Business with China in the resale of goods - where to start, how to find and check wholesale suppliers + TOP-15 popular goods from China and a list of popular Chinese Internet sites
Welcome, dear users and visitors to the Rich Pro business magazine! The topic of today's publication is "Business with China." We will tell you where to start, how to find and establish optimal mutually beneficial cooperation with partners (intermediaries), as well as provide a list of popular Chinese trading platforms where you can buy goods from China in bulk and consider the possibility of reselling goods without investment.
From the article you will learn:
- Is it possible to start a business with China without seed capital;
- Why the choice of Chinese partners is beneficial for Russian entrepreneurs;
- Step-by-step recommendations for organizing a business;
- Advantages and disadvantages of the largest Chinese trading floors (Aliexpress, Alibaba and others);
- Demanded goods from China, on which you can earn a lot of money.
More and more Russian and not only businessmen are turning their eyes towards China to make their activities reliable, profitable and competitive.
Huge assortment manufactured products, as well as low prices with universally improving quality do not leave a choice for beginners and experienced entrepreneurs in identifying partners for cooperation.
After reading this article, businessmen of different levels will be able to get acquainted with the "rules of the game" in this market, even a beginner without initial capital, after reading the article to the end, will find an opportunity to earn money in cooperation with partners from China.
How and where to start your business with China, what are the advantages and benefits of a business in reselling goods from China, is it possible to open a business without investments, and so on, read below in the article
1. Business with China - is it possible to start a business on goods from China from scratch
Products manufactured in China occupy one of the leading places in terms of sales and popularity in global markets. And if a few decades ago, Chinese products were introduced only in the niche of budget goods Low quality, then at the moment the assortment has been expanded up to elite samples possessing the highest consumer properties.
The competitiveness of prices, as well as a huge selection of diverse products provides entrepreneurs with wide opportunities to make good money.
The process of interaction with China is not complicated, and each businessman with fundamental knowledge and entrepreneurial experience can successfully work in this market without initial investments (or with insignificant investments).
The general scheme of work with China:
- search for cheap suitable goods;
- delivery to Russia;
- sale and profit.
At the same time, many aspiring entrepreneurs unnecessarily worrying customs clearance, product certification, taxation and a number of other related factors. However, having studied all the necessary information, businessmen should not have difficulties in interacting with Chinese manufacturers and intermediaries.
☑ Delivery, customs clearance and certification of goods can also be entrusted to a third-party organization.
Trade- The best option for starting a career in business, and having partners in companies that will help deliver affordable and popular goods to Russia, provides unlimited opportunities for earning and developing your business.
Business from scratch in this segment is very limited and involves the resale of goods through the dropshipping system. Read about this and much more in the article.
2. The advantages and benefits of doing business with Chinese manufacturers
In recent decades, there has been a growing trend of attention of the Russian business community to the Chinese manufacturing market. In this Asian country, the entire list of goods necessary for a person to live is made.
Advantages and benefits of cooperation with Chinese manufacturers
For years, the stereotype formed by an ordinary resident of the country that Chinese goods is of low quality is gradually being reduced to nothing. More and more buyers are satisfied with the quality of products from China, with invariably low price compared to competitors.
Even in the traditionally competitive high-tech market, where "rule the ball" western european, North American, South Korean and Japanese manufacturers, Chinese companies managed to occupy a significant market share. However, the quality of manufactured goods is growing.
The development of modern means of communication and technology will allow entrepreneurs to significantly reduce the initial costs of cooperation. with Chinese manufacturers or intermediaries.
It is also worth noting that enterprises from China trade with countries around the world and constantly introduce new products to the market and use innovative ideas. By carefully studying the demand among the population and supply from China, the entrepreneur has the opportunity to be the first to bring new products to the Russian market, which will significantly maximize profits.
Key benefits of doing business with China
The attractiveness of partnerships with Chinese manufacturers and intermediaries is determined by a number of factors:
- A wide range of products. China's share in most sectors of the economy is from 40% and more in relation to global production. This determines a significant variety of products.
- Low prices. One of the main factors in the competitiveness of the Chinese economy. The low cost of goods is due to: relatively inexpensive labor, the presence in the country of virtually all types of necessary raw materials, the presence of a large number of industries of various components, as well as significant competition among enterprises. All this allows entrepreneur, supplying and selling goods from China, set the price of goods with profit up to 1000% while leaving the cost attractive to the buyer.
- Buying an exclusive product. In the process of studying the specifics of the Chinese market, as well as with significant volumes of supplies, manufacturers of exclusive products, which have significant demand but are poorly represented in retail trade, may be interested in working with a Russian company.
- The desire of Chinese partners to cooperate. Great competition and price wars among Chinese manufacturers and intermediaries force them to be attentive to the needs of customers: to start cooperation with small volumes of goods, provide discounts on samples, provide convenient conditions for the delivery of goods and other preferences.
