably is. Extremely cheap products may have issues. Avoid buying wholesale products whose prices seem unlikely.
Weak Negotiation Skills
Buyers who fail to negotiate moderately with suppliers will buy at a more expensive rate. This can reduce their profit rate. Strong negotiation skills can help the buyer get quality products at a cheaper rate.
Buying Seasonal Wholesale Products From China
Most newbie buyers make the mistake of buying seasonal wholesale products. Although they make profits, it is not a good idea because seasonal products last for a short while. Buying wholesale can result in losses after the season is over because nobody would want to buy the products. It’s better to get seasonal products in smaller stocks than wholesale.
Using Illegal Payment Methods
Using illegal payment methods to pay wholesale suppliers in China can expose you to unnecessary risk. The courts would not be able to protect you if any dispute arises. The acceptable modes of payment in China are; Paypal, bank transfer, T/T, and Alibaba trade assurance.
Ignoring basic information like China holidays
Buyers who know about information like china holidays and seasons will plan. Markets and factories are usually closed during the holidays. Shipping rates become high, and shipping will be delayed. A buyer that avoids importing during these periods will save money.
These are the common mistakes buyers make when buying wholesale from China. Avoid these mistakes, and you will save a whole lot of money. Do you want to start buying wholesale from China? Contact us today at Fulfillman. We are a leading fulfillment services company. We offer a wide range of services including Warehouse Fulfillment, Drop Shipping, Crowdfunding Fulfillment, Third Party Logistics, China Sourcing, and many more.
Our dedicated team will be happy to speak with you and discuss your needs. We will provide suitable answers to your questions and concerns. With us, you are guaranteed to get quality and excellent services that give 100% client satisfaction.