Business with China: how to start + from scratch + how to find suppliers
China is ahead of the rest, and this cannot be denied. Wherever you look, wherever you go, Chinese goods are everywhere and everywhere, ranging from expensive equipment to toilet brushes. And along with this, business with China is also developing. Why is that?
Previously, Chinese goods won not quite a positive reputation among the population. If Chinese means bad, it is already leaving thinking. Cheap trinkets for a penny are being replaced by worthy things that are not cheap. But quality goods from China are definitely more profitable for consumers to buy than analogues from Europe or the USA.
When there is demand, you need to organize the flow of supply. Business with China is a great option for making money in the current market in today’s realities. There has been no large-scale production lately, and the resale of goods from abroad is the only way to saturate the consumer market with a variety of goods that meet modern trends, and not die of hunger without work.
Business with China on resale
At first glance, the easiest option to get started. But, everything is like everywhere else – there are some nuances, which we’ll talk about now.
More and more people are paying attention towards the PRC. A huge range of products and low prices are the main arguments in favor of establishing partnerships with the Chinese side.
Well, all the benefits are clear and you are ready to establish a business with China on resale. Where to start?
First decide what you would like to resell. Toys, underwear or small electronics. But of course, desire alone is not enough, you need to study user demand and the existing market for similar goods in your city.
Where there is a lot of competition it will be more difficult, especially if the stores are already "promoted" and have a good reputation. And in a low user niche (unpopular products, such as glasses or occluder eye patches), demand is much lower, which also carries certain risks.
But, despite the risks, it is necessary to evaluate the consumer demand and the available offers on the market! After analyzing the situation, it will be easier to understand what product is needed to start a business with China for resale.
Write the following action plan in your notebook:
- Must find a good product (goods).
- Must find a good supplier.
- Buy some trial goods (samples) and try to sell them.
- Increase the volume of purchased goods, and increase the number of sales.
A good product
For those who have already established a resale business with China, there are a few tricks and tips for finding a good product.
- First, the object of sale must be small and light. Ordering furniture, office equipment is expensive. In addition to the price of the goods themselves, a huge amount of shipping will be added. This is not an option for aspiring entrepreneurs.
- Secondly, the product should be as simple as possible. No fancy smartphones or copies of designer jewelry. Chinese goods have a large percentage of defects, and so that it does not catch the eye, the product should not be fancy. In this case, there will be no marriage at all.
- Thirdly, an inexpensive product. If no one will buy it, then it will not be a pity for the money spent. Yes, and inexpensive things are snapped up more readily. And expensive things often create problems when crossing the customs border.
- Fourthly, look for a free niche where there is no competition or it is minimal. This will make it easier to unroll. But low-demand products won’t work either. It is better to choose among items of everyday use.
- Fifth, do not choose seasonal products. The product may be stale, and sales will stop until the next season.
When you decide on a product, you will need to find where it is most profitable to buy it. There are many sellers, but they all have not only different prices, but also conditions of sale, delivery, service, work with defects, returns.
First you need to go through Alibaba, applying certain filters. Set the search for suppliers, not products. Also in the search engine, click the checkmark next to positive reviews, free shipping and other benefits. Choose the top 10-20 and then contact them. Find out what discounts the supplier offers for ongoing cooperation. If the seller starts saying that his price is the best, insist on a discount anyway (remember the auctions on the market).
Analyze responses from sellers: not only the nature and manner of communication, offers for the best price and discounts, but also the speed of responses. All this will make it possible to predict further work with him.
Agree on product samples in the first order. Please read them carefully upon receipt. Also evaluate the speed of delivery, and the condition of the goods upon receipt. These are the most important indicators for successful business.
If you understand that you do not have a large budget, but want to try it, use Aliexpress. There you can order goods by the piece, and after checking it for "professional suitability", arrange wholesale deliveries.
To understand how to work further with a particular product, you need to try it in action. Trial samples are offered to potential buyers, after which all significant details are recorded: the timing of the sale, the interest of the audience, the percentage of those who left the place of the transaction (the price and quality did not suit).
This type of research will help assess the feasibility of organizing a business with China, and will not let you burn out with large-scale purchases.
"Resellers" are most often now based on the network, opening personal online stores. It’s easy to do this, sometimes you don’t even need a website. Suitable platform Instagram, for example. This is a very popular type of online store. There are no requirements and investments to open it. You just think over the concept, name and create a page.
You don’t even need to register at first. When you just try, the official registration will be superfluous. Naturally, if things go uphill, then it is necessary to register and pay taxes.
How to start a business with China if there is no money to purchase products? This option is acceptable at first. The same format of an online store on Instagram will do. You just post product categories, specifying that you can buy them on order.