Consider the main benefits of doing business with China:
- First of all, the consumer wants to receive the goods as quickly as possible, as well as evaluate its appearance and quality. Buying goods made to order in Chinese online stores, the buyer cannot take advantage of these advantages and it is more convenient for many customers to buy goods from Russian sellers.
- The second factor is a large number of Internet sites and goods. It’s hard for the buyer to navigate and purchase the right quality product. To do this, you need to evaluate the professional qualities of the seller, take into account the cost and delivery time, and for this you need to have certain knowledge and experience. In this regard, a significant portion of customers prefer to buy from Russian entrepreneurs.
To check the integrity of the seller, understand the functionality of the trading platform, calculate the cost of delivery and the product itself, knowledge and skills are needed.
Many will want to order the necessary goods on a Russian-language website, since there is always the opportunity to call and clarify with the seller all questions and nuances of purchasing the goods, stipulate the terms of delivery of the order, and so on.
Own business with China - where and how to start your business with China
3. How to start a business with China - 10 steps to start your business
In order to establish business in cooperation with Chinese partners, you should consider 10 simple steps (steps) to successfully launch a business reselling goods from China.
Stage 1. Analysis of the list of business models of cooperation
Most Russian entrepreneurs working with Chinese companies use a number of time-tested models of interaction with partners:
- Wholesale sales of products;
- Sales of products through the online store;
- Dropshipping;
- Own implementation through a retail outlet;
- Joint purchases of goods from China.
Next, you should consider the proposed models in more detail.
1. Wholesale sales of products (offline)
By establishing cooperation with Chinese partners, an entrepreneur has the opportunity to sell goods in bulk with considerable profitability. The Chinese market provides a large list of diverse products, and choosing a product in demand will not be difficult for an entrepreneur.
The work algorithm includes a number of actions:
- Choosing the best wholesale supplier;
- Search for retailers and registration of cooperation with them;
- The client is determined with the assortment he needs, prepays, and the entrepreneur, purchasing products, provides delivery.
A businessman who has arranged deliveries from China should not have great difficulties in finding partners in Russia.
The only thing that will be appropriate is to use additional communication capabilities through the World Wide Web: social networks, message boards, and also use a very effective way to promote products - contextual advertising.
What is contextual advertising and how it works, read the link.
2. Sales of products using the online store
Internet trading is growing rapidly, and for success in retail sales, the best solution would be to sell goods through an online store. This form of business organization requires an initial investment, but provides, with the right approach, substantial income.
This form of doing business with China is suitable for an "advanced" entrepreneur. In more detail and detail how to open an online store, where we provided step-by-step instructions, we wrote in the last issue.
Organization of an online store involves:
- Providing a wide range of products that are in significant demand among customers, as well as having a price below the market;
- Using methods of promotion and advertising of goods;
- Providing quality customer service.
A proper approach to business will provide the entrepreneur with a large number of loyal customers, as well as a high level of income.
3. Dropshipping - the opportunity to start a business with China on resale without investment
Dropshipping- a business model in which the buyer orders the goods from the seller, paying that advance payment. In this case, the seller makes a purchase from the supplier who has this product, which organizes its delivery to the consumer. In more detail what dropshipping is, how and where to look for dropshipping suppliers we wrote in previous releases.
The dropshipping entrepreneur receives his percentage of the transaction without using his money, and the profit from such transactions can reach hundreds of percent.
This model should be used in the absence of initial capital, it is very convenient for entrepreneurs, as it eliminates the cost of storage and delivery of goods to customers.
4. Own sales through a retail outlet
The easiest way to use goods from China is through your own retail outlet.
With proper organization of work, a high margin will allow the entrepreneur to receive significant income.
5. Joint purchases
General procurement - the joint purchase of goods by several buyers (entrepreneurs) from one supplier.
The feasibility of this action is determined by the financial benefit of businessmen due to the discount, as well as cost savings on delivery.
Stage 2. Assessment of own financial opportunities
An objective look at their own financial resources will allow the entrepreneur to choose the optimal model of interaction with Chinese partners.
Lack of money or a small amount of money suggests starting a business with dropshipping, which eliminates risks and allows you to earn initial capital.
Having money allows a businessman to choose a more suitable option - open online store, retail outlet or engage in wholesale trade in goods supplied. At the same time, the development of these business models will require considerable effort. To successfully launch a resale business, you need to draw up a business plan, analyze the level of demand for the product, and so on.
Stage 3. Demand assessment and niche selection
Choosing a niche is a crucial issue for starting a business. Demand for goods is not constant, it is constantly changing along with the needs of customers.
Most successful businessmen claim that all goods are soldthat have at least some value to consumers.
Important! For the sale of goods with a low level of demand, it is necessary to invest more entrepreneurial efforts. So it is more advisable to trade products in high demand.
