The Chinese market is one of the best for importing products across various categories. Here’s a short guide for those still hesitating whether to start a business with China. In short, it's definitely worth it. For details, read on. We outline the key aspects for a successful start.
How to Order Goods from China in Bulk — Step-by-Step Process
The process for bulk ordering differs from private purchases. Key steps include:
- Finding optimal characteristics and prices, followed by purchasing goods in China. On marketplaces, look directly for manufacturers to secure the best deal. Middlemen within the country will sell the same goods with added markup.
- Payment challenge: many accept only domestic cards.
- Waiting for the batch from the seller, with consolidation at a warehouse or direct delivery. The latter is rare in a domestic market that is not designed for export.
- Transportation to Ukraine. Your cargo is packed in crating, on pallets, or in boxes, depending on dimensions. It is then loaded onto a ship or plane — expect a message from customs.
- Customs clearance: document checks and payment of duties and fees.
Another way to order goods from China directly from factories:
- Finding a manufacturer offering optimal technology and favorable terms.
- Negotiating with Chinese partners and signing a contract.
- Manufacturing your product at the factory.
- Delivering to the warehouse and monitoring purchases.
- Transporting the cargo to Ukraine.
- Customs clearance.
Each of these steps comes with risks: you might receive the wrong or defective goods, face hidden fees, or have documents incorrectly prepared, complicating customs clearance. Additionally, you won’t be able to independently find a container or book space on a plane for delivery. That’s why 99% of businesses work with companies providing international logistics services.
Possible Issues and Their Solutions by DiFFreight Experts
Let’s address the main questions from our clients and provide concise answers so you better understand how to order goods from China and deliver them to Ukraine.
- How to choose the best marketplace? The best suppliers by price operate on domestic platforms: 1688, JD.com, while platforms like Alibaba, Taobao are more export-oriented. You can also find factories producing for private labels on these sites.
- How to choose products if I can’t see them in person? Suppliers for wholesalers can provide additional photos, videos, dimensions, and material charts. However, you’ll need to request them: Chinese suppliers are not very willing to share information.
- How to negotiate if I don’t speak Chinese? Translation tools can suffice to purchase ready-made items. However, when dealing with factories, it’s better to hire an intermediary for negotiations. Knowing the cultural nuances of Chinese business etiquette is crucial for finding a long-term partner.
- How to make payments? This depends on the platform. Export-focused marketplaces accept international payment systems and cards, with transactions in USD. Domestic ones require transactions through Chinese payment systems, which are hard to set up for non-residents. For example, AliPay allows linking only Chinese cards.
- How do you order goods from China and check quality? DiFFreight’s experience shows that it’s most cost-effective to inspect quality while the products are still in China. It’s easier to return or request replacement of defective items.
- What documents are required? Besides invoices, bills of lading, and packing lists, you may need certificates and licenses. Studying these requirements can take months. Usually, customs brokers handle all documentation.
- What’s the best way to delivery of goods from China to Ukraine? The fastest but most expensive option is air freight, though there are many cargo restrictions for planes. Sea freight is cheaper but takes longer — up to 75 days. It’s more suitable for large batches or oversized cargo.
Keep in mind that all current shipments are multimodal: both planes and ships arrive at transport hubs in Poland. From there, cargo is transported by truck or rail to the Ukrainian border. This factor also affects delivery speed.
How to Order Goods from China and Make a Profit
To calculate margin, consider all costs related to purchasing, shipping, and selling, along with currency fluctuations and defect rates. Here’s a simple formula for net profit:
Margin (%) = ((Selling price - cost price) ÷ selling price) × 100
Example:
- Purchase price: $10 per unit.
- Delivery cost (per unit): $2.
- Customs duties and VAT: $4.
- Other expenses: $1.
- Total cost price: $10 + $2 + $4 + $1 = $17.
- Selling price: $22.
Plugging the numbers into the formula: ((22 - 17) ÷ 22 × 100 = 22.7%.
It’s generally accepted that 20% is the minimum for business survival, while 30-50% is ideal for growth. For a new business with China, you would need to raise the selling price to $25 to reach 32%, or cut costs to lower the cost price.
This example shows that saving even $1-2 per unit is crucial, so at the start, it’s essential to find favorable conditions.
Why DiFFreight is Your Reliable Partner
From a logistics company, we have grown into a full-fledged partner. DiFFreight offers:
- Sourcing and purchasing products;
- Negotiating with suppliers/manufacturers;
- Factory inspections;
- Batch quality checks at warehouses;
- Cargo consolidation;
- Customs brokerage services to prepare documentation.
This way, you don’t have to waste time-solving 101 problems. We’ll handle organizational matters and provide turnkey delivery. During a consultation with our experts, you’ll get answers to your questions, an accurate cost estimate, and transparent terms of cooperation. We hope you found this material helpful!
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