Buying bulk from China, or importing goods from China to Australia, can be a savvy strategy for business entrepreneurs looking for a way to sell goods in Australia at a profit. As China caters to such a huge international market, the cost of manufacturing in China or sourcing goods from China is very minimal, making it possible to obtain wholesale products at an affordable cost.
Buying from China wholesale may be hard work but it can reap excellent results, if you play your cards right. But first, there are a few factors you’ll need to consider when developing a sourcing strategy that will work for you. Today, we’ll take you through the five steps of how to buy direct from China.
The first critical question to ask is, ‘Is your product idea viable?’ Make sure you’re comfortable with the regulations, standards, permits and approvals surrounding importing from China to Australia. If you can, consult a lawyer versed in international trade law, including both Australian and Chinese laws. This will help you work out any potential problems before you start.
Second, how is your product being developed? Partnering with a Chinese manufacturer who does not have the right skills or equipment to fulfil your vision for the product will only create frustration. Make sure you understand all the ins and outs of how to develop your product successfully before diving in.
Second, does your supplier have a minimum order quantity? Chinese suppliers often deal with quantities of 10,000 or more to meet the needs of their domestic market. If you are a small business or start-up who intends to order only 500 quantity orders, you might need to look elsewhere for a supplier.
In China especially, there are a lot of options when it comes to picking a supplier. You must exercise great caution when it comes to choosing your supplier and do thorough primary and secondary research. First, use online supplier directories. Second, follow this up by visiting trade shows in China to meet potential suppliers face to face, see their handiwork in person, and ultimately ensure you are getting the best deal.
Another important factor to consider is how to communicate your product idea accurately to your selected supplier. If you have developed a market ready prototype in your home country – which then can be remodelled by the supplier – share it with your supplier (but see Step 4 first). Providing a prototype to work from will make it much easier for your supplier to build your product from scratch, eliminating any chance of miscommunication and guarding you against a poor quality product.
As you will have almost no legal recourse in China, it is up to you to enforce your patent or trademark, and ensure your intellectual property is not being used without your consent. Preventing and mitigating risk is all about building a strong, watertight plan, so before heading overseas, consult with a trusted lawyer with expertise in this area to discuss how to best protect your ideas.
Imagine you’ve received a sample of your first product from your supplier – congratulations! Before you import goods en masse into Australia, you’ll need to ensure you have rigorous quality checks in place in China. This will prevent any nasty surprises when shipments arrive down the track.
International shipping can be costly, even at wholesale level, so consider your options carefully. One of the most cost-effective options for importing goods to Australia is via sea shipping.
To find out more about how to ship cost-effectively from China to Australia, get in touch with Shipporter. We offer an affordable sea courier shipping service which allows Australian businesses to take advantage of the cheaper production costs from international suppliers, without cutting into your profits!