For optimal product selection, a number of recommendations should be considered:
- Estimate demand. Using the Yandex.Wordstat service -wordstat.yandex.ru, an entrepreneur can evaluate the statistics of requests from Internet users by product categories;
- Competition assessment. It is not advisable to trade even products that are in high demand in an overly competitive market. Competition leads to a significant decrease in the income of all market participants;
- The quality of the goods. Trade in goods with low consumer properties will inevitably negatively affect business;
- Pay attention to the goods in which the entrepreneur understands and evokes positive emotions in him. Familiarity with the features of the product will initially avoid mistakes when choosing an assortment and, accordingly, save money. Selling goods that a businessman likes will allow you to enthusiastically talk about them to partners and customers, which leads to high sales of products.
Stage 4. Search for suppliers of goods and partners in China
Depending on the direction of activity, an entrepreneur should decide who is more advisable to cooperate with: with suppliers or intermediaries.
How to find intermediaries and suppliers of goods from China
When engaged in wholesale the best solution is to cooperate with manufacturers or their direct distributors (suppliers). Read more about wholesale trade in goods below.
When dropshipping, and also if the businessman does not want to deal with organizational issues independently, it is worth making a choice in favor of intermediaries who have the necessary knowledge and experience.
There are 3 (three) possible search options for a Chinese supplier:
- Personal meetings;
- Visiting exhibitions and presentations;
- Chinese trading floors.
First option should be considered by representatives of large business, and is necessary to establish direct contact with businessmen from China.
The entrepreneur has the opportunity to get acquainted with the production capabilities of enterprises, to draw up all the necessary documentation on cooperation, as well as possible prospects for cooperation and conditions for providing discounts.
Second option involves establishing contact with suppliers at specialized exhibitions, which often take place in large cities of Russia.
These events will help to get acquainted with a large number of products, choose the appropriate assortment, as well as determine the supplier. The main advantage of this method is the absence of the need to go to China.
Chinese trading floors represented in significant numbers on the Internet. They sell goods, both in large wholesale lots, and at retail.
To use the opportunities to establish contacts with suppliers and conduct transactions on the site is necessary to register.
A table that allows you to compare the most famous trading floors on the Internet selling Chinese goods:
No. p / p | Name | Characteristic signs | Advantages (+) | Disadvantages (-) |
1 | Alibaba.com | mainly wholesale | Prices are significantly lower than competitors | Low retail presence |
2 | Dinodirect.com | Wide range of products | Russian-language support, the possibility of settlements using domestic payment systems | Prices are higher than competitors |
3 | 1688.com | Wholesale from 10 pieces. Foreigners can work on the site only with the help of intermediaries. | Each product has 2-3 prices, which depend on the amount of purchased goods | Wholesale and selling goods only to the Chinese |
4 | On Aliexpress.com | Largest online retail store | Buyer Protection | Price increase |
5 | Tmart.com | A significant range of products | Dropshipping capability | Unclear delivery conditions |
6 | Taobao.com | The largest online store in Chinese | Wide range of products | Information on the site in Chinese only |
Many entrepreneurs refuse to consider offers on certain sites due to lack of Russian-language support.
Purposeful businessmen should not be deterred by this fact, as online translators can successfully contact partners. Using online communication, you can evaluate the professional qualities of the supplier. Moreover, as a rule, most of the goods from China with free delivery (depending on the seller within the trading platform).
On many of the trading platforms presented, you can order goods from China by mail, and delivery depends on the speed of the seller sending the goods.
The following should be considered in more detail. virtues and limitations submitted trading platforms:
1) Alibaba.com Online Marketplace
This Chinese site (resource) is the main asset of the Alibaba Group, founded in 1999.
The work is carried out according to the principle of B2B ("organization for organization").
Advantages:
- One of the leading wholesale trading platforms;
- A wide range of products;
- Low prices;
- Russian-language support;
- Convenient search engine;
- Availability of necessary information about goods and suppliers;
- The possibility of obtaining a free trade guarantee;
- Rating and status grading of suppliers;
Disadvantages:
- Failure of the majority of suppliers to use a reliable payment system;
- Requirement by suppliers of 100% prepayment;
- Not always high-quality photo materials about the product, the lack of the possibility of a detailed inspection of the products;
- Wholesale only;
- A significant number of scammers.
2) Internet siteDinodirect.com
Dinodirect.com - a large Chinese online store (site) with a wide range of products.
Advantages:
- Russian-language support;
- The ability to display prices in Russian rubles;
- Large selection of supported payment systems;
- A variety of bonuses and discounts;
- Possibility of free delivery;
- Round-the-clock work of the customer support system;
- Warehouses are located in different countries, which leads to a reduction in delivery time.
Disadvantages:
- High level of prices in comparison with competitors;
- Not quite convenient interface;
- Failures in the site when the client using some browsers;
- Delivery is free only conditionally (there are restrictions on the dimensions and weight of the goods).
3) Internet site1688.com
www.1688.com - a wholesale trading platform designed for trade between Chinese entrepreneurs and manufacturers, and part of the Alibaba Group. About this online site we wrote in detail below in the article.
Advantages:
- Low prices compared to other sites;
- A wide range of products (there is also equipment, machines and raw materials);
- Minimal risks;
- Price gradation depending on the volume of purchases.