An interested buyer makes an advance payment amount (the exact amount of the goods), you order the goods and upon its transfer you receive the remaining percentage of the money, which will go to the profit estimate. Having accumulated capital through such sales, it will be possible to start deliveries from China. For more information on how to start a business with China without investment, read on.
Business with China from scratch
Chinese goods occupy more than 80% of the consumer market recently. This is a huge percentage, so even with an abundance of offers, you can take a stable place in this area. But how?
For example, you often order goods from Aliexpress as an ordinary person – for your own consumption. And this is actually enough to start a business with China from scratch and gain an impressive source of income.
The mechanism for selling goods from China without investment or with minimal investment is elementary simple. You do not need to have a higher education and super-intellectual abilities to understand how it all works.
In fact, the mechanism is simple:
- Find and order goods in China.
- Get it lately.
- Sell at a premium price.
Customs clearance, declarations and duties are relegated to the background. It is the skeptical attitude that destroys entrepreneurial initiative in the bud.
Set yourself a goal to which you will be driven by a great desire, and then after 6 weeks you can have an established business with China for resale.
Why is this business profitable?
Well, firstly, due to the fast pace of life, the consumer began to value his time more. So he needs the goods here and now. He will not bother with an order for Aliexpress, he will not wait for him for two months. The thing is needed now, and it is easier for him to buy from you.
And, secondly, not everyone will look for the right product on Chinese sites (study all the abundance of offers, look for the best price and fast delivery). Again, it is easier to entrust it to another, even if you have to pay a little more for it.
There are several business models that can be used when starting a business with China.
- joint purchases;
- wholesale sales offline;
- retail sales;
- online shopping.
This is a method that makes it possible to start a business with China from scratch (with virtually no investment). The mechanism is as follows: you provide information about various products to consumers, upon receipt of an order, you receive money and redirect the request to the supplier who sends the package.
In simple terms, you simply place an order instead of the buyer, and shift the further burden of delivering the goods to the supplier. Of course, you add your percentage to the amount of the goods, which, together with the real price, together you announce to the client.
An ideal way of working, especially when there is no initial investment.
Several people are united in a group – a purchase. People choose the things they like from the supplier.
The benefit of the client is to receive the wholesale price of the goods and save on delivery. You, as the organizer, receive your percentage for organizing such a transaction.
The method is similar to the first. Only in this case, you are acting as an intermediary in a major transaction. Your income here will be the set percentage of cheating. What does it look like?
- Find a wholesale supplier.
- Looking for start-up entrepreneurs or people with a ready-made business. Explain that you know a supplier with low prices for goods. Naturally, the price should be lower than the businessman already has.
- The client makes an advance payment equal to the price of the ordered goods. You buy products for him, and you get a percentage of the work.
Simple at first glance, but actually a complex method. Creating an online store based on social networks is not difficult. Let’s take Instagram. A page with an interesting title loaded with goods, and what’s next? There are no sales.
Here you have to work with your own brand and promote it in every possible way.
- Firstly, the store needs an original name and stylish branding (at least an avatar and a general account style).
- Secondly, collect reviews about the work of the online store and publish them up-to-date in stories. Constantly display the goods that are in stock.
This attracts the attention of customers, and creates an atmosphere of trust in you (when all the goods are on order – a little annoying).
Create online store advertising campaigns through the "Advertise" function in the application. Also advertise with bloggers and in publics that your potential customers are subscribed to.
How to start a business with China
Have you already decided on fruitful work, but do not know how to start a business with China? Everything is simple.
Remember the rule: good product, good supplier, product samples, scale up? This is what you need to do immediately, as soon as you definitely decide to work in this area.
But if there is a difficulty at one of the stages, then what next? We’ll give you a few tips.
A good product
What to sell? If there are no clearly formulated images in the head initially, then you need to think about what will actually be in demand and generate income.
There are high-margin goods from China – those that in any case will pay off and make a profit. Among them, as a rule, untwisted and fashionable goods. Have you seen, for example, the new Instagram trend – Valesh? These are such shortened women’s felt boots, decorated with rhinestones, beads and buboes. The Chinese have already intercepted this fashion trend and are making their own counterparts, which are several times cheaper. Here is an example of what can be taken as the basis of sales.
High-margin products also include:
- auto products (seat covers, car vacuum cleaners, fragrances, car decorations);
- goods of health and proper nutrition (shakers, lunch boxes);
- children’s toys and clothes;
- interior and design items.
Where to look for the best price and conditions for purchases? There is a whole list of Internet sites that entrepreneurs use.
