DiFFreight Blog How to Start a Product Business with China

How to Start a Product Business with China

How to Start a Product Business with China

China is one of the key strategic partners for Ukrainian retail. About 60% of global consumer goods production is concentrated in China. This opens unlimited opportunities but also involves many challenges. Success depends on a clear action plan: here is a cheat sheet for beginners on how to start a product business with China.

Where to Start a Product Business with China

Launching without a strategy risks freezing capital in non-liquid goods. The first steps, long before choosing a supplier and making a purchase, should be analytical:

  • Choosing a niche. Find products with steady demand or those growing in trends. Analytics tools like Google Trends can help. Evaluate search popularity in your region.
  • Meeting the needs of the target audience. A successful product solves a specific customer pain point: saves time, money, or provides comfort. Analyze competitors on Ukrainian marketplaces or online stores: what is missing from their assortment
  • Budget allocation. Calculate it using the formula: “Batch cost + logistics + customs payments + marketing + reserve (10–15%).” Do not invest everything in the product — you will need funds for promotion.

In e-commerce, it is better to start with small batches to test demand and audience sentiment. Choose small wholesale volumes to avoid being left with unsold goods.

How to Find and Verify Suppliers Before Ordering

A good supplier is worth its weight in gold! Chinese partners are interested in long-term cooperation, but you need to find a reliable offer with the best price. Searching for suppliers in China may take several months, but the result is worth it.

Where to search? Main platforms include Alibaba (export-oriented China), 1688 (domestic market), and Taobao (small wholesale). You can also contact factories directly or visit offline markets.

Delivery of goods from China to Ukraine
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How to verify a supplier or manufacturer? On marketplaces, pay attention to status, years on the platform, certifications, and reviews. It is better to work with a specialized factory than a general reseller. DiFFreight provides a legal status verification service — be confident in your business partners.

The next step is ordering test samples. Control samples allow you to evaluate materials, assembly, and compliance with promises. Try purchasing goods in China by delegating procurement to our buyers. The process is multi-stage, especially for large wholesale orders:

  1. Negotiations. Discuss MOQ (minimum order quantity), discounts, Incoterms, timelines, design or technology changes, and custom packaging.
  2. Contract execution. Record all agreements, including responsibility for defects and missed deadlines.
  3. Production control (audit). If you work under your own brand (OEM/ODM), hire DiFFreight inspectors in China. We will inspect the product during production.
  4. Delivery to the warehouse and inspection. Final inspection of finished goods before shipment to Ukraine.

If quantity, quality, and materials match the agreement, the second payment is made to the supplier and the cargo is prepared for international shipment.

How to Organize Delivery and Customs Clearance

Logistics directly affects product cost and your profit. Delivery depends on the segment (electronics, children’s goods, equipment, furniture, etc.), budget, and desired timelines. We will review all stages of how goods move from China to Ukraine.


Cargo Preparation at the Warehouse

This includes packaging and labeling. If you work with export-oriented sellers, they usually provide packaging, but when dealing with the domestic market, packaging must be added separately. Consolidation is also available — combining shipments from different suppliers into one container to reduce costs. We provide a full range of warehouse services in China.

Choosing a Transportation Method: Sea and Air Freight

Sea freight is optimal for large and heavy shipments. It is the most cost-effective option, but transit times range from 60 to 75 days. Air freight is suitable for valuable, lightweight, or trending goods that need to be sold immediately. Transit times are about 20–25 days, but rates are significantly higher.

DiFFreight offers multimodal delivery from China. A vessel or aircraft arrives at a European port or airport, after which the cargo is sorted and transported by land to Ukraine. This method of shipping goods from China to Ukraine ensures safety and minimizes delays.

Logistics Documentation

Each shipment is accompanied by a set of documents, which vary depending on the delivery method. The main documents include an invoice, packing list, export declaration, transport document, and customs declaration. Some of these are issued by the seller, so it is important to check the completeness of the document package.

Payment of Customs Duties

Customs clearance, or customs processing, is the legalization of goods when importing into Ukraine. The key document is the declaration, which contains a clear list of quantities, descriptions, declared customs value, and HS codes used to calculate duties and taxes. We recommend involving a customs broker.

Another important aspect is certification. It is not required for all categories of goods. Certificates are mandatory for children’s toys, furniture, electronics, food products, medicines, and more. Consult a broker to determine the exact list.

Once the cargo crosses the border, it is delivered to the customer. If you sell on marketplaces, consider fulfillment services. This involves outsourcing routine operations (storage, packaging, order processing, and delivery to the end customer) to a third party. Fulfillment allows you to focus on sales rather than operational tasks.

Common Beginner Mistakes and How to Avoid Them

Forewarned is forearmed. Pay attention to common mistakes:

  • Poor quality or unreliable supplier. Saving on inspection may result in defective goods and financial losses.
  • Inefficient delivery method. Freight costs can become a major expense and significantly reduce your margin.
  • Customs clearance issues. Even minor mistakes can raise questions from customs authorities, leading to delays and fines. Be especially careful with cargo shipments.
  • Low margin. If your profit after all expenses is less than 20–30%, you need to revise your approach. Look for cheaper products or ways to justify a higher price for customers.

A product business with China is a dynamic process: finding new suppliers, updating the product range, and optimizing logistics become routine tasks. A systematic approach is the key to building efficient supply chains and achieving stable profits.

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