Disadvantages:
- The product is not always available, sometimes it takes a long time to wait;
- Inability to pay for goods from Russia;
- The need to work through an intermediary;
- Support only Chinese;
- Only bulk purchases.
4) Internet site Aliexpress.com
This resource is considered one of the most popular online stores in the world and is a structural unit Alibaba Group.
Advantages:
- Huge selection of goods;
- The presence of customer protection from unscrupulous suppliers. The supplier receives the money only after confirming receipt of the goods by the buyer;
- A large number of sellers. Allows the buyer to make a purchase from a supplier with better conditions;
- The seller’s rating and status allows customers to navigate their level of reliability and professionalism;
- Mostly, goods from China with Ali express are delivered free of charge;
- Providing the customer with tracking codes for the movement of goods until receipt;
- A large number of discounts, promotions and all kinds of sales;
- Large selection of payment options;
- Ability to communicate with the seller.
Disadvantages:
- A large number of identical products, which creates difficulties in finding the right product;
- Prices are higher than on other resources of the Alibaba Group;
- Some products are sold only in packs (lots).
5) Tmart.com Internet site
An online store specializing in the sale of electronic equipment, components and accessories. At the same time, I am presenting other goods: clothing, jewelry, goods for sports and others.
Advantages:
- Ability to work according to the dropshipping scheme;
- Bonus program;
- Large selection of products, especially those related to electronics;
- Good site navigation;
- Localization of the site in Russian;
- Warranty on the goods within 180 days from the date of receipt;
- Best Price Guaranteed.
Disadvantages:
- Interruptions in the delivery of goods;
- Not always declared goods are available from the seller;
- Long product return process.
6) Taobao.com Internet Marketplace
Taobao website is the largest online store oriented to the market within China.
The marketplace is also a division of the Alibaba Group.
Advantages:
- Low price level;
- A huge range of products;
- The ability to purchase goods, both wholesale and retail;
- A large number of exclusive products;
- Secure payment system;
- The presence of high-quality inexpensive fakes of famous brands;
- Good, large photos of the product, allowing a thorough examination of its details;
- Site navigation makes it easy to find decent products at a very low price.
Disadvantages:
- Work only through Chinese intermediaries;
- The site is only in Chinese;
- Not always sold goods are available from the seller.
Intermediaries for purchases from China
With all the variety of intermediaries, the most important task is to choose a reliable partner with the most favorable conditions.
For successful cooperation should take into account a number of aspects:
- terms and payment of delivery;
- the percentage of the income of the intermediary of the value of the goods;
- RMB rate used in transactions.
All these points should be agreed with the intermediary before starting cooperation, as the costs can be much higher than the entrepreneur expects.
Program of interaction with intermediaries:
- Selection of products on the site;
- The selected list of goods is sent to the intermediary. He compares the order with the balances in the warehouses of manufacturers;
- Payment by invoice. An intermediary margin is added to the cost of goods, which, as a rule, is about 10% from the selling price of the manufacturer;
- An intermediary from China pays for the goods and evaluates its quality;
- Products are delivered to Russia with the help of an organization that provides transport services;
- Delivery is paid, which depends on the timing and weight of the order.
Stage 5. Assessment of the reliability of the Chinese partner
Before you work with intermediaries, you must carefully study it reputation, attentively get acquainted with the submitted documents, if possible, contact other entrepreneurs who collaborated with this intermediary.
These procedures should be taken as seriously as possible. So in China, a sufficient number of fraudsters.
When agreeing on the terms of cooperation, penalties should be provided for false information and unjustified changes to the terms of the agreement. You should also evaluate the quality of product samples before completing a transaction.
Some issues and difficulties that entrepreneurs may encounter should be considered:
- Product quality. Even after completing an agreement with a reliable manufacturer or supplier, it does not guarantee that the goods will be of declared quality. In China, there are still informal conveyor enterprises that produce counterfeit products of poor quality.
- Firms - one-day. As a rule, such organizations exist only on paper, but the activities are widely advertised, and prices are much lower than those of competitors. The buyer is promised very good conditions, but after payment the company disappears.
- Hacking personal data on a computer. Fraudsters can take possession of information allowing financial transactions.
Attentive attitude to the potential partner and the supplied products, as well as caution when filling out contractual relations will allow to avoid negative moments from a meeting with unscrupulous intermediaries.
Tips and tricks on how to quickly and easily check a supplier from China
How to check a supplier from China - 10 tips to quickly and easily check a supplier
The following recommendations should be used to properly assess supplier reliability:
- Assess the accuracy of the indicated legal address. A reliable supplier provides company data in full, and this information is true. In cases of incomplete data (indicating only the city, lack of address), remember the risk of fraud.
- Analysis of the supplier site data. If the specifics of the goods are significantly different from each other, then there should be suspicion about the reliability of the supplier.
- Rate all information about the provider on the Internet.
- Determine the period of operation of the domain name (site) of the supplier. Its short existence should alert the entrepreneur.
- Evaluate language support for the supplier’s site. The lack of Chinese should be a concern for the entrepreneur.