- 1 Taobao (https://tb.ru.com/ )
- 2 Alibaba (https://alibaba.com/ )
- Aliexpress (https://www.aliexpress.com/ )
- 4 Alibaba ChinaBrands (https://www.chinabrands.com )
- DHgate (https://www.dhgate.com/ )
- SheIn (https://us.shein.com/ )
- LightinTheBox (https://www.lightinthebox.com/ )
- BandGood (https://www.banggood.com/)
- Zaful (https://www.zaful.com/)
- DX (https://www.dx.com/)
- TomTop (https://www.tomtop.com/ )
Depending on the volume of supplies, the size of the business and other nuances, you need to choose a platform for procurement. For example, small online stores based on social networks can work with Aliexpress, where all ordinary users buy goods. In negotiations with the seller, you can discuss the price and discount for regular orders. Discounts are often made for bulk purchases.
Everyone was once a beginner, no matter what. In business with Chinese partners, you are newcomers so far. We would like to give some advice from those who have already achieved success in this matter.
Experienced businessmen do not recommend making bulk orders until you have samples of goods on hand. So you can study the product in detail, understand its quality and whether it is worth dealing with it. If the supplier says that he can’t send samples and it’s not supposed to be, look for another one. Such a practice exists, but the first one simply wants to deceive in something (either the product is not of high quality, or he wants money for probes).
- Pay for goods only by secure methods, PayPal is best. This method allows you to withdraw a payment in case of disputes. If there is no PayPal, then the supplier has a problem – he received a lot of complaints and PayPal was blocked.
- Do not buy cheap copies or simply fakes. Business on deception is such an idea. Yes, and such things have long been out of fashion. It is better to order quality goods, although not branded.
- Do not leave your personal e-mail, otherwise the endless spam from suppliers is guaranteed.
Working with business in China involves some risks, and of course, mistakes cannot be avoided in any case. But if their percentage is minimized, then half of the failures are behind.
Wholesale deliveries from China
This item from the rules for organizing business with China was moved to a separate block. This is because retail purchases from China are more understandable even to those who do not deal with this. But now we’ll tell you how wholesale deliveries from Cathay work.
So, things are going uphill and you understand that there are not enough one-time orders – resale items are snapping up like hot cakes. How to make a wholesale order and what nuances should be taken into account?
Wholesale deliveries require more serious paperwork. If before that goods could be imported “for personal use", then this will not work with wholesale. Conditions required:
- be sure to issue consignment notes and have all certificates on hand;
- carry out customs clearance strictly in accordance with the laws of both countries, pay all required duties;
- have declarations and certificates of conformity (mandatory for imported products).
Buying in bulk is naturally more profitable. Although you will have to immediately spend a large amount of money, but in the long run it will be cheaper than taking the goods by the piece. Suppliers consider wholesale from different numbers: for one, 10 pieces are already wholesale, for another, only a figure over 1000 means wholesale.
Wholesale deliveries from China are organized using two sites: alibaba.com and 1688.com. On the first one, you can use the Russian-language version and support service. The second only supports Chinese, which greatly complicates the work of the Russian-speaking population. On these sites you will find absolutely everything: children’s goods, furniture, household goods, shoes, cosmetics and much more.
How to work with these sites?
Alibaba is the same Aliexpess, only sharpened for wholesale orders. The mechanism of interaction is as follows: you find the right product, contact the supplier (negotiate all the details of the transaction, price, delivery), conclude an agreement and make payment.
Suppliers on Alibaba are: with a free profile (it is risky to cooperate with it, since the trading platform does not have accurate information and work experience about it), verified (identified) – the one who provided his data online (medium risk of cooperation), and personally verified Alibaba representative (visiting the production, familiarization with the documentation).
1688 is a site designed for Chinese partners to work with each other. To purchase goods through the site, foreigners need intermediaries. Prices here are not fixed, but depend on the desired volume of purchase.
To find a product on the site, you must use an online translator. Enter the name in the current one and translate into Chinese. Let it be a clumsy translation, but in general, the search engine will understand the essence. Among the products found, choose the one you need, and place an order with an intermediary.
He, in turn, works with the supplier: he finds out the price that the first one can provide for the set volume, and agrees on delivery. The intermediary will agree on the final amount with you, adding a fee for their services to the main cost. After payment is made and the order of goods.
It remains for you to find a transport company that will deliver a wholesale order to the current one from China. And, despite the number of manipulations, and additional costs for an intermediary and a transport company, orders through 1688 will be more profitable in terms of cost.
Now you have basic knowledge of organizing business with China. It remains to put it into practice. But do not forget that it is simply necessary to constantly study trends in this area, otherwise you may miss something important.