- Search for a provider on the network among the list of scammers. Lists of unscrupulous suppliers are maintained and constantly updated on the Internet.
- Agree with the supplier on a trip to the manufacturer's factory. According to the response of the potential partner, certain conclusions can be drawn.
- Evaluation of the use of the email provider in relation to the trading platform. The lack of use of mail resources is a clear sign of a fraudulent structure.
- Match invoices for payment with details of a potential partner.
- Before starting a collaboration get acquainted with company information on the website of the Chamber of Commerce of China.
Stage 6. We evaluate the conditions of purchase and delivery of products
Usually, conditions, deadlines and other nuances Collaborations are standard and are published on the supplier’s website. At the same time, the entrepreneur may offer more preferable conditions.
Important! Considerable time should be devoted to this procedure, since improving the terms of the contract can save the entrepreneur money.
It should also be noted that with small batches of goods There is no need for product certification, customs and tax reporting and other related documentation.
With an increase in supply, the entrepreneur faces a number of difficulties in supporting transactions. However, experienced businessmen successfully cope with these difficulties.
Stage 7. Profitability Assessment
For successful performance, it is simply necessary to evaluate the level of profitability.
The ratio of profit to cost shows in percentage terms how reliable and stable the business is.
If the indicator is more than 100%, then the activity is highly profitable and has significant prospects for growth and development, and also provides significant income.
In the case when the indicator below 10%, an entrepreneur should think about improving business efficiency.
Even a high profit with a small profitability does not provide the company with a stable position, with an increase in receivables there is a risk of liquidity problems.
Stage 8. Where to find a buyer and how to promote products
The most important factor is the availability of initial financial resources. In their absence, it is necessary to be smart and use tools that do not require cash or a small amount.
There are great opportunities to prove yourself in mediation, as well as use the sales opportunities using popular social networks, as well as creating landing pages on the network. What is landing page (landing pages), how to create them and what are they for? We wrote in the previous article.
You should also use the opportunity to promote through free bulletin boards on the Internet.
The great popularity of the site among potential buyers (more than 7 million visits per day) in a compartment with product demand allows you to count on significant revenue.
A very popular platform for activities in this direction is the resource Avito.ru.
Stage 9. Purchase of a trial batch of goods and analysis of its consumer properties
Be sure to purchase a test batch of products. The product should be tested in the expected operating conditions: evaluate the quality, functionality, resistance to various influences, as well as appearance.
The importance of these procedures is difficult to overestimate - the lack of product satisfaction with most customers has a detrimental effect on the business.
In the absence of consumer properties of products satisfying customers, the optimal solution would be to refuse the transaction than loss of reputation.
The entrepreneur must remember that long-term success is directly proportional to customer satisfaction and loyalty.
Stage 10. Choosing the organizational form of the business and the beginning of activity
The final stage is the choice of the legal form of business and the beginning of entrepreneurial activity.
Through mediation, it is more expedient to open an IP, while this solution will save money. The main point at this stage is the ability to overcome laziness and fear.
The acquired information and the measures taken to limit the risk should give confidence to the entrepreneur in the success of his undertaking.
What goods from China can you earn? A list of the best-selling (sought after) goods from China
4. Which goods from China can you earn - TOP-15 of sought-after and cost-effective goods
Most of the goods from China are not very expensive, but not all of them are in demand on the Russian market.
The following is a list of the most popular among buyers and at the same time profitable for entrepreneurs products from China:
- Men's, women's and children's clothing;
- Shoes for men, women and children;
- Accessories (jewelry, watches, glasses, belts, scarves, hats, etc.);
- Bags, backpacks and wallets;
- Mobile phones;
- Accessories for mobile phones;
- Electronics for cars;
- Appliances;
- Computer technology;
- Laptops, tablets and e-books;
- Toys and designers for children;
- Kitchen products (knives, pans, pans, etc.);
- Disposable goods (disposable tableware, hygiene products, etc.);
- Food products with a long shelf life (tea, coffee, dried fruits, etc.);
- Technique and tools.
The presented list contains by no means all the categories of goods from China that are in demand in Russia, however, many entrepreneurs receive significant income by organizing the supply of these products.
5. How to start a large wholesale business with China - where and how to buy goods from China in bulk 📦
Conducting a large wholesale business in cooperation with Chinese partners requires a more serious attitude of supporting documentation.
It should follow the scheme:
- Obligatory statement of consignment notes and the availability of all necessary certificates.
- Disinhibition of goods must be carried out without violating the customs legislation of the parties, paying the necessary duties.
- For goods imported into Russia, declarations and certificates of conformity are required.
To deliver goods from China to Russia, as a rule, they use several optimal options, of which the most profitable and reliable delivery by road.
How to buy bulk goods from China - recommendations and tips for the delivery of goods from China
When selecting products on the supplier’s Internet site, one should refer to the designations in the “Product Price” section (EXW and FOB).
EXW - This is providing the customer with products directly from the enterprise. Delivery costs are borne by the buyer, as well as the choice of methods for its implementation.
Fob - The price of the goods includes the cost of delivery to Shanghai and the preparation of related documents. Subsequent delivery to the final destination is paid by the customer.
Important! You must make sure that the Chinese partner has a permit (license) for the export of products. Using this document, the supplier has the legal right to export goods from China.
If there is no license, then the entrepreneur will have objective difficulties with exporting goods outside the country.
5.1. What does the purchase of goods “in bulk” mean?
Under the term "wholesale"different entrepreneurs understand different things. The purchase of a large quantity of goods, in the assortment of which contains a significant list of diverse products of several pieces of each kind, is not in bulk.
Wholesale - This is the purchase of one type of product in the Nth quantity.
Each supplier sets several prices for their products, which depends on the volume of purchases.
The required quantity for the wholesale lot and price is individually considered by the intermediary: some interpret the lot 10 pieces as a wholesale, and others - from 1,000 pieces.
A fairly common practice is the gradation of price reduction depending on the party: from 10 pieces, from 100 pieces, from 1000 pieces, etc.
5.2. Sites of cheap goods from China - 2 main resources for bulk purchases
The most popular sites on the Internet for wholesale:
- Alibaba.com - there is also Russian-language support;
- 1688.com - Only Chinese is used.
On these resources, entrepreneurs will find a large number of profitable wholesale offers for a wide range of goods: accessories, clothing, personal care products, shoes, car care products, products for children and much more.
Work at each of these sites is built differently.
Website 1. Alibaba.com
Alibaba - a key wholesale resource of the Alibaba Group concern, where there is no opportunity to purchase products, as on the same site aliexpress.com.
Here are concentrated offers from manufacturers from many countries of the world, but mainly from China.
In fact, the entrepreneur finds the goods he needs, and then he comes in contact with the supplier and agrees on the conditions, prices and issues related to the delivery.
Alibaba.com Service Instructions
The process of working on the site includes a number of steps:
- Registration;
- Search for the desired product;
- Request to the supplier and discussion of the terms of the transaction;
- Coordination and conclusion of the transaction.
Search for the right product
As a rule, there are two approaches to choosing a product on Alibaba. One option is to use the keyword search menu. The second is a request for the necessary list of products and subsequent consideration of all possible offers from potential partners.
The search for products takes place in several stages:
- Opening the cover page of Alibaba;
- In the search mode, enter the name of the product;
- Activate the search through the "Search" button.
Search Query Recommendations:
- You should not use complex queries with a narrowly targeted product name;
- It is advisable to search for one product with a one-time request;
- In the absence of a suitable result in the search, the wording of the request should be simplified;
- The name of the country of origin should be avoided in the request;
- In the request there is no need to include the words "intermediary", "manufacturer" and others;
- In a query, words should be enclosed in quotation marks;
- To exclude certain items from the query results, enter a name with a minus sign in front of it in the search menu.
Entrepreneurs should take advantage of the possibility of a request for the purchase of products, which is not paid and makes it possible to compare suppliers' offers, choosing the best of them.
On the main page of the resource, 12 main sections of goods are displayed, where new products are placed, which are only entering the market. This makes it possible to use exclusive goods in your business.
Classification of suppliers on Alibaba
On the site there is a gradation of suppliers by status:
- Provider with a free profile on the service. Collaboration with these intermediaries is associated with great risk.
- Provider verified by matching data online. It falls under the classification - the average level of reliability.
- A supplier verified through a visit by a representative of a trading floor to production facilities, as well as familiarization with all the necessary documentation. They are the most reliable suppliers providing their services.
Pricing and Checkout
To determine the final price of goods, it is necessary to establish contact with the supplier by writing a message to him. The cost of production may vary and depends on: the situation on the market, the duration of cooperation between partners, the volume of the purchased consignment, and other factors.
There are 3 ways to establish contact with the supplier:
- Send a message.
- Start order. When familiarizing yourself with the goods supplied, you can, without discussing, proceed to agree on the conditions.
- Establishing contacts through chatting.
In order for the supplier to take the entrepreneur’s appeals seriously and respond as quickly as possible, it is necessary to correctly compose requests that must include certain information:
- Information about the contact person (last name and first name, position) and about the organization (country, occupation, etc.);
- Information about the required product (quality, parameters, specifications, color, etc.);
- Preferred price and size of the required minimum batch of products.
The process of discussing the conditions is as follows: the customer determines the quantity, sets an acceptable unit price and sends a message confirming the order. Subject to agreement, the supplier accepts the order.
If he does not agree, then a counter proposal is put forward. The transaction is considered final when the order is confirmed by both partners.
Shipping and payment
When placing an order, indicate the date of dispatch of the goods or the period after which this procedure must be completed.
Suppliers usually include in the price the cost of delivering the goods to the side of the ship at the port. Subsequent delivery costs are borne by the customer.
In this case, in the absence of experience, you should use the services of companies that are engaged in logistics. It often happens that they offer their own delivery schemes that will save money.
Two methods of payment are available for Russian entrepreneurs to pay for the services of suppliers and intermediaries: bank transfer (it is advisable to use it with any consignment) and credit card payment (it is best used for small consignments).
Scheme of ordering goods on a resource when using an intermediary
Basically, on this trading platform, deals are made for large wholesale parties, but following certain recommendations, transactions can be made with a small volume of purchases.
In China, most suppliers have their profiles on all significant sites, so the sale can be through any resource.
Purchase Organization Scheme:
- Register for Alibaba.com;
- Search for a supplier and products;
- Request for prices for the required volume of products;
- Price negotiation;
- An agreement with a supplier on the possibility of shipment of products to an intermediary in China and transaction through taobao.com or www.1688.comby first asking for a link to the selected products of one of these resources;
- Transfer of the order to the intermediary;
- The intermediary pays for the order, receives its commission and delivers the goods to the entrepreneur.
This scheme has many advantages that save money. The entrepreneur independently searches for the goods and the necessary supplier for the purchase of goods on a wholesale resource. At the same time, you do not need to use the services of a transport company, since the intermediary arranges delivery and passage through customs on his own.
This scheme is profitable with small volumes of procurement of goods for small entrepreneurs.
Website 2. www.1688.com
The resource is intended for trade between Chinese counterparties, and for the purchase of goods to third-country nationals it is necessary to use the services of intermediaries.
There are several price options, depending on the desired purchase volume.
Instructions for using the service www.1688.com
Product Search
The site is maintained only in Chinese and to find the necessary products, you should act in this way:
- Website opening. To work on the Internet site, it is advisable to use the Google Chrome browser, which will translate information from the site into Russian.
- Use of Internet translators. Allows you to translate the Russian-language name of the goods into Chinese.
- Search for products. The translated information is transferred to the search mode and as a result the entire list of the offered goods is displayed.
- Sorting products according to specified criteria. To search for goods with the necessary characteristics, you should use the sorting function according to the necessary criteria: sizes, price, color, material, etc.
- The choice of goods from the proposed options.
The main feature of the resource is the presence in most products of 2-3 prices for each individual item. The larger the volume of purchased products, the more the unit price becomes more profitable.
Procurement Procedure and Pricing
The process of ordering goods and pricing taking into account delivery looks like this:
- Product selection. The above recommendations should be used;
- Registration of an order form with an intermediary. Initially, it is necessary to establish contact with him;
- The intermediary contacts the manufacturers or distributors regarding the availability of the necessary products;
- Price negotiation. In the presence of all the necessary goods in the seller’s warehouses, the intermediary resets the entrepreneur with information indicating the price, taking into account delivery in China, as well as indicating the cost of his services;
- Approval of the transaction. If the entrepreneur agrees, the transaction is approved;
- Decision-making in the absence of certain goods. In the absence of some order items, an entrepreneur may turn to another intermediary for help and place an order with him in full with all the necessary list of products. An alternative solution would be to replace the missing items with another product;
- Payment for goods and services of an intermediary;
- Search and execution of a contract with a transport company;
- Payment for delivery of products to Russia.
Recommendations and tips on how to start your business with China on resale without investment or with minimal investment + beginners mistakes and rules
6. Important Tips for Newbies
To establish effective activities and earn significant income, you need to get acquainted with all the nuances and aspects of this area of entrepreneurship.
There are a number of factors that limit the cooperation of Russian business with Chinese manufacturers and distributors.
If you ignore these circumstances, the entrepreneur risks get losses or to lose all funds spent.
The success of a business is significantly affected by a number of factors:
- Skills of choosing from the proposed variety of products the goods in demand;
- The presence of a substantive assessment of business profitability;
- Work with trusted suppliers and the ability to negotiate with partners;
- The ability to create and develop sales channels.
It is very important to automate as many processes in the business as possible, while concentrating on productive, directly affecting the result of activities, without wasting time on trifles.
6.1. Typical mistakes newcomers to business with China
Many newcomers to the business make a number of mistakes that significantly affect the result of their activities.
The main shortcomings in working with China in the resale of goods from China:
- Lack of focus on a particular business model. Many entrepreneurs strive to get a quick income and therefore are looking for the best option for them, while constantly experimenting with goods, business models and suppliers. This approach does not lead to the development of entrepreneurial activity.
- Fear of decision making. Fear of possible losses and failures negatively affects the business and leads to evasion of decision-making.
- Focus on initial investments.
- Lack of knowledge and experience in the field of business.
- Lack of desire to learn new information and put it into practice.
On the Internet, there is a lot of information on the development of entrepreneurial skills, a large number of books, video and audio information on training business organization in cooperation with Chinese partners.
The only thing that limits beginners is lack of proper motivation. We also recommend reading our article - “How to open your own business from scratch”, which also presents all kinds of ideas for a business with minimal investment, etc.
6.2. List of rules that alert you to potential risks.
Beginners can warn, and possibly avoid negative consequences in the business, if in the process of activity they follow certain recommendations:
- With the greatest degree of seriousness refers to the choice of suppliers, as well as on an ongoing basis to recheck their activities;
- Execute all contracts in writing;
- Constant control over the supplied products;
- To provide for contracts with partners from China for the supply of low-quality (defective) products;
- If there is no need not to use the services of intermediaries;
- Constantly analyze changing demand and respond quickly to changes in market conditions.
7. Frequently Asked Questions
Consider the most asked questions among aspiring entrepreneurs who want to open a business on reselling goods from China.
Question 1. Is resale of goods from China legal? How to do business with China under the law of the Russian Federation?
When organizing a large business for the supply and subsequent sale of goods from China, it is necessary to carry out activities within the framework of the law. The main attention should be paid to customs payments.
If the cost of production does not exceed 1000 euros and the weight is no more than 31 kilograms for a calendar month, then no customs duty will be levied on such a batch (it is necessary to clarify the relevance of the information).
If these parameters are exceeded for entrepreneurs 30% must be paid from excess value or 4 euro for 1 kilogram over 31 kilograms per month.
For activities legally required all the required documentation:
- originals of contracts for the sale of goods,
- certificates of conformity,
- purchase price lists.
The entire list of relevant documents should be requested from intermediaries, suppliers and manufacturers from the Chinese side.
For legal activity, a businessman needs to register as an individual entrepreneur (or use another organizational and legal form of entrepreneurship, LLC, etc.) in all regulatory bodies. How to open an LLC, we wrote in previous releases of the site.
Also, for the convenience of doing business and increasing sales, you can create an online store, a website selling goods from China by bank transfer. For example, by connecting the services of mobile or Internet acquiring.
Question 2. What to sell in the online store and what products from China can ensure maximum profit in the near future?
Many beginners to the entrepreneur are wondering when creating a business with China - what to sell and to whom to sell their goods?
In the foreseeable future, there are no countries that can compete with China in the range of products offered, as well as in the price of it.
The country's production base is constantly growing and developingConstant subsidies help Chinese entrepreneurs improve the quality of their products and optimize costs.
At the same time, a significant level of competition provides a fairly low price level.
Overview of products sold from China
So, which of the Chinese goods can provide the entrepreneur with a high level of income?
1. Shoes and clothes
Products in this category are relevant at the moment and will always be in demand. In Russia, as in most countries of the world, for a significant part of the population, the main factor in the purchase is the price, and then everything else.
The cost of shoes and clothes from the "Celestial" is lower than that of competitors with constantly improving quality and a large assortment of offers.
Another factor in the popularity of Chinese clothing and shoes is the fakes of famous brands. At the same time, the quality of the goods (as well as the price) can vary significantly.
Many Russian consumers want to assert themselves by acquiring "branded"thing for relatively little money.
2. Household appliances and electronics
Russians do not have much confidence in Chinese technology, but again, the price factor affects this category of goods, there is significant demand among the population. The purchase price from partners is very low and the entrepreneur has the opportunity to earn good money
3. Perfumes
In China, there have never been famous perfumers, but in the country they are very good at copying aromas, bringing them to the maximum likeness with the original. At the same time, a similar branded product costs 10-20 times more expensive.
The reaction rate of entrepreneurs in China is very fast: a new brand aroma appears on the market, and Asian masters are already in full swing creating an analogue.
4. Accessories
Watches, women’s and men’s bags, wallets, phone accessories are very popular and sold goods. Fakes in this category of goods are difficult to distinguish from the original. Substitutes of well-known brands are always in great demand among the population and their supply is very cost-effective.
5. Souvenirs
Most souvenirs in the world are of Chinese origin. Tourists and travelers always purchase these products.
Products are made from glass, ceramics, plastic, which allows her to maintain her consumer properties for a long time, stored in warehouses (in the garage) and sold gradually.
We also recommend that you read the article - “Business Production in the Garage”, where ideas on how and what kind of business can be opened in the garage box are described.
6. Everything for cars
The total number of vehicles in Russia is increasing from year to year, the cost of car maintenance is also growing: inspection, repair costs, insurance, fuel. And the objective desire of motorists to save on related products is understandable.
Sale spare parts, brushes, covers and automotive video and audio equipment allow the entrepreneur to satisfy demand and provide himself with a significant level of income.
8. Conclusion + video on the topic
A business in cooperation with manufacturers and a supplier from China with a rational organization of work is very profitable, especially thanks to intermediaries with low commissions, ordering goods from China is much easier and more convenient. The price difference between goods between China and Russia may be 500 % and more.
With the right choice of a niche and working with reliable suppliers, an entrepreneur has the opportunity to build a stable, profitable business.
Many young and successful entrepreneurs have already launched their startup projects, where a certain part of the business is occupied by goods from China. What is a startup we wrote in one of our previous issues.
In conclusion, we advise you to watch a video that tells about 10 stepsstart a business with China without significant investments:
Dear readers of the RichPro business magazine, we will be grateful if you share your experience and comments on the topic of publication in the comments below. Good luck and success in business with China!